Key facts
- Australia will end its Climate Active certification program for businesses' climate claims.
- The program, operating since 2010, has facilitated net emissions reductions and the surrender of carbon credits.
- The government is consulting on closure options, with certification to cease by June 30, 2027.
- The decision is driven by policy shifts, concerns over integrity, and evolving stakeholder expectations.
- Businesses will be supported to transition to international voluntary standards.
The Australian government has announced its intention to end the Climate Active certification program, a voluntary scheme for businesses to certify their climate claims. The Department of Climate Change, Energy, the Environment and Water (DCCEEW) is currently consulting on the closure, with a final decision and transition details expected by the end of 2026. Certification is slated to cease on June 30, 2027.
Launched in 2010, the Climate Active program has facilitated significant emissions reductions, with participants surrendering millions of Australian Carbon Credit Units (ACCUs) and other offsets. The government cited major policy shifts, including mandatory climate-related financial disclosures, new emissions targets, and the Net Zero Plan, as reasons for the closure. Concerns regarding the integrity of voluntary certification and international alignment, alongside increased expectations for direct emissions cuts, also contributed to the decision.
Under the proposed changes, the department will cease reviewing voluntary climate claims and discontinue the use of "carbon neutral" trademarks. Businesses will be guided toward alternative frameworks, such as international voluntary standards. The closure comes as the voluntary demand for ACCUs has reached five-year lows, with voluntary cancellations significantly down compared to previous periods. Several companies have withdrawn from Climate Active since 2024 due to negative coverage and litigation risks, leading to a substantial decrease in active certified brands.
The government's decision contrasts with recommendations from industry bodies like the Carbon Market Institute and the International Emissions Trading Association, which had advocated for reforms to strengthen the program rather than close it.