CO2 wins Qantas carbon offset contract

UPDATE 1.25pm: Shares in CO2 were higher after it secured a Qantas contract to provide carbon offsets as part of the airline's Fly Carbon Neutral program.

The scheme gives passengers the option of offsetting their proportion of the emissions generated by their flights.

CO2 said the contract involved the supply of more than 162,000 tonnes of verified carbon offsets from a broad array of carbon offset projects across Australia as well as international projects such as protecting native forests, clean energy and sustainable cooking fuels.

CO2 said it was experiencing an increase in demand for carbon offsets to meet voluntary company initiatives.

"We expect this demand to continue to grow significantly over the next 12 months," the company said in a statement.

CO2 did not place a monetary value on the Qantas contract.

Shares in the company were up 0.4 cents, or 6.15 per cent, at 6.9 cents at the close.