Insights

• The European Commission plans to scrap its draft law on combating corporate greenwashing due to opposition from the European People's Party.
• The March 2023 Green Claims Directive aims at stopping firms from misleading consumers with unfounded claims that their products and services are good for the planet.
• European Democratic Party secretary general Sandro Gozi termed the decision 'shameful'.

The European Commission plans to scrap its draft law on combatting corporate greenwashing due to opposition from the European People’s Party (EPP), a European political party with Christian democratic, liberal-conservative and conservative member parties.

Commission spokesperson Maciej Berestecki recently confirmed the withdrawal of the proposal on environmental claims without offering details.

Proposed in March 2023, the Green Claims Directive aims at stopping companies from misleading consumers with unfounded claims that their products and services are good for the planet. It also sought to limit the proliferation of green labels.

The decision implies the European Union (EU) will not ask companies to provide verified information to back up their green claims.

However, during negotiations between member states and the European Parliament, EPP expressed its desire to discard the entire directive.

In a letter to EU environment commissioner Jessika Roswall, EPP argued that existing directives on unfair consumer practices already cover these issues, and that this initiative would result in excessively complex and costly procedures for businesses.

It was particularly concerned about the proposal requiring independent third-party verification of environmental claims and labels before publication, according to European media reports.

"It is unacceptable that the European People's Party, in tandem with the far-right, is trying to scupper the greenwashing directive, which is a key piece of legislation designed to protect European citizens from corporate environmental fraud," Sandro Gozi, secretary general of the European Democratic Party, member of European Parliament for Renew Europe and rapporteur for the ‘green claims’ directive, said.

He insisted that the Commission should guarantee the interests of the Union and not become the ‘political executor’ of the EPP and the European far right.

"It would be a betrayal of the European mandate and bend the Commission to partisan logic, which would undermine its legitimacy and the trust of citizens," he noted, adding that he expects environment commissioner Jessika Roswall to clarify the reasons for this ‘shameful’ decision.