‘Very confusing’ carbon neutral energy claims on notice
Many energy retailers still label their energy plans as “carbon neutral” despite legal action that forced one of their rivals to apologize for the practice.
Environmental advocates Parents for the Climate have issued a “wake-up call and invitation” to 13 energy retailers identified as using carbon offsets to market their products.
The findings follow a legal challenge by climate advocates that led to EnergyAustralia’s admission that “offsets do not prevent or eliminate harm caused by the burning of fossil fuels”, which comes at a time when the integrity of carbon credits and the way they are used are increasingly scrutinised.
According to Nic Seton, CEO of Parents for Climate, the “worst offenders” claim their products are “carbon neutral” because of offset purchases.
“The reason this is a problem is because it’s so confusing,” he told AAP.
“A lot of people don’t understand what carbon neutral means.”
The implied “neutrality” is a red line for Mr. Seton, who argues that offsets cannot effectively offset the burning of fossil fuels.
Carbon offsets have been used for decades in Australia, referring to revegetation and other emissions-reducing projects paid for by companies and governments to account for the greenhouse gases they emit.
While supporters say they are funneling money into emissions-cutting projects, critics are wary of integrity issues and worry that offsets go far beyond their original purpose as a last resort for hard-to-reduce industries.
The environmental charity’s assessment found that AGL, ActewAGL, Energy Locals, Engie, Pacific Blue Retail and Kleenheat use carbon neutrality in their marketing materials.
Many companies criticized in the report noted their involvement in the federal government’s Climate Active program, which is expected to document carbon neutrality claims and prove offset integrity but is currently under review.
EnergyAustralia was once among them but has since been forced to abandon its Climate Active-backed products, apologize to customers and acknowledge the shortcomings of offsets following legal challenges.
Some energy companies contacted by AAP are evaluating the language used to market their products.
AGL said it was A spokesman said it was “actively reviewing” its approach to offset-based products, partly in response to the government’s review of the Climate Active scheme.
“We are aware of the limitations of offsets, including that offsets do not eliminate harm from emissions from activities such as using energy from the grid,” a spokesman said.
ActewAGL said it had improved the information on its website to “clarify how the carbon neutral gas preferred product works”.
“ActewAGL’s carbon neutral gas preferred product offers these customers a temporary option to contribute to wider emissions reduction efforts while they are not in a position to make further changes to their home,” he said.
A spokesperson for renewable energy producer and retailer Pacific Blue said it makes “regular updates” to its marketing material in line with consumer expectations.
Climate Parents has clearly identified three companies that are making progress towards “responsible advertising and climate integrity” in marketing energy products.
This included EnergyAustralia as well as Nectr and Alinta Energy.
Mr. Seton called on other energy companies to “take responsibility for the emissions they control and own.”
“And to do so separately from any offsetting use or investment in work or projects outside the company,” he said.
The Ministry of Climate Change, Energy, Environment and Water, which runs the Climate Active programme, was contacted for comment, as well as companies claiming carbon neutrality.
Australia’s Associated Press is the beating heart of Australian news. AAP is Australia’s only independent national news channel and has been providing accurate, reliable and fast-paced news content to the media industry, government and corporate sector for 85 years. We inform Australia.
