
Carbon offsets set aside following greenwashing lawsuit
One of Australia's largest energy firms has issued an apology to more than 400,000 customers, acknowledging that carbon offsets "do not prevent or undo harms" caused by burning fossil fuels.
EnergyAustralia issued the statement early on Monday following a lawsuit launched by Parents for Climate that had been scheduled to be heard in the NSW Federal Court on Wednesday last week.
The group, with more than 20,000 members, called EnergyAustralia's acknowledgement a win for Australian consumers but said it could also set a standard for the use of carbon offsets and environmentally friendly marketing by other companies.
The lawsuit, filed in August 2023, claimed the energy generator and retailer misled customers using its Go Neutral products that were marketed as "carbon neutral" due to the purchase of carbon offsets and claimed consumers would have a "positive impact on the environment".
In its statement
, EnergyAustralia apologised to customers who felt the marketing claims were unclear and acknowledged carbon offsets did not reverse environmental harm.
"While offsets can help people to invest in worthwhile projects that may reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use," the statement said.
"Even with carbon offsetting, the emissions released from burning fossil fuels for a customer's energy use still contribute to climate change."
EnergyAustralia withdrew its Go Neutral plans from the market in 2024, and chief customer officer Kate Gibson said the company would focus on direct efforts to reduce emissions in future.
"Carbon offsets should not be used to delay or diminish the important work that needs to be done to actively decarbonise," she said.
The energy giant's acknowledgement should herald a fresh approach to the use of carbon offsets in Australia, Parents for Climate chief executive Nic Seton said, as greenwashing had become too common.
"Parents have spent too long trying to make careful, considered decisions about where their money goes, especially in a cost-of-living crisis, but corporate greenwashing has pushed them off track," he said.
"This isn't just about EnergyAustralia ? it's about holding companies to a higher standard across the board."
Australian regulations for corporate environmental claims were not strong enough, Mr Seton said, and the government should consider ending
Climate Active carbon neutral certification
that had been under review since October 2023.
The outcome of the court case could set a standard for corporate environmental claims in Australia, Equity Generation Lawyers principal lawyer David Hertzberg, who represented the charity, said.
"Today's outcome is a watershed moment in greenwashing litigation in Australia," he said.
EnergyAustralia ranked as Australia's third-largest emitter in 2023-2024, according to statistics from the Clean Energy Regulator, and has more than 1.6 million customers.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

AU Financial Review
11 minutes ago
- AU Financial Review
Your new Lululemon gear could use recycled plastic from this start-up
Sydney-based recycling start-up Samsara Eco has inked a 10-year deal with leisurewear giant Lululemon to provide it with 20 per cent of its fibres for use across its collections. The agreement represents the most significant chapter in the emerging partnership between the Australian recycler and the Nasdaq-listed leggings specialist.


Perth Now
an hour ago
- Perth Now
AUKUS defence pact 'being reviewed' by US government
The US government is reportedly reviewing the AUKUS trilateral defence agreement between Australia, the UK and the US. The decision to conduct a review has been reported by multiple news outlets including Reuters, which cited US defence officials without giving further details. The review will reportedly examine whether the pact is in line with US President Donald Trump's 'America First' policy, according to the ABC which also cited a Pentagon source. AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison. It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats. The deal is worth hundreds of billions of dollars, although the first submarine is not expected to join the Australian fleet for years. Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is expected to initially buy between three and five off-the-shelf Virginia-class boats. At the time, US Defence Secretary Pete Hegseth said Mr Trump was supportive of the AUKUS deal. "The president is very aware, supportive of AUKUS," Mr Hegseth said after a meeting with Australian Defence Minister Richard Marles. "(He) recognises the importance of the defence industrial base." Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS. Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034. The US regime has already called for Australia to increase that spending to around 3.5 per cent. Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own. The first Australian-made boats are not due to be operational until the 2040s.


West Australian
an hour ago
- West Australian
AUKUS defence pact 'being reviewed' by US government
The US government is reportedly reviewing the AUKUS trilateral defence agreement between Australia, the UK and the US. The decision to conduct a review has been reported by multiple news outlets including Reuters, which cited US defence officials without giving further details. The review will reportedly examine whether the pact is in line with US President Donald Trump's 'America First' policy, according to the ABC which also cited a Pentagon source. AUKUS is a three-nation security alliance between Australia, the UK and the US agreed in 2021 under the prime ministership of ex-Liberal leader Scott Morrison. It was formed to counter China's strategic moves in the Pacific arena and was underpinned by an agreement between the US and the UK to provide Australia with access to nuclear-powered submarine technology, to eventually replace its aging Collins-class boats. The deal is worth hundreds of billions of dollars, although the first submarine is not expected to join the Australian fleet for years. Australia, which in February made the first of six $US500 million (about $800 million) payments to the US for the boats, is expected to initially buy between three and five off-the-shelf Virginia-class boats. At the time, US Defence Secretary Pete Hegseth said Mr Trump was supportive of the AUKUS deal. "The president is very aware, supportive of AUKUS," Mr Hegseth said after a meeting with Australian Defence Minister Richard Marles. "(He) recognises the importance of the defence industrial base." Mr Marles responded that the pair had discussed how the US and Australia could advance their longstanding diplomatic relationship in terms of national security, including AUKUS. Australia's military budget is expected to rise to 2.3 per cent of gross domestic product, or output, by 2034. The US regime has already called for Australia to increase that spending to around 3.5 per cent. Australia tore up its $90 billion diesel-powered submarine deal with France to sign on to AUKUS and is contracted to buy several off-the-shelf submarines costing about $US4 billion each, before making its own. The first Australian-made boats are not due to be operational until the 2040s.