Frequently Asked Questions on the Carbon Offset Program

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What is a carbon offset?

A carbon offset represents the reduction, removal, or avoidance of greenhouse gas (“GHG”) emissions (measured in tonnes of CO2e). Verifiable carbon offsets allow parties to offset a portion of GHG emissions associated with their activities by supporting projects that reduce, remove, or avoid a portion of GHG emissions from the atmosphere.[1]

 

[1] Source: offsets (chevron.com)
How does the Caltex Carbon Offset Program work?

Under the Caltex Carbon Offset Program, loyalty points that have been voluntarily contributed by a Caltex Rewards member through the redemption of a Carbon Offset voucher will be converted into a cash value which will then be used by Caltex and/or our Affiliates to calculate the number of Carbon Offsets to be retired based on the prevailing market price of the Carbon Offsets at the time Caltex retires the Carbon Offsets. 

 

For example: 

 A Caltex Reward member uses 100 loyalty points to redeem one Carbon Offset voucher. At the prevailing market price around the time of this FAQs publication, we expect the retirement of purchased offsets from these loyalty points in this example would offset approximately 19 to 37% of tailpipe greenhouse gas emissions associated with the combustion of the purchased fuel[1].  This estimated range may vary significantly at any given time depending on the overall participation in our loyalty programs as well as the market price of the offset at the time of retirement.

 

[1] The figures have been determined based on the loyalty point value, the current market price range of carbon offsets at that time of determining the figures and the Tailpipe Emission Conversion Factor for Gasoline.
What type of offset will be purchased under the Caltex Carbon Offset Program?

Offsets will be purchased from projects that have been registered, validated, and verified in accordance with the rules of an independent standard (“Project”), for example, the Verified Carbon Standard Program.  Following compliance with the relevant third-party standard, the Project is issued carbon credits, or offsets, each with a unique serial number (“Carbon Offsets”). Under this Caltex Carbon Offset Program, after Caltex and/or our Affiliates purchase carbon offsets from a Project, the redeemed loyalty point equivalent number of offsets will be retired on a quarterly basis and will not be traded again.

Can a customer opt-in when they make payment for the fuel purchase over the counter?

The Caltex Carbon Offset Program is only open to Caltex Rewards members who purchase fuel at Caltex retail stations in Malaysia via their CaltexGO app. 

Can I choose my own carbon offset project to direct my contribution to?

Caltex will look to include various projects under the Caltex Carbon Offset Program based on availability and other factors. 

 

 

 

Publication date: 1 November 2023