We took a big polluter to court and campaigned against systemic greenwashing. Now the government has listened and acted to scrap the scheme that enabled dodgy ‘carbon neutral’ claims.

Three years ago, a group of mums, dads and grandparents did something that had never been done before in Australia. We took one of the country's largest energy retailers, EnergyAustralia, to the Federal Court because we didn't believe its "carbon neutral" energy products were genuine. This was a claim the Australian Government had officially certified, along with hundreds of other companies, through a scheme called Climate Active. We forced EnergyAustralia to apologise to all its customers, remove the offending product, and conceded that “offsets do not prevent or undo the harms caused by burning fossil fuels”. And last week, the federal government agreed, confirming it will close Climate Active and stop certifying "carbon neutral" claims entirely. Finally.

So what does "carbon neutral" actually mean? And why does it matter?

When a company labels a product "carbon neutral," they're telling you that any pollution created has been cancelled out, usually through something called "carbon offsets." Think of offsets like a written permission slip: a company pays someone elsewhere to plant trees or protect a forest, and in theory that cancels out the pollution they're creating. Sounds reasonable, right? The problem is, those permission slips often don't stack up. The trees may not survive, the forests may already have been protected. And critically, as EnergyAustralia was eventually forced to admit, offsets don't actually prevent or undo the harm caused by burning fossil fuels. Meanwhile, families were being marketed, or in some cases paying a premium for, "carbon neutral" brands and products, believing they were doing the right thing.

We know because hundreds of parents told us about thier experience. They deserved better. That's why we acted.

How we got here

Parents for Climate began raising concerns about Climate Active back in early 2023. What followed was years of determined work. Policy and submission volunteer and strategic advisor, David McEwen, wrote our formal submission to the Climate Active consultation, calling for the term "carbon neutral" to be discontinued and for any certification to represent genuine, direct emissions reduction, not just the purchase of offsets.

Alongside that, our team and volunteers drove ministerial engagement, meeting with decision-makers and keeping the pressure on. Parents across Australia responded to surveys, shared their stories and provided quotes that strengthened our advocacy and helped secure significant coverage in national and international media. And when it came to the legal case, Equity Generation Lawyers constructed the argument that ultimately brought EnergyAustralia to the table. This is what collective action really looks like, many people, playing different roles, all pulling in the same direction.

We surveyed consumers and energy retailers, publishing Climate Nonsense in October 2025 where we found more than one in three of Australia's major energy retailers at risk of misleading customers with "carbon neutral" claims. Most of them pointed straight to Climate Active certification as their defence.

So, represented by Equity Generation Lawyers, we took EnergyAustralia to the Federal Court. And after two brief appearances in the courtroom, we settled our case in our favour. EnergyAustralia apologised to all of their customers, including more than 400,000 who had "Go Neutral" plans and put in writing something remarkable: "offsets do not prevent or undo the harms caused by burning fossil fuels."

The whole argument, conceded by the company with the most to lose from conceding it. As David Hertzberg, Principal Lawyer at Equity Generation Lawyers put it:

"The litigation revealed the fundamental flaw in Climate Active's 'carbon neutral' certification: offsets do not undo the harms of burning fossil fuels. The legal and reputational risks of 'carbon neutral' claims based on offsetting are only growing."

And finally, after years of advocacy work, the Department of Climate Change, Energy, the Environment and Water confirmed it will close Climate Active entirely, citing integrity concerns, falling public trust, and a shift towards actual emissions reduction. These are exactly the arguments our community had been making for years. And this time, they listened. We welcome the move. Credit to Assistant Minister Josh Wilson, his team, and the Department of Climate Change, Energy, the Environment and Water for getting this done.

This is what collective action looks like

Not one powerful person. Not a single dramatic moment. A community of parents, grandparents and carers who refused to look away, showing up through legal proceedings, government consultations, and years of work most people never see. That's the Parents for Climate story. That's your story too.

And speaking of your stories, they matter more than you might realise. When we put out a call for parent case studies or quotes, and supporters responded, gave this work a human face that lands with everyday Australians in a way that no report or submission ever can. Decision-makers, journalists and other parents pay attention when they hear from someone just like them. Without your voice, we can build the argument, but we can't show the power of the movement behind it. So thank you, for whenever you consider taking action with Parents for Climate!

There is still work to do. Scrapping a broken scheme is only half the job, we need strong voluntary standards to replace Climate Active, not a vacuum that lets greenwashing quietly migrate offshore. Our CEO Nic Seton has been clear:

"Parents want the truth, and they want climate solutions that actually protect their kids' future. This decision shows that when families speak up, governments listen. Now we need to finish the job."

So today, we're taking a moment to celebrate what's possible when we act together - for the love of our kids.