Energy Australia has admitted that its Go Neutral scheme, which falsely told customers they could offset their gas and electricity usage, did nothing to stop climate change.
This is a landmark moment in the fight against greenwashing by companies pumping millions of tonnes of emissions into the atmosphere.
Energy Australia owns and operates some of the highest polluting industrial sites in Australia.
Now it admits that carbon offsets cannot undo the damage it causes by burning vast volumes of fossil fuels.
The admission only came after the Parents for Climate group took Energy Australia to the Federal Court over its Go Neutral claims.
ENERGY AUSTRALIA STATEMENT
"Today, Energy Australia acknowledges that carbon offsetting is not the most effective way to assist customers to reduce their emissions and apologises to any customer who felt that the way it marketed its Go Neutral products was unclear.
Energy Australia has now shifted its focus to direct emissions reductions.
Energy Australia acknowledges the importance of consumers understanding the climate impact of products and services offered to them and that offsets are not the most effective means of reducing greenhouse gas emissions."
The false carbon neutrality claim of the Go Neutral scheme was certified by the Australian government through its Climate Active program.
"This is little more than government-sponsored greenwashing," said Stephen Long, Senior Fellow and Contributing Editor at The Australia Institute.
"Instead of protecting Australian consumers from misleading claims and harmful practices, the government is promoting them through Climate Active.
"The Australia Institute has reported the Climate Active scheme to the ACCC and recommended that the scheme be referred to the National Audit Office.
"Climate Active has enabled big polluters like Energy Australia to promote themselves as leaders in the fight against climate change when, in fact, it's the exact opposite.
"Dozens of huge corporations have withdrawn from Climate Active, yet the government still encourages consumers to support companies which use it, without offering any proof those companies are taking meaningful climate action or verifying that any emissions are offset".
