Apple had promoted the device online as “our first CO2-neutral product,” a claim found by a panel of judges to be unfounded and in violation of German competition law, according to a statement from a regional court in Frankfurt.

An Apple Spokesperson said the court ruling “broadly upheld our rigorous approach to carbon neutrality” and declined to comment on whether the company would appeal Tuesday’s ruling.

In June, Apple had said the German lawsuit threatens “to discourage the kind of credible corporate climate action the world needs.”

Still, a Spokesperson referred on Tuesday to a report that Apple will phase out the ‘carbon neutral’ label it uses for Apple Watches to comply with European Union legislation coming into force in September 2026, restricting the use of such terms.

Apple based its claim of carbon neutrality on a project it operates in Paraguay to offset emissions by planting eucalyptus trees on leased land.

The eucalyptus plantations have been criticised, by ecologists, who claim that such monocultures harm biodiversity and require high water usage, earning them the nickname ‘green deserts.’

However, the Frankfurt court said that leases for 75% of the project area were not secured beyond 2029 and that the company could not guarantee these contracts would be extended.

“There is no secure future for the continuation of the forest project,” the statement said.

–Reuters–