CLIMATE
ACTIVE
GUIDE
IMPORTANT NOTICE & DISCLAIMER
The Climate Active Guide (the Guide) provides a general overview for businesses and other organisations voluntarily seeking to become
carbon neutral and/or Climate Active certified.
The Guide should only be used as a guide and is not to be relied upon. Interested parties should obtain independent advice on, and
conduct their own independent inquiries, analyses and assessment of, the information set out in the Climate Active Carbon Neutral
Standard (formerly the National Carbon Offset Standard).
No promise, representation, warranty or undertaking, express or implied, is made and no responsibility is accepted by the Commonwealth
as represented by the Department of the Environment and Energy as to the accuracy, currency or completeness of any part of the Guide.
To the maximum extent permitted by law the Commonwealth expressly disclaims all liability for any losses, costs or expenses incurred
directly or indirectly by any party as a result of reliance on or use beyond the intended purpose of the Guide as may be amended from
time to time.
COPYRIGHT
The material in this publication is copyright Commonwealth of Australia except as provided below and as indicated in this publication.
All material presented in this publication is provided under a Creative Commons Attribution (CC BY) 4.0 Australia license, with the
exception of the:
All variations of the Climate Active trade mark.
The details of the relevant license conditions are available on the Creative Commons website as is the full legal code for the CC BY 4.0
Australia license.
ATTRIBUTION
You are free to copy, communicate and adapt the Commonwealth copyright material in this publication in unaltered form only, retaining
this Disclaimer and attributing the Commonwealth of Australia (Department of the Environment and Energy) in the following manner:
Climate Active Guide © Commonwealth of Australia (Department of the Environment and Energy) 2019.
USING THE COMMONWEALTH COAT OF ARMS
Information and Guidelines on the use for the Coat of Arms are available from the It’s an Honour website and also at the following link
[Link]
Image and cover image: copyright Cieran Murphy – Cunderdin, Western Australia
Contents
1 Introduction 2
2 Climate Active and carbon neutrality 4
3 The benefits of being carbon neutral 6
4 How to become carbon neutral 8
5 Carbon Offsets 12
Co-benefits of offsetting 13
6 Climate Active certification 14
Benefits of certification 15
Six steps to certification 15
Cost of certification 17
Climate Active trade mark 19
Climate Active Guide 1 Introduction
1 Introduction
“Westpac Group knows investing in making
the environmental impacts of our activities more
efficient delivers long-term savings and enables us
to bring to life our commitment to environmental
responsibility and sustainability”
– Westpac
Climate Active is Australia’s collective This Guide is an overview for
initiative for climate action. Driven by businesses and other organisations
members and activated by consumers, seeking to be Climate Active for
Climate Active is a unique Government their operations, events, buildings,
backed program that enables businesses, precincts, products or services.
government and the community to reduce It outlines the benefits certification
carbon emissions. brings, the process of becoming
carbon neutral, and the costs.
By becoming Climate Active, Australian
businesses and organisations are
positioning themselves for success
in a low carbon economy. The Climate
Active trade mark confirms that
a carbon neutral claim has met a
robust standard and is a legitimate
and visible stamp of approval.
Image credit: Leah Kelley – Group of people enjoying music
2 concert (creative commons)
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Climate Active Guide 2 Climate Active and carbon neutrality
2 Climate Active and
carbon neutrality
Climate Active certification is awarded to To become carbon neutral, organisations
businesses and organisations that have calculate the emissions generated
reached a state of achieving net zero by their activity (such as driving or
emissions, otherwise known as carbon flying or electricity use), reduce these
neutrality. While we believe that Climate emissions as much as possible, and
Active certification is the most credible then compensate for the remaining
way to prove a carbon neutral claim it is unavoidable emissions by purchasing
possible to be carbon neutral without carbon offsets or carbon credits.
being certified. Businesses are free to Offsets are generated from an activity
use the Climate Active Carbon Neutral that prevents, reduces or removes
Standard to achieve carbon neutrality. greenhouse gas emissions from
being released into the atmosphere.
4 Image credit: Tiff Ng – Aerial shot of city (Melbourne)
The Climate Active
Carbon Neutral Standard
The Standard is administered by the Australian Government
and underpins Climate Active certification. It is based on
international standards tailored to Australia and is reviewed
and improved regularly to ensure its integrity and that it
remains aligned with best practice. The Standard:
• P
rovides guidance and sets minimum requirements for calculating,
reducing, offsetting, validating and publishing emissions.
• D etails how to credibly claim or become certified carbon neutral.
• I s available for a range of categories including organisations,
products and services, buildings, precincts and events.
The Standard is available at [Link]
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Climate Active Guide 3 The benefits of being carbon neutral
3 he benefits of
T
being carbon neutral
“We are acutely aware of the emerging impacts of climate
change and our responsibility in taking action in the interests
of our clients, staff, volunteers and the broader community.
The process of becoming a carbon neutral organisation has
led to significant operational savings, improved efficiencies
and positive recognition for the leadership we have taken.
We are proud of our investment in the future of Uniting
Communities, the South Australian community we serve
and our planet”
– Uniting Communities Chief Executive, Simon Schrapel
Future-proof your Attract and retain talent
organisation Research indicates that sustainability
A carbon neutral commitment is an increasingly important factor in
today will ensure your organisation attracting and retaining talent. Several
is equipped to readily adapt to a changing peer-reviewed studies show that many
regulatory landscape and a low carbon job seekers are attracted to organisations
economy in the future. with sustainable practices, and that they
feel more engaged and purpose-driven
The more businesses that commit
when their employer has a meaningful
to reducing their emissions, the better
social and environmental strategy.
chance they have collectively of limiting
the impacts of climate change on
business, including negative effects
on supply chains, customer bases
and insurance premiums.
Image credit L–R: copyright Department of the Environment and
Energy – Night time view over the Yarra River to the Melbourne
Cricket Ground; Johannes W – Action! (creative commons);
copyright With_Architecture Studio – Sustainable Housing for
Artists and Creative (SHAC) Development; Burak K – Turned on
6 Pendant Lamp (creative commons)
Meet growing expectations governments, councils and businesses are
from stakeholders embedding sustainability policies in their
procurement processes, and businesses
The private sector is facing mounting
that have accounted for, and offset, their
pressure from consumers and investors to
emissions will be first in line in low carbon
show that they are taking action on climate
procurement processes.
change. A commitment to carbon neutrality
demonstrates that your organisation is
serious about operating sustainably. Not Save energy and reduce costs
taking action represents significant legal, Reducing emissions as part of becoming
financial and reputational risks. carbon neutral, commonly involves making
operational changes that reduce energy or
Stand out from competitors fuel use. Many organisations see significant
savings during this process.
Environmental performance of an
organisation is becoming a valuable
source of competitive advantage. Carbon Develop carbon
neutrality is a genuine and demonstrable management expertise
contribution to the environment that Becoming carbon neutral helps
goes beyond an organisation’s corporate organisations to build internal carbon
social responsibility. accounting competence and management
processes to meet compliance
Organisations that go carbon neutral can
and voluntary emission reduction
purchase offset units from projects that
commitments.
align with their organisational values and
brand purpose, further highlighting their
commitment to sustainability.
Connect with the community
Many community-facing organisations and
businesses enjoy greater recognition and
Enter the carbon neutral
engagement in their community as a result
supply chain
of their carbon neutrality.
Carbon neutral businesses have an
advantage over other businesses when
it comes to supply chains. Increasingly
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Climate Active Guide 4 How to become carbon neutral
4 How to become
carbon neutral
“One of the key challenges to carbon neutrality is the
collection of robust data and metrics to accurately
account for all emissions under the organisation’s
operational control. Whilst this has been challenging,
it has also identified further opportunities for cutting
costs and emissions from within our operations”
– Jardan Australia
Image credit L–R: copyright NextDC – TP Facility M1_Racks; Anna Jiménez Calaf (creative commons)
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Calculating emissions Reducing emissions
The first step in going carbon neutral is to Having identified the emissions sources,
calculate the amount of greenhouse gases it may be possible for you to make simple
emitted within a defined boundary. The changes to your operations that can lead
boundary will depend on whether you are to emission reductions. For example,
seeking to become carbon neutral for your an organisation may:
operations, the products you make, the
• Improve energy efficiency
services you provide, the event you host or
by upgrading equipment
the building or precinct that you operate.
• Reduce electricity or fuel use
Within this boundary, all activities by changing staff behaviour
or sources that lead to greenhouse
• Purchase electricity from
gas emissions need to be identified.
renewable energy sources
These include sources that you have direct
• Use certified carbon neutral
or indirect control over, such as transport
products and services
fuels, purchased electricity, waste
generated in operations, business travel • Reduce or avoid travel where possible.
and other purchased goods and services.
Reducing emissions also means
Emission factors, including factors publicly
that less money is spent purchasing
available from the Australian Government,
offset units required to achieve
are used to convert the data from the
carbon neutrality.
emission sources into carbon dioxide
equivalent (CO2e) or greenhouse gas
emissions. The carbon account or footprint
is the sum of all the emissions.
Understanding emission sources and
calculating your carbon footprint
helps identify operational or
production efficiencies leading to
energy and cost savings.
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Climate Active Guide 4 How to become carbon neutral
Offsetting emissions
Offset units or carbon credits can be used Carbon credits or offset units can be
to compensate for emissions you cannot bought from various service providers that
reduce and to bring your carbon footprint manage the interaction between you and
down to zero. the offset project. This might include credit
verification, issuance, registration and
The purchase of carbon credits supports
cancellation on an official register.
projects that reduce or remove emissions
from the atmosphere, such as reforestation, To offset your emissions and make a
renewable energy or energy efficiency. claim of carbon neutrality, you need to
For example, a project may reduce cancel eligible offset units equivalent
emissions by changing the timing of savanna to your carbon footprint. Cancellation is
burning in Northern Australia or by building done through an official credit register
wind farms in China. One carbon credit is which ensures the credit cannot be sold
issued for each tonne of emissions avoided or used again.
or removed from the atmosphere.
Carbon neutral certification for buildings
The projects and credits are verified through can be sought through:
private and international standards. These
• NABERS Energy (NABERS
standards ensure that the projects are
National Administrator)
implemented, run and managed properly and
• Green Star – Performance
the credits they generate represent real and
(Green Building Council of Australia).
actual emissions sequestered or avoided.
Image credit: copyright Department of the Environment and Energy – Arncliffe
Image credit right: copyright Department of the Environment and Energy – Arncliffe; Right – copyright
Department of the Environment and Energy – Botany Bay area; Infographic: Offset units are used to compensate
10 for emissions a business produces in order to bring their carbon footprint down to zero
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Climate Active Guide 5 Carbon Offsets
5 Carbon Offsets
Offset units can be purchased from a range of domestic
and overseas projects that reduce or remove emissions
from the atmosphere. The Climate Active Carbon Neutral
Standard sets the requirements that must be met for an
offset unit to be eligible for use as part of a carbon neutral
claim. Integrity principles of the Standard ensure that any
units used to offset emissions are genuine and credible.
Image credit clockwise from top left: copyright Aboriginal Carbon Fund – Aboriginal Rangers managing country using traditional
knowledge and burning practises at Kowanyama in Cape York; John Andrew Rice – Eucalyptus (creative commons); Mariana Proenca –
Solar panel (creative commons); Matthew T Rader – Turbine (creative commons)
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Social and cultural benefits are the positive
aspects for communities where a project is
based such as employment for local people,
living and working on country, capacity building,
improved health and education, and access to
clean and affordable energy.
Economic benefits occur when income from the
sale of offset credits flows to the community
Offset units are generated by projects that reduce, remove or where a project is located and often translates
capture emissions from the atmosphere such as reforestation,
renewable energy or energy efficiency into employment and community support,
improved infrastructure, technology transfer,
Co-benefits of offsetting and increased economic activity.
Many offset projects deliver social, economic When considering offsets, many organisations
or environmental outcomes in addition to choose to support projects that align with their
emission reductions. corporate values. They may look for projects
that help people and communities, conserve
Environmental benefits include increased
natural resources or support moves from
biodiversity, maintaining habitat for native
conventional to renewable energy.
animal and plant species, improved local
air and water quality, avoiding vegetation
clearance, re-establishing vegetation on
previously cleared areas, and improved
environmental management.
Many organisations choose offset units that support co-benefits which align with their organisational values
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Climate Active Guide 6 Climate Active certification
6 Climate Active
certification
Climate Active certifies carbon neutral claims
for organisations, products and services, events,
buildings and precincts. Meeting the requirements
of the Standard is essential for certification.
Climate Active provides a simple framework of what is required for making a carbon
neutral claim. This is based on measuring emissions, reducing emissions, offsetting
and public reporting.
Image credit clockwise from top left: copyright BioPak – BioPak products; copyright Sydney Opera House – Sydney Opera House
sails in green; copyright City of Sydney – Solar panels at Sydney Park; copyright Jardan – Showroom
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Benefits of certification Membership to the Climate Active Network:
Certified organisations join a growing network of
A genuine stamp of approval against your
carbon neutral leaders that are invited to attend
carbon neutral claim: Certified organisations
sector insight and networking sessions.
can use the Climate Active trade mark to
support a genuine claim to be carbon neutral Guidance, advice and administration support:
against a robust and authoritative standard. Certified organisations receive guidance and
administrative support required to maintain
Promotion by the Climate Active team:
carbon neutral status.
Certified organisations are showcased on the
Climate Active website and acknowledged
through media releases, magazine articles,
case studies and social media.
Six steps to certification
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Climate Active Guide 6 Climate Active certification
Step 1 – Enter and maintain a licence agreement
Entering into a licence agreement confirms your commitment to achieving carbon neutrality
and ensures you are aware of your obligations for certification. A licence agreement lasts
for two years; however, you will have the opportunity to re-commit to a new agreement
every year.
Step 2 – Calculate your emissions
Calculating emissions ensures you are taking responsibility for all emissions produced
from a certified activity. Emissions can come from many sources, including electricity use,
transport fuels, waste and business travel. Emissions from all relevant sources are added
up to give the total emissions in a carbon account. A base year is set to allow for emission
comparisons over time.
Step 3 – Develop and implement an emission reduction strategy
A key component of certification is to make emission reductions ahead of offsetting.
An emission reduction strategy identifies the activities you plan to undertake to reduce your
emissions over a defined period. This often includes changes to your business operations
such as reducing electricity or purchasing it from renewable sources, limiting or avoiding
travel, and using certified carbon neutral products and services. You will need to report
publicly on your emissions each year and identify where reduction activities have contributed
to lower emissions.
Step 4 – Purchase offsets
Offsets are purchased to compensate for emissions that cannot be reduced or avoided.
To ensure all offsets used under Climate Active are genuine abatement, only offsets that
have met strict integrity criteria are allowed.
Step 5 – Arrange independent validation
Independent validation helps provide assurance that a carbon neutral claim is credible.
Independent validations vary depending on the certification type and size of your total
emissions. It may include arranging a source data audit when you apply and periodic
technical assessments of your carbon neutral claim.
Step 6 – Publish a public statement
A public disclosure statement allows interested parties to interrogate your carbon neutral
claim. It ensures transparency and helps builds trust and public confidence in the claim.
A statement is required every year for ongoing certifications.
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Cost of certification Carbon account consultants
and offset providers
The cost of going carbon neutral depends
Calculating the carbon inventory of
largely on the type and operation of your
an organisation or the life cycle of a
organisation, on the level of in-house
product can be a complex process and
expertise and on the size of the carbon
may require the technical expertise of a
footprint needing to be offset.
consultant. Consultants can also maintain
carbon inventories and undertake annual
Annual licence fee
reporting on behalf of your organisation.
There is an annual licence fee for Climate
Active certification based on the size Some organisations are already reporting
of an organisation’s carbon account their carbon impact to other programs,
and type and number of certifications. and can draw and expand on existing
It pays for licence administration, trade in‑house skills to take on carbon neutrality.
mark compliance and support services Others use the services of a carbon
for certified organisations. This includes consultant to assist with calculating at
promoting an organisation’s carbon neutral least the initial carbon inventory.
status and membership to the Climate A consultant or offset provider may also
Active Network. be engaged to assist with the purchase
For more information and current and cancellation of offset units.
fees contact the Climate Active The Department manages a list of
team via the Climate Active website Registered Consultants.
([Link]).
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Climate Active Guide 6 Climate Active certification
Offset units Independent validation
Achieving carbon neutrality usually Independent validation and public
requires the purchase and cancellation reporting ensures transparency and rigour
of carbon credits or offset units. While around carbon neutrality. Climate Active
some organisations are very successful certification generally requires that
in significantly reducing their carbon the emissions inventory or life cycle
footprint, in most cases some emissions assessment, and public report of a
remain to be offset. certification is independently validated.
The cost of this validation therefore should
The cost of offset units fluctuates
be built into considerations of any planning
with the market. However, the price is
for carbon neutrality consideration.
also largely dependent on the type of
abatement project from which the offset
unit is sought and whether it supports
additional outcomes (co-benefits).
Image credit clockwise from top left: copyright Department of the Environment and Energy – Cullulleraine; copyright
Department of the Environment and Energy – Storm clouds gathering over Toowoomba; copyright Ross Hill Wines – Vineyard;
copyright Department of the Environment and Energy – Small Eucalypt seedling
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Climate Active trade mark
Organisations that achieve certification are provided a licence to use the Climate
Active trade mark. The certification trade mark provides a legitimate and visual
stamp of approval. It gives the community confidence that a carbon neutral
claim has met all requirements of a robust standard. For many businesses,
the Climate Active trade mark helps to promote products and services and is
an integral part of their marketing strategy. The trade mark can be applied to
business activities, products or services, buildings, precincts, or events.
The certification trade mark is a trusted symbol for genuine claims of carbon
neutrality and positive action on climate change.
The trade mark can only be used by entities that have entered into a licence
agreement. A set of rules governs how and when it can be used.
Ready to be certified?
Visit our website for more information and to start the certification process.
[Link]
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