The EU Green Claims Directive: Tackling Greenwashing Through Law

Introduction: From Sustainability Marketing to Legal Accountability

Across Europe, consumers are increasingly drawn to products marketed as “eco-friendly,” “climate neutral,” or “sustainable.” Yet too often these claims are vague, misleading, or unverifiable—a practice widely known as greenwashing. Studies by the European Commission have shown that more than half of green claims made in the EU are either unsubstantiated or misleading.

To address this credibility gap, the Commission proposed the Green Claims Directive (GCD) in March 2023. The Directive, currently under negotiation in 2025, aims to establish clear, enforceable rules for environmental marketing claims across the EU. It represents a major step in aligning consumer protection law with the EU’s Green Deal objectives.

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What Is the Green Claims Directive?

The GCD introduces a harmonized framework to ensure that environmental claims made about products or services in the EU are:

Clear – avoiding vague or generic terms like “eco” or “green” without evidence,

Accurate – reflecting measurable and verifiable performance,

Comparable – allowing consumers to differentiate between products,

Substantiated – based on recognized methodologies and independently verified.

The Directive complements existing rules under the Unfair Commercial Practices Directive (UCPD) and strengthens the Consumer Empowerment Directive, moving environmental advertising from voluntary standards to legal obligations.

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Key Provisions of the Directive

1. Verification Before Publication

Traders must have claims independently verified before using them in marketing. Authorities or accredited bodies will issue a certificate of conformity.

2. Substantiation Requirements

Claims must be based on:

Scientific evidence (e.g., life-cycle analysis),

Transparent methodology,

Public availability of proof.

Comparative claims (e.g., “50% less CO₂ than competitor”) must use consistent and verifiable data sets.

3. Carbon Offsetting Rules

Companies cannot label products as “carbon neutral” solely on the basis of offsetting. They must:

Disclose the share of emission reductions vs. offsets,

Provide details of the offset projects,

Clarify residual emissions.

4. Environmental Labels and Logos

The Directive introduces strict controls on eco-labels:

New public schemes at EU level must be pre-approved,

Private labels must show added value and avoid duplication,

Misleading symbols or self-certifications will be banned.

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Who Will Be Affected?

The Directive applies to all companies marketing products or services in the EU, but the impact will be greatest for:

Retailers and consumer goods companies,

Fashion and cosmetics brands, notorious for vague eco-claims,

Food and beverage companies, especially around packaging and carbon neutrality,

Financial services marketing green investment products.

SMEs will face lighter requirements (simplified substantiation), but must still avoid misleading claims.

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Enforcement and Sanctions

National authorities will supervise compliance, with powers to:

Ban or withdraw misleading ads,

Issue fines of up to 4% of annual turnover,

Exclude companies from public procurement or subsidies,

Publish naming and shaming lists of violators.

Cross-border enforcement will be coordinated via the Consumer Protection Cooperation (CPC) network, ensuring EU-wide consistency.

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Relationship With Other EU Laws

The Green Claims Directive fits into a broader legal landscape:

CSRD and ESRS require companies to disclose ESG data—feeding into verifiable claims,

Ecodesign Regulation sets minimum sustainability requirements,

EU Taxonomy Regulation defines what qualifies as “sustainable” in finance,

Digital Services Act and Omnibus Directive regulate online advertising and transparency.

Together, these measures aim to build a comprehensive legal shield against greenwashing.

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Challenges and Criticism

While widely welcomed, the Directive faces challenges:

Methodological complexity: life-cycle assessments vary widely by sector,

Cost burden: SMEs may struggle with verification and certification costs,

Risk of overregulation: companies fear bureaucratic hurdles may slow innovation,

Global alignment: non-EU exporters must comply, raising trade concerns.

Civil society groups, however, argue the rules must be even stricter to prevent loopholes in offsetting and unverifiable future-oriented claims (“net zero by 2050”).

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Conclusion: A Turning Point in Green Consumer Law

The EU Green Claims Directive marks a shift from soft sustainability rhetoric to hard law. It places responsibility squarely on businesses to prove their environmental promises before advertising them. For consumers, it promises more trustworthy information and genuine empowerment in making sustainable choices.

If successfully implemented, the Directive could set a global benchmark for green marketing regulation, much as the GDPR did for data protection. But its effectiveness will depend on rigorous enforcement and the willingness of companies to embrace transparency rather than cosmetic green branding.

The message is clear: in Europe’s consumer markets, green must mean real green—not just marketing spin.