After 16 Years, Climate Active Certification Is Ending

August 13, 2026

In July 2026, the Australian Government announced that the Climate Active certification program is ending, also bringing an end to the government-backed use of the term “carbon neutral” under the program. The Department of Climate Change, Energy, the Environment and Water (DCCEEW), which manages the program, is currently consulting on how the transition should be handled, with submissions open until 18 September 2026.

This change means organisations that rely on Climate Active will need to consider how they demonstrate and communicate action on carbon emissions going forward.

Key dates

July 2026: Government announces Climate Active certification is ending
18 September 2026: Consultation submissions close
31 October 2026: FY25-26 reports still due in full for currently certified members (unaffected by consultation)
30 June 2027: Proposed end date for certification

Why the Government is closing the program

DCCEEW’s stated rationale is that the role of government in supporting business’ voluntary climate action has changed. The department points to the changing operating context since the program’s establishment through the introduction of various energy and climate policies including maturing international guidance frameworks, mandatory climate-related disclosure requirements in Australia, and increased demand for direct emissions reduction.

What the future looks like

The immediate priority is for certified organisations under Climate Active to understand the transition arrangements and consider how carbon action will be maintained beyond the program. The end of Climate Active reflects how voluntary schemes evolve over time, not that climate action is any less needed. With mandatory reporting emerging under AASB S2, organisations have an opportunity to lead in their spaces, embedding climate disclosure and action as a point of leadership rather than a compliance aspect.

For Climate Active members, organisations can continue to use the Climate Active trademark while holding a current, active Licence Agreement and meeting the program’s reporting obligations. However, any claims made during this period must remain accurate and should not imply ongoing certification beyond the period it applies.

Regulators, including the ACCC, will continue to monitor and investigate climate and sustainability claims regardless of the program’s closure. This means that continuing to use the retired terminology will carry a greenwashing risk.

How can Cress help

At Cress, we can help you understand what the closure of the Climate Active program means for your business and determine the right next steps for your carbon strategy. This could include ongoing emissions measurement and reporting, supporting target-setting, developing transition plans or aligning with emerging requirements.

If you need help navigating next steps, get in touch with our team.

Cress is the Hydroflux Group’s in-house sustainability consulting team, operating as a specialised division and driven by a simple but powerful goal: to help organisations across Australia, New Zealand and the Pacific region create a more sustainable future. As a young and agile team, we combine technical expertise with fresh, forward-thinking approaches to help clients navigate complex challenges across climate risk, emissions reduction, modern slavery, water stewardship, and ESG reporting, building on the Hydroflux legacy of engineering excellence while bringing a sustainability lens to the industries and communities shaping the future of our region.

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