EU Cracks Down on Greenwashing: New Directive Approved

In a vote at the European Parliament, members have overwhelmingly endorsed new legislation aimed at combatting misleading environmental claims by businesses. Out of the 593 MEPs present, 593 voted in favor, signaling a strong commitment to ethical environmental marketing practices.

The directive, which is expected to swiftly gain the EU Council’s approval, specifically targets vague and unsupported green claims such as ‘eco-friendly’, ‘natural’, and ‘biodegradable’. It aims to ensure that businesses can substantiate their environmental impact assertions with concrete evidence.

The legislation also addresses the contentious issue of carbon offsetting claims. Under the new rules, businesses cannot label their products or services as ‘climate-neutral’ or ‘carbon-neutral’ if they rely solely on offsetting to balance their emissions. This move responds to concerns about the credibility of certain carbon offsetting schemes.

The directive is expected to significantly impact businesses across various sectors, as three-quarters of products sold in the EU currently carry green claims. With evidence suggesting that many of these claims are vague or misleading, the new law aims to bring more clarity and honesty to environmental marketing.

In addition to restricting misleading claims, the directive will temporarily halt the creation of new ecolabel schemes and review existing ones, requiring third-party verification to enhance their reliability. Each EU member state will designate a competent authority to oversee ecolabel requirements.

Complementing the directive on green claims is a new requirement for manufacturers and retailers to provide customers with information on product repairability at the point of sale. This initiative supports the ‘Right to Repair’ legislation passed in 2021, which mandates repairability within a legal guarantee period.

While the directive includes several progressive measures, it stops short of addressing the practice of early obsolescence, where products are designed with shorter lifespans to encourage earlier replacement.

Although the rules do not apply in the UK due to Brexit, many UK-based businesses selling in EU markets will likely be affected. To further discuss and address these changes, edie is hosting ENGAGE on January 25, 2024, featuring experts from various organizations presenting case studies on combatting greenwashing.