Green Claims Directive – Transparency for Consumers

In March 2023, the European Commission introduced a draft law aimed at curbing greenwashing in advertising and marketing. Terms like “eco,” “sustainable,” “climate neutral,” or “recyclable” on packaging often confused consumers due to their unregulated use. On March 26, 2024, the Green Claims Directive came into force, based on the “Directive on Empowering Consumers for the Green Transition” (ECGT). Its goal is to hold companies accountable for truthful and transparent environmental claims.

On a national level, the directive has been translated into the “Directive to Strengthen Consumers for the Green Transition through Better Protection Against Unfair Practices and Better Information.” It also strengthens and complements the existing “Unfair Commercial Practices Directive” (2005/29/EC) and the “Consumer Rights Directive” (2011/83/EU).

The Green Claims Directive requires companies to provide transparent, scientifically substantiated environmental claims. General terms like “green” or “eco” are prohibited without specific justification. Sustainability labels must be state-recognized or certified. All environmental claims must comply with scientific standards outlined by the directive. Its goal is to protect consumers and prevent greenwashing. The EU directive came into effect on March 26, 2024, with a deadline for national implementation by 2026. It applies to all EU companies making environmental claims, including in advertising and marketing. Micro-enterprises are exempt.

What Are Green Claims and the Green Claims Directive?

Green claims refer to environmental statements used in advertising and marketing that aim to promote products and services as particularly eco-friendly. Previously, these claims were not required to be substantiated by sustainable practices or environmentally friendly production processes. This lack of accountability is known as greenwashing.

Greenwashing describes the attempt by companies to appear more eco-friendly or sustainable than they actually are, often using targeted marketing strategies to create a “green” image without implementing meaningful environmental measures.

The EU Green Claims Directive seeks to change this by mandating clear and uniform standards for environmental claims on products and services to enhance transparency.

Why Was the Green Claims Regulation Introduced?

In 2020, the European Commission conducted a survey revealing that over 50% of assessed environmental claims were unsubstantiated, misleading, vague, or overly broad. Furthermore, 40% of companies could not justify their claims or provided weak evidence. This consumer deception prompted urgent action by the Commission.

The result was the development, drafting, and eventual enforcement of the Green Claims Regulation.

Goals of the Green Claims Directive in the EU:

• Prevent greenwashing
• Ensure transparency in environmental claims and corresponding actions
• Promote informed purchasing decisions
• Contribute to more sustainable consumer behavior

Compliance with the control and verification standards for environmental claims established in the EU Green Claims Directive is overseen by independent, certified auditing bodies.

Current Status of the Green Claims Directive

A provisional agreement was reached on September 19, 2023. The draft report for the Green Claims Directive was published in October. The EU directive officially came into force on March 26, 2024. EU member states have until March 27, 2026, to transpose it into national law, with application starting on September 27, 2026.

What Does the Green Claims Directive Mean for Businesses?

The Green Claims Directive stipulates that environmental claims are only permissible if they are scientifically validated. Key assessment tools include Life Cycle Assessments (LCA) and the EU’s Product Environmental Footprint (PEF). Companies must first demonstrate that their claims adhere to scientific standards and then undergo a review process. Independent, accredited bodies will verify these claims and issue compliance certifications. Only after completing this process can companies make environmental claims. This also applies to climate-related claims for greenhouse gas compensation, which must be reported separately from other emissions.

Additionally, under the revised Unfair Commercial Practices Directive (Annex I):
– General environmental claims like “green” or “eco” are prohibited without specific clarification, except in rare cases.
– Sustainability labels must be state-approved or based on third-party certification systems and remain transparent.
– Environmental claims that pertain only to parts of a product but imply relevance to the entire product are prohibited.
– Marketing with legally required standards as special features is also prohibited.

Ecological, social, and circular characteristics such as durability and repairability must not be misleading. Future environmental performance claims must be transparent and verifiable. Comparative environmental claims must follow objective, uniform methods. Claims about irrelevant or unrelated product features are also disallowed.

The EU Green Claims Directive establishes clear guidelines on how companies can utilize, manage, and substantiate environmental claims.

Are You Affected by the EU’s Green Claims Directive?

The Green Claims Directive applies to all companies in the EU that use environmental claims in their advertising, marketing, products, or services. Exemptions apply to micro-enterprises with fewer than 10 employees and less than €2 million in revenue. Non-EU companies targeting EU consumers with their advertising are not covered by the directive.

The directive introduces new challenges for businesses already grappling with compliance obligations under the WEEE Directive, Packaging Directive, and Battery Directive.

What Can We Do for You?
We provide legally sound consulting for our clients and analyze your current structures to ensure compliance with the Green Claims Directive. As an independent provider, Deutsche Recycling GmbH leverages its extensive expertise to help you meet all legal requirements efficiently and cost-effectively, allowing you to focus on your core business while we act as your outsourced environmental compliance department.