"EnergyAustralia settles landmark greenwashing case", 19 May 2025

Electricity retailer EnergyAustralia has settled a landmark greenwashing legal case brought by Parents for Climate, publicly acknowledging that offsets do not undo the harms of burning fossil fuels.

In July 2023, Parents for Climate launched legal action against EnergyAustralia in the Federal Court alleging that EnergyAustralia’s marketing of its Go Neutral carbon offset product amounted to misleading or deceptive conduct contrary to the Australian Consumer Law.

“EnergyAustralia 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. EnergyAustralia has now shifted its focus to direct emissions reductions,” the retailer said in a statement.

Parents for Climate said it welcomed this acknowledgement and apology from EnergyAustralia, marking a major win. It is the first legal case of its kind in the country to protect the public from “carbon neutral” greenwashing.

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