Latest news with #AustralianGasNetworks
The Age
5 hours ago
- Business
- The Age
Climate-friendly gas claims challenged in landmark ACCC greenwash case
As oil and gas companies talk up their initiatives to shift to less-polluting fuels of the future, the national consumer watchdog wants to draw a line in the sand limiting how far those claims can go. On Thursday the Australian Competition and Consumer Commission (ACCC) launched a landmark lawsuit alleging millions of Australians were misled by a series of advertisements suggesting the gas that flows into household heaters and stovetops could be 'renewable' within a generation. Gas distribution company Australian Gas Networks ran an advertising campaign called 'Love Gas' in 2022 and 2023, featuring a father and his young daughter using gas-powered appliances for cooking, heating and bathing. The advertisement then fast-forwards in time to show the daughter, now an adult, engaging in the same activities. 'Some things will never change, but the flame we use will,' said the voiceover in the ad. 'It's becoming renewable.' As the gradual switch to all-electric homes threatens to leave billions of dollars of gas pipeline infrastructure as stranded assets, the promise of cleaner fuels – such as gases made from organic waste or hydrogen – being blended with and one day replacing polluting methane gas used in homes and businesses has become one of the industry's main survival plans. Loading But renewable gases are not yet commonly used nor available to residential gas customers. The ACCC alleges Australian Gas Networks' advertising overstated the likelihood it could overcome 'significant technological and economic barriers' within the time frame it suggested. 'It is not currently possible to distribute renewable gas at scale and at an economically viable price, and throughout 2022 and 2023 it was highly uncertain whether, and if so, when, this would be possible,' ACCC chair Gina Cass-Gottlieb said.
Sydney Morning Herald
5 hours ago
- Business
- Sydney Morning Herald
Climate-friendly gas claims challenged in landmark ACCC greenwash case
As oil and gas companies talk up their initiatives to shift to less-polluting fuels of the future, the national consumer watchdog wants to draw a line in the sand limiting how far those claims can go. On Thursday the Australian Competition and Consumer Commission (ACCC) launched a landmark lawsuit alleging millions of Australians were misled by a series of advertisements suggesting the gas that flows into household heaters and stovetops could be 'renewable' within a generation. Gas distribution company Australian Gas Networks ran an advertising campaign called 'Love Gas' in 2022 and 2023, featuring a father and his young daughter using gas-powered appliances for cooking, heating and bathing. The advertisement then fast-forwards in time to show the daughter, now an adult, engaging in the same activities. 'Some things will never change, but the flame we use will,' said the voiceover in the ad. 'It's becoming renewable.' As the gradual switch to all-electric homes threatens to leave billions of dollars of gas pipeline infrastructure as stranded assets, the promise of cleaner fuels – such as gases made from organic waste or hydrogen – being blended with and one day replacing polluting methane gas used in homes and businesses has become one of the industry's main survival plans. Loading But renewable gases are not yet commonly used nor available to residential gas customers. The ACCC alleges Australian Gas Networks' advertising overstated the likelihood it could overcome 'significant technological and economic barriers' within the time frame it suggested. 'It is not currently possible to distribute renewable gas at scale and at an economically viable price, and throughout 2022 and 2023 it was highly uncertain whether, and if so, when, this would be possible,' ACCC chair Gina Cass-Gottlieb said.
ABC News
5 hours ago
- Business
- ABC News
AGN accused of running dodgy 'Love Gas' ads that deceived audiences
One of Australia's biggest gas companies has misled "millions" of people by claiming its energy distribution network is becoming renewable, Australia's consumer watchdog alleges in its biggest "greenwashing" case yet. The ACCC (Australian Competition and Consumer Commission) action in the Federal Court relates to a series of "Love Gas" advertisements that Australian Gas Networks (AGN) ran back in 2022 and 2023. "The ads claimed that the gas that Australian Gas Networks supplies and distributes to households would be renewable within a generation," ACCC chair Gina Cass-Gottlieb told ABC News. "We allege, in fact, it didn't have a sufficient basis for making these claims." AGN owns gas transmission pipelines and other infrastructure that deliver the energy source to around 1.3 million homes and businesses around Australia. In recent years, the company has been pushing alternatives to fossil-fuel derived gas, including hydrogen made from renewable energy and biomethane derived from the processing of waste products. But these energy sources are in their infancy, and the ACCC action argues the science isn't there for AGN to make the claims that its network is going renewable. "There are a range of significant technical and economic obstacles," Ms Cass-Gottlieb said. "We are concerned that consumers were deprived of the opportunity to make informed choices about the right energy source for use in their homes. "For the household appliances that they're buying for the future and also for the steps that each of us can take in our lives to enhance sustainability." AGN will defend the action, a spokesperson for the company's parent company, AGIG (Australian Gas Infrastructure Group), said. "We always strive to provide clear and accurate communications about the role and benefits of natural gas today and renewable gas into the future," they said. "For this reason, we are disappointed with the ACCC's decision to take proceedings and will be defending these claims. "AGIG will not be making any further comment at this stage." The ACCC took action against AGN after the Australian Conservation Foundation (ACF) and members of the public raised concerns. The ACF's chief executive, Kelly O'Shanassy, welcomed the ACCC action on Thursday. "Gas is a polluting fossil fuel that, when dug up and burnt, releases billions of tonnes of emissions, driving global warming and dangerous climate-fuelled events like floods, fires and droughts," Ms O'Shanassy said. "The gas industry knows fossil fuels are not renewable, but it continues to try and hoodwink Australians into thinking gas is good for us. The matter will be heard in the Federal Court, where the ACCC will be seeking declarations, penalties, costs, and other orders against AGN. AGIG aims to reduce its emissions by 30 per cent by the end of the decade for its Scope 1 and 2 emissions. These cover the operations of its facilities and pipelines — including any gas that is leaked into the air in the process — but not the burning of the gas at its destination. AGN has also disputed a recent finding by the Ad Standards board about its controversial advertising for the Masterchef campaign. "While we disagree with the panel's decision that one aspect of our advertisement could be considered vague, we have made the decision to remove it from publication while we consider next steps," the spokesperson said. The company faces fines of up to $50 million per contravention.
The Guardian
7 hours ago
- Business
- The Guardian
Australian consumer watchdog takes gas company to court alleging it misled consumers over renewables claim
Australia's competition watchdog has launched federal court action against Australian Gas Networks, alleging the company misled consumers with its 'Love Gas' campaign. The advertisements, which ran on free-to-air television, streaming and YouTube during 2022 and 2023, claimed household gas would be 'renewable' within a generation. Sign up for Guardian Australia's breaking news email But Australian Gas Networks did not have reasonable grounds for making that claim, according to the Australian Competition and Consumer Commission (ACCC), given the significant technical and economic barriers to distributing renewable gas to households. 'We allege that Australian Gas Networks engaged in greenwashing in its 'Love Gas' ad campaign,' the ACCC chair, Gina Cass-Gottlieb, said. 'We say these ads were intended to encourage consumers to connect to, or remain connected to, Australian Gas Networks' distribution network and to purchase gas appliances for their homes, based on the misleading impression they would receive 'renewable gas' within a generation.' The advertisements featured a young girl and her father using gas appliances in the home, with voiceovers that included 'it's becoming renewable'. Each ended with the company's logo next to a green flame, along with the words: 'Love gas. Love a renewable gas future' – with no qualifications, fine print or disclaimers. 'Renewable gas' usually refers to a mix of hydrogen and fossil gas. A spokesperson for Australian Gas Networks said they were disappointed with the ACCC's decision to start proceedings and they would defend the claims. 'We always strive to provide clear and accurate communications about the role and benefits of natural gas today and renewable gas into the future,' the spokesperson said. The ACCC said it began the investigation after complaints from consumers and the Australian Conservation Foundation (ACF). The ACF chief executive, Kelly O'Shanassy, welcomed the ACCC's court action. 'Gas is a polluting fossil fuel that when dug up and burned releases billions of tonnes of emissions, driving global warming and dangerous climate-fuelled events like floods, fires and droughts,' she said. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion 'The gas industry knows fossil fuels are not renewable but it continues to try and hoodwink Australians into thinking gas is good for us.' ACF's original complaint, made in 2022, said the ads were misleading because not all forms of hydrogen were renewable, and most products being developed were blended with fossil gas. The climate organisation Comms Declare has also filed several complaints about the company's use of the term 'renewable gas'. 'We hope the misleading term 'renewable gas' can now be buried once and for all,' founder Belinda Noble said. 'You can't re-use something that has been burned, and you shouldn't promise to deliver a product that is not viable.' Cass-Gottlieb said businesses making environmental claims about the future must have reasonable grounds, or would be taken to be misleading under the Australian consumer law. 'Businesses must take care when they promote emissions-reduction measures that their claims can be backed up with evidence, and that they are realistic about emerging energy technologies and when changes are likely to be achieved.'
Sky News AU
10 hours ago
- Business
- Sky News AU
'Renewable gas greenwashing' lands Australian Gas Networks in court after ACCC alleges company misled consumers
A major Australian gas company has been sued for alleged greenwashing after claiming it could deliver 'renewable gas' within a generation. Australian Gas Networks in 2022 and 2023 ran its 'Love Gas' advertising campaign where a father and his young daughter used gas appliances in the home for cooking, heating and bathing. The ad fast forwarded to the daughter as an adult where she was engaging in the same activities. A voiceover throughout the ads claimed Australian Gas Networks' "flame" was "becoming renewable" for "this generation and the next". The final frame of each ad showed the company's logo next to a green flame and the words 'Love gas. Love a renewable gas future'; or just 'Love Gas'. Australian Gas Networks is now heading to court as the Australian Competition and Consumer Commission alleges the company engaged in 'greenwashing' through its ad campaign as it was overly ambitious with its renewables promises. 'We allege that the ads overstated the likelihood of Australian Gas Networks overcoming significant technical and economic barriers to distribute renewable gas to households within a generation,' ACCC chair Gina Cass-Gottlieb said. 'It is not currently possible to distribute renewable gas at scale and at an economically viable price, and throughout 2022 and 2023 it was highly uncertain whether, and if so when, this would be possible. 'We allege that even though Australian Gas Networks knew the future of renewable gas was uncertain, it made an unqualified representation to consumers that it would distribute renewable gas to households within a generation.' The consumer watchdog alleges these ads encouraged customers to either become a customer with Australian Gas Networks or remain customers with the company based on the 'misleading impression' they would receive 'renewable gas' within a generation. 'We consider that consumers were deprived of the opportunity to make fully informed choices,' Ms Cass-Gottlieb said. The ads did not contain any fine print, qualifications or disclaimers regarding its 'renewable gas' claim. Australian Gas Networks provides gas to about 1.3 million homes and businesses primarily in Victoria and South Australia, however, it also services Queensland, NSW and the Northern Territory. Ms Cass-Gottlieb said businesses that misled consumers through environmental claims were making it more difficult for companies 'that are genuinely working to reduce their environmental impact'. 'Businesses that make environmental claims about the future must have reasonable grounds for those claims, or they will be taken to be misleading under the Australian Consumer Law,' the ACCC chair said. 'Businesses must take care when they promote emissions-reduction measures that their claims can be backed up with evidence, and that they are realistic about emerging energy technologies and when changes are likely to be achieved. 'Misleading claims not only break the trust of consumers, they also breach the Australian Consumer Law.' It follows Clorox Australia, the company behind Glad wrap, being forced to pay an $8.25 million fine for greenwashing after the ACCC took it to court for greenwashing. Similarly, Active Super was fined $10.5m by the Federal Court in March over deceptive marketing that led its customers to believe it eliminated investments that 'posed too great a risk to the environment and the community'.
