Proposed European legislation aims to prevent companies from greenwashing their climate credentials but raises concerns over the use of offsetting to meet emission reduction targets. While the European Parliament favors limiting offsetting to unavoidable emissions, some member states push for broader use. The Green Claims Directive, however, conflicts with product-level environmental claims, which ban offsetting-based assertions. Critics argue that allowing offsetting could undermine emissions reduction efforts, while industry advocates maintain it supports genuine climate mitigation measures. The legislation also expands the scope of companies’ carbon footprint calculations to include indirect emissions, challenging petroleum firms’ net-zero pledges based on limited scope.