Anti-Greenwashing Law Remains Intact According to EU Commission Clarification
The European Commission has announced its intention to withdraw the Green Claims Directive (GCD), a regulation aimed at protecting consumers from misleading environmental claims, due to concerns over administrative burden and potential overregulation, particularly affecting microenterprises and Small and Medium-sized Enterprises (SMEs) [1][2][3].
Initially proposed in March 2023, the GCD sought to harmonize and substantiate green claims with mandatory third-party verification to prevent misleading or unsubstantiated claims [1]. However, critics argue that the pre-approval mechanisms and stringent requirements would impose excessive red tape on roughly 30 million microenterprises across the EU [3].
Despite the withdrawal of the proposal, the European Commission emphasizes that this does not represent a retreat from addressing greenwashing. Instead, the enforcement of credible and substantiated green claims will continue under existing frameworks such as the Unfair Commercial Practices Directive (UCPD), and scrutiny from regulators, consumers, NGOs, and investors remains strong [1][4].
The mission to ensure trust and transparency in sustainability claims is ongoing, but without a harmonized EU-level legislation as envisioned by the GCD [1][4].
Key Points:
- The European Commission plans to withdraw the Green Claims Directive in 2025, citing concerns over administrative burden and potential overregulation for microenterprises and SMEs. - The GCD aimed to harmonize and substantiate green claims with mandatory third-party verification. - Critics argue that the pre-approval mechanisms and stringent requirements would impose excessive red tape on microenterprises. - The enforcement of credible and substantiated green claims will continue under existing frameworks such as the Unfair Commercial Practices Directive (UCPD). - The mission to ensure trust and transparency in sustainability claims is ongoing, but without a harmonized EU-level legislation as envisioned by the GCD.
The decision reflects political and industry pushback against the proposal’s scope and administrative demands, especially on smaller businesses [3]. The cancellation of the trilogue meeting scheduled for June 23 was deemed unnecessary and avoidable by some Members of the European Parliament (MEPs), as Parliament had already decided to remove microenterprises from the scope of the directive [5].
The GCD's withdrawal has sparked debate, with MEPs Anna Cavazzini and Antonio Decaro strongly criticizing the Commission's intention and the cancellation of the trilogue meeting [5]. The European People's Party (EPP), the largest political party in the EU Parliament, had also requested the Commission to reconsider, arguing that the new rules would be overly burdensome and complex [6].
The GCD's withdrawal leaves the EU without a harmonized framework for green claims. Instead, companies will continue to be obligated to ensure the reliability of their voluntary environmental claims with independent verification and scientific evidence [1].
Sources: [1] European Commission. (2023). Green Claims Directive. Retrieved from
- The withdrawal of the Green Claims Directive by the European Commission is a topic of political debate, with critics, including MEPs Anna Cavazzini and Antonio Decaro, expressing concerns about the potential overburdening of microenterprises and SMEs without a harmonized framework for green claims.
- The future of green business regulation is a significant concern for policy-and-legislation, as the withdrawal of the Green Claims Directive leaves the European Union without a unified legislative approach, relying instead on existing frameworks like the Unfair Commercial Practices Directive and voluntary independent verification.
