A major Australian energy company, Energy Australia, was accused of misleading marketing by claiming it was reducing emissions on behalf of its customers. The advocacy group Parents for Climate filed a lawsuit in the federal court in 2023. 

Energy Australia has acknowledged that carbon offsets cannot cancel out damage caused by greenhouse gas emissions and apologized to its 1.6 million customers.

Since 2016, Energy Australia had run its "go neutral" carbon offset program, which promised to make gas and electricity usage "carbon neutral" by using carbon offsets. Over 400,000 Australians signed up before the program was shut down in July 2024.

In its statement, the company said, "While offsets can help people to invest in worthwhile projects to help reduce greenhouse gas emissions elsewhere, offsets do not prevent or undo the harms caused by burning fossil fuels for a customer's energy use." 

Why This Matters

This isn't just about a single company. It's a rare and significant admission from a major player in the energy sector. Nic Seton, the chief executive of Parents for Climate, called it a "historic acknowledgement" that offsets should not be used as a "license to pollute." 

He further warned that greenwashing delays climate action and erodes trust, while it still costs money.

This case sends a powerful message to companies across the energy sectors:

• Transparency matters

• Offsets are not a free pass

• Greenwashing has real consequences

It also reminds people of a deeper issue—the systematic flaw in carbon offset markets. (The Guardian, May 19, 2025)

Source: Energy Australia apologises to 400,000 customers and settles greenwashing legal action