Frequently Asked Questions on the
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)
Under the Caltex Carbon Offset Program, loyalty points that have been voluntarily contributed by a CaltexGo member 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 fuel purchase of 50 liters of gasoline generates 100 loyalty points. 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 63 to 100% of tailpipe greenhouse gas emissions associated with the combustion of the purchased fuel[2]. 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.
[2] 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.
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.
At the time of this FAQ publication, we plan to purchase carbon offsets from the following two (2) Projects:
· The Verified Carbon Standard Project 674 -
Rimba Raya Biodiversity Reserve Project based in Central Kalimantan in Indonesia. Click here for more information: https://registry.verra.org/app/projectDetail/VCS/674.
· The Verified Carbon Standard Project 1650
- Reduced Emissions from Deforestation and Degradation in Seima Protection Forest, Cambodia. Click here for more information: https://registry.verra.org/app/projectDetail/VCS/1650.
The Caltex Carbon Offset Program is only open to CaltexGo members who purchase fuel at Caltex retail stations in Singapore via their CaltexGO app.
Caltex will look to include various projects under the Caltex Carbon Offset Program based on availability and other factors.
The terms and conditions set out below apply to the Caltex Carbon Offset ProgrammeThe terms and conditions set out below apply to the Caltex Carbon Offset Program (“Program”) organized by Chevron Singapore Pte Ltd (“Caltex”, or, together with Caltex’s affiliates, “we”).
1. The Program is only open to CaltexGo members who purchase fuel at Caltex retail stations in Singapore via their CaltexGO app (“CaltexGo Member”). Participation in the Program is on a voluntary basis limited to those CaltexGo Members who opt into the Program via the CaltexGO app.
2. Each CaltexGO Member may take part in the Program by electing to use loyalty points earned from their fuel purchase to offset a portion of certain carbon dioxide equivalent emissions from the combustion of fuel purchased. This election can only be made via the CaltexGO app.
3. Caltex offsets a portion of certain carbon dioxide equivalent emissions resulting from the combustion of Caltex-branded products by using verified Carbon Offsets. Caltex reserves the right at its sole discretion to select the offsets that will be used in connection with the Program and makes no representations or warranties as to the quality, verification, calculations, or other information related to the offsets or underlying projects, including that the Carbon Offsets will satisfy the requirements or expectations of any reporting standards.
4. The calculation of certain carbon dioxide equivalent emissions resulting from the combustion of Caltex-branded products is the result of multiplying (x) the volume of Caltex-branded products purchased by the CaltexGo Member pursuant to the Program by (y) the applicable emissions factors. The scope of emissions for the Program here refers to the tailpipe greenhouse gas emission associated with the combustion of the purchased fuel. The applicable emission factor is referenced from API Compendium (2021)[3]. These calculations may be subject to change without prior notice to you and at Caltex’s sole discretion as a result of changes in product or engine specifications, emission factors or otherwise.
5. The market price of the Carbon Offsets is set by a methodology incorporating indices, transaction costs and other elements that reflect the average monthly price of the Carbon Offsets. All these elements are affected by prevailing market conditions. Every quarter, Caltex retires the Carbon Offsets associated with the Caltex-branded products that were purchased the previous quarter.
6. In no event will Caltex and its parent company, affiliates, subsidiaries and related companies or their respective officers, directors, employees, members, shareholders, attorneys, representatives and agents (collectively, “Affiliates”), be responsible or liable for any damages or losses of any kind, (including but not limited to direct, indirect, incidental, consequential, special or punitive damages) arising out of or in connection with a CaltexGo Member’s election to participate in the Program (including but not limited to emissions-reduction claims).
7. These terms and conditions may be amended and/or the Program may be suspended or terminated by Caltex at any time without prior notice and without having to disclose any reason whatsoever.
8. This Program and the Terms and Conditions shall be governed by the laws of Singapore. Any dispute, controversy or difference arising out of or in connection with the Program and the Terms and Conditions, including any question regarding its existence, validity or termination, shall be amicably resolved between the parties. In the event the dispute cannot amicably resolved, the dispute will be resolved by arbitration administered by the Singapore International Arbitration Centre (“SIAC”) in accordance with the Arbitration Rules of the SIAC (“SIAC Rules”) for the time being in force, which rules are deemed to be incorporated by reference in this clause. The venue and seat of arbitration shall be Singapore. The Tribunal shall consist of 1 arbitrator. The language of arbitration shall be English.
9. By taking part in the Program, the CaltexGo Members automatically and voluntarily agree to the above stated Terms & Conditions.
10. While Caltex takes reasonable care to ensure that information provided by Caltex to CaltexGo Member is correct in relation to the Program, all such information may be subject to change, and Caltex has no liability to the CaltexGo Member or other third parties if there are errors or the information is not up to date. Information provided by Caltex relating to a particular carbon offset project is subject to change at any time without notice.
11. Caltex takes all reasonable steps to ensure information provided by third parties about their Projects are correct, but Caltex is not liable for any errors in the Project information or if the information is not up to date.
[3] (A) Source: API Compendium (2021) Table 3-8 for Densities, Higher Heating Values, and Carbon Contents for Various fuels. (B) Source: API Compendium (2021) Tables 4-3 and 4-6 for CO2e Combustion Emission Factors for Common Industry Fuel Types. Assumed GWPs for CH4 and N2O are 28 and 265, respectively.