Why Apple Can't say Watches are Carbon Neutral in Germany

Apple can no longer promote its Apple Watch Series 9 as carbon neutral in Germany following a court ruling that challenges the tech giant’s approach to offsetting emissions.

It also highlights the growing tension between corporate sustainability claims and Europe’s stricter environmental regulations.

Apple had marketed the device as its first carbon neutral product as it is made out of 30% recycled or renewable materials, uses clean energy across all suppliers and thanks to reductions in air freight.

The company pledged that remaining emissions would be balanced through its Restore Fund, a reforestation project in Brazil and Paraguay.

How did the court come to a decision?

A Frankfurt court, ruling on a complaint from the environmental group Deutsche Umwelthilfe (DUH), found Apple’s neutrality claims to be “unfounded”.

The court acknowledged Apple’s reductions but questioned its reliance on offsets, particularly eucalyptus plantations in Paraguay.

According to the court, 75% of these plantations are not guaranteed beyond 2029, leaving Apple unable to prove the permanence of its carbon storage.

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."

DUH argued that monoculture tree farms offer limited ecological integrity and can only sequester carbon for a short period – undermining claims of long-term neutrality.

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."

The bigger picture: Apple, tech and sustainability

Apple has long positioned itself as an environmental leader in tech.

From designing chips with lower energy use to building supply chains around recycled aluminum, the company has consistently framed sustainability as part of its product innovation strategy.

However, the Frankfurt ruling underscores the complexity of defining “green tech” in a regulatory environment that increasingly demands scientific precision.

Simply claiming a product is neutral through offsetting will no longer pass legal muster in Europe – a region already setting the tone for global consumer protection policy.

Apple emphasises that it remains on track to achieve carbon neutrality across its entire supply chain and product life cycles by 2030.

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

The case sets the stage for broader changes.

By 2026, the European Union will implement new consumer protection rules designed to eliminate vague or misleading corporate environmental claims.

In 2024 the EU confirmed it was reviewing its rules on fair commercial practices and consumer protection, with the aim of encouraging responsible choices and supporting a circular economy.

Officials have made clear that they plan to prohibit instances of greenwashing, where companies attach labels such as “eco” or “carbon neutral” without credible evidence to substantiate the claim.

The bloc says it wants environmental information shared with consumers –such as durability, reparability, material content, production methods and ecological impact – to be supported by verifiable sources.

In pursuit of this goal, the EU is proposing to outlaw:

• Broad environmental claims on products that cannot be backed by proof
• Assertions that goods are climate neutral, reduced-impact, or environmentally positive purely through offsetting schemes
• Sustainability labels not approved by a public authority or without official certification

The EU says its ambition is to provide transparency – requiring companies to back every environmental statement with verifiable data on durability, reparability, material use and actual emissions.

“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.”

Behind Apple’s Restore Fund?

Launched in 2021 with partners Goldman Sachs and Conservation International, the Apple Restore Fund was designed to merge climate action with finance.

With an initial US$200m investment, the fund aims to restore 150,000 acres of forest and protect a further 100,000 acres of native ecosystems in Paraguay.

It expects to remove more than1 million tonnes of CO₂ by the end of 2025.

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.”