The European Commission and EU consumer authorities have sent letters to 20 airlines “identifying several types of potentially misleading green claims,” focusing on “claims made by airlines that the CO2 emissions caused by a flight could be offset by climate projects or through the use of sustainable fuels.” Notably, the authorities highlighted that “the airlines have yet to clarify whether such claims can be substantiated based on sound scientific evidence.” The regulators further identified particular items of concern among the statements made by the airlines, including: (1) “claiming that the airline is moving towards net-zero greenhouse has emissions (GHG) or any future environmental performance, without clear and verifiable commitments, targets and an independent monitoring system”; (2) “creating the incorrect impression that paying an additional fee to finance climate projects with less environmental impact or to support the use of alternative aviation fuels can reduce or fully counterbalance the CO2 emissions”; (3) “using the term ‘sustainable aviation fuels’ (SAF) without clearly justifying the environmental impact of such fuels”; and (4) “using the terms ‘green,’ ‘sustainable’ or ‘responsible’ in an absolute way or use other implicit green claims.” In effect, the EU authorities appear to be principally focused on statements made by the airlines implying that environmental concerns are being addressed despite the lack of concrete action or other support for such claims--the classic paradigm of greenwashing.
This action taken by the EU demonstrates the increased focus on combatting greenwashing by various regulators (including the SEC and the UK's FCA), and the rise of enforcement actions in connection with such issues. Further, the fact that this investigation concerns airlines indicates that particular sectors of the economy--likely transportation and energy--can expect greater scrutiny, due to the greater connection of their activities to global climate change.
EU regulators have opened an investigation of 20 airlines over their potentially “misleading greenwashing practices”, including the claimed benefits of offsetting emissions from flying. The European Commission said on Tuesday that it had written to the airlines and to national consumer protection authorities “identifying several types of potentially misleading green claims”. The airlines were not named, but the national regulators involved are Belgian, Dutch, Norwegian and Spanish. The regulators’ concerns centre on claims that the carbon emissions from flying can be offset either through investments in environmental projects or the use of more sustainable jet fuels, which still emit carbon when they are burnt but are less polluting than the kerosene that is currently used. “The airlines are yet to clarify whether such claims can be substantiated based on sound scientific evidence,” the commission said.
https://www.ft.com/content/adec5d6d-24ed-4723-942a-d94d0aa53b8a
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