Green Claims Directive (Paused)

Proposal for a Directive on substantiation and communication of explicit environmental claims (Com(2023) 166)

Background and scope

The Directive addresses fundamental market failure: while “green” claims have become a competitiveness factor, unreliable statements mislead consumers and hinder genuine environmental progress. Commission studies carried through in 2023 found that over half of environmental claims provide vague, misleading or unfounded information, and 40% of claims were completely unsubstantiated, leading consumer trust critically low at just 1.57 out of 4.00.

The framework establishes minimum requirements for substantiation and communication of voluntary explicit environmental claims and environmental labelling in business-to-consumer commercial practices. The scope covers any environmental claim that states or implies positive environmental impact, including text, pictorial, graphic or symbolic representations. Claims already regulated under EU law, including EU Ecolabel, organic farming and energy labelling, are exempt, as are microenterprises with fewer than 10 employees and annual turnover below EUR 2 million.

In June 2025, the Commission decided to suspend the legislative process without formally withdrawing the proposal. The decision followed criticism of the draft regulation’s strict ex ante verification requirement, which would have obliged companies to validate environmental claims through external verifiers. The draft has remained on hold since then, with no timeline for its revival.

Key obligations

• Substantiation Requirements: All environmental claims must be based on assessments meeting rigorous criteria. These include relying on recognised scientific evidence, demonstrating significance from a life-cycle perspective, and ensuring claims aren’t equivalent to legal requirements. Crucially, assessments must identify whether positive achievements lead to significant harm in other environmental areas and require transparent reporting of greenhouse gas offsets.
• Communication Standards: Claims may only cover substantiated and significant environmental impacts. Traders must provide easily accessible information including environmental aspects covered, relevant standards, underlying studies, and verifier contact details.
• Environmental Label Requirements: Environmental labels must undergo third-party verification and be based on certification schemes. Only labels awarded under Union law environmental labelling schemes may present aggregated environmental scores.
• Labelling Scheme Controls: The Directive introduces strict controls on label proliferation. New national or regional public environmental labelling schemes are prohibited. New private schemes require approval demonstrating added value compared to existing schemes.
• Ex-ante Verification: All environmental claims and labels require independent third-party verification before use in commercial communications. Verifiers must be officially accredited bodies with no conflicts of interest. Certificates of conformity are recognized across the EU.
• Enforcement Framework: Member States must establish effective, proportionate and dissuasive penalties. Maximum fines must be at least 4% of annual turnover. Enforcement measures include revenue confiscation and temporary exclusion from public procurement.