Carbon neutral claims from retailers found to be greenwashing
Several Australian energy retailers continue to market their power plans as “carbon neutral” despite a legal case that forced EnergyAustralia to apologise for the same practice.
Environmental group Parents for Climate has urged 13 retailers to rethink their marketing, calling the continued use of offsets “a wake-up call and invitation” to act responsibly.
The group’s findings follow its successful legal challenge that led EnergyAustralia to admit offsets cannot “prevent or undo” the harms from burning fossil fuels.
Parents for Climate CEO Nic Seton says the phrase “carbon neutral” misleads customers who believe offsets erase emissions.
Offsets, such as revegetation projects, have long been used to balance emissions, but critics say integrity problems and overuse have undermined their credibility.
AGL, ActewAGL, Energy Locals, Engie, Pacific Blue Retail and Kleenheat were among the retailers still using “carbon neutral” in their marketing.
Many companies cited participation in the federal Climate Active program, which certifies offset integrity but is now under government review.
EnergyAustralia, once Climate Active-certified, has dropped its offset-based products and apologised to customers after the legal challenge.
Other companies, including AGL, ActewAGL and Pacific Blue, say they are reviewing or refining their advertising to clarify how offset products work.
Parents for Climate praised EnergyAustralia, Nectr and Alinta Energy for improving transparency and urged others to take direct responsibility for their emissions rather than rely on offsets.