Farewell Climate Active – but what next?

Climate Active began as the National Carbon Offset Standard in 2010, providing a set of standards for businesses and other organisations to measure, report and offset carbon emissions and claim “carbon neutral” status for products, operations or assets.

In the property sector, Sydney’s 22-hectare urban renewal precinct, Barangaroo, became the first large-scale, mixed-use precinct certified carbon neutral under the scheme.

Other certified organisations include local governments, manufacturers, architecture practices, law firms, banks, energy companies, educational institutions, food and beverage producers, real estate investment trusts and retailers.

The ending of the program will mean certified organisations will no longer be able to use the branding or claim to be carbon neutral under the standard. There will be a supported 12–18 month phase-out period, according to DCCEEW.

Two options are being proposed for the closure. The first would see the program close, and organisations would need to seek certification under an alternative scheme.

The second option is the scheme would close, but DCCEEW would retain some voluntary standards and select guidance.

The department states that the closure responds to the significant changes that have occurred within the operating context around business decarbonisation. That includes the introduction of mandatory climate-related disclosure reporting for a growing number of businesses.

“The Australian Government has introduced a comprehensive suite of energy and climate policies that are helping businesses reduce their emissions, guided by a legislated target of net zero emissions by 2050,” DCCEEW says.

“Climate Active helped fill a gap in the domestic market. But there is now less need for government certification to incentivise voluntary climate action.”

Feedback is now sought from businesses and consultants on the strategy for the closure, with the consultation closing at 5pm on Friday, September 18, 2026.

Read the discussion paper and have your say here.

Image by Mollyroselee from Pixabay

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