• Frankfurt court finds Apple misled consumers with carbon-neutral claims tied to short-term forestry offsets.
• Decision puts corporate use of “CO2-neutral” labels at risk across Europe, ahead of stricter EU rules in 2026.
• Apple faces a parallel lawsuit in the U.S., highlighting growing global scrutiny of climate marketing.

A German court has barred Apple from marketing its Apple Watch as “CO2 neutral,” ruling that the company misled consumers about the durability of its offsets. The Frankfurt decision, issued Tuesday, follows a complaint by Environmental Action Germany (DUH) and adds pressure on companies making sweeping carbon claims.

At the center of the ruling are Apple’s forestry offsets in Paraguay. Judges concluded that consumers reasonably expect such claims to guarantee carbon storage through at least 2050 in line with the Paris Agreement. In contrast, Apple’s leases for 75% of the land underpinning its offsets expire in 2029. “Therefore, carbon offsetting was only guaranteed until 2029,” the court said. “Apple was unable to prove that all leases would be extended. There is no secure prospect for the continuation of the forestry project.”

Apple argued that Verra’s “buffer pool” system—where credits are set aside to insure against risks such as fires—provided additional security. The court disagreed, noting that buffer accounts cannot guarantee forest continuation if leases end. DUH’s federal director Jürgen Resch said: “With our climate lawsuits against greenwashing by industrial and commercial companies, we are ensuring that even multi-billion dollar corporations like Apple must provide consumers with honest and comprehensible information about the actual environmental impacts of their products.”

The decision echoes concerns raised in the U.S., where Apple faces a class-action suit over similar claims tied to forestry projects in China and Kenya. Plaintiffs argue the credits are “worthless” because they fail to deliver genuine, additional carbon reductions. A hearing in that case is set for November.

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Apple said it will phase out use of “carbon-neutral” labels ahead of new EU rules in 2026. A company spokesperson responded: “Importantly, the court has broadly upheld our rigorous approach to carbon neutrality. We remain laser-focused on further reducing emissions by industry-leading innovation in clean energy, low-carbon design and more — work that has put us on track to achieve carbon neutrality throughout our entire supply chain by 2030.”

Environmental groups remain divided. While DUH has framed the ruling as a victory against greenwashing, the Environmental Defense Fund defended Apple in the U.S. case, calling its strategy “eminently reasonable and consistent with industry practice.” Elizabeth Sturcken, EDF’s vice president of net-zero ambition and action, said: “What I don’t want to be lost in all the news around the carbon-neutral claim is Apple’s approach to decarbonization, where they work to reduce emissions in their operations as much as they can, engage with their supply chain to do the same and then invest in high quality, verified carbon credits to support nature globally. That approach is a leadership approach and one that we want every company to take.”

The case underscores a broader shift: climate-related marketing claims are coming under sharper legal and regulatory scrutiny. As EU and U.S. authorities tighten rules, Apple’s high-profile loss could mark a turning point for how corporations communicate their climate credentials.

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