Donations made to us for carbon removal are pooled. Once we have received a sufficient amount of these, we purchase Australian Carbon Credit Units (ACCUs). The Australian Government’s Clean Energy Regulator defines these units as representing ‘…one tonne of carbon dioxide equivalent (tCO2-e) stored or avoided by a project’. Carbon Bins currently purchases ACCUs at cost from Australian based supplier, CO2 Australia. While the spot price for ACCUs at the end of Quarter 3 in 2020 was around $16, the price we pay will be subject to variations in the market at the time of purchase. Details of the purchase will be published on our website.
CO2 Australia generates ACCUs via a variety of means, those purchased by Carbon Bins are sourced from Australian based afforestation and reforestation projects. Each ACCU generated from these projects represents one tonne of carbon dioxide equivalent (tCO2-e) removed from our atmosphere and stored within these trees and in the soil around them.
ACCUs are fungible items, meaning that they can be traded on carbon markets. All ACCUs purchased by Carbon Bins however, are retired. Doing so reduces the supply of ACCUs from carbon markets, in turn forcing the demand for them upward – To satisfy this demand, ACCU suppliers plant more trees. More trees means more CO2 pollution is removed from our skies. CO2 Australia is helping Carbon Bins to make this happen.
We keep 50 cents from all the $2 donations we receive to help us keep things running. As (approximately) $16 will purchase one ACCU (representing 1 tonne of carbon pollution removed), we can therefore say that the donation received via our bins helps to pay for the removal of approximately 94 kgs of carbon pollution from our atmosphere.