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EnergyAustralia Settles Greenwashing Case, Apologizes to 400,000 Customers

The energy company admits carbon offsets cannot undo fossil fuel harms, discontinues Go Neutral program, and commits to direct emissions reductions.

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 has formally settled a greenwashing lawsuit brought by Parents for Climate, issuing an apology for misleading marketing of its Go Neutral carbon offset product.
  • The company acknowledged that carbon offsets do not prevent or undo the environmental damage caused by burning fossil fuels, a key claim in the case.
  • More than 400,000 customers had signed up for the Go Neutral program, which EnergyAustralia has now discontinued, shifting its focus to direct emissions reductions.
  • The settlement, which avoided a Federal Court trial, is seen as a potential precedent for corporate environmental claims in Australia.
  • Parents for Climate and their legal team described the case as a significant step toward holding companies accountable for greenwashing and promoting genuine climate action.