Environmental advocacy group Climate Integrity has called for an investigation into sustainability claims made by Qantas Airways (ASX:QAN) Ltd, urging Australia's consumer watchdog to take action, similar to a recent European Union crackdown on airlines involved in 'greenwashing'.
It is alleged that Qantas misled customers by charging extra for carbon-neutral flights while lacking a credible plan to reduce its emissions.
The Environmental Defenders Office, on behalf of Climate Integrity, has filed a formal complaint with the Australian Competition and Consumer Commission (ACCC).
This complaint questions Qantas' assertions that it is on track to achieve 'net zero emissions by 2050' and its claims that customers can offset the environmental impact of flying.
Claire Snyder, director of Climate Integrity, stated that Qantas gives "a false impression of how sustainable flying is", while the aviation industry remains a significant polluter with no clear path to decarbonisation.
“Consumers are increasingly considering climate and sustainability in their decisions. If you don’t have clear information about what the impacts are, consumers can’t make informed decisions,” she said.
“Exaggerating environmental credentials gives a false sense of progress at this very urgent time for deep emissions reductions.”
Significant reduction challenges
According to a report by The Age, Qantas generated 17.6 million tonnes of carbon dioxide (CO2) emissions from its global operations in 2024, representing about 4% of Australia’s total annual emissions.
Aviation accounts for approximately 2% of global emissions and faces significant challenges in reducing its reliance on fossil fuels.
Qantas and its budget airline, Jetstar, offer customers the option to 'fly carbon-neutral' by paying a fee — $5.60 for a Sydney-Melbourne return flight. The funds support bushfire prevention, rainforest conservation and other environmental projects that aim to “remove, reduce or avoid” carbon emissions.
However, Snyder criticised the comparison, arguing that it is misleading to equate carbon temporarily sequestered in land-based projects with the permanent release of carbon into the atmosphere from burning fossil fuels.
“Contributing a few dollars to conversation is a great thing to do but it’s incorrect to think that somehow compensates for or neutralises the impact of your flight,” she said.
Qantas has committed to reducing its net emissions by 25% from 2019 levels by 2030 and aims to achieve net zero by 2050.
To reach these targets, the airline plans to increase the use of lower-emitting biofuels — known as sustainable aviation fuels (SAF) — from 0.2% to 10% of its total fuel supply by 2030, while continuing to rely significantly on carbon offsets.
However, Climate Integrity’s complaint challenges Qantas’ promotion of biofuels as a viable climate solution, noting that SAF is not yet in commercial production in Australia and faces uncertainties over its scalability.
The International Energy Agency projects that SAF will account for only 1% to 2% of global aviation fuel by 2027.
A Qantas spokesperson defended the airline’s approach, stating that carbon offsets are essential to meeting its emissions targets while SAF production ramps up. They also highlighted Qantas’ efforts to support a domestic biofuel industry through a A$290 million partnership with Airbus.
“Aviation is a particularly hard-to-abate sector but we have a responsibility to do what we can with what’s available now,” the spokesperson said. “The journey to net zero emissions won’t be linear and one airline will not be able to solve this alone.”