Australian automakers advertising electric cars as “zero emissions vehicles” could face legal consequences and financial penalties due to a crackdown by the Australian Consumer and Competition Commission (ACCC) against ‘greenwashing.’
The ACCC has urged manufacturers to assess the full lifecycle emissions of their cars, encompassing raw material sourcing, manufacturing, transport, and end-of-life processes, rather than focusing solely on exhaust emissions.
In a report released last month, aimed at offering preliminary guidance to Australian businesses, the ACCC stipulated that claims of ‘zero-emissions’ must reflect a comprehensive understanding of the environmental impact of the product, including electric vehicles.
The ACCC clarified that it is not mandatory for companies to disclose a product’s lifetime emissions in every statement, but the information given should not be misleading in its totality.
Companies failing to comply with this guidance could be found in violation of Australian Consumer Law, leading to possible monetary fines and penalties.
The ACCC’s ‘Environmental and Sustainability Claims’ report included a specific example regarding electric vehicles, illustrating how a car manufacturer’s zero-emissions claims might be considered false or misleading. The example emphasized that the statement “creates zero emission electric vehicles” might be misleading if it only considers the emissions while the car is in operation and ignores emissions during production or charging.
The ACCC recommended a more nuanced claim, such as “zero exhaust emissions while driving,” to avoid confusion.
The report also noted an increasing awareness among Australian consumers about the carbon footprint of products, including electric cars, and warned against companies engaging in ‘greenwashing’ to deceive consumers.
The report’s foundation is Australia’s current energy landscape, with over 70% reliance on coal-fired power stations, though it did not determine when electric vehicles might become greener with increased renewable energy adoption.
Furthermore, Japanese car manufacturer Toyota has been pushing for a broader strategy to reduce vehicle emissions beyond just focusing on electric vehicles. This move, along with the absence of solely-electric cars for sale in Australia from certain companies, has been met with criticism, as some are focusing instead on the development of hybrid and plug-in hybrid petrol vehicles.
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