Green Energy 
Green Energy is a complex subject and open to abuse. Green tariffs from smaller suppliers where there is a company wide Green Ethos and all their production is sourced from  
Shades of green 
 
Renewables Obligation 
 
In the United Kingdom, suppliers are legally obliged to purchase a proportion of their electricity from renewable sources under the Renewables Obligation and there is a danger that energy suppliers may sell such green electricity under a premium 'green energy' tariff, rather than sourcing additional green electricity supplies. In addition to selling the green electricity to the consumer, it is also possible for the supplier to sell the associated Renewables Obligation Certificates to another supplier who has failed to meet their quota, rather than 'retiring' the certificate from the marketplace. 
 
Climate Change Levy 
 
Non-domestic consumers can avoid paying the Climate Change Levy by acquiring Levy Exemption Certificates from renewable energy suppliers. Since these are not required by domestic consumers, it is possible for the supplier to sell the certificates to the non-domestic sector, as well as selling the renewables obligation certificate and the electricity. 
 
Carbon offsetting 
 
In other cases green energy tariffs may involve carbon offsetting, rather than purchasing or investing in renewable energy, a practice that does not meet with universal approval. A prominent figure in the English environmental movement, has compared carbon offsets to the practice of purchasing indulgences during the Middle Ages, a practice of the wealthy where people believed they could purchase forgiveness for their sins (instead of actually repenting and not sinning anymore). Some see carbon offsets are an excuse for businesses to continue polluting while prominent their operation with little regard to pollution. Personally I feel this is a little harsh! A company should make every effort to reduce consumption and continue to invest in technology to reduce consumption and offset the rest. 
 
Reporting Requirements 
 
In June 2008, Defra announced that with effect from the current financial year (2008/9), Green Electricity is to be treated the same as average grid electricity for CO2 reporting purposes. Previously, it was treated as if there were no CO2 emissions associated with it. 
 
Explaining the change, the Minister responsible (Hilary Benn) said "I want to make sure that the green tariff market, which has grown rapidly over recent years, is clear for consumers and businesses about the precise benefit their tariff brings. Many energy suppliers offer green tariffs to businesses and domestic customers who want to make a contribution to environmental projects or help tackle climate change, but these differ in what they deliver."  
 
He added "It is increasingly difficult to demonstrate that buying a renewable electricity tariff is offering additional carbon emissions reductions compared with what suppliers are required to source to meet the Renewables Obligation. I have therefore decided that we will change the voluntary corporate reporting guidelines to bring them into line with current best practice and provide coherent carbon accounting. This will mean that for the reporting year 2008-9, best practice is expected to be for businesses to use a grid average rate - average rate of carbon emissions associated with electricity transmitted on the national grid - unless their supplier can prove the carbon benefits are additional."  
 
This does not affect green electricity generated on site (eg from photovoltaics or a micro-wind turbine), which can continue to be reported as producing zero emissions. 
Green Gas 
 
At first glance this sounds like an oxymoron, and strictly speaking its true. Burning gas as a fossil fuel releases carbon and there is no real way around it.  
 
Gas however is a very energy dense fuel which can be burnt extremely efficiently and is the mainstay of the electricity generating in this country. 
 
Some suppliers have been concerned with the demand for green fuel and have developed a 'Green Gas' offering. Essentially this involves paying for carbon offsets in your gas price and receiving those certificates. 
 
Our personal opinion is that if you are serious about reducing your carbon footprint then taking control of your usage and control of your offsetting is probably a better way to proceed. 
 
BusinessSwitch can recommend specialist carbon offset companies who are respected in the industry for providing true additionality' of their projects. 
 
Our recommendation would be: 
Source the best value gas contract 
Commit to using some of the monies saved to instigate policies to reduce your usage 
Carbon Offset as much as you feel you can afford 
 
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