The organizations Ecologists in Action, Federation of Consumers and Users CECU and Greenpeace Spain have filed complaints for misleading environmental statements against the oil company Repsol before the National Commission of Markets and Competition (CNMC) and before the General Directorate of Consumer Affairs.
The three plaintiff organizations have carried out an investigation, during 2022 and 2023, focused on the impact of the Repsol company’s activity on deforestation in Indonesia and its contribution to the increase in emissions responsible for climate change.
Spain is the main importer of palm oil from Indonesia and the largest producer of biofuels in the EU. In Spain, 72.5% of biodiesel and almost 100% of hydrobiodiesel is manufactured with palm oil. And the Repsol company is one of the main importers of palm oil and producer of biodiesel with this oil.
Based on the expert reports, the complaining organizations conclude that the Repsol company hides in its public communication and advertising the deforestation and other environmental and social impacts caused by the production of palm oil that is used to manufacture its biofuels. The palm oil it uses is not sustainable and does not reduce greenhouse gas emissions compared to conventional fossil fuel, contributing to global warming and causing deforestation and loss of biodiversity.
Repsol points out that these lawsuits “try to confuse society, when the raw material used is regulated by regulations, supervised and certified.”
The company chaired by Antonio Brufau explains that it has just launched the largest renewable fuel plant in the Iberian Peninsula, in Cartagena, which exclusively uses organic waste to produce 250,000 tons of renewable fuel per year.
“Today, 100% renewable diesel is sold to the general public in more than 10 European countries, such as Finland, Denmark, Norway, Sweden, Estonia, Lithuania, Latvia, Holland, Belgium and Italy; and Germany has just approved the sale of this fuel in service stations. Other countries also market it for transport fleets,” he says.
For its part, the complaint by environmental organizations focuses on the claims that the Repsol company makes about its “biofuels”, which it describes in its public communication as “sustainable”, “eco-fuels”, “carbon neutral”, “with low carbon footprint” or “renewable”, in a general and equivocal manner, without distinguishing between the different products offered and without specifying their attributes or environmental impact, which is misleading for citizens. Its marketing and advertising strategy leads to confusion among citizens, as it is plagued by partial information, vagueness, concealment of relevant information or directly misleading environmental allegations.
“Repsol cannot claim that biofuels made from palm oil reduce greenhouse gas emissions. If we take into account the deforestation caused by the expansion of palm oil crops, the consumption of biodiesel made from this material emits three times more polluting gases than fossil fuels, thus aggravating global warming,” he said. declared Josep Hurtado of Ecologists in Action.
Repsol explains that “these lawsuits try to discredit a solution that the European Union considers valid and alternative to electrification to immediately and affordably reduce CO2 emissions.”
With the aim of defending the interests of consumers and the environment, the plaintiffs have filed complaints against Repsol before the regulatory bodies in charge of protecting the rights of consumers and the right to competition. The complainants rely on Repsol’s failure to comply with the General Consumer Law, the General Advertising Law, the Competition Law and the Unfair Competition Law, as well as European legislation.
“Repsol’s misinformation about its supposed ‘bio’ fuels leaves consumers defenseless,” said David Sánchez, director of CECU. “These misleading environmental statements not only confuse consumers and investors, but they spread false narratives that contribute to a culture of misinformation about the climate fight and true corporate commitment.”
The signatory organizations question in their complaint the methodology used by the oil company to calculate its carbon footprint and, therefore, its commitment to achieving zero net emissions in 2050. One of its key elements in this decarbonization strategy is the production and sale of “sustainable”, “eco”, “carbon neutral”, “low carbon” or “renewable” fuels, including those made from palm oil, which the company considers “non-polluting” or “less polluting”.
In their complaint, the organizations question the emissions reduction declared by the company and deny that it is truly committed to the decarbonization of its activity and in a position to achieve net zero emissions by 2050.
“Not only do they deceive with their false biofuels. If we pay attention to their data, only 0.8% of Repsol’s energy production in 2022 had a supposedly ‘renewable’ origin. The rest, more than 99%, corresponds to oil and gas production. This commitment to fossil fuels is incompatible with the objectives of the Paris Agreement, with the recommendations of the IPCC and the latest commitments reached at COP28 in Dubai,” declared Miguel Ángel Soto, spokesperson for Greenpeace Spain. “The route to decarbonization of Repsol does not exist, it is a fallacy, a great greenwashing operation.”
The organizations intend, on the one hand, for the infraction to be duly sanctioned: they demand the accessory liability of their legal representatives and people who make up the management bodies that have intervened in the infraction, as well as imposing other accessory sanctions that are legally appropriate. Finally, they request that the sanction be publicized and that its public rectification be ordered by the sanctioned company.
