EU Drops Green Claims Rule Amid Political Pressure

In a significant development with wide-ranging implications for the European Union’s environmental policy, the European Commission announced on Friday its decision to withdraw the Green Claims Directive, a central pillar of the EU Green Deal aimed at curbing greenwashing in environmental marketing. The surprise move, confirmed during a midday press briefing by Commission spokesperson Maciej Berestecki, has raised questions about the EU’s commitment to establishing unified standards for sustainable business practices and protecting consumers from misleading environmental claims.

The Green Claims Directive, first introduced in March 2023, was designed to standardize environmental marketing across the EU by requiring companies to substantiate their environmental claims with credible scientific data and undergo independent verification. This was in response to studies indicating that over half of green claims made by companies within the EU were either misleading or lacked sufficient evidence. The directive also sought to reduce the proliferation of unregulated environmental labels and ensure greater transparency in product advertising—critical measures at a time when consumer interest in sustainable products is at an all-time high.

However, the Commission’s decision to scrap the proposal reflects growing political resistance, particularly from the European People’s Party (EPP), the largest group in the European Parliament. In a formal letter, the EPP expressed several concerns about the directive, including its complexity, the potential regulatory burden it would impose on businesses, and the lack of a formal impact assessment to justify its sweeping requirements. According to the EPP, the directive risked being disproportionate in scope, especially for small and medium-sized enterprises, and could hamper competitiveness without delivering clear environmental benefits.

These criticisms appear to have gained traction within the Commission, prompting it to prioritize regulatory simplification over legislative expansion. Berestecki, speaking to reporters in Brussels at 11:50 CEST, stated that the Commission’s intention to withdraw the Green Claims proposal was a result of the “current context” without providing further elaboration. The announcement was quickly picked up by leading media outlets, including Politico EU, Euronews, ESG News, and E&E News, signaling the decision’s significance across political and business circles.

The formal process of withdrawal is expected to begin early next week when the Commission submits its notice to the European Parliament and the Council. While both bodies technically have the authority to challenge the withdrawal, observers say such opposition is unlikely given the current political climate and the influence of the EPP.

Nevertheless, the implications of this withdrawal are profound. In the absence of an EU-wide framework, regulation of environmental claims will now revert to individual member states. This is expected to create a patchwork of national regulations, complicating compliance for businesses that operate across borders and undermining efforts to ensure transparency and consumer trust in environmental labeling. Critics warn that the move could embolden companies to make vague or unverifiable sustainability claims, exacerbating the very issue the directive aimed to resolve.

Moreover, this decision marks another blow to the EU Green Deal, the Commission’s flagship strategy for achieving climate neutrality by 2050. The Green Deal encompasses a broad range of initiatives to promote sustainability, from carbon pricing and energy transition to sustainable finance and biodiversity protection. The withdrawal of the Green Claims Directive casts doubt on the EU’s ability to enforce standardized sustainable practices and raises concerns that economic and political pressures may be eroding its environmental ambitions.

Environmental advocates have expressed disappointment over the decision. Many argue that strong, harmonized rules are essential to combat greenwashing and to build a credible green economy. Without such safeguards, they warn, consumers may lose trust in sustainability claims, and the market for genuinely eco-friendly products may be distorted.

As the European Commission prepares its formal withdrawal notice, attention will now turn to how member states respond. Some may choose to adopt their own national-level green claims regulations, potentially leading to greater inconsistency and legal uncertainty. Others may await further guidance from the Commission, hoping for a revised proposal that strikes a better balance between regulatory clarity and business feasibility.

While the directive’s withdrawal may reduce short-term regulatory burdens, it also represents a missed opportunity for the EU to lead by example in the global fight against greenwashing. As the world grapples with the urgency of climate action, the challenge for the EU will now be to find new ways to uphold environmental integrity without compromising on competitiveness and innovation.