EU targets greenwashing with Empowering Consumers Directive that bans misleading climate claims based on offsetting
The EU’s Empowering Consumers Directive [1] will prohibit climate claims that are based on carbon offsetting – successfully achieving its goal of empowering consumers to make environmentally sound decisions. Until now, companies have been able to potentially mislead consumers with claims based only on offsetting. This legislation will be a significant measure against greenwashing.
Recent warnings from the United Nations [2] and International Energy Agency [3] reveal that the world is not on track to meet the critical targets of the Paris Agreement and keep global warming below 1.5°C above pre-industrial levels. Every step we can take to reduce emissions – thus limiting loss and damage caused by the climate crisis – is urgently needed.
Consumers increasingly want to buy products that do not harm the environment. But to do this effectively, they need to be provided with accurate, verifiable information. Part of this is companies not using advertising claims based on offsetting.
ECOS applauds the European Union for successfully preventing false climate claims in its Empowering Consumers Directive. Yesterday’s decision will ensure this legislation lives up to its lofty name. Consumers will not continue to be misled by claims that are based on mere compensation credits – which can be all money, no action.
Elisa Martellucci, Programme Manager at ECOS – Environmental Coalition on Standards, said:
The EU has taken aim at greenwashing. Climate neutrality claims based only on carbon offsetting are ambiguous and misleading for consumers because they are not linked to concrete efforts to combat the climate crisis. Instead, they rely on flawed carbon accounting practices that ‘write off’ greenhouse gas emissions. The amazing carbon emissions vanishing act is many companies’ dream – but emissions do not magically disappear. Policymakers have taken a strong stance against this deceptive practice.
The provisional deal on the Empowering Consumers Directive will now have to get the final green light from both the European Parliament and the Council. MEPs are expected to vote on this in November.
Focus moves to the proposed EU Directive on Green Claims
With a ban on carbon neutrality claims in the Empowering Consumers Directive, attention now shifts to the complementary proposal for an EU Directive on Green Claims [4], which has been slowly moving through the legislative process.
All untrustworthy green claims must be eradicated. To stamp out greenwashing, the European Union must continue to ensure in the Directive on Green Claims that [5]:
- Claims do not rely on methodologies that allow the use of offsetting credits and other compensation methods to calculate the overall carbon footprint of products or companies.
- References to carbon credits are only allowed as separate information regarding a contribution to climate action.
- Any contribution to sustainability projects, such as carbon or plastic removals, are not used to compensate for a company’s own impact.
ENDS
Notes to editors
[1] Decision on Empowering Consumers Directive: https://www.europarl.europa.eu/news/en/press-room/20230918IPR05412/eu-to-ban-greenwashing-and-improve-consumer-information-on-product-durability
[2] UNFCCC Technical dialogue of the first global stocktake. Synthesis report by the co-facilitators on the technical dialogue: https://unfccc.int/documents/631600
[3] Fatih Birol (Executive Director of the International Energy Agency): Peak fossil fuel demand will happen this decade – But the decline in oil, gas and coal will not be steep enough to limit global warming to 1.5C: https://www.ft.com/content/f6155d7b-2ef7-4f62-a08a-b640b7e87fca
[4] Proposal for a Directive on Green Claims: https://environment.ec.europa.eu/publications/proposal-directive-green-claims_en
[5] ECOS report: Greenwashing, certified? https://ecostandard.org/wp-content/uploads/2023/03/ECOS-Report-Carbon-neutrality-claims-March-2023.pdf
Contact
If you have questions please contact me:
Alison Grace
Press & Communications Manager at ECOS
alison.grace@ecostandard.org
+32 493 19 22 59
ECOS – Environmental Coalition on Standards is an international NGO with a network of members and experts advocating for environmentally friendly technical standards, policies, and laws.
