What does climate neutral mean?
What does climate neutral mean?
With the adoption of the Paris climate targets, the international community has committed to limiting global warming to 1.5 to a maximum of 2 degrees Celsius. The aim is to curb climate change. Its effects, such as heatwaves, flooding, storms and heavy rainfall, are already becoming increasingly noticeable.
To achieve the 1.5 degree Celsius target, the European Commission agreed on the Green Deal in 2019: A comprehensive plan to make the EU climate-neutral by 2050 . The focus is on sustainable growth through measures in the following areas
- Energy,
- Agriculture,
- Biodiversity
- and industry.
Climate neutral company
Companies, cities and other organizations have also set themselves the goal of becoming climate-neutral. In doing so, they not only want to make a contribution to combating climate change, but also meet the increasing demands of customers, investors and political requirements. They are also securing long-term competitive advantages, as climate-friendly strategies are increasingly becoming a prerequisite for economic success.
Definition of climate neutrality: What does "climate neutral" mean?
Climate neutral means that the activities of an individual, company or organization have no negative impact on the climate. The European Parliament, for example, defines climate neutrality as "achieving a balance between carbon emissions and the absorption of carbon from the atmosphere into carbon sinks ".
Climate-neutral through offsetting
For our planet, it doesn't matter where in the world greenhouse gas emissions are emitted. Emissions that cannot be avoided locally can therefore be saved elsewhere by supporting recognized climate protection projects.
Climate neutrality is achieved by reducingCO2 emissions and ideally avoiding them altogether. Emissions that cannot currently be completely avoided can be offset through global climate protection projects offset. These are, for example, investments in projects to
- Renewable energies
- Cleaner technologies (such as direct air capturing)
- Projects to increase energy efficiency
- Biodiversity projects
As it makes no difference to the climate where in the world greenhouse gases are saved, local emissions can be offset by savings elsewhere. The EU Emissions Trading Scheme.
Why the term "climate neutral" is viewed critically
In recent years, the use of the term "climate neutral" has come under increasing criticism. Many companies and organizations have used the term and focused solely on offsetting their CO₂ emissions. What exactly the offsetting referred to was often unclear and not recognizable for consumers.
Court rulings against climate-neutral companies
In recent years, organizations such as Deutsche Umwelthilfe or the Wettbewerbszentrale as well as competitors themselves have increasingly taken legal action against companies that use misleading or unfounded environmental claims. In isolated cases, courts have banned the use of the term "climate neutral", for example when it has been established that companies have not taken sufficient measures to reduce emissions, that the measures are inadequate or have not been defined in a consumer-friendly way.
EU Green Claims Directive restricts use of "climate neutral"
In order to create more transparency and counteract consumer deception, the European Commission presented a proposal for a directive on environmental claims in March 2023: The EU Green Claims Directive. This directive calls on companies to make their environmental claims, such as "climate neutral" , clear, transparent, scientifically sound and verifiable. The aim is to provide consumers with a sound basis for decision-making and to combat greenwashing.
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