A wave of anti-“greenwashing” litigation is seeking to hold major players in the aviation industry to account for sensational claims of being sustainable, low-carbon or contributing to net zero.
While the industry has faced legal backlash in the past, the dramatic proliferation of these cases may spell disaster for major airlines.
It’s not hard to see why the aviation industry has provoked the ire of climate activists. Flying is responsible for a staggering 5% or so of human-induced global warming and its climate impact is still growing at a rate far greater than almost any other sector.
In this context, a profusion of “green flying” and “sustainability” advertising campaigns has turned the industry into an emblematic example of the debate between growth and sustainability.
Why greenwashing?
The rise in greenwashing litigation can in part be attributed to the relative ease with which cases can be brought. It’s simply a lot easier to attack an airline’s advertising compared to other activities that might be targeted by strategic climate litigation.
Consumers can use legal mechanisms such as commercial practice or consumer protection regulations, as happened in a recent greenwashing complaint to the European Commission filed by consumer groups in 19 countries against 17 airlines.
It’s an effective form of climate action due to the power exerted by advertising on public perception and social norms. The UN’s Intergovernmental Panel on Climate Change (IPCC) has underscored the importance of reducing demand for flying in the first place, something significantly hindered by adverts that downplay its environmental impact.
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A report by Greenpeace and think tank the New Weather Institute claimed that in 2019 airline advertisements influenced 34 million tonnes of CO₂ equivalent emissions worldwide.
This litigation is also buoyed by the demonstrable falsehoods that riddle the sustainability strategies of these companies. The pillars upon which their net-zero strategies rest vary from the broadly ineffective to the dangerously fraudulent and facilitate growth in a sector in dire need of reduction.
Airlines all rely on some form of carbon offsetting – planting trees, for instance, to “offset” the carbon emitted by the planes – or sustainable aviation fuel or carbon capture and storage, in order to “mitigate” their climate impacts.
Common litigation strategies
Thus far, there have been six climate change-related cases brought against major airlines (four in Europe, one in the US and one in Brazil). These cases are buttressed by numerous legal complaints taken through the European Commission or the UK and US advertising standards boards which have already successfully ordered Ryanair, Lufthansa and Etihad to pull ad campaigns.
In each of these three cases, authorities found that terminology like “protecting the future”, “sustainable aviation” or “low-emissions airline” amounted to wilful misleading of consumers and breached advertising regulations.
A recent case taken by Dutch campaigners against airline giant KLM is the most daring example yet. Climate action group FossielVrij(Fossil-free) argues that KLM’s “Fly Responsibly” campaign constitutes misleading advertising under EU consumer law.
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The group asserts that flying responsibly is impossible at present, and that KLM seeks company growth and increased flight sales, when it should be reducing emissions by reducing the number of flights. KLM said its “communications comply with the applicable legislation and regulations”, but has dropped the Fly Responsibly campaign.
Interestingly, this case builds upon a ruling of the Dutch Advertisement Code Commission and indicates the “snowballing” trend inherent in anti-greenwashing litigation, wherein cases rely upon precedent set by previous authorities. With this borne in mind, the recent 19-country complaint by the European Consumer Organisation could provide the strongest foundation to date for future litigation.
Delta Airlines is also facing a class action suit in the US, brought by a California resident who alleges that by marketing itself as a “carbon-neutral” Delta has grossly misrepresented its environmental impact. This points to a growing understanding of the ineffectiveness of carbon offsetting, a net-zero tactic adopted by almost every major airline.
A Delta spokesperson said the case is “without legal merit” as the airline has “transitioned its focus away from carbon offsets” towards decarbonising its own activities. European companies should follow this case closely as American-style “class action” litigation will soon be made possible in the EU.
Does this litigation have teeth?
These cases might result in companies simply pulling their green campaign while maintaining their existing corporate framework and growth models. More promisingly, recent research suggests that any climate-related case taken against a major emitting company will affect the firm’s value (on average by 0.057% following the filing of a case, and by 1.5% following an unfavourable decision).
In reality, these early cases are merely scratching the surface of what’s possible. Once these cases enter the public conversation, a growing understanding of consumer protection is bound to follow.
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In many jurisdictions, such as my home country of Ireland, significant damages can be awarded against companies for misleading advertisement. The UK’s Competition and Markets Authority, which is currently investigating claims of greenwashing in other sectors, will soon be able to fine companies 10% of their global turnover for non-compliance.
While anti-greenwashing litigation might not halt the growth of this industry altogether, it is no doubt an invaluable tool. At its most effective, it can stop blatant profiteering from the climate crisis and force the aviation sector to confront the chimera that is green growth.
Calum Maclaren, PhD Candidate, Climate Litigation, University College Dublin. This article is republished from The Conversation under a Creative Commons license. Read the original article.
The post Why airlines are perfect targets for anti-greenwashing legal action appeared first on Climate Home News.
Why airlines are perfect targets for anti-greenwashing legal action
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The “cost” of cutting UK emissions to net-zero is less than the cost of a single fossil-fuel price shock, according to a new report from the Climate Change Committee (CCC).
Moreover, a net-zero economy would be almost completely protected from fossil-fuel price spikes in the future, says the government’s climate advisory body.
The report is being published amid surging oil and gas prices after the US and Israel attacked Iran, which has triggered chaos on international energy markets.
It builds on the CCC’s earlier advice on the seventh “carbon budget”, which found that it would cost the UK less than 0.2% of GDP per year to reach its net-zero target.
In the new report, the CCC sets out for the first time a full cost-benefit analysis of the UK’s net-zero target, including the cost of clean-energy investments, lower fossil-fuel bills, the health benefits of cleaner air and the avoided climate damages from cutting emissions.
It finds that the country’s legally binding target to reach “net-zero emissions” by 2050 will bring benefits worth an average of £110bn per year to the UK from 2025-2050, with a total “net present value” of £1,580bn.
The CCC states that its new report responds to requests from parliamentarians and government officials seeking to better understand its cost assumptions, amid the ongoing cost-of-living crisis in the UK.
The report also pushes back on “misinformation” about the cost of net-zero, with CCC chair Nigel Topping saying in a statement that it is “important that decision-makers and commentators are using accurate information to inform debates”.
Co-benefits outweigh costs
The CCC’s new report is the first to compare the overall cost of decarbonising with the wider benefits of avoiding dangerous climate change, as well as other “co-benefits”, such as cleaner air and healthier diets.
It sets the CCC’s previous estimate of the net cost of net-zero – some £4bn per year on average out to 2050 – against the value of avoided damages and other co-benefits.
These “co-benefits” are estimated to provide £2bn to £8bn per year in net benefit by the middle of the century, according to the report.
The CCC notes that this approach allowed it to “fully appraise the value of the net-zero transition”.
It concludes that the net benefits of reaching net-zero emissions by 2050 are an average of £110bn per year from 2025 to 2050.
These benefits to the UK amount to more than £1.5tn in total and start to outweigh costs as soon as 2029, says the CCC, as shown in the figure below.
In addition, the CCC says that every pound spent on net-zero will bring benefits worth 2.2-4.1 times as much.
This updated analysis includes the value of benefits from improved air quality being 20% higher in 2050 than previously suggested by the CCC.
However, the “most significant” benefit of the transition is the avoidance of climate damages, with an estimated value of £40-130bn in 2050. The report states:
“Climate change is here, now. Until the world reaches net-zero CO2 [carbon dioxide] emissions, with deep reductions in other greenhouse gases, global temperatures will continue to rise. That will inevitably lead to increasingly extreme weather, including in the UK.”
The CCC’s conclusion is in line with findings from the Office for Budget Responsibility (OBR) in 2025, which suggested that the economic damages of unmitigated climate change would be far more severe than the cost of reaching net-zero.
The CCC notes that its approach to the cost-benefit analysis of the net-zero target is in line with the Treasury’s “green book”, which is used to guide the valuation of policy choices across UK government.
It says that one of the key drivers of overall economic benefit is a more efficient energy system, with losses halved compared with today’s economy.
It says that the UK currently loses £60bn a year through energy waste. For example, it says nearly half of the energy in gas is lost during combustion to generate electricity.
In a net-zero energy system, such energy waste would be halved to £30bn per year, says the CCC, thanks to electrified solutions, such as electric vehicles (EVs) and heat pumps.
For example, it notes that EVs are around four times more efficient than a typical petrol car and so require roughly a quarter of the energy to travel a given distance.
Collectively, these efficiencies are expected to halve energy losses, saving the equivalent of around £1,000 per household, according to the CCC.
Net-zero protects against price spikes
The CCC tests its seventh carbon budget analysis against a range of “sensitivities” that reflect the uncertainties in modelling methodologies and assumptions for key technologies. This includes testing the impact of a fossil-fuel price spike between now and 2050.
In the original analysis, the committee had assumed that the cost of fossil fuels would remain largely flat after 2030.
However, the report notes that, in reality, fossil-fuel prices are “highly volatile”. It adds:
“Fossil-fuel prices are…driven by international commodity markets that can fluctuate sharply in response to geopolitical events, supply constraints, and global demand shifts. A system that relies heavily on fossil fuels is, therefore, exposed to significant price shocks and heightened risk to energy security.”
It draws on previous OBR modelling of the impact of a gas price spike. This suggested that future price spikes would cost the UK government between 2-3% of GDP in each year the spike occurs, assuming similar levels of support to households and businesses as was provided in 2022-23.
The CCC adapts this approach to test a gas-price spike during the seventh carbon budget period, which runs from 2038 to 2042.
It finds that, if a similar energy crisis occurred in 2040 and no further action had been taken to cut UK emissions, then average household energy bills would increase by 59%. In contrast, bills would only rise by 4%, if the UK was on the path to net-zero by 2050.
The committee says that when considering the impact on households, businesses and the government, a single fossil-fuel price shock of this nature would cost the country more than the total estimated cost of reaching.
The finding is particularly relevant in the context of rising oil and gas prices following conflict in the Middle East, which has prompted some politicians and commentators to call for the UK to slow down its efforts to cut emissions.
In his statement, Topping said that it was “more important than ever for the UK to move away from being reliant on volatile foreign fossil fuels, to clean, domestic, less wasteful energy”.
Angharad Hopkinson, political campaigner for Greenpeace UK, welcomed this finding, saying in a statement:
“Each time this happens it gets harder and harder to swallow the cost. The best thing the UK can do for the climate is also the best thing for the cost of living crisis – get off the uncontrollable oil and gas rollercoaster that drags us into wars we didn’t want but still have to pay for. Inaction on climate is unaffordable.”
Benefits remain even if key technologies are more expensive
In addition to testing the impact of more volatile fossil-fuel prices, the CCC also tests the implications if key low-carbon technologies are cheaper – or more expensive – than thought.
It concludes that the upfront investments in net-zero yield significant overall benefits under all of the “sensitivities” it tested. As such, it offers a rebuttal to the common narrative that net-zero will cost the UK trillions of pounds.
The net cost of net-zero comes out at between 0% and 0.5% of GDP between 2025 and 2050, says the CCC, under the various sensitivities it tested.
“This sensitivity analysis shows that an electrified energy system is both a more efficient and a more secure energy system,” adds the CCC.
Finally, the report takes into account the costs of the alternative to net-zero. It looks at what would need to be spent in an economy where net-zero was not pursued any further.
The CCC says that the gross system cost of the balanced pathway falls below the baseline cost from 2041, which is consistent with its previous seventh carbon budget advice.
As shown in the chart below, costs fall under a net-zero pathway between 2025 to 2050, whereas they rise in the baseline of no further action.
Moreover, the total costs of the alternatives are broadly similar, with the relatively small difference shown by the solid line.
The decline in energy system costs shown in the figure above is broadly driven by more efficient low-carbon technologies, says the CCC, helping costs to fall from 12% of GDP today to 7% by the middle of the century.
The CCC’s new analysis comes ahead of the UK parliament voting on and legislating for the seventh carbon budget, which it must do before 30 June 2026.
The post CCC: Net-zero will protect UK from fossil-fuel price shocks appeared first on Carbon Brief.
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