The Australian Government has announced that the Climate Active certification program is closing, with existing certifications ending by 30 June 2027. This reflects a broader shift towards measurable emissions reductions, transparent climate reporting and stronger scrutiny of environmental claims.  

For organisations currently certified under Climate Active, there is no immediate cause for alarm. Certified businesses can continue participating in the scheme until its closure, provided they continue to meet reporting requirements and licence obligations. Final reporting will still be required to support existing carbon neutral claims and maintain compliance. 

Key actions for certified brands 

Over the next 12 months, certified brands should begin preparing for the transition by: 

  1. Reviewing existing carbon neutral claims to ensure they remain aligned with ACCC environmental claims guidance.

  2. Developing a plan to transition away from Climate Active covering final reporting, offset procurement, communications, legal review and removal of Climate Active branding where required.

  3. Strengthening emissions data and governance processes, particularly for organisations subject to mandatory climate disclosure requirements.

  4. Refocusing climate strategy in a post-Climate Active world from certification-based claims towards measurable emissions reductions, climate transition planning and credible climate action.

Where should Climate Active go from here? 

Climate Active has played an important role in familiarising Australian businesses with emissions measurement, carbon accounting and climate-related claims. As the certification program winds down, there remains an opportunity for Climate Active (and government in general) to retain targeted guidance and standards that help organisations take credible climate action without duplicating existing frameworks (e.g. the GHG Protocol, Science Based Targets initiative (SBTi) or mandatory climate disclosure requirements).  

ERM recommends that Climate Active be replaced by future support focused on:

  • Development of a programme focused on supporting emissions reductions aimed at companies for whom SBTi is too complex that includes clear methodologies for identifying and delivering emissions reductions projects, as well as methodologies for assessing emissions from products, services, events and precincts where emissions boundaries and claims can be complex.

  • Guidance on credible use of carbon offsets, aligned with evolving regulatory and stakeholder expectations.

  • Tools and resources that focus on emissions reductions before offsetting and support transparent environmental claims.

  • Practical guidance for small and medium-sized businesses seeking to measure and reduce emissions.

  • Development of a climate transition planning maturity framework to help businesses level up their decarbonisation programmes and shift from carbon claims to climate outcomes. 

For those wishing to engage with the government on the future role of Climate Active, visit the government’s consultation page. 

Most importantly, the end of Climate Active certification should not be interpreted as a retreat from voluntary climate action. Instead, it presents an opportunity for organisations to move beyond certification-based claims and focus on demonstrable emissions reductions, transparent reporting and credible transition planning. As investor, customer and regulatory expectations continue to rise, these foundations will become increasingly important in demonstrating climate leadership.