Australian Parents for Climate Action v EnergyAustralia

COURT OR TRIBUNAL

Federal Court of Australia

DATE FILED (OR FIRST HEARING DATE)

09/08/2023

LITIGATION TYPE

Corporate Accountability

SUBJECT MATTER

Transparency/disclosure

REVIEW TYPE

N/A

SUMMARY

Australian Parents for Climate Action, represented by Equity Generation Lawyers, have filed a claim against EnergyAustralia alleging that their marketing of “Go Neutral” products amount to misleading or deceptive conduct contrary to s 18 of the Australian Consumer Law.

These Go Neutral products mainly use energy from burning fossil fuels but EnergyAustralia says they will purchase carbon credits to offset these emissions. On their website EnergyAustralia claim that: (1) Go Neutral electricity and gas is “carbon neutral”; (2) Emissions created by Go Neutral electricity and gas are “cancelled out” or “negated”; and (3) By opting into these products, consumers “have a positive impact on the environment”.

Australian Parents for Climate Action argue that these statements are misleading or deceptive because (1) Paying someone to avoid generating emissions is not equivalent to removing emissions from Go Neutral energy ('not equivalent' argument); (2) Paying someone to remove carbon emissions from the atmosphere does not cancel out or negate the emissions from Go Neutral energy ('short-lived and not permanent' argument); and (3) These emissions will result in a net increase in greenhouse gas emissions in the atmosphere ('net increase' argument).

Remedies sought are a declaration that EnergyAustralia has misled customers, that EnergyAustralia be restrained from making such statements and that EnergyAustralia issue a corrective statement to customers.

CASE DOCUMENTS

NSD833/2023 Australian Parents for Climate Action v EnergyAustralia
Equity Generation Lawyers' website