One of Australia's biggest gas companies has misled "millions" of people by claiming its energy distribution network is becoming renewable, Australia's consumer watchdog alleges in its biggest "greenwashing" case yet.
The ACCC (Australian Competition and Consumer Commission) action in the Federal Court relates to a series of "Love Gas" advertisements that Australian Gas Networks (AGN) ran back in 2022 and 2023.
"The ads claimed that the gas that Australian Gas Networks supplies and distributes to households would be renewable within a generation," ACCC chair Gina Cass-Gottlieb told ABC News.
"We allege, in fact, it didn't have a sufficient basis for making these claims."
AGN owns gas transmission pipelines and other infrastructure that deliver the energy source to around 1.3 million homes and businesses around Australia.
In recent years, the company has been pushing alternatives to fossil-fuel derived gas, including hydrogen made from renewable energy and biomethane derived from the processing of waste products.
But these energy sources are in their infancy, and the ACCC action argues the science isn't there for AGN to make the claims that its network is going renewable.
"There are a range of significant technical and economic obstacles," Ms Cass-Gottlieb said.
"We are concerned that consumers were deprived of the opportunity to make informed choices about the right energy source for use in their homes.
"For the household appliances that they're buying for the future and also for the steps that each of us can take in our lives to enhance sustainability."
AGN will defend the action, a spokesperson for the company's parent company, AGIG (Australian Gas Infrastructure Group), said.
"We always strive to provide clear and accurate communications about the role and benefits of natural gas today and renewable gas into the future," they said.
"For this reason, we are disappointed with the ACCC's decision to take proceedings and will be defending these claims.
"AGIG will not be making any further comment at this stage."
The ACCC took action against AGN after the Australian Conservation Foundation (ACF) and members of the public raised concerns.
The ACF's chief executive, Kelly O'Shanassy, welcomed the ACCC action on Thursday.
"Gas is a polluting fossil fuel that, when dug up and burnt, releases billions of tonnes of emissions, driving global warming and dangerous climate-fuelled events like floods, fires and droughts," Ms O'Shanassy said.
"The gas industry knows fossil fuels are not renewable, but it continues to try and hoodwink Australians into thinking gas is good for us.
"Gas is a climate-wrecking fuel, and its continued use destroys any chance of a safe, liveable climate for people and nature."
The matter will be heard in the Federal Court, where the ACCC will be seeking declarations, penalties, costs, and other orders against AGN.
AGIG aims to reduce its emissions by 30 per cent by the end of the decade for its Scope 1 and 2 emissions.
These cover the operations of its facilities and pipelines — including any gas that is leaked into the air in the process — but not the burning of the gas at its destination.
AGN has also disputed a recent finding by the Ad Standards board about its controversial advertising for the Masterchef campaign.
"While we disagree with the panel's decision that one aspect of our advertisement could be considered vague, we have made the decision to remove it from publication while we consider next steps," the spokesperson said.
The company faces fines of up to $50 million per contravention.
