December 08, 2023
Fact Sheets

Climate claims: what’s the latest in EU policy?

A snapshot of climate claims policies as of December 2023 (updates coming soon)

Key Takeaways

  1. The Carbon Removal Certification Framework does not set guardrails on the uses of certified units. This could change in the ongoing trilogue negotiations, as the Parliament is pushing for the use of certificates to be regulated.
  2. The Empowering Consumers Directive bans climate claims on goods and services based on GHG offsetting while leaving the door open for organisation-level claims.
  3. The Green Claims Directive, currently on the negotiation table in Parliament and Council, has to bridge this gap and regulate the substantiation of net zero claims for organisations. There should be a binding requirement that companies can balance: (1) only their residual emissions (to be defined by the Commission through a delegated act); (2) exclusively with carbon removal credits; and(3) respecting the like-for-like principle between the type of emissions and corresponding removals.
  4. The European Sustainability Reporting Standards, part of the Directive on Corporate Sustainability Reporting, improve corporate reporting on net zero plans, emissions, and removals, but does not define net zero claims, nor differentiate them from net zero targets for companies.

Empowering Consumers, Green Claims, Carbon Removal Certification Framework, ESRS, etc. What do all of these EU legislations mean for organisations’ ability to make climate neutrality or net zero claims?

Check our latest infographic aiming to bring clarity to where we are at the moment.