Carbon Claims and the Trade Practices Act

As climate change gains more attention around the world, a new focus on carbon emissions has emerged. Messages about global warming are everywhere urging us to reduce our carbon production to help the planet.

As consumers gain awareness of their carbon ‘footprint’ and start to look for ways to reduce their impact on the planet, a new generation of environmental claims around reducing carbon emissions are emerging—and subsequently an entire new market of carbon offset trading has appeared.

Many businesses use carbon offsetting to differentiate themselves and their products from their competition. Keen to display their ‘green’ credentials, some businesses are now examining their carbon footprint, taking steps to reduce it and purchasing offsets to compensate for the environmental impact of their activities.

Consumers can also choose to purchase carbon offsets for their activities as well as a wide variety of ‘carbon neutral’ products—everything from food and drink, to clothing and credit cards. Consumers can also offset their air travel and even attend ‘carbon neutral’ events.

As the green industry and the presence of carbon offset marketing grows, concerns are emerging about what consumers and businesses are really purchasing when they buy carbon offsets and carbon offset products. The increase in carbon neutral or ‘low carbon’ claims has created confusion. As there are no universally accepted definitions of these terms, understanding of the terms varies among consumers.

Currently, methodology used for assessment of carbon reduction, neutrality and footprints is varied. Which carbon offsets legitimately reduce carbon dioxide or other greenhouse gases and how to measure such reductions are subject to debate.

That is why it is essential consumers are provided with accurate and full information about carbon offset claims associated with products or services, in order to make informed decisions. Providing consumers with ‘the full picture’ is essential to ensuring they are not misled.

For a full copy of the publication, you may download Carbon Claims and the Trade Practices (PDF 134 KB) or visit www.pointcarbon.com.