EU tackles greenwashing with new Green Claims Directive

The Council of the European Union has adopted its position on the green claims directive, aiming to address greenwashing and empower consumers to make informed, environmentally-friendly decisions. The directive sets minimum requirements for substantiating, communicating, and verifying explicit environmental claims and labels, which companies use voluntarily when marketing their greenness. It applies to both existing and future environmental labeling schemes, public and private.

Companies will be required to use clear criteria and the latest scientific evidence to substantiate their claims and labels, ensuring they are easy to understand and include specific references to environmental characteristics. The Council's approach maintains the principle of ex-ante verification by third-party experts, while introducing a simplified procedure for certain types of claims and providing support measures for SMEs and microenterprises.

The directive acknowledges the importance of existing national or regional public labeling schemes, allowing for their establishment and exemption from third-party verification if they meet EU standards. It also introduces new requirements for proving climate-related claims, including those involving carbon credits. The Council's general approach will form the basis for negotiations with the European Parliament, contributing to the overall objective of achieving climate neutrality in the EU by 2050.

Following today’s news that the EU Council has published its position on the Green Claims Directive (GCD), Stuart Lemmon, CEO at EcoAct, told FashionUnited: "With the EU Council's position on the Green Claims Directive (GCD) published today, we are on the brink of significant changes in how environmental claims are validated and communicated. While most companies do not intentionally engage in greenwashing, many find it challenging to navigate the fragmented landscape of environmental policy, guidance, and best practice.”

“The GCD promises to streamline guidelines while requiring companies to back their claims with solid evidence, setting new standards for transparency and accountability. This should make it easier for consumers to trust environmental claims and labels and for companies to demonstrate genuine climate action. EcoAct welcomes moves to further transparency and quality in environmental action. We are prepared to navigate these regulatory shifts alongside our clients, anticipating nuances and impacts, including the upcoming review of SBTi’s Corporate Net-Zero Standard planned for late 2025.”