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NEWS

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Summary

The European Commission is expected to table the Green Claims Directive (GCD) on 22 March 2023 in order to crack down on greenwashing by regulating how companies substantiate and communicate their green claims. This law will apply to all claims and labels displayed in products, services or companies in both physical and online points of sale across the EU single market. The EEB hopes that the broad scope will be retained in the final proposal, as well as the strong focus on market surveillance. The EEB also calls for common EU rules to substantiate and communicate green claims, a dedicated Consultation Forum on Green Claims, an end to the proliferation of unreliable labels, and a EU registry of reliable ecolabels. They also call for a ban on climate neutrality claims, an obligation for companies to provide the evidence alongside the claim, and regular checks by market surveillance authorities.

Q&As

What is the European Commission's Green Claims Directive (GCD) and why is it important?
The European Commission's Green Claims Directive (GCD) is a law that aims to crack down on greenwashing by regulating how companies substantiate and communicate their green claims. It is important because it could bring some order in the wild west market environment of green advertising, and help protect EU consumers from misleading claims.

What are the limitations of the Product Environmental Footprint (PEF) method and how will the GCD address them?
The limitations of the Product Environmental Footprint (PEF) method include missing impacts, questionable secondary data, and unbalanced governance. The GCD will integrate the PEF as a reference method, with complementary requirements addressing its limitations, such as a ban on green claims for products containing toxic chemicals and the recognition that biodiversity protection and limited pesticide use must be part of the equation for food and agricultural products.

What are the demands of green NGOs with regard to the GCD?
Green NGOs demand common EU rules to substantiate and communicate green claims, an end to the proliferation of unreliable labels, and a EU registry of reliable ecolabels. They also call for the recognition of the EU Ecolabel as a reliable scheme to reward excellent environmental performance, a ban on climate neutrality claims, the obligation for companies to provide the evidence alongside the claim, and regular checks by market surveillance authorities.

How will the GCD work hand in hand with the Directive on Empowering the Consumers for the Green Transition (ECGT) and the Ecodesign for Sustainable Products Regulation (ESPR)?
The GCD will work hand in hand with the Directive on Empowering the Consumers for the Green Transition (ECGT) and the Ecodesign for Sustainable Products Regulation (ESPR). The ECGT Directive will rule what companies cannot do (i.e., which claims are considered unfair commercial practices), while the GCD will establish how they can operate (i.e., which methodologies companies should use to substantiate and communicate their green credentials). The ESPR sets obligations for mandatory information, while the GCD will concern voluntary claims.

What measures are proposed to ensure that green claims rules and assessment methods are established through a transparent and inclusive process involving civil society?
To ensure that green claims rules and assessment methods are established through a transparent and inclusive process involving civil society, green NGOs call for a dedicated Consultation Forum on Green Claims. The GCD should also involve environmental NGOs and consumer groups in the development of requirements for substantiating green claims, and ensure adequate civil society participation.

AI Comments

👍 This much-awaited law could bring some order to the wild west market environment of green advertising and help protect EU consumers from misleading claims.

👎 The leaked proposal fails to set clear common rules for companies across the EU and does not ensure adequate civil society participation.

AI Discussion

Me: It's about the European Commission preparing to crack down on greenwashing with a new Green Claims law. Basically, it's meant to help protect EU consumers from misleading claims by requiring companies to make supporting evidence available alongside a green claim.

Friend: Wow, that's great! It's important that companies are held accountable for their green claims. What do you think are some of the implications of this law?

Me: Well, it could help promote transparency in the green market and ensure that consumers can make informed decisions. It could also help to reduce greenwashing and make it easier for companies who are trying to reduce their environmental impact to differentiate themselves from those who are not. The law could also lead to a reduction in the number of unreliable labels and ecolabels available in the EU market, and help to create a registry of reliable ecolabels. Finally, it could also limit the use of climate neutrality claims, which tend to be misleading.

Action items

Research the European Commission's Green Claims Directive and the European Environmental Bureau's (EEB) position on the law.
Join the European Environmental Bureau's membership program and attend their events to stay up to date on greenwashing and other environmental issues.
Reach out to local environmental organizations to learn more about greenwashing and how to combat it in your community.

Technical terms

Greenwashing: The practice of making false or misleading claims about a product or service's environmental benefits.
Green Claims Directive (GCD): A law proposed by the European Commission that aims to crack down on greenwashing by regulating how companies substantiate and communicate their green claims.
Product Environmental Footprint (PEF): A method used to measure the environmental impacts of a product over its entire life cycle.
Directive on Empowering the Consumers for the Green Transition (ECGT): A directive currently under scrutiny by the European Parliament that will rule what companies cannot do (i.e., which claims are considered unfair commercial practices).
Ecodesign for Sustainable Products Regulation (ESPR): A regulation that sets obligations for mandatory information.
EU Ecolabel: A label awarded to products and services with a lower footprint than conventional ones over their entire life cycle.
ISO Type I ecolabels: Ecolabels that are well established in different member states, including those run by both public authorities and independent organisations such as environmental NGOs.
Carbon Removal Certification Regulation: A regulation that requires companies to use offsetting schemes based on robust accounting and leading to positive impact on the environment.