Clima Blog

The Clima Carbon Index (CCI) provides a comprehensive metric to gauge the carbon footprint of consumer goods and services in Australia, benchmarked against the Australian Bureau of Statistics Consumer Price Index (CPI). This document outlines the methodologies utilised, from the basket selection to the emission calculations. As a valuable tool, the CCI facilitates informed and sustainable consumption choices and ushers in greater accessibility for carbon offset initiatives.

Objective

Clima Carbon Index (CCI) aims to evaluate the carbon footprint represented by the basket of goods and services in the Consumer Price Index (CPI).

Introduction

The Australian Consumer Price Index (CPI) reflects the quarterly price changes of a vast “basket” of consumer goods and services. This basket represents metropolitan household expenses. The CCI offers a systematic approach to measure, compare, and reduce carbon emissions tied to consumption. It bridges the gap between individual consumer choices and broader societal goals of carbon reduction.

Methodology

The CCI is intended to be utilised by customer-facing firms who operate within Australia’s consumer sector and wish to make a meaningful contribution to carbon emissions reductions by utilising the simple index kg emissions output per $100 spent to benchmark. The index constituents mirror Australian household consumption patterns, derived from the Australian Bureau of Statistics Consumer Price Index. The weighting system for constituents follows the CPI. To comprehensively evaluate carbon emissions, all CPI group sub-categories are mapped to their respective ANZSIC codes. Emissions data for domestic and international travel were calculated using data from ABS and Finder to understand travel behaviour, with considerations for average distances travelled from Sydney and accommodation at 4-star hotels.

Index Use

The CCI can guide more sustainable consumption decisions. By assigning a standardized and verified emission value to expenditure, it makes carbon offsetting more accessible.

By Clima