Why Germany has Banned Apple's Carbon Neutrality Claim

Apple is no longer able to advertise its Apple Watch series 9 as carbon neutral in Germany.

The company advertised the watch as its first ever carbon neutral product, as the watch was created using 30% recycled or renewable content, 100% electricity sourced from clean energy, 100% of suppliers being committed to the Suppliers Clean  Energy Program and 50% non air shipping being used.

Any emissions that could not be reduced were offset through its Apple Restore Fund based in Brazil, Paraguay. 

How did the court come to a decision?

A court in Frankfurt has ruled that the watch being carbon neutral is unfounded due to the definition of the process. 

Apple reported to plant trees in order to offset the carbon emissions of manufacturing the devices.

But, the court found that 75% of its eucalyptus plantation in Paraguay were not secured beyond 2029 and Apple was unable to guarantee that these contracts would be extended.

DUH head Juergen Resch said in a statement: "The supposed storage of CO₂ in commercial eucalyptus plantations is limited to just a few years, the contractual guarantees for the future are not sufficient and the ecological integrity of monoculture areas is not guaranteed."

The court suggested that due to there being no guarantee of future carbon offsetting the carbon neutrality claim cannot be substantiated.

An Apple representative told AppleInsider: "We strongly disagree with the DUH's position, which runs counter to the EU's and Germany's climate strategy and widespread international scientific consensus that both emissions reductions and carbon removal are necessary to achieve global climate goals."

What will the changes be to the EU legislation in 2026?

By 2026 the European Union is planning to create more laws surrounding carbon offsetting in an aim to reduce greenwashing. 

In 2024 the EU made a statement announcing that it is working on updating its existing rules regarding commercial practices and customer protection in order to promote friendly decisions and create a circular economy.

The union says it wants to ban greenwashing, where companies add sustainability statements such as neutral or eco without having the evidence to back up these claims.

The EU says it wants to make sure that information outlining  a product's impact on the environment, longevity, reparability, composition, production and usage is all backed up by verifiable sources.

In alignment with these goals the EU says it wants to ban: 

• Generic environmental claims on products without proof
• A company claiming that a product is neutral, reduced or has a positive impact on the environment due to carbon offsetting
• Labels making sustainability claims without approved certification or established by a public authority.

Apple says that it will phase out its use of the carbon neutral label to coincide with the coming bans in 2026, a spokesperson for the brand told ESG News: “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.”

What is Apple’s Restore Fund?

Apple established the Restore Fund in 2021, working alongside the Conservation International Goldman Sachs, it initially committed up to US$200m.

The project is located in Paraguay and the initial investment from both companies aimed to restore 150,000 acres of sustainably certified forests, alongside protecting an 100,000 acres of native forest, grasslands and wetlands.

By the end of 2025 the investment is expected to remove more than 1 million tonnes of carbon dioxide.

Lisa Jackson,  Vice President of Environment, Policy, and Social Initiatives at Apple says: “The Restore Fund is an innovative investment approach that generates real, measurable benefits for the planet, while aiming to generate a financial return.” 

“The path to a carbon neutral economy requires deep decarbonization paired with responsible carbon removal, and innovation like this can help accelerate the pace of progress.”