On March 22, 2023, the European Commission (EC) published the adopted proposal for a new directive on the substantiation and communication of environmental claims – known informally as the Green Claims Directive. The directive aims to ensure transparent communications of environmental claims. “Consumers will have more clarity, stronger reassurance that when something is sold as green, it actually is green, and better quality information to choose environment-friendly products and services,” the EC writes in its press release. In addition, the Commission asserts that businesses will also profit from this directive, as genuine environmental and sustainability claims will make products more attractive to consumers. By regulating the communications of such claims, the EC explains that a level playing field is ensured.
In an impact assessment study published in March 2022, the Commission found that “53.3% of examined environmental claims in the EU were found to be vague, misleading or unfounded and 40% were unsubstantiated.” According to the proposal, companies will have to independently verify any environmental claims and submit scientific evidence as proof. This includes disclosing the impacts relevant to the product and recognizing trade-offs. Furthermore, overall scoring of the environmental impact of a product will not be allowed anymore. Comparisons to other products or companies will require equivalent information and data. “Green claims are everywhere: ocean-friendly t-shirts, carbon-neutral bananas, bee-friendly juices, 100% CO2-compensated deliveries, and so on. Unfortunately, way too often these claims are made with no evidence and justification whatsoever,” says Frans Timmermans, Executive Vice-President for the European Green Deal in the press release.
The proposal also covers the regulation of environmental labels. According to the Commission, “[t]here are currently at least 230 different labels and there is evidence that this leads to consumer confusion and distrust.” Only labels developed on the EU level will be allowed unless sufficient proof is presented, and the label is approved by the EU. The only claims excluded from the proposal are the ones already covered in existing or upcoming EU regulations, such as the EU Ecolabel or the organic food logo.
The Green Claims Directive proposal has been drafted as an addition to the proposal on empowering consumers for the green transition, published on March 30, 2022, which already includes additional specific rules on environmental claims and the prohibition of misleading advertising. This earlier proposal is also part of the Commission’s commitment to the European Green Deal (FPF reported).
The adopted proposal for the Green Claims Directive will now be submitted for approval by the European Parliament and the Council through an ordinary legislative procedure.
Reference
European Commission (March 22, 2023). “Proposal for a directive of the European parliament and of the council on substantiation and communication of explicit environmental claims (Green Claims Directive).”
Read more
European Commission (March 30, 2022). “Proposal for a directive on empowering consumers for the green transition and annex.”
European Commission (March 20, 2022). “Impact assessment report.” (pdf).
