Purchase Credits FAQ

So what do you actually get when you buy a carbon credit?

Carbon Planet will provide you with an account in your name on the NSW Greenhouse registry. www.ggas-registry.nsw.gov.au Here you can keep an eye on the carbon credits you are accruing. For each of these carbon credits that you accrue one tonne of carbon dioxide that you have emitted will have been removed or saved from the atmosphere.

How does this work?

How many trees contribute to the forestry carbon credits that I buy?

According to Forests NSW calculations it takes just over five trees (5.33 trees) to create one carbon credit over a 100 year period. To erase your yearly CO₂ footprint, it takes about 128 trees over a 100 year period. To remove the CO₂ footprint of an average human life (80 years) requires 10240 Forests NSW trees. (Erase my CO₂ footprint now).

If I subscribe to carbon credits how easily can I unsubscribe?

You can unsubscribe at any time simply by contacting us.

Can my subscription be weekly, quarterly, or yearly instead of monthly?

No. We will be providing these services eventually, but for the time being we are trying to keep things simple, so only currently offer monthly subscriptions.

Does the quoted monthly subscription include GST?

Yes. Carbon Planet charges AU$22.73/tonne (excluding GST) which is AU$25/tonne (including GST).

Note: The Australian Goods and Services Tax (GST) is not usually levied on exports. However, the Australian taxation law is unclear about whether the usual GST exemptions for exports apply to carbon credits. For this reason, Carbon Planet has decided to play it safe and levy the GST for all customers regardless of whether they are inside or outside Australia. The GST collected is remitted to the Australian Federal Government.

Note: GST stands for Goods and Services Tax.

Does my subscription continue indefinitely or does it have to be periodically renewed?

Your subscription will continue (without further action on your part) until you cancel it, or until a credit card charge fails (in which case we will contact you). There is no need to resubscribe each year.

I don't own a car. Doesn't that mean that my subscription should be for fewer credits?

Yes. Not owning a car means that you emit on average five tonnes per year less than the average Australian. So, if you wish, you can subscribe for five tonnes less per year.

I use 100% green electricity. Doesn't that mean that my subscription should be for fewer credits?

Yes. If you use green electricity, you can reduce your subscription by four tonnes per year.

What is the smallest amount of carbon credits that can be transferred?

One tonne of carbon dioxide.

If my annual subscription is not a multiple of 12, how is it delivered on a monthly subscription basis?

Your annual subscription is divided by 12 and that amount charged to your credit card. Your annual tonnage is divided by 12 to yield a (not-necessarily whole number) tonnage per month. Starting with a zero "balance", your tonnage is added to your balance each month and the whole number part owing is transferred to you. For example, if your annual tonnage was 20 tonnes, your credit card would be charged AU$38.33 each month. You would be owed 1.66 tonnes per month. In the first month your balance would be 1.66 tonnes, so you would receive one tonne and have a remaining balance owing of 0.66 tonnes. In the next month, your balance would be 0.66+1.66=2.32 tonnes, so you would be transferred two tonnes and your balance would then be 0.32. This process would repeat indefinitely.

If I subscribe, can I change the number of tonnes per year later?

Yes. You can change your subscription at any time.

If I subscribe, do I have to receive your newsletter?

No. By default, if you subscribe to carbon credits, you will be subscribed to our newsletter. However, you can unsubscribe from the newsletter at any time.

Where does my money go?

As at 31-May-2007, most of the money (57%) goes to an NGAC producer to purchase your NGAC carbon credits. A portion (4%) is consumed by credit card processing costs. A portion (9%) is consumed by the Australian Goods and Services Tax (GST). The rest (30%) goes to Carbon Planet and from this Carbon Planet must recover all its establishment costs and the ongoing expense of providing this convenient retail interface to you.

Where the money goes

The graph above is correct as at 31-May-2007. As the market price of NGACs varies over time, these percentages will vary a little. We'll update this graph if the values drift by more than a few percent.

Why don't I just buy my NGACs direct from the producer?

You're welcome to try. However, our NGAC producers are usually wholesalers of NGACs, not retailers. NGAC wholesalers sell tens of thousands of tonnes at a time and are unlikely to be interested in selling NGACs in small quantities. In contrast, Carbon Planet's core business is to provide you with a convenient retail interface and excellent customer service.

If I buy a Forestry NGAC am I buying trees?

Strictly, No. By buying carbon credits you are purchasing the storage of carbon in trees managed as part of a carbon pool. However, by purchasing carbon credits from Carbon Planet your purchase will indeed stimulate the planting of more trees.

How many trees are planted?

Am I able to resell the carbon credits I purchase?

Yes. The NGAC carbon credits that you purchase will be transferred into your account (that Carbon Planet will create for you) in the NSW Greenhouse Gas Registry. You are then free to sell one or more of your NGACs to a third party and use the registry's transfer facility to transfer the NGACs to your buyer's account.

However, remember that if you sell an NGAC carbon credit, you can no longer consider it to have offset your personal greenhouse emissions. To offset your personal emissions, you must hold the credits indefinitely.

Warning: If you decide to sell one or more NGACs, do not make an agreement to buy or sell them at some point in the future (i.e. a "forward contract") or you may be categorised as dealing in securities (which requires a licence in Australia). Immediate ("spot") sales of NGACs are no problem (but please obtain your own legal advice to be certain).

Are carbon credits a tax deductible expense?

Buying carbon credits is not a charitable donation, but a retail action. Unlike many other carbon offsetters, we go to the trouble of actually selling you carbon credits, rather than simply taking your money and promising to do something good with it. We have asked our accountants about the tax deductibility of carbon credits and they said in their opinion carbon credits bought to offset a businesses' emissions should be a tax deductible expense, however the laws may vary from place to place and we've had no clear ruling from the Australian Tax Office. Thus Carbon Planet recommends you take this issue up with your own accountants. Carbon Planet is not qualified to give such tax advice. What is fairly clear however is that the purchase of carbon credits to offset your personal emissions is most likely not deductible. Feel free to get in touch with the Australian Tax Office to lobby for the purchase of certified carbon credits such as the ones we sell to qualify for some sort of tax relief.

Visit the Subscriptions Page.