Australian Competition and Consumer Commission Chairman, Mr Graeme Samuel, today launched a suite of ACCC guidance materials on carbon offsets claims.
"There is a growing trend of marketing claims about the ability to 'neutralise' the carbon footprint of, for example, cars, flights and households using carbon offsets," he said.
"Consumer concerns about the veracity of claims on carbon offsets have led the ACCC to develop guidance for consumers and industry on the Trade Practices Act implications of carbon offset claims."
In January 2008 the ACCC began consultations by inviting interested parties to respond to an ACCC Issues paper: The Trade Practices Act and carbon offset claims.
"The ACCC consulted broadly with stakeholders including consumer groups, accreditation agencies, offset providers and corporate participants in carbon offsets schemes," Mr Samuel said.
"The difficulties in understanding and verifying carbon claims give rise to concerns that consumers may be facing misleading and deceptive conduct associated with this emerging market."
Speaking with the ACCC's Consumer Consultative Committee, Mr Samuel said he was pleased to release industry and consumer guidance on these issues.
"Carbon claims and the Trade Practices Act is a guide for business and industry. It is intended to educate businesses about their obligations under the Act and to alert them to potentially problematic areas.
"The guide examines areas of concern identified in the consultation and submission process, including forward credited offsets, double counted offsets, low quality offsets and carbon neutrality."
Mr Samuel said the Consumer Consultative Committee would have a particular interest in Avoiding hot air: a consumer guide to carbon claims. This will be published on the ACCC website, as part of a new 'environmental claims' section.
"This approach was taken so that complex and somewhat technical information could be broken down easily for access by consumers.
"The information addresses what carbon claims are and the ACCC's role in regulating such claims. A list of useful links has been included also."
The publications have been released in electronic format only, in deference to environmental concerns and to the changing policy landscape.
Mr Samuel stressed that the ACCC is not advocating particular standards nor entering the policy debate on climate change.
"Our focus is on ensuring that appropriate steps are taken by business so that claims of carbon offsets or carbon neutrality are not misleading and that these claims are clear and understandable for consumers."
The ACCC has been active on 'greenwashing' and since December 2007, has achieved a number of market outcomes relating to 'green' claims. It has issued updated guidance for businesses and industry on the use of general environmental claims in marketing Green Marketing and the TPA as well as advice for consumers - Your consumer rights: environmental claims.
In developing this general guidance it became apparent that carbon offset claims were becoming a key area of concern.
"The ACCC guidance will provide a tool for consumers and business in navigating the sometimes murky waters of this new market."