0 
0 Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
The flag carrier KLM acted illegally when it claimed customers could “fly sustainably”, a Dutch court has ruled, in a victory for climate activists relying on European consumer protection regulations to combat “greenwashing”.
It is the latest in a series of rulings covering everything from Swedish “net zero” milk, German “climate neutral” heating oil and Austrian Airlines’ “carbon-neutral” flights, which have all fallen foul of fair advertising rules in various jurisdictions across Europe. French energy company TotalEnergies is fighting to defend its claim to be aiming to hit net zero emissions by 2050.
KLM had painted an “overly rosy picture” of the effects of sustainable aviation fuel or reforestation projects, which customers were given the opportunity to pay for alongside flights, the Amsterdam court said on Wednesday.
The airline industry, which is responsible for at least 2 per cent of global CO₂ emissions and up to 5 per cent when the release of other gases and vapour is included, has been increasingly facing challenges over its climate impact in Europe, which is the fastest warming continent.
KLM’s claim to be committed to the goals of the 2015 Paris climate agreement was among the statements deemed by the court to be “misleading and therefore unlawful”.
“This judgment is nothing short of a wake-up call for highly polluting industries and companies that try to sell the image of commitment to the Paris climate goals without having the plans to get there,” said Johnny White, a lawyer at Client Earth, which supported the lawsuit brought by campaign groups Fossielvrij and Reclame Fossielvrij against KLM.
The KLM ruling could inspire green campaign groups to pursue cases under consumer law in other jurisdictions, White said, because a prohibition on misleading commercial statements to consumers is found “all over the world” including the US, UK and Australia.
KLM, which stopped running the ads in question before the ruling, must pay Fossielvrij’s costs and convey its efforts to cut emissions “honestly and concretely” in future, the court said.
“We consider awareness and communication about sustainability goals, activities and dilemmas essential,” the airline said, adding that it was “studying” the ruling.
But Air France-KLM chief executive Ben Smith rejected the suggestion that the airline was deliberately misleading on its green credentials. “We are not greenwashing,” he told reporters in Brussels, as news of the ruling emerged during an industry conference.
European airline bosses claimed the region’s climate rules risked weakening the sector and giving an advantage to global rivals, as they called for more support from governments to help decarbonise.
The industry pushback at the Airlines for Europe conference this week represents some of its strongest resistance to further climate rules in bloc countries, and to potential carbon taxes and a looming requirement to blend jet fuel with a growing portion of expensive biofuels that are in short supply. Jet fuel is presently tax-free.
“We are at a huge risk of falling behind in Europe,” said Lufthansa chief executive Carsten Spohr.
The EU is planning bloc-wide standards to protect consumers against greenwashing claims, which are yet to be approved by member states.
Airlines have committed to reaching net zero by 2050, but the availability and cost of the cleaner fuels their targets rely on places this in jeopardy.
Luis Gallego, chief executive of British Airways owner IAG, said the EU needed to find “balanced” policy to “enable the successful transition of the industry whilst preserving its economic competitiveness”.
Meanwhile, 17 airlines operating in Europe are still facing a regulatory complaint for misleading climate-related claims that was filed by the European consumer protection group BEUC with the European Commission and a network of authorities last year.
“The court’s decision recognises that green flying is a myth and marks a turning point for consumer protection against misleading aviation advertising,” said Dimitri Vergne, head of energy and sustainability at BEUC. Other airlines should take the decision as a “strong warning sign”, he said.
Additional reporting by Alice Hancock
Climate Capital
Where climate change meets business, markets and politics. Explore the FT’s coverage here.
Are you curious about the FT’s environmental sustainability commitments? Find out more about our science-based targets here
