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EnergyAustralia faces new 'offset' criticisms in greenwashing lawsuit

EnergyAustralia is facing updated claims from climate-advocacy group Australian Parents for Climate Action that aim to further unpick the company's use of 'offsets'.

EnergyAustralia's use of carbon offsets is under scrutiny. AAP/Lukas Coch.

The climate activist group suing EnergyAustralia has intensified its criticism of the power utility's use of carbon offsets in a case that could set precedents over how Australia's biggest companies assert their environmental credentials in marketing campaigns.

Court documents viewed by Capital Brief ahead of further administrative hearings in the case next month, show Australian Parents For Climate Action picking apart the "inherent uncertainty" of carbon offsets in EnergyAustralia's 'Go Neutral' product.

The case is the first big test for corporate marketing of "carbon neutral" products in Australia. Climate advocacy group Australian Parents for Climate Action, or AP4CA, has alleged Energy Australia's 'Go Neutral' product is misleading consumers because the company still relies on fossil fuel production.

AP4CA is being represented by Equity Generation Lawyers. EnergyAustralia has Ashurst in its corner.