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EnergyAustralia Admits Carbon Offsets Failures in Landmark Greenwashing Settlement

The energy giant apologises to over 400,000 customers, acknowledging offsets did not undo fossil fuel harm, and commits to direct decarbonisation efforts.

Cooling towers at EnergyAustralia Holdings Ltd.'s Yallourn Power Station in the Latrobe Valley, Victoria, Australia, on Tuesday, Jan. 17, 2023. Elon Musk helped accelerate a transformation of Australias electricity grid to replace fossil fuels with clean power now it's a testing ground for global climate action. Photographer: Carla Gottgens/Bloomberg via Getty Images
Bring on the rebates. (Source: iStock Images)
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EnergyAustralia has admitted its 'Go Neutral' carbon emissions offset scheme does "not prevent or undo the harms caused by burning fossil fuels".

Overview

  • EnergyAustralia settled a Federal Court case brought by Parents for Climate, admitting its Go Neutral offsets program misled customers about environmental benefits.
  • The company apologised to over 400,000 customers, acknowledging that carbon offsets do not prevent or reverse the harm caused by burning fossil fuels.
  • EnergyAustralia withdrew its Go Neutral program in 2024 and will now focus on reducing emissions at the source instead of relying on offsets.
  • The case is seen as a pivotal moment for greenwashing litigation in Australia, with calls for stricter regulation of corporate environmental claims.
  • Despite criticisms of the Climate Active certification scheme, EnergyAustralia will remain a participant while redirecting efforts toward direct decarbonisation.