Sustainovadirectory

Green Claims Directive

ProposedProposal (official)

Introduction

The Proposal for a Green Claims Directive (Directive on substantiation and communication of explicit environmental claims) is a legislative initiative by the European Commission designed to combat greenwashing and ensure that consumers receive reliable, comparable, and verifiable environmental information. It acts as a lex specialis, complementing the general consumer protection rules under the Unfair Commercial Practices Directive (UCPD) by providing specific rules for voluntary environmental claims.

Main Goal

The primary objectives are to increase the level of environmental protection, protect consumers and companies from misleading green claims, improve legal certainty, and boost the competitiveness of economic operators effectively managing their environmental sustainability.

Who It Applies To

The Directive applies to traders making voluntary, explicit environmental claims about products or the trader itself in business-to-consumer (B2C) commercial practices within the EU.

Exemptions

  • Microenterprises (fewer than 10 employees and annual turnover not exceeding €2 million) are exempt from the obligations regarding substantiation and communication, unless they voluntarily wish to obtain a certificate of conformity.
  • It does not apply to claims regulated by other specific EU legislation (e.g., EU Ecolabel, Organic Food, Energy Labeling) or the financial services sector.

Key Provisions

Substantiation of Claims

Traders must carry out an assessment that:

  • Relies on recognized scientific evidence and state-of-the-art technical knowledge.
  • Demonstrates impacts from a life-cycle perspective.
  • Identifies whether improvements in one area cause significant harm (trade-offs) in another.
  • Uses accurate primary information (company-specific data) for relevant impacts.
  • Separates greenhouse gas emissions offsets from the product's own greenhouse gas emissions.

Communication

  • Claims must only cover substantiated impacts.
  • Information on the product/trader and the substantiation (including the certificate of conformity) must be made available (physically or via weblink/QR code).
  • Comparative claims have strict equivalency requirements for data and methodology.

Environmental Labels

  • Ban on self-certification: Labels must be based on a certification scheme.
  • Aggregated Scores: Labels presenting a rating/score based on a cumulative indicator are prohibited unless established under EU law.
  • New Schemes: No new national public schemes allowed. New private schemes must be pre-approved by Member States and show significant added value over existing schemes.

Ex-ante Verification

Before a claim is made public, it must be verified by an accredited independent third-party verifier, who issues a Certificate of Conformity recognized across the EU.

Penalties

Member States must establish effective, proportionate, and dissuasive penalties, including:

  • Fines: The maximum amount must be at least 4% of the trader's annual turnover in the concerned Member State(s).
  • Confiscation of revenues gained from the transaction.
  • Temporary exclusion from public procurement processes and public funding (up to 12 months).
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Pillars

EnvironmentalGovernance

Audience

BusinessStates

Applicable Area

EU

Categories

GreenwashingProduct transparencyLife Cycle Assessment (LCA)Carbon OffsettingEco-friendly Product DevelopmentGreen marketingCertifications & normsSustainable Business Strategies
Timeline
  • Proposed
    Mar 22, 2023
  • Approved
    Mar 12, 2024
  • Adopted
    Pending
  • Published
    Pending
  • In Force
    Pending
  • In Application
    Pending
  • Last Updated
    Mar 23, 2023

The Directive is currently in the legislative proposal stage. Once adopted, the implementation timeline follows these phases:

  1. Entry into Force: 20 days after publication in the Official Journal of the EU.
  2. Transposition Deadline: Member States must adopt and publish laws necessary to comply within 18 months of entry into force.
  3. Application Date: The measures shall apply from 24 months after the date of entry into force.

Compliance Obligations for Businesses:

  • Non-Microenterprises: Must fully comply with substantiation, communication, and third-party verification requirements by the Application Date (24 months post-entry into force).
  • Microenterprises: Exempt from mandatory requirements but may opt-in to the verification process to receive a Certificate of Conformity.
  • Review: Traders must review and update substantiation of claims at least every 5 years.

Documents & Attachments

Official Documents

Representative Actions for Consumers Directive
Directive (EU) 2020/1828Nov 25, 2020
DirectiveEnglishEU
Consumer Protection Cooperation Regulation
Regulation (EU) 2017/2394Dec 12, 2017
RegulationEnglishEU
IMI Regulation
Regulation (EU) No 1024/2012Oct 25, 2012
RegulationEnglishEU

General Information Documents

Overview
InformationEnglishEU

Supportive Documents

Top 25 Questions & Answers on the new EU Green Claims Directive
InformationEnglishEU
Tappr Overview
InformationEnglishEU