December 08, 2023
Fact Sheets

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

A snapshot of climate claims policies as of March 2024

Key Takeaways

  1. The Carbon Removal Certification Framework does not set guardrails on the uses of certified units.
  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 in ordinary legislative procedure in Parliament and Council, has to bridge this gap and regulate the substantiation of net zero claims for organisations. To make net zero claims, companies should be required to 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.