Judges globally are expressing skepticism towards companies’ efforts to mitigate their greenhouse gas emissions through the purchase of carbon credits, as revealed in the report.
The latest annual review of climate litigation, which analyzed nearly 3,000 climate-related lawsuits filed worldwide since 2015, indicates that actions against corporations are “evolving,” with heightened scrutiny on how these companies intend to fulfill their declared climate commitments.
Over the past decade, numerous legal challenges have been raised concerning carbon credits, with many proving successful.
Recently, Energy Australia admitted that carbon offsets do not prevent or reverse the damage inflicted by greenhouse gas emissions and issued an apology to its customers for potentially misleading marketing practices. This announcement came after a greenwashing lawsuit was filed against the energy company by a group of Australian parents, which was resolved outside of court.
This case marked the first instance in Australia where a company was sued for its “carbon neutral” marketing, yet it is merely one of many similar challenges occurring globally within high-emission industries.
