What does carbon neutral mean?

Carbon neutral means that the net greenhouse gas emissions associated with an activity are equal to zero.

For an electricity product to be considered carbon neutral, action must be taken to reduce and offset greenhouse gases emitted by the generation and delivery of that electricity.

How is carbon neutrality achieved?

The most common way is through carbon offsetting, which is when organisations buy eligible carbon offsets (sometimes called a carbon credit) to compensate for the emissions they produce. These offsets are created from initiatives that prevent, reduce or remove greenhouse gas emissions in the atmosphere. Find out more about carbon offsetting.

Why should I choose Carbon Neutral electricity?

  • Carbon Neutral is certified by Climate Active

  • It's an affordable way to offset emissions associated with the supply of electricity to your small business
  • It’s easy – all you need to do is opt in
  • You’re making a difference both locally and globally

How it works

  • Use your electricity as normal

    Your electricity comes from the grid and creates carbon emissions, which affect climate change. We'll calculate the emissions associated with the electricity that's delivered to your business.

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    We offset these emissions

    We buy eligible carbon credits from accredited projects to offset emissions associated with the generation and supply of electricity delivered to your business.

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    Together, we make a difference

    We choose offset projects from Australia and around the world that deliver real benefits for the planet. So you and your customers know your small change is making a big impact.

How do I sign up?

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I’m new to AGL

You can add Carbon Neutral to any small business electricity plan. Get started by choosing a plan that’s right for you.

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I have an AGL plan

It’s easy to add Carbon Neutral to your existing electricity plan by messaging us here or in My Account. You’ll need to be the account holder and have your account number handy.

Carbon Neutral carries over from your existing plan if you move to another AGL contract (unless you move premises).

Have a large business? You’ll need to request a call back so we can get you set up.

Let’s look towards tomorrow

We heard you loud and clear, Australia – a sustainable future matters to you. And it matters to us, too.

It’s why we’ve been busy making some of the biggest investments in renewables across Australia. Like investing in local wind and solar farms and battery technology.

While Carbon Neutral is our next step towards a sustainable future, it certainly won’t be the last.

Frequently asked questions

Who's Climate Active?

AGL is proud to be a part of the Climate Active network.

Climate Active is an Australian network of individuals, businesses and organisations that aim to empower Australians to take climate action now and for the future. The Climate Active network is comprised of certified members across a wide range of industries. This government-backed program enables all levels of Australian society to work together to protect the environment. 

Climate Active certification makes it easier for consumers to make a conscious decision to identify and choose certified electricity and other products that are making a difference.

What is carbon offsetting?

Carbon offsetting is one means by which a product may become carbon neutral. Going carbon neutral means taking action to reduce and offset greenhouse gas emissions (including carbon dioxide in the atmosphere), so that the net emissions associated with an activity are equal to zero.  

For an electricity product, it involves taking action, including purchasing eligible carbon offset units, to cover greenhouse gas emissions associated with the generation and delivery of the product. This means you can compensate for a tonne of CO2 emitted by a product by ensuring there is one less tonne in the atmosphere.

We purchase and retire eligible carbon offset units to cover the carbon emissions associated with the generation and delivery of electricity supplied to our customers’ household or business for those that opt-in. We also cover the carbon emitted as a result of our own business’ everyday activities, such as travel, power usage, etc.

What is a carbon offset unit?

Carbon offsets are units or ‘credits’ that represent reductions or removals of greenhouse gas emissions from the atmosphere.

An eligible carbon offset unit may be created by undertaking certain projects, which have the effect of removing greenhouse gas from the environment. Each eligible carbon offset unit represents the removal of one tonne of carbon dioxide equivalent (tCO2-e) from the environment.

How does AGL choose which carbon offsets to purchase and retire?

We employ a rigorous selection process when it comes to the eligible carbon offsets we purchase. The eligible carbon offsets meet the integrity requirements under the Climate Active Carbon Neutral Standard to ensure they represent genuine abatement. There are many different offset methodologies; some examples include reforestation, renewable energy or energy efficiency projects that generate eligible carbon offsets. Many of these projects also provide other positive environmental or social benefits.

We have purchased eligible carbon offset units from accredited projects, including Australian carbon credit units (ACCUs) and Gold Standard Verified Emissions Reductions (GSVERs). 

You can find more information on the types of eligible carbon offsets and the projects we invest in by reading our public disclosure statement.

What does it mean to retire carbon offsets?

Eligible carbon offset units are purchased from domestic and international carbon markets and then retired. It’s important to retire offsets to ensure that the emissions reduction they represent is not double counted. Double counting refers to the same single greenhouse gas emission reduction or removal being counted more than once to show compliance with mitigation targets (possibly across different regulations).

How do carbon offset projects work?

When you opt-in to Carbon Neutral certified electricity, you’re helping to invest in projects that reduce greenhouse gas (GHG) emissions. These projects may involve initiatives such as restoring forests, developing clean cookstove technology, fire management, updating or creating new renewable energy infrastructure such as solar and wind farms, landfill gas (methane) or carbon capture.

How do I keep up to date with what projects are being invested in?

We’ll keep you up to date on the projects from time to time via email, or you can visit AGL Discover at any time to find out more.

What else is AGL doing to address climate change?

As Australia’s largest and oldest integrated electricity generator and retailer, we play a vital role in Australia’s energy market and the wider transition.

AGL’s Climate Statement is the next step in our decarbonisation journey, and commits AGL to action in five areas to further evolve our energy transition plans:

  • Offer customers the option of carbon neutrality across our electricity, gas and telco plans
  • Support the evolution of Australia’s voluntary carbon markets
  • Continue investing in new sources of electricity supply
  • Responsibly transition our energy portfolio
  • Be transparent.

We are already on the path to achieving our target of net zero emissions by 2050, and our five commitments will ensure we responsively and responsibly harness the power of our customers, community and technology to get there.

How much does Carbon Neutral cost?

For small business customers, you can add Carbon Neutral to your electricity plan for only $4 a week (GST incl.).

Can I add Carbon Neutral to my current electricity plan?

You can add Carbon Neutral to any of our business electricity plans, including our solar plans.

Can I add Carbon Neutral to my gas plan?

No, not at this stage. At the moment, we are only offering Carbon Neutral on our electricity plans.

If I move premises, do I still have carbon neutral certified electricity activated on my account?

If you move premises and connect with AGL there, you will need to add carbon neutral certified electricity at the new premise. It’s quick and easy to set up, you can do it online or by speaking with one of our specialised business agents over the phone.

When will my weekly contributions start?

Within 10 business days of opting into Carbon Neutral.

How can I cancel my Carbon Neutral weekly contributions?

You’ll need to contact us to opt out at 133 835.

I want to change electricity plans. Do I have to add Carbon Neutral again to my new plan?

No, it’ll carry over from your existing plan if you move to another AGL plan (unless you move premises).

I have opted into Carbon Neutral – why hasn’t my contribution appeared on my next bill?

Although contributions will start within 10 business days of opting in, they might not show on your bill for up to 6 weeks.

How is Carbon Neutral different to Green Energy?

Think of Carbon Neutral as the same electricity that you buy today, except the key difference is we reduce and offset the emissions associated with the generation and supply of electricity delivered to your home.

Green Energy is another green and sustainable option available for AGL customers, where customers nominate a portion of their household electricity consumption and AGL sources the equivalent portion from renewable energy sources. The cost of Green Energy varies depending on the amount you choose and how much electricity you use. Learn more about Green Energy.

Do you have more questions?

You can contact us by email or chat, or call us on 133 835.