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.
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.
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. 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.
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 monthly basis and will not be traded again.
At the time of this FAQ publication, we plan to purchase carbon offsets from the following two (2) Projects:
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.
Caltex will look to include various projects under the Caltex Carbon Offset Program based on availability and other factors.