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The European Green Deal is a pact that looks to improve the well-being and health of citizens and future generations by providing a range of basic necessities, such as fresh air, clean water, healthy soil, healthy and affordable food, cleaner energy, future-proof jobs, and much more.  

It bases much of this on the European Union (EU) becoming greener. Recently, the European Commission released a series of new rules focused on corporate responsibility that aims to strengthen the path toward its carbon-neutral goal. 

How will these changes affect life in the EU? We review the upcoming EU rules on green claims and greenwashing and what they mean. 

What Is the European Green Deal policy?

The European Union (EU) and European Parliament recognize that climate change and environmental degradation threaten all life in Europe and worldwide. To help get past these challenges and improve the chances of a clean, safe world for future generations, all 27 EU Member States agreed to the European Green Deal 

This environmental agreement will help convert the EU into a modern, resource-efficient, and competitive economy by ensuring: 

  • A reduction in net greenhouse gas emissions by 55% of 1990 levels by 2030 
  • Zero greenhouse gas emissions (GHG emissions) by 2050 
  • Economic growth becomes decoupled from resource use 
  • No person or place is left behind economically or ecologically 
  • EU’s energy independence 
  • Job creation and growth 
  • An improvement in the overall health and well-being of EU citizens 

Financing for the European Green Deal will come from dipping into one-third of the 1.8 trillion euro ($2.022 trillion) investments from the NextGenerationEU Recovery Plan and the EU’s seven-year budget. 

What Is the New EU Environmental Legislation?

Newly proposed legislation for the European Green Deal focuses heavily on green claims. Green claims are any claim an organization makes that it’s taking action to combat GHG emissions and to help slow climate change 

Currently, EU laws don’t regulate environmental claims, which leads to inconsistencies with regard to the handling of these claims among Member States. 

The changes would also better define green claims. They would be defined as: “any message or representation, which is not mandatory under Union law or national law, including text, pictorial, graphic or symbolic representation, in any form, including labels, brand names, company names or product names, in the context of a commercial communication, which states or implies that a product or trader has a positive or no impact on the environment or is less damaging to the environment than other products or traders, respectively, or has improved their impact over time.” 

This is all in an attempt to prevent greenwashing — when an organization focuses more on marketing itself as environmentally friendly than minimizing its environmental impact. 

Let’s review the main proposed changes. 

Rules for Methodology

To help ensure all green claims are valid and harmonious across the EU, EU Member States must validate environmental claims through science-based methodologies 

Accepted methodologies are expected to have to follow these basic guidelines: 

  • They must be based on widely recognized scientific evidence and state-of-the-art technical knowledge and account for relevant international standards. Claims are not allowed if no recognized scientific method exists or there’s insufficient evidence to assess environmental impacts and aspects. 
  • They must assess environmental impact throughout the product’s life cycle. 
  • They must account for the composition of products, the materials they use when producing products, the amount of emissions created during production, the use of the product, and the product’s durability, reparability, and end-of-life aspects. 
  • They must assess if achieving positive environmental impacts, aspects, or performance significantly increases any other negative environmental impact. 
  • They must be third-party accessible with a reasonable access fee, if applicable. 
  • They require regular review from a third party that can account for technical and scientific progress and the development of relevant international standards. 

Rules on Green Claims

Green Energy Claims Image of Smoking Factory Plantsource

So, what will be considered valid green claims under these proposed rules? While nothing is official yet, the green claims directives will be as follows: 

  • They can only make environmental claims substantiated through an approved methodology that meets specific criteria, which we’ll cover later.  
  • They cannot make positive environmental claims if a product has a positive and negative environmental impact. They may publicize the positive claim, but they must also communicate the negative impact clearly and understandably. 
  • They must make the information on the assessment on which the environmental claim is based available 

With regard to the final bullet point, the information on the assessment that should be made available includes: 

  • Information about the product or activities of the trader subject to the claim; Environmental aspects, environmental impacts, or environmental performance the claim covers 
  • Methodology used 
  • Underlying studies or calculations they used to analyze, measure, and monitor the claim’s environmental impact 
  • A brief explanation of how they improved environmental performance via a weblink, QR code, or equivalent 

There also needs to be a review of the accuracy of their environmental claims every five years at minimum. 

Rules on Comparative Environmental Claims

Organizations can make comparative environmental claims as a part of marketing efforts, but experts anticipate the new rules to crack down on such claims. Some of the proposals include: 

  • Organizations must utilize the identical methodology as the products or traders they compare themselves to. 
  • Organizations must generate or source the data to substantiate comparative claims equivalently to ensure comparability. 
  • Organizations must account for the most significant stages along the value chain for all products and traders compared. 

Rules on Forward-Looking Claims

Organizations may also claim anticipated environmental benefits under the newly proposed green claims directive. However, authorities would require these future-looking claims to follow specific guidelines, including: 

  • They must include commitments and milestones that they need to achieve within clearly specified time frames. 
  • They must indicate a baseline year for all targets, the desired result compared to the baseline year, and the target year to achieve the claim. For example, they might say something like, “We commit to making a 50% reduction in emissions by 2035 compared to our 1990 levels.” 
  • They cannot include previously achieved targets. 

Rules on Enforcement

source

The proposed rules will also include how they will expose non-compliant organizations. In the proposed rules, public authorities would require Member States to perform compliance monitoring: 

  • As part of their regular checks 
  • In cases where they have sufficient reason to believe an environmental claim may infringe upon the rules 
  • If complaints arise 

If an organization makes non-compliant environmental claims, the proposed rule changes would require it to fix the issues quickly. Once the organization receives a non-compliance notification, it would have 10 business days to respond with substantiation.   

If the organization doesn’t provide a timely or satisfactory answer, regulatory officials will require it to modify the offending claim or cease all communication of it immediately as consumer protection. The trader will have 30 business days to implement corrective actions. 

This enforcement aims to ensure all environmental labels and claims are credible and trustworthy, allowing consumers to make more educated purchasing decisions. 

What Are the Current EU Environmental Policies?

The current European Green Deal may not be as extensive as the proposed regulation changes. However, it still looks to take on climate change and help prevent the potential global existential crisis it causes.  

To help with this, the European Commission has adopted many climate-focused initiatives and policies, such as: 

  • Reducing car emissions by 55% by 2030 
  • Reducing van emissions by 50% by 2030 
  • Reducing all new-car emissions to 0% by 2035 
  • Performing energy-efficiency-improving renovations on 35 million buildings by 2030 
  • Reaching 40% renewable energy by 2030 
  • Reaching 36% to 39% energy efficiency by 2030 
  • Restoring Europe’s forests, soils, wetlands, and peatlands to increase carbon absorption to 310 megatonnes (Mt) 

What Is the New EU Sustainability Directive?

The EU requires large companies and all listed companies — listed micro-enterprises are excluded — to disclose what they view as risks and opportunities associated with social and environmental issues. They must also disclose their activities’ impact on people and the environment. 

This disclosure helps investors, civil society organizations, consumers, and other stakeholders evaluate companies’ sustainability performance as part of the European Green Deal. 

In January 2023, the new Corporate Sustainability Reporting Directive (CSRD) was enacted. This new directive modernizes and strengthens the social and environmental information companies must report. A broader set of large companies and listed SMEs — approximately 50,000 companies — must now report on sustainability 

To be affected by this new reporting directive, a company must meet at least two of the three following criteria: employ 250-plus people, have assets totaling at least 20 million euros, and have turnover totaling at least 40 million euros.  

Companies will begin applying the new reporting rules in the 2024 financial year for reports published in 2025. Until then, the current Non-Financial Reporting Directive (NFRD) national law will remain in force, requiring affected organizations to report on environmental protection (Scope 3 emissions included), social responsibility, the treatment of employees, human rights, anti-bribery and anti-corruption, and company board diversity. 

Once the Corporate Sustainability Reporting Directive (CSRD) begins in 2024, corporations will have to report on all information in the current NFRD plus: 

  • Double materiality, including the company’s sustainability and climate risk, and the impact the company has on society and the environment 
  • Material-topic-selection process for stakeholders 
  • More forward-looking information, including organizational climate targets and its progress toward the targets 
  • Information regarding intangible items, including social, human, and intellectual matters 
  • Reports aligning with the Sustainable Finance Disclosure Regulation (SFDR) and European Union’s Taxonomy Regulation 

Upcoming EU Rules on Green Claims Seek to Elevate Corporate Responsibility

Front of Building EU Climate Policiessource

To accelerate the battle against climate change and global warming, the EU continues updating policies and proposals to the existing European Green Deal. The latest proposals focus on empowering European organizations to improve their climate-neutral reporting and to make this a common practice among more European companies. 

These upcoming EU rules on green claims and greenwashing may help Europe get on track and remain on a path to help reverse climate change. You can also do your part to help this process by offsetting your carbon footprint by purchasing voluntary carbon credit from Terrapass. We offer a wide range of options for businesses and individuals 

Choose the right option for you, and start offsetting your carbon footprint today. 

Brought to you by terrapass.com
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McKibben opts for a small-tent climate movement

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A few months ago I went to a climate change forum at the Center for Brooklyn History. The panel I attended, “Confronting Climate Change: Understanding Deniers,” featured the prominent climate activist, Bill McKibben.

Bill McKibben. Courtesy https://billmckibben.com/.

I was curious to hear McKibben’s take on climate change deniers. I don’t regard the true deniers as a big problem – they’re only 11-15% of our country, according to most polls. Rather, I wondered if McKibben would label as “climate deniers” people who agree that climate change is a significant problem but disagree with his framing and his proposed solutions. I have worked for decades on energy and climate matters as an energy lawyer. Now, more than ever, I believe that to address climate change we need to build a big tent.

In the Q&A I tested where McKibben is on this by asking if he would label as a climate denier someone who subscribes to the main tenets of climate change science yet holds that natural gas has a role to play as a bridge fuel. (Our exchange starts at 1:12:45 of the video.)

This could have been a chance for McKibben to make clear that such a view isn’t climate denialism, even if he feels it’s misguided. But he punted, saying “I don’t care whether they’re deniers or not.” For good measure, he threw in his long-standing refrain that swapping coal for natural gas makes climate change worse, despite coal’s far higher carbon content per unit of energy.

674-MW methane-powered generating station, Salem, MA.

As you can hear in the recording, McKibben’s claim that gas is worse than coal draws on the work of Cornell scientist Robert Howarth. Yet McKibben didn’t mention that Howarth’s work is controversial and disputed by many scientists. The crux of the dispute is whether methane’s impact on warming should be measured with a 20-year or 100-year time frame.

Methane is a relatively short-lived greenhouse gas, with a lifetime of around 10 years, versus the 100-year life applicable to carbon dioxide. But each ton of methane is far more potent while in the atmosphere, trapping roughly 100 times as much heat as a ton of CO2. These cross-cutting facts about atmospheric methane — shorter life but greater potency than CO2 — have resulted in two opposing camps: one insisting on a 20-year timeframe for greenhouse gas accounting, the other adhering to the established 100-year frame. This matters because with a 20-year timeframe, generating electricity with natural gas (which, chemically speaking, is essentially all methane) is more damaging to climate than coal-fired electricity.

McKibben blew past this dispute. To hear him at the Center for Brooklyn History, one would have no inkling that there’s an active disagreement over which timeframe to use, that there are staunch climate activists who favor the 100-year time frame, and that the Intergovernmental Panel on Climate Change  (IPCC) generally uses the 100-year timeframe.

McKibben’s latest (2025) book. Published by W.W. Norton & Company.

McKibben also insisted that a discussion about natural gas’s potential role in mitigating climate change as a replacement for coal is irrelevant because solar “is now our cheapest resource.” McKibben’s claim, of course, suffuses “Here Comes the Sun,” his 2025 book that extols solar power as the cheapest solution for all of our energy needs. But this too is questionable, because it’s based on cost comparisons between solar farms and natural gas power plants (or nuclear power plants) that fail to consider that electricity supply and delivery is a complex system of wires and plants rather than individual power plants. Based on his remarks, McKibben is choosing to ignore studies such as the comprehensive 2025 report from the Clean Air Task Force that concluded that plant-level cost comparison “is a good metric to track historical technology cost evolution [but] is not an appropriate tool to use in the context of long-term planning and policymaking for deep decarbonization.” And the task force is not alone in finding that when electricity is treated as a system, solar loses its place as the cheapest low-carbon resource.

The dogmatism McKibben displayed at the Brooklyn meeting was unfortunate. We’re in a time when efforts to combat climate change are in retreat. A unified front is required to turn the tide. Instead of doubling down on absolutist positions, activists like McKibben who seem convinced that the solution to climate change is all-renewables, end of discussion, should be seeking common ground with others who want climate action but believe that nuclear power and natural gas must also play a role.

NYC Climate March, Sept 17, 2023. Photo: C. Komanoff.

Climate change activists need to build a bigger tent, rather than call anyone who disagrees with their positions a climate change denier. It is striking that McKibben stuck to his guns after saying in the same talk that the most important goal for everyone right now is to help climate change realists win more House and Senate seats in this year’s midterms. As some have noted, an absolutist position on natural gas appears less likely to achieve that win and politicians are following that advice.

Will McKibben evolve? He has demonstrated that he knows how to build a national climate movement centered around issues like divestment. Given the current political situation, he should focus on building an even bigger tent by welcoming all of the 85% who believe that we need to address climate change but do not agree with his ideological positions.

Rich Miller is an energy lawyer who has worked for a variety of stakeholders and now gives walking tours in lower Manhattan on the history of electricity. 

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Rebranding ‘Balcony Solar’ as ‘Guerrilla Solar’ won’t lift its climate value.

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Image generated with Claude. Why have we juxtaposed a bicycle with balcony solar? Read on.

First it was Plug-In Solar. Then it was Balcony Solar. Now it’s Guerrilla Solar, at least according to Inside Climate News, which yesterday proclaimed that The ‘Guerrilla Solar’ Era Has Arrived.

“It,” of course, is Modular solar panels. They’re the hot new photovoltaic solution: cheap enough to buy at Home Depot, easy to hang or prop to catch maximum rays, and small enough to fit on a balcony (if you’ve got one) and plug into your “home grid.” But, alas, too meager a generator of electricity to be more than a bit player in decarbonizing most U.S. homes.

How do I know? I’ve done the math.

A standard, lower-end 220-watt balcony solar array will produce 337 kilowatt-hours a year, or 28 kWh a month averaged over the course of a year. That’s for a 220W unit measuring 3.5 feet by 3.5 feet. (220W x 1/1000 x 17.5% x 8760 hours per year = 337 kWh. Calculation assumes a 17.5% full-year capacity factor, which is arguably generous for New York, where I live. )

Our balcony solar mashup. Top: an install in Germany. Bottom: Home Depot advert.

A typical U.S. home consumes 10,500 kWh a year, or 28 to 29 kWh per day, says Solartech, drawing on U.S. Energy Information Administration data. That puts a home’s daily power needs on par with a balcony solar unit’s monthly output. In effect, once each month the balcony array gifts a homeowner or renter a bit more than day’s full complement of electricity. And earth’s atmosphere gets the same respite: a 3 percent reduction in carbon emissions caused by the home’s electricity usage.

(The 3 percent figure could also be calculated directly by dividing 337 kWh per year of solar production by 10,500 kWh per year to run the home. For bigger or smaller arrays, just prorate your assumed wattage by my 220W; for 440W, say, double my figures.)

Balcony Solar metrics

Why write about balcony solar if it’s so inconsequential? CTC’s mission includes puncturing would-be climate balloons before they ascend too far. In the same vein, we practice quantification to make clear what does and doesn’t move the climate needle. (More on that further below.)

The best way to depict balcony solar’s climate value is to express it in terms of tangible metrics. We’ve selected two. Both assume the basic, lower-end PV array I assumed at the top: a 3.5 foot-square array whose peak output is 220 watts.

1. It would take 50 million 220W balcony solar units (bsu’s) to restore the climate benefit we destroyed in 2020-2021 when we shut the high-performing Indian Point nuclear power plant 32 miles from Midtown Manhattan.

2. A single person cutting back their driving by a mile a day would provide the same climate benefit over the course of a year as a single 220W bsu.

(Calculations in sidebar. Now you know why we led with images of an urban dweller as cyclist and balcony solar user.)

Yes, it’s dense — as befits a sidebar. The numbers tell a story. Follow the color co-ordination.

Ponder that: It would take fifty million smallish bsu’s to level up to the fossil fuel carbon emissions that Indian Point was keeping at bay by supplying the New York City area year in and year out with abundant carbon-free power. Deploying that many balcony solar units would entail 10 bsu’s for each of the 5 million households in the MTA’s service territory. (The Metropolitan Transportation Authority provides subway, bus and commuter rail transit in the five boroughs and seven suburban counties.) Or, if those same households upgraded to 1100-watt bsu’s, collectively they would still make up only half of the lost Indian Point power.

The second comparison, involving driving, is perhaps trickier to grasp but more interesting, since it relates to people’s behavior. Living differently isn’t part of public discourse, at least not in the USA, and especially when what’s being served up is using less. But “reducing,” as we might call it (remember “Reduce, Reuse, Recycle”? or, “Insulate, then Insolate”?) is just as potent for cutting emissions as switching to renewables — even more so when the reducing means driving less, considering the multitude of benefits that accrue from diminishing cars’ imprints on our communities. Still, staying on topic: driving just one fewer mile per day brings about the same shrinkage in carbon emissions as deploying one 220W solar array.

What Balcony Solar boosters are really saying

To be fair, our friends at Inside Climate News and, yes, The New York Times appear to be trying to modulate their balcony solar enthusiasm.

ICN‘s Dan Gearino, whom we cited up front, said he looked to Germany, the birthplace of balcony solar, to see if the units made sense for U.S. households. His takeaway: “It may make more sense financially to spend the cost of plug-in solar on insulation, air sealing or other basic measures to reduce energy use.” Hooray: insulate before you insolate.

Gearino helpfully interviewed renewables guru (and U.S. emigré) Craig Morris, who currently heads Germany’s plug-in solar trade association, Bundesverband Steckersolar. To Morris, balcony solar’s main advantages are that it provides power without taking up land, and that it affords people a way to “become participants in the transition to clean energy.” Behold, guerrilla solar. That, in turn, bolsters “the political consensus that supports the transition.” But Morris also made clear that widespread adoption of plug-in solar would only meet “about 2 percent of Germany’s electricity demand.”

Morris’s “about 2 percent” feels right for Germany. But not for the U.S., where widespread adoption of virtually any individual carbon alternative seems forever out of reach, and where the energy pie is so much larger — think giant fridges, freezers for beer, steroidal homes bursting with piles of powered toys, not to mention industrial and institutional electricity use that Morris correctly excluded from his figure.

Don’t forget to micro-dose. NYT headline + image for David Wallace-Wells’ guest essay (see text). Image by Rui Pu.

Both Gearino and Morris seem more measured than climate journalist Robinson Meyer, founding editor of Heatmap and frequent contributor to The Times, where he wrote about balcony solar in mid-June.

“New zero-carbon power kits will allow Americans to make their own energy choices,” declares the callout to the print version of Meyer’s NYT guest essay, The Tiny Solar Panel That Could Change America. (The even more expansive print headline invites us to “Forget Roofs. Backyard Solar Is the Next Frontier.”)

Wallace-Wells is of two minds. He calls balcony solar “a small way that apartment- and condo-dwelling Americans can take ownership of their energy choices and cut down their pollution on the margins.” No quarrel there, thanks to his qualifiers “small” and “on the margins.” Earlier, though, he opines that balcony solar units “have the potential to change how Americans understand and consume energy,” But read further and you’ll again see Wallace-Wells cautioning that “Balcony solar will play one small role in [the] drama” of transiting to the new world of clean, abundant energy.

Any such caveats are welcome these days, amid widespread solar hoopla. Still, it doesn’t seem to be in Wallace-Wells’ toolkit — or that of Inside Climate News and other mainstream climate journalists — to tutor their audiences as to the  true limits of balcony solar and other panaceas. Just like it wasn’t in their field of vision a decade ago to lay out the true stakes of shutting Indian Point as Riverkeeper was singing its siren song.

What’s Next for NY Balcony Solar

Meantime, as Canary Media reported recently (and helpfully), New Yorkers concerned with climate and affordability are waiting for NY Gov. Kathy Hochul to sign the recently passed SUNNY (Solar Up Now New York) Act legalizing balcony and other plug-in solar. It would be head-spinning (and politically suicidal) if she didn’t, given near-universal support ranging from Con Edison to DSA Assembly Member Emily Gallagher, who told Canary Media, “This is the most popular bill I’ve [ever] worked on.”

My guess is that Hochul is waiting for the right moment, and perhaps the right “package,” that can advance and not undercut her push to launch five large new nuclear power plants around the state — one to be built by the public New York Power Authority, the others to be constructed and operated privately. A little bit of math, a la what we offered here a la Indian Point, might help her out.

The governor also must manage the veritable hot potato of her deferred implementation of the landmark 2019 Community Leadership and Climate Protection Act. She might do well to consider jettisoning the act’s unwieldy cap-and-invest centerpiece in favor of a straight-up carbon tax (with the revenues distributed pro rata to the state’s households) in its place. That, far more than balcony (or guerrilla) solar, could blow open the door to the “innovations and technologies we cannot yet imagine” that Wallace-Wells fantasized about in his Times essay.

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The new SBTi Corporate Net-Zero Standard: what it means for business

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On 11 June 2026, the Science Based Targets initiative (SBTi) published the most substantial revision of its flagship corporate framework since its introduction. The SBTi Corporate Net-Zero Standard Version 2.0 takes effect on 1 February 2027 and reshapes the way companies approach their net-zero targets.

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