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SEC proposed climate disclosure rule

The Securities and Exchange Commission (SEC) has introduced a transformative climate disclosure rule aimed at revolutionizing the reporting landscape for public companies. 

This proposed rule seeks to mandate detailed disclosure of emissions, climate risks, and strategies for achieving net zero emissions, marking a significant leap towards corporate transparency and sustainability. 

Key Aspects of the Proposed Rule

At the core of the SEC’s proposed rule lies a call for comprehensive reporting, compelling companies to provide detailed insights into their climate-related facets. This includes the delineation of risks associated with climate impact, emissions data, and robust plans for achieving net zero emissions.

One of the primary objectives of the SEC’s proposal is to arm investors with consistent, comparable, and meaningful climate-related information. This will enable investors to make more informed decisions, considering a company’s environmental impact and climate risk profile in their investment strategies.

Moreover, standardizing reporting obligations across companies issuing securities is another key aspect of the proposal. This seeks to establish uniformity in disclosures, potentially reducing discrepancies and enhancing the overall quality of information provided by companies.

Most notably, SEC’s proposed rule will significantly impact the practices of accounting, auditing, and assurance for public companies and their service providers. It involves adapting existing frameworks to accommodate the new reporting requirements

It may also call for developing new methods and standards for evaluating and reporting climate-related information. 

Overall, the proposed climate disclosure rule cover two major aspects:

  • Climate-Related Financial Impacts: The regulation tackles how climate-related impacts should be included in financial statements (e.g. balance sheet, income statement, cash flow).
  • Narrative Disclosures: The rule also involves narrative disclosures in form SK. It will likely include discussions on risks, business strategy impacts, and metrics like greenhouse gas inventory.

Implications and Challenges for Companies

The SEC’s disclosure rule also poses a number of implications and challenges. 

The first one is increased reporting obligations for companies. They will face additional reporting demands that may require thorough data gathering, accurate presentation, and strengthened internal controls to comply with the new regulations. 

Companies also have to go along the transition from voluntary to regulated disclosure. This represents a significant change, requiring gradual efforts until they become accustomed to the new reporting requirements. 

However, for companies that are already complying with similar disclosure rules, it would be easier for them to embrace the proposed changes. Given the overlap with other existing regulations, determining the costs of the SEC’s rule alone would be hard. 

But according to the SEC, the required reporting will cost a small publicly listed firm about $420,000 a year on average. For a larger company, it will be $530,000 a year.

SEC climate disclosure rule cost
Source: U.S. SEC

Role of Carbon Credits and RECs

The SEC’s proposed rule acknowledges the relevance of carbon offsets and renewable energy credits (RECs), underlining their importance in climate-related reporting. Companies increasingly leverage these instruments for decarbonization, establishing  market-based mechanisms to advance sustainability goals.

However, discussions have emerged regarding the adequacy of the SEC’s requirements, raising concerns about the need for more comprehensive disclosures. It’s crucial for investors and stakeholders to understand how the use of these credits impacts a company’s risk profile, business strategy, and long-term financial implications. 

In particular, the proposed rule outlines the following key areas for disclosure:

  • Climate-Related Risk: Companies’ use of voluntary carbon markets in their transition risk strategy.
  • Business Strategy Alignment: How the use of carbon credits or offsets aligns with a company’s business model, strategy, and future outlook.
  • Targets and Goal Disclosure: Requirements for companies to disclose if their sustainability targets involve the utilization of RECs and offsets.

While the proposed rule has been in existence for about 18 months, awaiting finalization, stakeholders have actively engaged in the process, submitting over 20,000 comments during a consultation period. 

However, the final timeline for its completion remains uncertain, leaving companies in a state of anticipation regarding the impending changes.

How to Prepare for SEC’s Proposed Climate Disclosure Rule: A Roadmap for Companies

Despite the uncertain timeline, companies are advised to prepare by focusing on “no regret” actions, according to Matt Handford, Principal, Climate Change and Sustainability at Ernst & Young. He further shared insights on how companies can better prepare for the new disclosure requirements. 

Key areas to focus on per Handford’s advice include the following:

Emissions Understanding and Accounting: 

Companies need to treat emissions data with the same rigor as financial data, ensuring completeness, accuracy, and reasonableness of their emissions inventory.

Data Hygiene and Quality Assurance: 

Emphasis should be on the quality of data and the reliability of sources, underpinning robust documentation and validation processes.

Reassessment of Climate-Related Claims: 

Companies are reassessing their public claims related to carbon neutrality and net zero targets, ensuring robust strategies and execution plans to meet these objectives.

Engaging Internal Stakeholders: 

Collaboration across various internal departments, including finance and legal, is pivotal to comprehensively address climate-related disclosures and strategies.

The SEC’s proposed climate disclosure rule represents a transformative era in corporate reporting, mandating transparency and accountability regarding climate-related information. As businesses gear up for these regulatory changes, thorough preparation and collaborative approach will be crucial in meeting the evolving disclosure obligations and steering towards a more sustainable future.

The post A Deep Dive into SEC’s Proposed Climate Disclosure Rule for Sustainability appeared first on Carbon Credits.

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Building global awareness: Green Earth’s outreach to independent analysts and commentators

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At Green Earth Group N.V. (Euronext Amsterdam: EARTH, ISIN: NL0009169515), we are committed to engineering possibilities for a greener planet with a mission to make regeneration scalable and investable for people and the planet. We are a leading end-to-end developer of high-quality, large-scale nature-based solutions that restore ecosystems and improve livelihoods.

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Boeing Locks In 40,000 Tons of Carbon Removal Credits in Major Biochar Climate Deal

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Boeing Locks In 40,000 Tons of Carbon Removal Credits in Major Biochar Climate Deal

Aerospace giant Boeing has signed a multi-year agreement with carbon removal platform Carbonfuture to purchase at least 40,000 tonnes of durable carbon dioxide removal (CDR) credits. The deal ranks among the largest carbon removal procurements in the aviation sector so far.

The carbon credits will come from a portfolio of biochar carbon removal projects, mainly located across the Global South. Biochar is created by heating plant material in a low-oxygen environment. The process converts biomass into a stable form of carbon that can be stored in soil for long periods.

Carbonfuture will track each credit using its digital monitoring system. The platform records the entire carbon removal process—from biochar production to soil application. It also verifies ownership of the credits.

The agreement helps Boeing tackle emissions that technology or fuel changes can’t eliminate yet. The company plans to apply these credits to Scope 3 emissions linked to business travel.

Allison Melia, VP Global Enterprise Sustainability, Boeing, said:

“To support long-term global demand for air travel, the aviation industry has set goals to reduce emissions. We’re excited to team up with Carbonfuture to support technological innovation in carbon removals to help meet these needs.”

This partnership reflects a broader shift in corporate climate strategies. Many industries now combine emissions reductions with carbon removal to manage their climate impact.

Why Aviation Is Turning to Carbon Removal

Decarbonizing aviation is difficult. Aircraft can last for decades, and alternatives like hydrogen planes or fully electric aircraft are still years away from wide use.

The aviation sector produces around 2–3% of global carbon dioxide emissions, based on research from energy and industry studies. When scientists look at the warming effects of contrails and other non-CO₂ emissions, aviation’s climate impact gets bigger.

Airline aviation sector ghg emissions 2024 IATA
Source: IATA

Demand for flights also continues to grow. Rising global travel has offset many efficiency improvements in aircraft design and operations.

Sustainable aviation fuel (SAF) is one promising solution. However, SAF still accounts for less than 1% of global jet fuel supply and often costs two to ten times more than conventional jet fuel.

SAF supply forecast 2030

Because of these limits, aviation companies are turning to carbon removal technologies. These systems physically remove carbon dioxide from the atmosphere rather than simply avoiding emissions.

Boeing’s deal with Carbonfuture shows how carbon removal can complement other decarbonization strategies.

Biochar Carbon Removal: Turning Biomass Into Long-Term Carbon Storage

The credits in Boeing’s deal come from biochar-based carbon removal projects. Biochar forms through a process called pyrolysis. Organic waste, such as crop residues or forestry by-products, is heated in a low-oxygen environment. This converts the biomass into a carbon-rich charcoal.

biochar carbon market snapshot 2025

When biochar is added to soil, it can store carbon for hundreds of years while improving soil health and water retention.

The projects in Boeing’s agreement also provide environmental benefits beyond carbon storage. Biochar can increase soil fertility, improve crop yields, and support agricultural resilience in regions facing land degradation.

Carbonfuture’s digital platform tracks every stage of the carbon removal process. This monitoring system aims to increase transparency and trust in carbon credit markets.

High-quality verification matters. Voluntary carbon markets have faced criticism for weak oversight and questionable offset projects.

Inside Boeing’s Emissions Footprint and Net-Zero Strategy

The carbon removal agreement is part of Boeing’s broader sustainability strategy. Like many aerospace companies, the aerospace giant faces large emissions from its value chain. Most of its climate impact comes from Scope 3 emissions. These include airline aircraft operations and other indirect activities.

Boeing’s total carbon footprint is estimated at around 374 million metric tons of CO₂ equivalent for 2024. Of this, about 373 million tons are from Scope 3 sources.

Direct emissions from Boeing operations are much smaller. The company reported about 517,000 tons of Scope 1 emissions and 464,000 tons of Scope 2 emissions from purchased electricity.

Because Scope 3 emissions dominate aviation’s footprint, companies must work across the entire ecosystem. That includes airlines, fuel suppliers, airports, and aircraft manufacturers.

Boeing plan to decarbonize aerospace

The ariplane maker says its strategy focuses on four main areas:

  • improving aircraft fuel efficiency,
  • supporting sustainable aviation fuel development,
  • advancing new propulsion technologies, and
  • using carbon removal for residual emissions.

Carbon removal purchases help address emissions that cannot yet be eliminated through technological change.

Corporate Demand Is Fueling the Carbon Removal Market

Boeing’s deal also reflects rapid growth in the carbon removal market. Corporate demand for carbon dioxide removal has expanded in recent years. Many companies now view durable removals as a key tool for meeting net-zero climate targets.

Recent data shows that high-durability carbon removal credits hit nearly 8 million metric tons in 2024. This is up from about 2.4 million tons in 2023. That’s a jump of around 233% in just one year, according to CDR.fyi.

Analysts expect carbon removal demand to rise sharply over the next decade as climate targets tighten. BCG estimates that annual demand for carbon removal might hit 40–200 million tons of CO₂ by 2030. It could grow further to 80–900 million tons by 2040 as more companies commit to net-zero goals.

New technologies such as biochar, direct air capture, and mineralization are gaining attention from investors and large corporate buyers.

Early demand will likely come from voluntary corporate buyers. These buyers could make up about 90% of carbon removal purchases soon as companies are looking for high-quality solutions to tackle hard-to-eliminate emissions.

Large technology companies such as Alphabet, Stripe, and Microsoft currently dominate the market. Microsoft alone purchased about 5.1 million tons of durable carbon removal credits in 2024, representing around 63% of total market demand.

Earlier, Boeing signed another major removal agreement with carbon removal firm Charm Industrial. That deal targeted up to 100,000 tons of CO₂ removal, showing the company’s growing interest in durable climate solutions.

Aviation’s Net-Zero Path: Fuel Innovation Meets Carbon Removal

The Boeing–Carbonfuture agreement highlights a growing trend in hard-to-abate industries. Aviation, steel, shipping, and cement all face similar challenges. These sectors depend on energy-dense fuels and long-lived infrastructure.

Because of this, companies are exploring multiple climate strategies at once. These include:

  • new aircraft designs,
  • sustainable aviation fuels,
  • operational efficiency improvements, and
  • carbon removal technologies.

Durable carbon removal is increasingly viewed as a bridge solution. It can help manage emissions while new technologies mature.

As global air travel grows, airlines and aircraft makers will face more pressure. They need to show clear paths for decarbonization.

Scaling Climate Solutions for Hard-to-Abate Sectors

Boeing’s carbon removal partnership with Carbonfuture marks an important step in aviation’s evolving climate strategy. The agreement will secure at least 40,000 tonnes of durable carbon removal credits, making it one of the largest such deals in the aerospace sector.

Carbon removal won’t solve aviation’s emissions issue by itself. However, it can support fuel innovation, improve efficiency, and help with cleaner energy systems.

As industries move toward net-zero targets, carbon removal markets are likely to grow rapidly. For companies across transportation, the path to a low-carbon future will rely on a mix of technological breakthroughs and credible climate solutions.

The post Boeing Locks In 40,000 Tons of Carbon Removal Credits in Major Biochar Climate Deal appeared first on Carbon Credits.

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Apple Beats ‘Carbon Neutral’ Lawsuit, But Greenwashing Scrutiny Is Heating Up

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Apple Beats ‘Carbon Neutral’ Lawsuit, But Greenwashing Scrutiny Is Heating Up

A U.S. federal judge has dismissed a proposed class-action lawsuit accusing Apple of misleading consumers with “carbon neutral” marketing for several Apple Watch models. The case targeted the Apple Watch Series 9, Apple Watch SE, and Apple Watch Ultra 2. Plaintiffs said the company exaggerated the environmental benefits of the watches. They claimed Apple relied on carbon offset projects that did not truly cancel the products’ emissions.

Seven buyers filed the lawsuit in February 2025 in federal court in California. They argued they would not have bought the watches, or would have paid less, if they knew the details of Apple’s carbon accounting.

In February 2026, U.S. District Judge Noël Wise dismissed the case. The court ruled the complaint lacked strong evidence showing Apple’s carbon-neutral claims were false or misleading. Wise said:

“At this juncture, the court has a narrow question to consider: have plaintiffs plausibly alleged that Apple’s claims of carbon neutrality are false? Because the court finds that the answer to that question is no, Apple’s motion to dismiss is granted.”

The ruling gives Apple an early legal win. But it also highlights growing scrutiny of corporate climate marketing.

How Apple Calculates a “Zero-Emission” Watch

Apple launched its first carbon-neutral devices in September 2023. The company said the Apple Watch models achieved neutrality through a mix of emissions reductions and carbon offsets.

For example, Apple estimates the lifecycle carbon footprint of a carbon-neutral watch model at about 8.1 kg of CO₂-equivalent emissions per device before offsets. After applying carbon credits, Apple says the net footprint becomes 0 kg CO₂e.

The tech giant says it lowers emissions by:

  • using recycled materials,
  • increasing renewable electricity in manufacturing,
  • improving product efficiency, and
  • reducing shipping emissions.

Any remaining emissions are offset through environmental projects.

The lawsuit challenged two offset projects tied to Apple’s claims. One project protects forests in Kenya’s Chyulu Hills, while another supports reforestation efforts in China. Critics argued such projects may not always deliver additional carbon reductions.

The court did not rule on the scientific debate over offsets. Instead, it said the plaintiffs failed to show Apple’s claims were clearly deceptive.

The Tech Giant’s 2030 Net-Zero Roadmap

Apple’s carbon-neutral watches are part of a larger climate plan known as “Apple 2030.” The company aims to make its entire business, supply chain, and product lifecycle carbon neutral by 2030.

Apple carbon neutral to 2030 pathway
Source: Apple

The iPhone maker has made progress toward that goal. The company says its global greenhouse gas emissions have fallen by more than 60% compared with 2015 levels.

In 2024, Apple reported a total carbon footprint of about 16.5 million metric tons of CO₂-equivalent emissions across its operations and supply chain. That figure represented a decline from the previous year.

apple carbon emissions 2024
Source: Apple

Most of Apple’s emissions come from Scope 3 sources, including manufacturing and product use. To address that, it works closely with suppliers. The company reports that 17.8 gigawatts of renewable electricity are now operating in its global supply chain. Those projects helped avoid about 21.8 million metric tons of greenhouse gas emissions in 2024 alone.

Apple has also increased recycled materials in its products. About 24% of the materials used in Apple devices in 2024 came from recycled or renewable sources. These efforts are central to the company’s climate strategy.

Greenwashing on Trial: Climate Claims Face Legal Tests

Even though Apple won the U.S. case, climate lawsuits are rising worldwide. Greenwashing claims typically challenge marketing statements such as:

  • “carbon neutral”
  • “net zero”
  • “climate friendly”

These terms can involve complex carbon accounting that consumers may not fully understand.

Apple has faced legal pressure outside the United States as well. A court in Frankfurt, Germany ruled in 2025 that Apple could not advertise the Apple Watch as “CO₂-neutral” in Germany. The court said the claim could mislead consumers under local competition law.

European regulators are also tightening rules on environmental claims. New EU consumer protection rules will restrict vague labels like “carbon neutral” in advertising beginning in 2026. These legal developments could reshape how companies communicate climate progress.

Big Tech Emissions: Clean Energy vs. Rising Power Demand

The Apple case reflects a larger trend in the technology sector. Tech companies are under growing pressure to cut emissions as demand for digital services rises.

Data centers, cloud computing, and artificial intelligence require massive amounts of electricity. As a result, technology firms are investing heavily in renewable energy and carbon removal projects.

Apple’s progress contrasts with some peers whose emissions have risen due to expanding AI infrastructure. Apple still emitted about 15.3 million metric tons of CO₂ in 2024, but that figure is far below its 2015 baseline of 38.4 million tons.

At the same time, clean energy adoption is growing globally. The rapid expansion of renewable power also supports other low-carbon industries, including electric vehicles.

Apple’s Clean Energy Capacity by Year

Companies such as Tesla rely heavily on the decarbonization of electricity systems. The climate benefit of electric cars increases when power grids shift toward renewable energy.

Global electric vehicle adoption is rising quickly. According to the International Energy Agency, EVs represented about 20% of global car sales in 2024, compared with 18% in 2023 and just 4% in 2020. That growth is expected to continue as governments strengthen climate policies and consumers adopt cleaner transportation.

Technology companies and automakers both depend on credible climate strategies to maintain investor confidence.

The Role of Carbon Credits in Corporate Climate Plans

Carbon credits remain a key tool for many companies pursuing net-zero goals. Apple increased its use of carbon credits in 2024, retiring about 737,100 tons of CO₂-equivalent offsets—its highest level to date.

Carbon offsets support several projects such as:

  • forest protection,
  • reforestation,
  • methane capture, and
  • renewable energy development.

However, the quality of carbon credits has become a major issue in climate policy.

Some researchers argue that certain nature-based credits may overestimate their climate impact. Others say these projects are essential for protecting ecosystems and funding conservation. The debate is likely to intensify as more corporations adopt net-zero targets.

A Legal Win, but Climate Claims Under the Microscope

Apple’s victory in the U.S. greenwashing lawsuit marks an important moment in the evolving field of climate litigation. The court ruled that the plaintiffs did not present enough evidence to prove the tech giant’s carbon-neutral claims were misleading.

However, the case also shows how closely corporate climate messaging is now examined. Companies across technology, energy, and transportation sectors face growing pressure to show real emissions reductions and transparent reporting.

As the clean-energy transition accelerates, and industries from consumer electronics to electric vehicles expand, clear standards for climate claims will become increasingly important.

For Apple and other global companies, the challenge is not only reducing emissions but also proving those reductions in ways that stand up to scientific, legal, and public scrutiny.

The post Apple Beats ‘Carbon Neutral’ Lawsuit, But Greenwashing Scrutiny Is Heating Up appeared first on Carbon Credits.

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