The Department of Climate Change, Energy, the Environment and Water (DCCEEW) has announced that it plans to end Climate Active, the federal government’s voluntary carbon neutral certification scheme.
DCCEEW will no longer review or monitor businesses’ voluntary climate claims and is now consulting on whether to close the program entirely or retain some standards and guidance.
The department’s stated rationale is that “with strong targets and new policies in place driving emissions reduction, the context for voluntary climate action has changed.”
Climate Active, formerly the National Carbon Offset Standard, certified organisations, products, services, events, buildings and precincts as “carbon neutral” if they measured their emissions, reduced them where practical, and offset the remainder.
Certified businesses could then use Climate Active trademarks in their marketing.
The Environmental Defenders Office (EDO) has previously highlighted concerns about the scheme and its potential to enable companies to greenwash their climate impacts.
Australia Institute complaint to the ACCC
In February 2023, we lodged a formal complaint with the ACCC on behalf of the Australia Institute, raising concerns that Climate Active’s carbon neutral claims were likely to mislead or deceive consumers in breach of the Australian Consumer Law. [1]
The complaint detailed how companies such as Tokyo Gas, Cooper Energy and Ampol used the certification to promote a “carbon neutral” image while relying almost entirely on offsets rather than genuine emissions reductions, often excluding scope 3 emissions and covering only a fraction of a company’s total footprint.
EDO argued Climate Active certification’s messaging (that certified businesses were “climate champions” with “one of the most rigorous” certifications “in the world”) allowed certified businesses to create a false impression of comprehensive climate action.
EDO’s submission to the government’s consultation
In December 2023, EDO made a detailed submission to DCCEEW’s own consultation on the program’s future direction.[2]
We argued Climate Active suffered from systemic flaws, including:
- targets aligned to Australia’s inadequate Nationally Determined Contribution rather than genuine 1.5°C science-based pathways;
- heavy reliance on offsets of questionable integrity;
- not requiring inclusion of scope 3 emissions; and
- an inherent conflict of interest in government acting as both regulator and commercial beneficiary of the scheme (certified businesses paid licence fees to use the trademark).
We recommended the program be overhauled to require credible, science-aligned transition plans, and that the “carbon neutral” trademark and terminology be discontinued altogether, warning that continuing to allow the claim risked further greenwashing and eroding public trust.
EDO’s sustained advocacy, through the Australia Institute’s complaint to the ACCC and its own submission to the consultation process, made important contributions to public debate that has resulted in the government’s decision to wind up the program.
Ending Climate Active is a win for consumer protection and climate integrity, closing a scheme that has for too long given companies cover to overstate their environmental credentials without making the deep, real emissions cuts required to meet Australia’s climate obligations.
Have your say
The consultation on whether to fully close Climate Active or retain limited elements remains open to businesses and stakeholders until September 18, 2026. [3]
References
[1] ACCC Complaint — The Australia Institute – Climate Active, 14-02-23
[3] Consultation on the Climate Active program (2026), Jul–Sep 2026
