Gas company Clarus has withdrawn an advertisement promoting “renewable gas” after complaints led to a review by the Advertising Standards Authority (ASA). Critics argued that the ad misled consumers by implying that fully renewable gas was available in household pipelines. In reality, only a small fraction of the supply was biomethane, with the rest still derived from fossil fuels.
Ad Claims Spark Controversy
The advertisement, which appeared in major media outlets such as Stuff and the New Zealand Herald, featured an image of a family cooking with gas alongside the claim: “Renewable gas now flowing – Enjoy all the same benefits of gas with renewable gas.”
Environmental groups, including 350 Aotearoa, swiftly challenged the claim, arguing that it exaggerated the sustainability of Clarus’ gas supply. Adam Currie, a campaigner for the organisation, labelled the ad as “classic greenwashing,” stating that “for the foreseeable future, any biomethane produced at the Reporoa facility will make up a tiny fraction of Clarus’ gas supply. In addition, all of this biomethane is blended with regular fossil gas – it is no way renewable… yet their marketing leads consumers to believe they are buying a fully renewable product.”
Following the complaints, the ASA ruled that the issue was resolved after Clarus voluntarily withdrew the ad.
The Reality of Clarus’ Gas Supply
At the centre of the dispute is the composition of the gas being supplied to customers. While Clarus does distribute biomethane produced at the Ecogas Reporoa Organics Processing Facility, this represents only a small proportion of its total gas supply. The facility processes food scraps and organic waste, converting them into biogas, which is then upgraded to biomethane and injected into the pipeline. However, the majority of the gas flowing through Clarus’ network remains fossil fuel-based.
Despite the company’s emphasis on the potential for renewable gas, critics argue that the blended nature of the supply means it does not meet the standard of being fully “renewable.” The ASA complaint is exemplary of the growing scrutiny of corporate sustainability claims, particularly in industries historically reliant on fossil fuels.
Greenwashing Concerns in the Energy Sector
The Clarus case is the latest in a series of controversies surrounding misleading environmental claims by energy companies. The ASA has previously ruled against similar advertising campaigns, including one by Firstgas, which marketed “zero carbon gas.” In that case, the board determined that the ads were misleading because they implied that customers could use gas without contributing to carbon emissions—despite the fact that burning natural gas still releases carbon dioxide.
Such cases highlight a broader issue of greenwashing, where companies exaggerate or distort their sustainability credentials to appeal to environmentally conscious consumers. Legal experts warn that misleading claims not only deceive the public but also undermine genuine efforts to transition to cleaner energy sources.
Consumer Protection and Industry Oversight
The withdrawal of Clarus’ ad raises questions about how renewable energy products are marketed and the role of regulatory bodies in preventing misinformation. Organisations like the ASA play a crucial role in holding businesses accountable for their claims, but some advocates argue that stricter regulations are needed to ensure transparency.
Consumer watchdogs have also urged the public to scrutinise sustainability claims carefully, particularly in sectors where fossil fuel reliance remains high. The New Zealand government’s Gas Transition Plan has acknowledged biomethane as a possible short-term solution but notes that widespread electrification remains the more cost-effective and sustainable path forward.