EU Council Agrees to General Approach to Cracking Down on Greenwashing

The Council of the European Union has adopted its negotiating stance on proposed EU legislation aimed at combating greenwashing and ensuring environmental marketing claims about products and services are accurate and verifiable.

On Friday, EU ministers approved a general approach on the draft green claims directive, paving the way for the Council to begin negotiations with the European Parliament to hammer out the final rules. The Council's agreed position sets out minimum requirements for how companies must substantiate, communicate and verify any explicit green claims or environmental labels used in marketing and advertising.

"Today, we reached an important agreement to fight greenwashing by setting rules on clear, sufficient and evidence-based information on the environmental characteristics of products and services," said Alain Maron, the Brussels minister responsible for environmental issues who chaired the negotiations.

The directive targets voluntary statements and labels touting environmental benefits that are often vague, misleading or lack proper substantiation based on evidence and up-to-date science. A 2020 study found over half of green claims currently made about products and services could be considered greenwashing due to fuzzy, unsubstantiated language.

Under the Council's negotiating mandate, explicit environmental claims and labeling would need to undergo third-party verification by independent experts before being used for most businesses. Smaller companies could follow a simplified procedure by submitting technical documentation, rather than pre-verification, to comply with the directive's standards.

The agreed position also sets specific rules for climate-related claims involving carbon offsets. Companies making such claims would need to disclose details on emissions reductions, carbon credits used and decarbonization progress. Existing respected eco-labeling schemes like the EU Ecolabel and Nordic Swan would be exempt from third-party verification requirements if they meet the directive's standards.

"Our aim is to help European citizens make well-founded green choices," said Minister Maron, calling the rules essential for boosting consumer confidence and the sustainable products market.

The European Parliament has not yet adopted its negotiating position on the green claims directive. Once it does, the two institutions can begin trilogue talks to try to reach an agreement on the final legislation.

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