European Commission to withdraw proposed directive on environmental claims

The European Commission is preparing to withdraw the directive on environmental claims following pressure from conservatives. The move has prompted criticism and confusion, as the Commission has not unequivocally confirmed that it will stop negotiations in the trilogue. Politico reported the planned withdrawal last week. Shortly afterwards, the European Commission announced that it was postponing the withdrawal of the directive.

The proposed Green Claims Directive (on substantiation and communication of explicit environmental claims) was presented in March 2023. Its main purpose was to establish a framework to combat so-called greenwashing by requiring companies to substantiate their environmental claims with verifiable evidence. For example, if a company claimed that its product was carbon-neutral, it would also have to disclose the basis for that claim. The directive was therefore primarily intended to protect consumers.

The European People’s Party (EPP), the largest political group in the European Parliament, nevertheless called the proposed directive too complex and threatened to block negotiations unless it was withdrawn. In response to pressure from the EPP, the Commission announced its intention to withdraw the directive, citing concerns about excessive administrative burdens for businesses—particularly the risk that up to 30 million smaller businesses would have to comply with the rules, even though they were originally meant to be exempt. The Commission says that one reason for withdrawing the directive is its goal of simplifying European regulations.

The announcement immediately caused confusion. The Polish Presidency of the Council of the EU, which is currently leading negotiations on behalf of the member states, confirmed its willingness to continue the talks. Sandro Gozi, an MEP from the centre-right Renew group, stressed that the European Parliament had not called for negotiations to be halted and rejected the EPP’s claims. Critics of the proposed withdrawal accuse the Commission and the EPP of creating an unstable environment for businesses that have already invested in sustainability in preparation for the directive and were expecting uniform rules in this area.

Withdrawing a legislative proposal while negotiations are under way is a relatively unusual step and may be seen as a symptom of a deeper political crisis over the EU’s green policies. The EU College of Commissioners must now decide whether to formally withdraw the proposal. The fate of the directive on environmental claims therefore remains uncertain.

Update:

The European Commission has announced that it is postponing the complete withdrawal of the directive for now. According to Commission spokesperson Paula Pinho, the executive will now “wait” for the outcome of further interinstitutional discussions between the EU’s two other legislative bodies.

“We will continue working towards this goal,” the spokesperson said during a webcast, adding that work among the co-legislators, including the European Parliament and the Council, could continue on the condition that a specific amendment was withdrawn. She did not say which amendment she was referring to.