This article follows on from part 1 and part 2 of this series, in which we discussed general questions about carbon neutrality, scopes, the Climate Active Program and typical emissions sources in a Climate Active carbon footprint. In this blog post, we’ll address how to get certified carbon neutral under Climate Active and how much it costs to get certified under the Climate Active program.
How do I become certified under Climate Active?
To become certified carbon neutral under Climate Active, there are four basic steps.
- Determine your carbon footprint boundary
- Calculate your carbon footprint
- Get your carbon footprint verified
- Purchase carbon offsets and submit all documentation to the Commonwealth Government
What responsibilities do you have under Climate Active?
The following list shows your responsibilities under the Climate Active program. Please note that a registered consultant can help you with engaging a verifier, collecting all necessary data, completing your report and guiding you through the offset purchase process.
- Sign Licence Agreement
- Pay annual fee
- Engage auditor/verifier
- Complete report or provide all data to a Registered Consultant (please note that 100% Renewables is a Registered Consultant)
- Purchase offsets
- Sign the Public Disclosure Statement and submit the report
- Submit web profile
- Use the Climate Active trademark correctly
How much does it cost to become certified under Climate Active?
There are four fee components for getting certified under Climate Active
- Engage a registered consultant to help you with the carbon inventory boundary and carbon footprint calculation
- Engage a third-party validation provider to verify the work done by the registered consultant
- Buy carbon offsets to achieve carbon neutrality
- Pay Climate Active membership fees
Please contact us for an estimate of how much you will likely need to pay for these four fee components. We can provide you with a 1-page report.
Let’s have a look at these fees in detail.
How much do I have to pay a registered consultant?
We are a registered consultant under the Climate Active program. Our fees depend on the size and complexity of your organisation, on how much of the work you would like to do yourself, as well as on the emission sources that are included. It’s best to contact us for a quote. We will give you a fixed fee quote once we understand your circumstances a bit better.
How much do I have to pay a verifier?
Just like with registered consultant fees, verification costs also increase with the complexity and size of your organisation. It is likely that verification providers will charge a higher fee if you choose not to engage a registered consultant.
What is the difference between a registered consultant and a verifier?
A ‘registered consultant’ can be engaged to develop your carbon inventory boundary, carbon footprint and emission reduction strategy. They would liaise with you, your verifier and the Commonwealth. It is not mandatory, and you could do this step yourself, but it is highly recommended that you do engage a registered consultant as they have the skilled resources who have done the training and are experienced in this work.
A verifier is an independent third party who must be engaged to validate the carbon boundary and footprint. Your registered consultant cannot be the same person or business as the verifier so that there is no conflict of interest.
Could we do any of this work ourselves?
You can develop your own carbon footprint in accordance with the Climate Active rules if you have the in-house resources. In any case, you will need to engage a verifier. You might find that a verifier’s fees are then a little higher, as they may have to do more detailed checking than they would otherwise have to do.
How much do I have to pay for carbon offsets?
There is a wide range of costs, depending on the actual offset project, its location, accreditation standard and co-benefits, as well as the volume you are purchasing. The range can be from $1.50 to $28 per carbon offset.
It is usually helpful to run a workshop with your key stakeholders to work out your preferences and what is feasible given your emissions and budget.
How much are Climate Active membership fees?
Climate Active licence fees depend entirely on the size of your current footprint. There are four brackets which range from under 2,000 tonnes of carbon emissions to over 80,000 tonnes. You will pay between $820 to $2,627 inc GST for the lowest bracket, a fee which will be charged annually. If your footprint is greater than 80,000 tonnes, you will need to pay $18,911 inc GST annually. These fees increase by 2.5% every year.
Do I have to pay all these fees every year?
No. You will have to pay yearly Climate Active membership and carbon offset fees to continue to be a carbon-neutral company. And you do need to calculate your carbon footprint annually as well, but this would be much less than the first time, and you should make sure that all the data collection and calculation processes are documented so that you can do the work in-house, or mainly in-house.
You will only need to pay the validation provider once every three years.
Does the size of my company matter?
Yes, absolutely. Because of the rigour and multi-step process that is involved with getting certified under Climate Active, there is a certain amount of cost involved with becoming carbon neutral under Climate Active.
To give you an example, the smallest bracket under Climate Active is between 0 and 2,000 tonnes of yearly emissions for organisations. 2,000 tonnes of carbon emissions roughly equal the electricity consumption of 300 homes or the fuel consumption of 600 cars.
Say your organisation emitted 100 tonnes of carbon emissions yearly. Climate Active fees would be $820 inc GST, while registered consultant and verification costs can vary between $500 and $10,000 each, depending on who you engage. Carbon offset costs will range from $1,200 to $2,800, depending on the exact carbon credits you would like to purchase.
Do I have to calculate my carbon footprint every year?
Yes, you will have to calculate your carbon footprint every year. Your organisation might have changed, or your carbon footprint boundary, or the way you collect your data. Your business activity may also have changed, resulting in a higher or lower carbon footprint. You may have outsourced activities that were previously insourced. The carbon intensity of the grid may also have changed, resulting in potentially lower emissions.
It is essential to calculate your carbon footprint every year so you can see the effect of those changes. It will allow you to celebrate any success you’ve had with emissions reductions or getting closer to your goal. Alternatively, it will be a good opportunity to put a particular focus on emissions that might have increased over time or that you want to target with your next emission reductions projects.
We recommend using a consultant such as 100% Renewables to help with the yearly calculation, but if you have the skills set and availability inhouse, you can undertake this activity yourself.
If you are going through Climate Active certification for the first time, the whole process can seem a bit confusing. Engaging a registered consultant such as 100% Renewables will ensure a smooth and easy process. Please download our Climate Active brochure to find out more about how we can help you with your Climate Active certification.
100% Renewables’ staff are registered consultants with Climate Active. If you would like to achieve certification, or prepare for certification, please contact Barbara.
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