Unlocking Carbon Market Demand: How Safe Harbors Can Protect Corporations from Greenwashing Risk

We are pleased to share a comprehensive legal report released by Herzog’s Environment and Climate Change practice, titled “Unlocking Demand in Carbon Markets through Safe Harbors for Corporate Green Claims.”

As global corporations face a surge in greenwashing litigation, our report provides a strategic roadmap for navigating the legal uncertainties currently stifling the Voluntary Carbon Market (VCM). While carbon markets are essential for private climate finance, mounting legal risks, even when using verified credits, are constraining their growth and exposing companies to unprecedented regulatory enforcement. Our analysis supports global efforts by IETA and the Coalition for Carbon Market Integrity to create a unified, high-integrity market.

Our report highlights:

• The Dual-Layer Risk: Why legal exposure now stems from both credit integrity (quality) and claim integrity (how achievements are communicated).
• The “Net Impression” Standard: Insights from recent case law (such as DUH v. Apple and Berrin v. Delta Air Lines) showing how courts evaluate claims beyond their technical merits.
• The Safe Harbor Solution: A proposed “two-track” approach to mitigate risk, from immediate administrative guidance to long-term statutory legislation.
• Global Regulatory Mapping: An analysis of international frameworks, including the EU EmpCo Directive, U.S. FTC Green Guides, and Swiss FOEN Enforcement Aid.

Amid the shifting landscape of climate litigation, establishing clear “safe harbors” is critical to building the confidence necessary to unlock the full potential of carbon finance.

For the full report >> click here