Navigating Climate Change in Green Marketing: Consumer Response to Carbon‐Neutral Claims and Carbon‐Washing

The escalating climate crisis has driven increased CSR and decarbonization efforts. However, ambiguous or unsubstantiated carbon claims—known as carbon‐washing —pose significant barriers to the adoption of low‐carbon products. This study examines the effects of disclosing emissions transparency along the value chain and substantiating explicit carbon‐neutral claims, as outlined in forthcoming European directives. Across three experimental studies with 1593 Italian consumers (aged 18–70), we find that both interventions reduce perceived greenwashing (PGW) and enhance purchase intentions (PIs), but only when claims are understood. Poor comprehension reverses or nullifies these benefits, as consumers often rely on heuristic reasoning, leading to superficial judgments. Preliminary explanations (PEs) improve the ability to identify carbon‐washing practices but remain insufficient to drive behavioral change. These findings emphasize the urgent need for clear, standardized and lifecycle‐based communication and ongoing educational initiatives to empower consumers' decisions and foster a low‐carbon economy.