The European Commission has announced its intention to withdraw the Green Claims Directive proposal, a key element of the EU’s efforts to regulate greenwashing.
The move follows pressure from the European People’s Party (EPP), which deemed the draft law too complex and burdensome, especially for small companies. Negotiations have been paused and the final trilogue session cancelled ahead of the planned meeting on 23 June 2025.
EPP pushback over verification requirements and micro‑businesses
The EPP, the largest group in the European Parliament, raised concerns in a letter dated 18 June 2025. Shadow rapporteurs warned that mandatory third‑party verification for environmental claims—known as “ex‑ante” checks—could hamper companies’ competitiveness and add excessive administrative cost.
The Commission echoed this reasoning, highlighting that extending the scope to around 30 million micro‑enterprises would undermine its simplification agenda.
Trilogue cancelled and legislative uncertainty grows
The trilogue scheduled for 23 June 2025 was called off by the Council in response to the Commission’s announcement.
Though the Commission has yet to provide a formal justification, EU law requires both Parliament and Council support before a fully adopted draft law can be withdrawn.
Rapporteurs Sandro Gozi and Tiemo Wölken have said they remain ready to resume talks if the disputed amendment affecting micro‑businesses is dropped.
Ongoing anti‑greenwashing regulation remains intact
Despite headlines suggesting the EU is scrapping its anti‑greenwashing efforts, existing rules remain in place. The Unfair Commercial Practices Directive continues to support enforcement against misleading environmental claims.
Furthermore, the Empowering Consumers for the Green Transition Directive, adopted in February 2024, is unaffected by the withdrawal. It will take effect on 27 September 2026 and explicitly prohibits vague or unsupported eco‑claims.
Other related regulations such as the Ecodesign for Sustainable Products Regulation and the Right to Repair Directive also continue to operate.
Consultation, campaign group warnings and next steps
Environmental NGOs including ECOS, ClientEarth and the European Environmental Bureau have criticised the decision and urged policymakers to respect EU legislative procedures.
They highlighted that up to 76 % of products in the EU carry explicit or implicit green claims, with over half being misleading.
The Commission has left open the possibility of reconsidering the directive if the Council retracts the micro‑enterprises amendment.
As the ESG policy landscape evolves, stakeholders will be watching whether the EU moves forward with a revised Green Claims Directive or strengthens its existing frameworks.
