Apple has been barred from advertising the Apple Watch Series 9 and Apple Watch Ultra 2 as “CO2-neutral products” in Germany after a court ruling determined the company’s claims misled consumers. The Frankfurt regional court upheld a complaint from environmentalists, stating that Apple’s marketing violated German competition law.
According to a report from Reuters, the case was brought by Deutsche Umwelthilfe (DUH), an environmental group, which argued that Apple’s claims relied on questionable carbon offset practices. The court found Apple’s reliance on eucalyptus tree plantations in Paraguay problematic because the project’s long-term future was not guaranteed, with 75% of the leased land contracts set to expire in 2029. Judges concluded that Apple could not ensure the continuation of the project, undermining its neutrality claim.
Apple had promoted the Apple Watch Series 9 and Ultra 2 as “our first CO2-neutral products.” While a spokesperson said the ruling still validated Apple’s approach to sustainability, the company did not confirm whether it would appeal. Earlier this year, Apple warned that lawsuits such as this could discourage credible climate action across industries. The company is also preparing to phase out the “carbon neutral” label from Apple Watch packaging to comply with upcoming EU regulations set to restrict such terminology from September 2026.
Environmental groups have long criticized Apple’s carbon offset projects. The Paraguayan eucalyptus plantations used to generate carbon credits have been described by ecologists as “green deserts” due to their negative impact on biodiversity and water usage. DUH welcomed the ruling as a step against “greenwashing,” saying Apple’s projects lacked ecological integrity and failed to deliver permanent CO2 storage.
Apple is not alone in turning to carbon offsetting through forestry projects. Meta and Microsoft have also invested in similar plantations in Latin America in exchange for credits. However, the Frankfurt ruling highlights growing regulatory scrutiny of corporate environmental claims in Europe, signaling that companies will need stronger evidence to market products as climate neutral.
