I still remember delivering a presentation on carbon neutrality to a law firm back in 2010. They were exploring whether to become carbon neutral, and the Australian Government had only recently launched the National Carbon Offset Standard (NCOS). At the time, carbon accounting looked very different. Scope 3 emissions were limited to just a handful of categories, including waste, paper consumption and business travel.

Over the following 16 years, I’ve watched NCOS evolve into Climate Active and seen organisations become far more sophisticated in the way they measure, manage and report greenhouse gas emissions. What began as a voluntary carbon-neutral standard became Australia’s leading voluntary carbon neutral certification program, helping organisations build capability in emissions measurement, reduction and transparent reporting.

That’s why last week’s announcement that the Australian Government intends to close the Climate Active program felt like the end of a chapter. Whatever your view of the program, it has played an important role in raising the standard of voluntary climate action in Australia.

What has been announced?

The Australian Government has announced that it intends to close the Climate Active program and is consulting on how this should occur. Two options are being considered:

• Close the Climate Active program in full; or
• Close the program while retaining selected voluntary standards and guidance through the Department of Climate Change, Energy, the Environment and Water.

Under either option, the Australian Government would no longer certify or monitor voluntary carbon-neutral claims. The consultation will determine whether elements of the existing framework remain available after the program closes.

If your organisation is currently Climate Active certified, or you’re considering what comes after certification, this article outlines what the announcement means in practice, the options available once the program closes, and the steps you should consider during the transition period.

Why this matters?

Climate Active was much more than a certification logo.

Over the past 16 years, it has helped establish a common approach to greenhouse gas accounting, encouraged organisations to measure and reduce their emissions, and provided a framework for making credible voluntary carbon-neutral claims. It also helped normalise independent verification and transparent reporting, well before climate disclosures became mandatory for many organisations.

The climate reporting landscape today is very different from the one that existed when NCOS was introduced in 2010. Mandatory climate disclosures, international standards and growing investor expectations mean organisations now have many more ways to demonstrate credible climate action.

What should organisations do now?

The closure of Climate Active doesn’t change the fundamentals of good climate management.

Organisations should continue to focus on:

• maintaining a complete and transparent greenhouse gas inventory
• identifying and implementing emissions reduction opportunities
• embedding climate into governance and business planning
• obtaining independent assurance where appropriate
• making clear and evidence-based public climate claims.

These practices will remain relevant regardless of which voluntary certification programs emerge in the future.

What are the alternatives?

There is currently no direct replacement for Climate Active that combines Australian Government certification, a public register and a government-owned certification trademark.

The right pathway depends on what you’re trying to achieve. Some organisations want to continue making carbon-neutral claims, while others are primarily looking to demonstrate credible emissions data or long-term climate action.

If you want to continue making carbon-neutral claims

ISO 14068-1 provides an internationally recognised framework for managing and substantiating carbon-neutrality claims. It can be applied to organisations, products, services, buildings and events, and covers greenhouse gas quantification, emissions reductions, the treatment of residual emissions and transparent reporting.

Unlike Climate Active, ISO 14068-1 is an international standard rather than a government certification program. Organisations generally engage an independent assurance or certification provider to assess conformance with the standard before making carbon-neutral claims.

Some organisations may also wish to consider Toitū climate certification programs. These programs combine greenhouse gas measurement, emissions reduction planning, independent assessment and ongoing reporting. Whether this pathway is appropriate will depend on your operations, stakeholder expectations and the types of claims you wish to make.

If your priority is credible emissions reporting

Some organisations may decide that replacing the Climate Active certification label is not their highest priority. Instead, they may choose to focus on maintaining a robust greenhouse gas inventory and obtaining independent assurance over their emissions data.

ISO 14064-1 provides internationally recognised requirements for quantifying and reporting greenhouse gas emissions and removals at the organisational level. The GHG Protocol Corporate Standard remains the most widely used framework for preparing corporate greenhouse gas inventories and forms the basis of many reporting and disclosure requirements around the world.

Neither framework, on its own, establishes that an organisation is carbon neutral. However, independently assured greenhouse gas inventories can provide a strong foundation for mandatory climate reporting, voluntary disclosures and credible stakeholder communication.

If your focus is products

Organisations looking to understand and communicate the carbon footprint of a product should consider ISO 14067, the international standard for quantifying and reporting product carbon footprints using life cycle assessment principles.

If your objective is to make a carbon-neutral claim for a product, ISO 14068-1 provides an internationally recognised framework for substantiating carbon neutrality. It covers greenhouse gas quantification, emissions reductions, the treatment of residual emissions and transparent reporting. Unlike Climate Active, certification is generally provided by independent certification bodies rather than a government-operated program.

Manufacturers may also consider Environmental Product Declarations (EPDs) where appropriate. EPDs provide independently verified information about a product’s environmental impacts across its life cycle and are increasingly used to support procurement and supply chain requirements.

If your focus is long-term emissions reduction

The Science Based Targets initiative (SBTi) provides a globally recognised framework for setting emissions reduction targets that are aligned with the latest climate science and the goals of the Paris Agreement.

SBTi target validation is not a replacement for carbon-neutral certification and does not confirm that an organisation’s emissions have been neutralised. Instead, it demonstrates that an organisation’s emissions reduction pathway is consistent with limiting global warming and provides stakeholders with confidence that climate commitments are underpinned by a credible long-term strategy.

For many organisations, SBTi can complement greenhouse gas reporting and disclosure by providing a structured framework for planning and tracking emissions reductions over time.

What current Climate Active participants need to know

Current participants of the Climate Active program can remain certified until the program’s end date of 30 June 2027, or they may choose to withdraw earlier.

Withdrawing from the program determines when certification and related claims end. It does not remove reporting or other obligations relating to the period during which an organisation, product or service was certified. Participants who wish to withdraw must notify Climate Active in writing. Climate Active will confirm the effective withdrawal date and any remaining obligations in a formal withdrawal letter.

If you’re currently certified, your next steps will depend on whether you report on a financial year or calendar year basis, and whether you intend to remain in the program until it closes or withdraw earlier.

What happens to certification fees?

Climate Active will waive certification fees for the following:

• FY2027 certifications
• Partial CY2027 certifications
• One-time fee for recurring events that have been previously certified

The waiver does not apply to FY2026 or CY2026 certifications fees. Climate Active will not refund fees already paid for previous reporting periods, and any outstanding fees will need to be settled as part of the withdrawal process.

Participants must continue to meet all applicable reporting and certification requirements, including purchasing and retiring eligible offsets where required.

Validation requirements will be waived for final reports. Validation will still be required for an initial report that has not previously undergone validation, although participants may also choose to undertake validation for internal assurance or external reporting purposes.

Financial year reporters

Remaining certified until 30 June 2027

Participants that remain certified until 30 June 2027 will generally need to:

• submit the full FY2025–26 report by 31 October 2026; and
• submit the final FY2026–27 report by 31 October 2027;
• purchase and retire offsets for both reporting periods;
• pay the applicable FY2025-26 certification fee

The FY2026-27 certification fee will be waived.

Withdrawing on or before 30 September 2026

Where Climate Active receives a financial year reporter’s written withdrawal notice by 30 September 2026, the participant must still:

• submit the full FY2025-26 report by 31 October 2026;
• purchase and retire offsets for the FY2025-26 reporting period;

Climate Active will waive the FY2026-27 reporting requirements. This means a partial FY2026-27 report will not be required for participants whose withdrawal notice is received within this period.

During the consultation period, withdrawals received:

• by 31 July takes effect on 31 July 2026
• during August 2026 takes effect on 31 August 2026
• during September 2026 takes effect on 30 September 2026

Withdrawing after 30 September 2026

Withdrawals received after 30 September 2026 will follow Climate Active’s standard withdrawal process, which takes effect 30 business days after written notice is received.

Participants will still need to submit their full FY2025–26 report. They may also be required to submit a partial FY2026–27 report covering the period from 1 July 2026 to the effective withdrawal date.

Offsets must be purchased and retired for the relevant reporting periods. FY2026–27 certification fees will be waived, and the participant’s exact reporting obligations will be confirmed in its formal withdrawal letter.

Calendar year reporters

Remaining certified until 30 June 2027

Calendar-year participants that remain certified until the program closes will need to:

• submit the full CY2026 report by 30 April 2027;
• submit a partial CY2027 report covering 1 January to 30 June 2027 by 31 October 2027;
• purchase and retire offsets for both reporting periods;
• pay the applicable CY2026 certification fee

The certification fee for the partial CY2027 reporting period will be waived.

Withdrawing within 2026

Calendar year participants that withdraw within 2026 must:

• submit a partial CY2026 report covering the period from 1 January 2026 to the effective withdrawal date. Where the effective date is 31 December 2026, this will effectively cover the full calendar year.
• purchase and retire offsets for the relevant reporting period.

A partial CY2027 report will not be required where the participant’s certification ends during 2026.

Withdrawing during 2027

Calendar year participants who withdraw during 2027 must:

• submit the full CY2026 report by 30 April 2027
• submit a partial CY2027 report covering 1 January 2027 to the effective withdrawal date
• purchase and retire offsets for both reporting periods

The certification fee for the partial CY2027 period will be waived.

First-year and non-standard reporting periods

First-year participants and participants with non-standard reporting years will be managed individually. Their final reporting period, due date and remaining obligations should be confirmed directly with Climate Active.

Planning for the transition

The transition period gives participants time to decide whether to remain certified until 30 June 2027 or withdraw earlier, complete outstanding obligations and assess other certification or climate-action frameworks.

We also encourage organisations to contribute to the consultation before it closes on 18 September 2026.

→ Learn more about the Climate Active consultation and have your say

Looking ahead

If there’s one thing the past 16 years have shown, it’s that climate reporting continues to evolve.

The tools, standards and reporting frameworks will continue to change, but the principles remain the same. Organisations that understand their emissions, reduce them over time, embed climate into decision-making and report transparently will continue to be well placed, regardless of which certification programs are available in the future.

When I think back to that presentation in 2010, it’s remarkable how much has changed. Carbon accounting has evolved from a niche topic discussed by a handful of early adopters to a core business issue for organisations across Australia. Climate Active has been part of that journey. While this chapter may be coming to a close, the need for robust greenhouse gas accounting, credible emissions reduction and transparent reporting has never been greater.

 

If you need help reviewing your post-Climate Active pathway or strengthening transition disclosures, our team can help with emissions accounting, climate risk, transition planning and assurance readiness. Reach out to  Barbara or Patrick for more information.

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