Advertising as "carbon neutral" or "CO₂ neutral" that relies exclusively on offsetting payments is banned per se across the EU under the EmpCo Directive (EU 2024/825, Annex I UCPD) from 27 September 2026. The German BGH ruling Katjes (I ZR 98/23) had already classified such a claim as misleading in 2024. This page sets out the citations and the relevant legal basis — purely for information, not legal advice.
Last update: 26 May 2026
The German Federal Court of Justice rules: advertising as "carbon neutral" without disclosing the offsetting method on the same advertising medium is misleading under § 5 UWG.
EU Directive 2024/825 adds a per-se prohibition to Annex I UCPD for carbon-neutrality claims that rely exclusively on offsetting.
From this cut-off date, "carbon neutral", "CO₂ neutral" and equivalent claims may no longer be used in EU-wide advertising if they are covered solely by certificate purchases.
The assessment of carbon-neutrality claims rests on the following norms. Purely for information, not legal advice:
Not in every case. The claim is prohibited when the asserted neutrality relies exclusively on offsetting payments. Anyone who demonstrates neutrality through actual emissions reduction and transparent calculation, and can substantiate it, may continue to use the term — but they must disclose the calculation directly on the advertising medium.
The German Federal Court of Justice (BGH, I ZR 98/23, 27 June 2024) held that advertising as "carbon neutral" without explaining the calculation method on the same advertising surface breaches § 5 UWG. This is a German ruling; the EmpCo Directive introduces an EU-wide per-se prohibition (Annex I UCPD, point 4c) for offsetting-based claims, applicable from 27 September 2026.
Yes, provided it is true. "Carbon offset" is more transparent than "carbon neutral" because the term itself points to the offsetting. Even so, you must disclose the project, standard (Gold Standard, VCS) and volume so that consumers can put the claim in context.
Yes. Advertising must specify which emissions are actually avoided and which were balanced through offsetting. Only then is the claim permissible — a blanket assertion without a breakdown is prohibited.
Competitors and qualified associations can issue a warning letter and pursue a cease-and-desist claim. From 27 September 2026, fines under the applicable national implementation of the EmpCo Directive may apply on top.
Definition and legal basis for the term at a glance.
The full breakdown with timeline, obligations and sanctions.
The BGH ruling Katjes (I ZR 98/23) and the legal background.
Check your website for free for prohibited carbon-neutrality claims.
