On March 12, 2024, the European Parliament of the Green Claims Directive. The directive aims to ensure that companies substantiate their claims before promoting products as environmentally friendly, thereby fostering transparency and trust among consumers (FPF reported). The Green Claims Directive comes in addition to a recent directive on environmental ‘buzzwords’ but is set to be “more specific and elaborate the conditions for using environmental claims in greater detail” (FPF reported). While this previous directive also focuses on repairability and durability claims, the Green Claims Directive additionally addresses carbon offsetting schemes, in the hopes of complementing each other.
More specifically, the new directive mandates companies to provide evidence supporting environmental assertions such as “biodegradable,” “less polluting,” “water saving,” or “bio-based content.” EU member states would appoint verifiers responsible for pre-approving the usage of such claims.
Key provisions of the directive include stringent deadlines for claim verification, with Parliament proposing a 30-day assessment period. However, simpler claims and products could undergo quicker or simplified verification processes. Notably, micro-enterprises would be exempt from the new regulations, while small and medium-sized enterprises (SMEs) would have an additional year to comply compared to larger corporations. Penalties for non-compliance could include temporary exclusion from public procurement tenders, revenue losses, and fines equivalent to at least 4% of annual turnover.
Addressing carbon offsetting, the directive maintains a ban on green claims solely reliant on carbon offsetting schemes. Nevertheless, companies can mention offsetting and carbon removal initiatives in their advertisements, provided they’ve already minimized emissions and use such schemes for residual emissions only. It is emphasized that carbon credits must be certified and adhere to high integrity standards.
Regarding products containing hazardous substances, Parliament has opted to allow green claims for the time being. However, the Commission is tasked with evaluating whether such claims should be banned altogether in the future.
According to Miriam Thiemann, sustainable consumption policy officer with the civil society organization European Environmental Bureau (EEB), there remains a degree of uncertainty regarding potential amendments or alterations to the current text as the file will have to be followed up by the new Parliament after the June elections. The composition of the new Parliament could influence the outcome of discussions on the directive. Incoming Members of the European Parliament may hold divergent priorities, potentially complicating negotiations with the Council and the Commission.
References
European Parliament (March 12, 2024). “”
Leigh Stringer (March 14, 2024). “” Enhesa.
Roberta Arbinolo (March 12, 2024). “” European Environmental Bureau.