Q&A: How MEPs can eliminate greenwashing with new EU rules on environmental claims

ECOS – Environmental Coalition on Standards – has been involved in developing the Green Claims Directive since 2020, contributing technical expertise to advocate for an ambitious framework that can stamp out greenwashing. Get in touch for background or commentary from a leading environmental NGO – we have spokespeople available.

What is the EU Green Claims Directive?

The numbers are clear: while 76% of the products on the EU market carry an implicit or explicit green claim, more than half of environmental claims made by businesses are misleading, unsubstantiated, or simply inaccurate [1]. This is because existing rules set in legislation and standards are weak, leaving the door open to misleading or deceptive environmental claims: greenwashing.

The Green Claims Directive, proposed by the European Commission in March 2023 [2], could change this by establishing common rules for companies to effectively communicate the environmental credentials of their products.

The European Parliament can help to ensure this law is effective by adopting an ambitious position in its 12 March plenary.

Why does Europe need a Green Claims Directive?

Self-regulation simply does not work. The lack of clarity in existing legislation means that companies are left to self-regulate, while regulators bear the burden of verifying an impossible number of claims. Even if inaccurate claims are eventually found, the damage is already done because products can currently be placed on the market before environmental claims are verified.

The Green Claims Directive could change this by:

• Introducing verification of environmental claims (by independent verifiers) before they are placed on the market.
• Supporting companies in making accurate claims with rules on how to substantiate and communicate them.

The Empowering Consumers for the Green Transition Directive, adopted earlier this year, banned the most misleading practices, but does not provide rules on how to make good claims [3]. The Green Claims Directive must fill that gap. For example, by specifying that environmental claims must take the entire lifecycle of a product into account, or that they must be communicated clearly and based on scientific methodologies that are accessible, transparent, and widely recognised.

What would an ambitious Green Claims Directive mean for consumers and businesses?

Consumers increasingly want to reduce their environmental impact by choosing the least environmentally damaging products. Similarly, companies increasingly want to portray themselves as doing the best they can to place sustainable products on the market.

If this law is approved, consumers in the EU can expect:

• A higher quality of environmental communication. Claims will be accurate, substantiated, and clearly communicated.
• More trustworthy products. The law would introduce certificates of conformity for products to ensure companies fulfil legal obligations.
• Environmental claims that are based on verifiable, publicly available data. Consumer organisations and other experts will be empowered to provide assessments for consumers, ensuring they are better informed.

Businesses can expect:

• A level playing field when it comes to environmental communication. By requiring all companies to substantiate environmental claims, those already investing in more sustainable products (and accurately measuring their impact) will no longer face unfair competition from rogue actors who use greenwashing as a baseless marketing strategy.
• Less reputational risk when making environmental claims. By clarifying what is needed to make clear environmental communication to consumers, the law will limit the risk of committing greenwashing for companies. Far from ‘greenhushing’, the law will make sustainable companies more confident when making claims.

What must the European Parliament do to get rid of greenwashing?

Swift action is needed to rein in out-of-control green claims, starting with the European Parliament adopting the ENVI and IMCO Committees’ report [4] in plenary – without weakening or delaying it.

This vote is already far too late after the proposal was published and far too close to the EU elections. If the European Parliament does not adopt its position in 2024, the file will be handed over to the next legislature, putting it at risk of being buried by EU procedures.

This plenary is the last window of opportunity to ensure the Green Claims Directive remains a priority and trilogues can begin as soon as possible. It will also give a clear mandate to the new Parliament, ensuring that discussions will not have to be re-opened after the elections.

What is in the report of the ENVI and IMCO Committees? Why does ECOS support it?

Thanks to advocacy efforts from environmental and consumer organisations, including ECOS, the ENVI and IMCO Committees’ report has strengthened the original text proposed by the European Commission. Improvements include:

• Protecting the ban on claims of carbon/climate neutrality or compensation (introduced in the Empowering Consumers for the Green Transition Directive). Such claims are misleading when based on carbon offsetting/carbon credits [6]. Although the report unfortunately falls short of banning offsetting claims at trader level, the stricter rules proposed should limit misleading environmental claims at the very least.
• More clarity on the procedures for making environmental claims – especially the verification system.
• A timeline for new, specific rules to substantiate claims. Current rules are generic, with the report calling for more detailed rules from the Commission for very common claims, such as ‘reusable’ or ‘biobased’. As well as making claims more reliable, this would facilitate the verification process.
• Enhanced inclusion of civil society by creating a Green Claims Forum. This would allow stakeholders, including NGOs like ECOS, to advise the Commission on future rules.

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Margaux Le Gallou, Programme Manager at ECOS – Environmental Coalition on Standards, said: With EU elections looming, the window of opportunity for MEPs to take meaningful action against greenwashing is closing. To keep the Green Claims Directive on the agenda, they must support the report of their ENVI and IMCO Committee colleagues – now. Europe desperately needs rules to prevent misleading environmental claims, and to support consumers and sustainable businesses instead of companies that make false promises.

Notes to editors

[1] European Commission (2023): https://environment.ec.europa.eu/topics/circular-economy/green-claims_en

[2] Proposal for an EU Green Claims Directive, European Commission (March 2023): https://environment.ec.europa.eu/publications/proposal-directive-green-claims_en

[3] ‘EU takes aim at greenwashing in new law to empower consumers – but gaps remain’, ECOS press release (January 2024): https://ecostandard.org/news_events/eu-takes-aim-at-greenwashing-in-new-law-to-empower-consumers-but-gaps-remain/

[4] Report of the European Parliament’s ENVI and IMCO Committees, European Parliament press release (February 2024): https://www.europarl.europa.eu/news/en/press-room/20240212IPR17624/greenwashing-how-eu-firms-can-validate-their-green-claims

[5] ‘Position paper on the EU Green Claims Directive’, ECOS (July 2023): https://ecostandard.org/wp-content/uploads/2023/07/Feedback-on-the-Green-Claims-Directive.pdf

[6] ‘Greenwashing, certified? How to ensure new laws and standards do not rubberstamp dubious climate neutrality claims’, ECOS report (March 2023): https://ecostandard.org/publications/report-greenwashing-certified-how-to-ensure-new-laws-and-standards-do-not-rubberstamp-dubious-climate-neutrality-claims/

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.