Europe’s supermarket shelves boast plastic packaging labeled as sustainable. But most of it is still made from fossil fuels. Brands like Kraft Heinz and Mondelēz use plastic from Saudi Aramco’s petrochemical arm. Saudi Aramco is the world's largest corporate greenhouse gas emitter, releasing over 70 million tonnes until 2023. The petrochemical industry rebrands fossil-based plastic as “circular” and climate-friendly. However, the plastic is largely fossil-made, worsening climate change and plastic pollution. Europe plans to legalize this practice by 2026, while the UK follows in 2027. Experts call this “greenwashing.” The industry promotes pyrolysis, a chemical recycling method. It uses high energy to turn plastic waste into pyrolysis oil. But this oil can only form 5% of feedstock. It must be mixed with 95% fresh petroleum naphtha to avoid damage to processing plants. Helmut Maurer, former European Commission environment expert, said, “The whole process is labelled as plastic recycling, while fossil fuel use expands because virgin feedstock must be added.” To inflate recycling stats, companies use two tricks: mass-balance bookkeeping and avoided emissions. Mass-balance credits recycled input across new plastic batches, letting 5% recycled feedstock look like 100% recycled packaging. Lauriane Veillard from NGO Zero Waste said, “This is unfair to consumers – recycled content should be physically part of the final product.” Avoided emissions subtract carbon from supposed incineration of waste to show savings. These methods are legal and certified by the industry-led International Sustainability and Carbon Certification (ISCC). Sabic, Saudi Aramco’s petrochemical arm, used only 2,600 tonnes of recycled pyrolysis oil in 2022 among 4 million tonnes of fossil feedstock. Their life cycle assessment admits 6% to 8% more emissions from recycled plastic production than fossil plastic, only appearing better by counting avoided waste incineration. Maurer said, “What matters is not hypothetical emissions from incineration that are ‘avoided’ on paper, but what is actually emitted in reality.” Experts question the impartiality of Sabic’s studies due to close ties with suppliers. Peter Quicker, a professor in Germany, stated, “LCA documents serve no purpose other than advertising, because companies control the parameters to achieve desired results.” NGO Ecos warns that carbon savings vanish when recycled feedstock replaces a small fossil portion. “Consumer brands’ statements might be unreliable and misleading,” said Margaux Le Gallou. Petrochemical firms lobby EU bodies to keep mass-balance rules and secure pyrolysis oil deals. Though brands promise recycled content, virgin plastic production by oil majors may still grow. The International Energy Agency says plastic will become a key future profit source for oil companies as fossil fuel demand falls and renewables rise. This investigation was supported by IJ4EU and involved multiple European media outlets.