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Climate neutral means that all the greenhouse gases produced by a product, service or process are offset by climate protection measures. But this doesn’t necessarily mean that emissions are reduced, or that there are no emissions in the first place. Instead, the carbon emissions are calculated and offset through financial support for recognised climate protection projects. These could be projects that support long-term reforestation, for instance, or that promote the expansion of renewable energy.
This means that to date, all companies, products, services and processes could be “climate neutral” in principle – regardless of how much pollution they cause.
Important: Climate neutral does not mean carbon-free. While climate neutral indicates that emissions that have been produced are offset, carbon-free means that there were no carbon emissions in the first place – anywhere in the supply chain.
myclimate has decided not to use the terms “climate neutral” and “climate neutrality” anymore. There are two reasons for this.
First, the regulatory environment has changed in the wake of the Paris Agreement. To prevent double-counting of emissions reductions, “corresponding adjustments” (CA) were introduced. These serve as confirmation of emissions savings from the country that hosts the climate protection project in question, and allows a company, for instance, to have this credited as their own compensation.
But there are no countries issuing CAs as yet. That means companies can’t have compensation credited at all, with the further consequence that they can no longer make claims of climate neutrality. Compensation can also diminish incentives for preventing and reducing emissions – yet for the long-term attainment of climate targets it is crucial that the volume of carbon and other pollutants entering the atmosphere be kept to a minimum.
The second reason is that for many people, the term suggests that absolutely no emissions are produced. This leads to misunderstanding. And it means that companies that use “climate neutral” in their communications can soon face accusations of greenwashing.
The term "climate neutrality" continues to have a meaningful and important role. Among other things, it is used in relation to long-term emissions targets, for example those set by countries or cities aiming to achieve net zero emissions by a specific date.
For instance, the Swiss Government has set a target of becoming climate neutral by 2050. In June 2023, more than 59 per cent of all eligible voters approved this target in a referendum on the Climate Act.
Despite criticism, advertising claims for products may, in principle, still include the term "climate neutral" and similar descriptions. However, such so-called “green claim” are regulated much more restrictively in the European Union, for example.
France has already introduced strict rules on environmental claims in advertising, effective from 1 January 2023. Furthermore, with the "Empowering Consumers for the Green Transition" (EmpCo) Directive, new requirements have come into force in the European Union that will better protect consumers from misleading advertising messages and non-transparent sustainability labels. Environmental and climate claims, as well as sustainability labels, are therefore now subject to stricter requirements and must be substantiated in a verifiable manner. In future, such awards and labels must, in particular, be based on a reliable certification system or be established by public authorities. The new regulations apply to all goods and services placed on the market in EU countries from 27 September 2026.
Consequently, whilst a reduction in environmental claims and labels is to be expected, there will also be a qualitative improvement in the claims and awards available on the market.
For myclimate, effective climate protection means more than just compensation; instead it can be summarised by the phrase “do your best, and finance the rest”.
The three key steps are:
That means, in concrete terms, that companies and organisations should start by determining measures for the long- and short-term avoidance and reduction of their own emissions to keep their greenhouse gas output as low as possible. But this kind of reduction path takes time before it can make a positive impact. And not all emissions can be prevented with the technology available to us today.
This is where investment in climate protection projects comes in, because it really does have an immediate impact on the climate. So the second step for companies and organisations is to support climate protection projects with a scope that corresponds to the emissions they cannot yet avoid.
myclimate also advises discussing these efforts comprehensively and openly, with transparent, voluntary disclosure. This prevents accusations of greenwashing arising in the first place, or at least proactively helps to defuse them.
With the "CO₂ calculated – Carbon projects funded" label , myclimate is responding to these developments and offering companies a way to credibly communicate their climate commitments to the outside world.
The label demonstrates that a greenhouse gas inventory has been drawn up and verified for a company, a site, a business division, a product, a service or an event. It also certifies that, on this basis, high quality climate protection projects are being provided with financial support.
The label transparently describes the combination of greenhouse gas accounting and the financing of climate protection projects. It makes no claim that emissions are offset, neutralised or eliminated, and thus complies with legal requirements.
To help organisations navigate the pitfalls of public perception on this issue, myclimate also supports them in communicating their commitments.
Sources:
Klimaschutzprojekte als Königsweg (swisscleantech.ch)
Klimaneutral - Was bedeutet das eigentlich? (climatepartner.com)
Klimaneutralität (klimaneutralitaet.de)
Verbräuchertäuschung mit vermeintlicher „Klimaneutralität“ (duh.de)
Konsumentenschutz reicht Beschwerden ein gegen Swisscom, Coca‐Cola und weitere Firmen (tagesanzeiger.ch)
Green claims (environment.ec.europa.eu)
You can find further exciting information on the subject of climate change and climate protection in our climate booklet
