The Australian government will end the Climate Active certification programme and phase out voluntary certification of businesses' climate claims after a formal transition, the Department of Climate Change, Energy, the Environment and Water (DCCEEW) has announced.
The department launched an eight-week consultation on 24 July to seek feedback on two options: full closure of the scheme or closure with some voluntary standards and guidance retained. A final decision and details of transitional arrangements will be announced by the end of 2026, with certification expected to cease on 30 June 2027.
The Climate Active programme has operated since 2010 and has achieved net emissions reductions of more than 25mn t of CO2 equivalent (CO2e) across scope 1, 2 and 3 emissions, DCCEEW said. Climate Active participants have voluntarily surrendered more than 2.6mn Australian Carbon Credit Units (ACCUs) across 60 projects, almost 2mn large-scale generation certificates (LGCs) and more than 55.1mn carbon offsets.
The decision to close the programme reflects major policy shifts, including a move to mandatory climate-related financial disclosures, new emissions targets, the Net Zero Plan and updated regulatory oversight, the government said.
It follows concerns about the integrity of voluntary certification and international alignment, as well as increased stakeholder expectations for direct emissions cuts.
Under the proposed changes, the department will stop reviewing or certifying voluntary climate claims and discontinue Climate Active trademarks, licences and the use of the term "carbon neutral".
Businesses will be supported through the transition to alternative frameworks, including international voluntary standards.
Climate Active makes most of the voluntary demand for ACCUs, which has been at five-year lows in recent months. Voluntary cancellations reached 488,979 ACCUs in January-June, below the 668,483 units cancelled during the same period in 2025 and the lowest volume since 2021.
Several companies have exited Climate Active since 2024 on the back of negative academic and media coverage and increasing climate litigation risks.
There are currently 423 active certified brands under Climate Active, down from almost 590 in the end of 2024. The number of brands that stopped using the certification more than doubled over the same period, to 389 from around 180.
The federal government's decision to wind down the programme goes against calls from organisations like the Carbon Market Institute (CMI) and the International Emissions Trading Association (Ieta). CMI last year called for reforms, while Ieta earlier this year urged the government to strengthen and reform the programme.
