EU will ban “climate neutral” claims by 2026

Spanish version here

The European Union has set a precedent with its latest move against greenwashing. By 2026, the EU plans to ban unsubstantiated environmental claims such as “carbon neutral” and “climate neutral.” This initiative is a milestone in the EU’s ongoing efforts to empower consumers and promote genuine sustainability.

Key developments:

- Companies will be prohibited from making broad environmental claims unless they provide accurate proof.

- Claims based on emissions offsetting will be banned, signalling a paradigm shift in the carbon offset market.

- The law necessitates stricter adherence to environmental claims, requiring companies to back labels like “Eco” and “Natural” with solid evidence.

- Sellers will need to declare the expected product lifetime, enhancing consumer transparency.

Sectoral impact:

- The aviation industry, among others, is poised for change, with airlines having to revise their booking interfaces to remove offers of “climate-neutral” flying through carbon offsetting.

- The initiative sends a powerful message to the voluntary carbon market, marking the end of an era for offsetting strategies.

Implications for companies:

- The regulations will challenge companies to reassess and substantiate their environmental claims, fostering transparency and combating misleading practices.

- The law is one of three aimed at aligning products with the EU’s climate-neutral goals, although progress on companion legislation has been described as slow.

This development underscores the EU’s commitment to curbing greenwashing and encourages companies to embrace this change, reflecting on their sustainability practices and contributing to a more transparent and eco-conscious market.

Source: https://www.instagram.com/p/CxfuD3RsXH7/?igshid=MTc4MmM1YmI2Ng%3D%3D