Europe adopts new anti-greenwashing directive: here's what it entails

The majority of the European Parliament voted Jan. 17 in favor of a directive. It is about the directive related to providing better information and protection against unfair practices in the field of green transition. What exactly will this mean for sustainability claims?

In addition to the proposal for a Green Claims Directive published in early 2023, a proposal for Directive (EU) 2024/825 to strengthen the position of consumers in the green transition appeared a year earlier. The proposal for the directive has now been officially approved and published.

What will change?

The new Directive (EU) 2024/825 will update two existing directives. They are Directive 2005/29/EC on Unfair Commercial Practices and Directive 2011/83/EU on Consumer Rights. Thus, the directive is not a stand-alone new directive. With regard to sustainability claims, the adaptation of the Unfair Commercial Practices Directive is particularly relevant.

Adaptation of Unfair Commercial Practices Directive.

First, a number of definitions are added to Article 2 of Directive 2005/29/EC. These include adding the definitions of "environmental claim," "generic environmental claim," "sustainability label," "certification scheme," and "recognized outstanding environmental performance. The latter term means environmental performance in line with Regulation (EU) No 66/2010 on the EU Ecolabel; or with officially recognized national or regional eco-labeling schemes; or other EU top environmental performance.

Additional requirements certification schemes

The new directive defines a certification scheme as "a third-party verification scheme that certifies that a product, process or business activity meets certain requirements. Upon compliance, a corresponding sustainability label may often be used by the trader.

In addition to the definition, some requirements have been added to certification schemes. For example, the scheme must be transparent, fair, and non-discriminatory to all traders willing and able to meet the requirements of the scheme. This means that corporate sustainability labels based on self-developed schemes are no longer allowed. In addition, the scheme requirements must have been developed in consultation with experts and stakeholders. Furthermore, the scheme must include procedures regarding non-compliance. It must also provide for the withdrawal or suspension of the use of the sustainability label in case of non-compliance. Finally, there must be a procedure to monitor compliance with the requirements. A competent independent third party must perform this monitoring.

Misleading acts expanded

In addition, Article 6 regarding misleading actions is expanded. For example, environmental or socially related characteristics and circularity aspects (such as durability, repairability and recyclability) are now listed as key characteristics of a product whereby consumers may be misled. In addition, an addition in Article 6 is that an environmental claim about future environmental performance without clear, objective and verifiable objectives and without verifiable obligations is not allowed. On top of that, it is also not allowed to advertise (environmental) benefits that are not relevant/significant and do not result from a feature of the product or company.

Comparative claims

Furthermore, Article 7 on misleading omissions has been expanded with an additional paragraph on comparing products. From now on, certain information must be compulsorily available when comparing products or suppliers with respect to environmental or socially related characteristics or on aspects of circularity. The information must clearly state the method of comparison used. Both the products and suppliers compared and the measures taken to keep the information up-to-date.

Extension of Blacklist in Unfair Commercial Practices Directive

In addition to the amendments to the articles, Annex I of the Unfair Commercial Practices Directive is also being amended. Annex I lists commercial practices that are considered unfair in all circumstances. Here a number of practices related to sustainability claims have been added. For example, using a sustainability label that is not based on a certification scheme or not prepared by a government agency is not allowed.

In addition, generic environmental claims such as "environmentally friendly" and "good for cows" are not allowed if the trader cannot demonstrate relevant recognized environmental excellence with respect to the claim. On top of that, environmental claims related to the trader's entire product or business are prohibited if it only relates to certain aspects of the product or specific activities of the entire business. Finally, claims that a product has a neutral, reduced or positive effect on the environment with respect to greenhouse gas emissions are no longer allowed when it is based on offsetting greenhouse gases.

So why even a Green claims directive?

Compared to the above directive, the anticipated Green claims directive goes into greater detail about environmental claims. For example, it includes requirements on what companies must do to prove environmental claims and how they must formulate them. It is intended that the Green claims directive and the directive discussed in this article will work together to address greenwashing at the European level. The Green claims directive is currently still being discussed at the committee stage in the European Parliament. It is not known how long this will take.

Currently in the Netherlands we are already dealing with the Authority Consumer and Market' s Sustainability Claims Guidelineand the Advertising Code for Sustainability Advertising of the Advertising Code Foundation. The newly introduced European rules were already largely enforced in the Netherlands.

The proposal has now been officially adopted by the European Council and was published in the EU's Official Journal on March 6. Member states have until March 27, 2026, at the latest, to adopt the laws, regulations and administrative provisions necessary to comply with the directive. Member states must then apply these provisions as of Sept. 27, 2026.