On 12 March 2024, the European Parliament approved a draft Directive of the European Parliament and of the Council on substantiation and communication of explicit environmental claims (the Environmental Claims Directive) – also known as the Green Claims Directive. The draft is currently on hold pending the position of the EU Council.

The Green Claims Directive is yet another measure in the EU’s fight against so-called greenwashing. The EU notes that the environmental aspect of products is important to consumers and increases competitive advantage on the market. For this reason, it is important that all environmental claims used by manufacturers, such as “environmentally friendly product”, “green product”, “zero carbon footprint”, “produced with respect for the environment”, “eco-friendly”, etc., are credible, comparable and verifiable. Only in this way can the risk of misleading consumers be reduced.

What problems does the Green Claims Directive address?

The Directive will lay down rules for the formulation of ‘explicit environmental claims’ made by entrepreneurs on products or in other commercial communication to consumers. In simple terms, the Directive defines the term ‘explicit environmental claim’ (using in part the definition of ‘environmental claim’ in Directive 2005/29/EC) as a message concerning a positive, neutral, improved or less harmful environmental impact as compared to the competition, which is either in text form or included in an eco-label.

What requirements will be imposed on entrepreneurs?

Member States will oblige businesses to provide sound substantiation for their environmental claims. The analysis required of entrepreneurs will involve answering such questions as:

  • to which part of the product the statement refers?
  • which generally accepted scientific evidence is used to substantiate it?
  • does the suggested positive impact is really significant in terms of a life-cycle perspective,
  • what is the actual effect of the positive impact in relation to other products or processes available on the market (the application of objective criteria for such an assessment needs to be proved)?

A summary of the substantiation must be communicated by entrepreneurs in a way that is clear to consumers, either by making it available in physical form or via a link or QR code.

The substantiations will be subject to a verification procedure in Member States with the participation of independent and accredited verifiers. Member States will also supervise the enforcement of the new rules and have the power to impose sanctions in justified cases.

The Directive will not apply to micro-entrepreneurs unless they themselves wish to undergo verification for certification.

When will the Directive come into force?

The directive is still awaiting the position of the European Council and will then be subject to trilogue negotiations. Further formal procedures for the introduction of the Directive will continue after this year’s European Parliament elections. Once the Directive comes into force, Member States will have 24 months to implement it.