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# ACCC tells brands carbon credits are not cuts
- URL: https://www.promptthemarket.com/accc-carbon-credits-not-emission-cuts/
- Published: 2026-10-20T08:30:00.000Z
- Updated: 2026-10-20T08:29:59.000Z
- Description: The ACCC’s new guidance warns forest imagery, ‘net zero 2050’ billboards and fine-print disclaimers are where Australian brands and agencies are exposed.
- Author: Editor News
- Tags: Advertising, Australia, Australian Competition and Consumer Commission, #author-james-dore

![James Dore](https://storage.ghost.io/c/e4/01/e4017178-c1da-4131-80aa-35f02cb5b999/content/images/2026/09/james-dore.jpg)

By **James Dore** · 2026-10-20

TLDR

The ACCC released a 24-page guide on 20 October 2026 telling brands that purchased carbon credits cannot be presented as actual emissions reductions in consumer advertising. It asks brands making 'carbon neutral' or 'net zero' claims to disclose credit use and use science-based accounting, and says it may take targeted enforcement action.

KEY TAKEAWAYS

01Avoided-emissions credits cannot support 'zero impact' claims under the ACCC guide released 20 October 2026.

02The ACCC’s release points to the $8.25 million penalty ordered against Clorox Australia over ‘ocean plastic’ claims.

03Disclaimers rarely fix a misleading headline claim, according to PPC Land’s reading of the guide.

04The ACCC says large aviation, energy, logistics and telecoms companies have already changed their claims.

05Future emissions targets are generally unsuitable for short-form ads such as billboards and TV under the new guidance.

## What the guide asks for

The ACCC published "Making emissions claims to consumers - a guide for business" on 20 October, applying its 2023 environmental claims guidance to the way brands talk about their carbon footprint.[\[1\]](https://www.miragenews.com/accc-issues-guidance-on-business-emissions-1763077/?ref=promptthemarket.com) It asks businesses to use credible, science-based accounting, to disclose any purchased credits, and to think about what an average consumer will take a claim to mean.[\[2\]](https://www.sustainabilitymatters.net.au/content/energy/news/accc-guidance-on-emissions-claims-to-consumers-released-790844877?ref=promptthemarket.com) "Consumers should be able to trust the emissions-related claims that businesses make," ACCC deputy chair Mick Keogh said.[\[1\]](https://www.miragenews.com/accc-issues-guidance-on-business-emissions-1763077/?ref=promptthemarket.com)

On credits, the guide is blunt: if marketing gives the impression that buying credits and emitting cancel each other out, the business needs a reasonable basis for that claim.[\[2\]](https://www.sustainabilitymatters.net.au/content/energy/news/accc-guidance-on-emissions-claims-to-consumers-released-790844877?ref=promptthemarket.com) According to PPC Land's reading of the 24-page document, avoided-emissions credits generally can't back a "zero impact" claim, disclaimers rarely fix a prominent headline, and forest or smiling-planet imagery can make a business look greener than it is on its own.[\[3\]](https://ppc.land/accc-says-ads-cant-present-bought-carbon-credits-as-emission-cuts/?ref=promptthemarket.com)

## What changes for marketers and agencies

The format matters as much as the claim. Billboards and TV should carry simple, specific facts, with the nuance moved to a web page or QR code, and future targets such as "net zero by 2050" are usually unsuitable for short-form advertising, PPC Land reported.[\[3\]](https://ppc.land/accc-says-ads-cant-present-bought-carbon-credits-as-emission-cuts/?ref=promptthemarket.com) That puts the creative team, not just the sustainability lead, on the hook for what goes on a 15-second spot or a six-sheet.

"We strongly encourage businesses to review their consumer facing emissions claims in light of our guidance," Keogh said.[\[1\]](https://www.miragenews.com/accc-issues-guidance-on-business-emissions-1763077/?ref=promptthemarket.com) The ACCC says large companies in aviation, energy, logistics and telecommunications have already changed their claims, some dropping vague "carbon neutral" language and distant targets, and that it may take targeted enforcement action against problem conduct that continues.[\[2\]](https://www.sustainabilitymatters.net.au/content/energy/news/accc-guidance-on-emissions-claims-to-consumers-released-790844877?ref=promptthemarket.com)

## The enforcement backdrop

The guide itself has no legal force; whether a claim breaches the Australian Consumer Law is for the courts.[\[3\]](https://ppc.land/accc-says-ads-cant-present-bought-carbon-credits-as-emission-cuts/?ref=promptthemarket.com) But the ACCC's release points to what that looks like: the Federal Court ordered Clorox Australia to pay $8.25 million in penalties over misleading "ocean plastic" claims on some GLAD products, and the ACCC has started Federal Court proceedings against Australian Gas Networks over its renewable gas campaign and against the maker of Banana Boat and Hawaiian Tropic over "reef friendly" sunscreen claims.[\[1\]](https://www.miragenews.com/accc-issues-guidance-on-business-emissions-1763077/?ref=promptthemarket.com)

Related coverage

- [Australia moves to ban fake discounts and hidden fees](https://www.promptthemarket.com/australia-moves-to-ban-fake-discounts-and-hidden-fees/)
- [ACCC sues Kmart over alleged glue warning and watch battery breaches](https://www.promptthemarket.com/kmart-nail-glue-burns-button-batteries-accc/)

SOURCES & CITATIONS

1. [ACCC issues guidance on business emissions claims, Mirage News (ACCC release)](https://www.miragenews.com/accc-issues-guidance-on-business-emissions-1763077/?ref=promptthemarket.com)
2. [ACCC guidance on emissions claims to consumers released, Sustainability Matters](https://www.sustainabilitymatters.net.au/content/energy/news/accc-guidance-on-emissions-claims-to-consumers-released-790844877?ref=promptthemarket.com)
3. [ACCC says ads can’t present bought carbon credits as emission cuts, PPC Land](https://ppc.land/accc-says-ads-cant-present-bought-carbon-credits-as-emission-cuts/?ref=promptthemarket.com)

FREQUENTLY ASKED QUESTIONS

Can a brand still use 'carbon neutral' in advertising?

Yes, but only if the claim is supported by credible, science-based accounting, discloses any use of purchased carbon credits, and does not overstate what those credits achieve. The guide says avoided-emissions credits generally cannot support ‘zero impact’ claims, PPC Land reported.

What penalty does a brand face for a misleading emissions claim?

The ACCC’s release notes the Federal Court ordered Clorox Australia to pay $8.25 million over misleading ‘ocean plastic’ claims on some GLAD products. The guide itself has no legal force; courts decide breaches. The ACCC has confirmed it will pursue enforcement action against ongoing problematic emissions claims where appropriate.

Does a disclaimer fix a misleading headline claim?

No. According to PPC Land’s reading of the 24-page guide, disclaimers rarely correct a misleading headline claim. The headline itself must be accurate and not overstate the environmental benefit.

![James Dore](https://storage.ghost.io/c/e4/01/e4017178-c1da-4131-80aa-35f02cb5b999/content/images/2026/09/james-dore.jpg)

[James Dore](https://www.promptthemarket.com/james-dore/)

James Dore is founder and editor of Prompt the Market and Strategy Director at Bushnote, a Sydney strategy, SEO and AI search agency. He has a background in strategy, media and financial services, and led consumer product marketing at MONEYME. He writes on AI search, answer engines, technology policy and media economics.