"Carbon neutral" used to be the gold standard of environmental marketing. Now it's becoming a liability.
Across the EU, regulators are systematically targeting carbon neutrality claims — not because reducing emissions is bad, but because the way most companies achieve "neutrality" is misleading at best.
How Carbon Neutral Claims Typically Work
Here's the standard playbook:
- Calculate your carbon footprint (or more commonly, estimate it)
- Buy carbon credits equal to your emissions
- Declare yourself "carbon neutral"
The problem? Step two. Carbon offsets are a $2 billion market riddled with quality issues.
Why Offsets Don't Cut It Anymore
Multiple investigations in 2023-2025 revealed systemic problems:
- Phantom credits: A Guardian investigation found that over 90% of rainforest carbon offsets from the largest certifier were worthless — protecting forests that were never in danger
- Double counting: The same emission reduction sold to multiple buyers
- Permanence issues: Trees planted for offsets burned in wildfires or were later logged
- Additionality failures: Projects that would have happened regardless of carbon credit funding
When your "carbon neutral" claim rests on credits like these, it's greenwashing — even if you didn't mean it to be.
What the EU Green Claims Directive Says
The directive specifically targets offset-based claims:
- You cannot claim a product is "carbon neutral," "climate neutral," or "carbon positive" based solely on offsetting
- Carbon credits can only be mentioned as supplementary to actual emission reduction efforts
- Any offset claims must disclose the type, quality standard, and proportion of offsets vs. real reductions
France has already gone further — outright banning "carbon neutral" claims in advertising since 2022 (Article L229-68 of the Environment Code).
Compliant Alternatives
So what can you say? Plenty — as long as it's specific and honest.
Instead of "Carbon Neutral"
- "We have reduced our Scope 1 and 2 emissions by 35% since 2020"
- "Our manufacturing process uses 100% renewable electricity"
- "We invest in verified carbon removal projects in addition to our 40% emission reduction target"
Instead of "Climate Positive"
- "Our operations remove more CO2 than they emit through [specific method]"
- "We fund direct air capture equivalent to 120% of our residual emissions"
Instead of "Net Zero"
- "We are targeting a 90% absolute emission reduction by 2040, aligned with SBTi"
- "We have reduced emissions 50% since 2019, with a roadmap to 90% reduction by 2035"
The Key Principle
Every compliant claim follows the same pattern: specific action + measurable result + transparent methodology.
"We're carbon neutral" tells consumers nothing about what you actually did. "We cut manufacturing emissions 35% through energy efficiency upgrades" tells them everything they need to know.
How to Audit Your Current Claims
Run your website through our free greenwashing scanner to identify any carbon-related claims that might need updating. The tool flags specific phrases and suggests compliant alternatives.
Better to fix these proactively than to face enforcement action after the directive takes effect.