We all leave a footprint behind. And we all strive to reduce this footprint as much as we can.
For businesses, this can be done by offsetting and reducing carbon emissions. Businesses that offset their total footprint wear the badge of carbon neutrality.
Never mind the buzzwords
While people believe carbon neutrality is interchangeable with the terms ‘zero emissions’, ‘100% renewable’ and ‘green power’. That’s not quite the case.
Let’s take a look at why.
Carbon neutral businesses can take steps toward reducing their footprint by purchasing accredited Large-scale Generation Certificates (LGCs) to offset their scope 2 emissions – the indirect emissions from the generation of purchased energy. LGCs are created when large-scale renewable generators make energy. These certificates are only created by Clean Energy Regulator-approved renewable energy projects.
This is where we see a difference between committing to source energy from renewable projects and buying 100% renewable power.
While sourcing renewable energy through a Power Purchase Agreement or Virtual Generation Agreement (VGA) provides support to Australia’s pipeline of renewables, only businesses that commit to offsetting all of their energy use can claim to be 100% renewable. This can be done by purchasing 100% GreenPower or buying and surrendering enough LGCs to cover 100% of your energy use.
Another way to offset their footprint is by purchasing Australian Carbon Credit Units (ACCUs).
Flow Power is GreenPower® accredited. This means we can help businesses source 100% renewable energy.
How can businesses get onboard?
For businesses with sustainability targets, there are a few options.
Businesses can commit to sourcing their energy needs from renewable projects through a VGA (also known as Power Purchase Agreements). These deals connect businesses to the generation from wind and solar farms – or both and are often long-term. Businesses that sign onto VGAs can also opt to ‘green’ their power by buying additional LGCs.
Renewables can also be bought through GreenPower products, where a retailer can buy and surrender LGCs on your behalf for a portion or all of your energy use. Unlike a VGA, this does not match your energy use in real-time to the energy produced by specific wind and solar farms.
Flow Power allows businesses to access both of these options and set energy strategies that help meet sustainability goals faster.