EU bans ‘misleading’ sustainability claims relying on offsets

The EU parliament on Wednesday voted to ban the use of terms such as “climate neutral” or “climate positive” for products and services. This decision comes amidst rising greenwashing concerns amongst companies that rely on carbon offsets for these claims. 

While labels like “environmentally friendly,” “natural,” “biodegradable,” “climate neutral,” or “eco” can be used by providing evidence of approved certifications, a total ban will be implemented on labels that rely on carbon offsets by 2026 in the bloc.