The European Parliament is poised to enforce stringent limits on carbon offsetting arrangements, signalling a crackdown on greenwashing within the EU.
The proposed Green Claims Directive, scheduled for a vote today, aims to ensure transparency in corporate environmental pledges, particularly regarding carbon neutrality and net-zero emissions goals.
A compromise deal among political groups suggests that companies will face greater scrutiny in making net-zero commitments without clear strategies for achieving them. Voluntary carbon offsets, increasingly popular among corporations, are under scrutiny for potentially enabling emissions rather than reducing them.
The European Commission’s proposal seeks to separate claims based on `g from a company’s carbon footprint, focusing on ensuring the integrity and accuracy of offsetting schemes.
Under the proposed directive, carbon credits would only be permissible for offsetting a firm’s residual emissions, reinforcing the necessity for substantial in-house emission reductions.
The agreement underscores the EU’s commitment to combatting misleading environmental claims and promoting genuine climate action, setting a precedent for transparency and accountability in corporate sustainability practices.
If approved, the directive will undergo further negotiations with EU governments, signalling a significant step forward in the fight against greenwashing and pursuing verifiable climate action in the EU.
