On August 9, 2023, Australian Parents for Climate Action (AP4CA) filed a claim in the Federal Court of Australia challenging allegedly misleading statements made by EnergyAustralia about its “carbon neutral” energy products. AP4CA is a climate advocacy organization that works for parents, carers, and families who want to create a safer future for their children. EnergyAustralia produces and sells electricity and is Australia’s third largest domestic greenhouse gas emitter, producing 16.2 million tonnes of CO2 equivalent in 2021/22. EnergyAustralia offers “Go Neutral Electricity” and “Go Neutral Gas” products. “Go Neutral” customers purchase energy which is mainly sourced from burning fossil fuels, and EnergyAustralia promises to purchase carbon credits to “offset” the associated emissions. The “Go Neutral” products require consumers to opt-in, but there is no additional cost to the consumer.
EnergyAustralia, on its website, claims that:
1. “Go Neutral” electricity and gas is “carbon neutral”;
2. Emissions created by “Go Neutral” electricity and gas are “cancelled out” or “negated”;
3. By opting into “Go Neutral” products, consumers “have a positive impact on the environment”.
AP4CA argues that EnergyAustralia’s marketing of its “Go Neutral” products amounts to misleading or deceptive conduct contrary to section 18 of the Australian Consumer Law. AP4CA argues that carbon offsets do not “cancel out” or “neutralize” the emissions generation by “Go Neutral” energy and that using “Go Neutral” energy does not have a positive impact on the environment. This is because, in summary:
1. Paying someone else to avoid generating emissions (known as an “avoidance” credit) is not equivalent to removing the emissions generated from “Go Neutral” energy. Almost 99% of EnergyAustralia’s carbon credits are avoidance credits;
2. Paying someone else to remove carbon emissions from the atmosphere (known as a “removal” credit) does not cancel out or negate the emissions generated from “Go Neutral” energy. The carbon removal projects EnergyAustralia buys are short-lived and not permanent;
3. The emissions from “Go Neutral” ultimately result in a net increase in greenhouse gases in the atmosphere.
AP4CA also argues that EnergyAustralia’s renewable energy product “PureEnergy” was not given the same prominence on its website as “Go Neutral”, meaning customers could not compare both products. AP4CA seeks a declaration that EnergyAustralia has misled its customers since 2019 about the greenhouse gas emissions associated with their electricity and gas usage. AP4CA also seeks an order that EnergyAustralia be restrained from making “carbon neutral” or similar statements to describe the “Go Neutral” product and that it issue a corrective statement to its customers.
The Court will list the matter for a first case management hearing.
Case Documents:
No case documents are available.