Delta’s carbon-neutrality lawsuit highlights issues with companies trying to buy their way to net zero

Offput by offsets… Delta, which has called itself “the world’s first carbon-neutral airline,” is facing a class-action lawsuit over that claim. Plaintiffs say it’s “false and misleading,” arguing that the airline’s carbon offsets — credits that can be bought by companies to counteract their emissions — are “junk” (i.e.: not actually counteracting the climate crisis). The case adds to growing backlash against the carbon-offset market, which Greenpeace has labeled a greenwashing scam.

• Sus-tainability: Evian parent Danone is being sued over its carbon-neutrality claims, which also rely on offsets. Last week, research from a nonprofit watchdog said that 93% of offsets bought by Chevron between 2020 and 2022 were “worthless.”

• Certified: An investigation this year said that 90% of rainforest offsets approved by Verra (the world’s leading carbon-credit certifier) and used by major companies like Disney and Shell were worthless — and could actually increase global heating. Verra said it plans to phase out its program by 2025.

Buying the forest for the trees… The offsets market jumped from $520M in 2020 to $2B in 2021, and could reach $40B by 2030. Companies appealing to environmentally conscious consumers and investors are seeking quick ways to reduce their footprints. But not every offset is equal:

• Credits tied to renewable-energy projects or forest protection are cheaper, but experts say they doubt their effectiveness at reducing CO2 levels (picture: buying a forest that already exists).

• More effective offsets, like investments in direct carbon-capture technology (sucking carbon out of the air), can cost thousands of dollars more per credit.