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Home » European Commission to Withdraw Greenwashing Regulation
ESG & Sustainability

European Commission to Withdraw Greenwashing Regulation

omc_adminBy omc_adminJune 21, 2025No Comments2 Mins Read
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On Friday, June 20, 2025, the European Commission announced its decision to withdraw the Green Claims Directive, a critical component of the EU’s Green Deal policy designed to protect consumers by ensuring that environmental marketing claims were accurate, science-based, and independently verified. Without it, regulation will revert to individual national laws, likely resulting in inconsistent rules across EU countries and a fragmented approach to addressing greenwashing, potentially weakening efforts under the EU Green Deal.

Key Developments

During the Commission’s midday press briefing in Brussels at 11:50 CEST, spokesperson Maciej Berestecki confirmed, “The Commission intends to withdraw the Green Claims proposal due to the current context.” Within minutes, major outlets like Politico EU, Euronews, ESG News, and E&E News reported the decision, amplifying its reach.

What Was the Green Claims Directive?

Introduced in March 2023, the Green Claims Directive aimed to combat greenwashing by setting EU-wide standards for environmental marketing claims. Key provisions included:

Requiring companies to substantiate voluntary environmental claims with scientific evidence and independent verification.

Limiting the use of unregulated environmental labels.

Enhancing transparency in product marketing.

The directive addressed findings that over 50% of green claims in the EU were vague or misleading, with 40% lacking evidence.

Why Was It Withdrawn?

The withdrawal follows criticism from the European People’s Party (EPP), the European Parliament’s largest political group. In a formal letter, the EPP highlighted:

The directive’s complexity and potential regulatory burden on businesses.

The absence of a formal impact assessment.

Questions about the proposal’s proportionality.

The Commission’s decision reflects these concerns, prioritizing regulatory simplification.

Next Steps

The Commission is expected to issue a formal withdrawal notice to the European Parliament and Council early next week. While either body could object, opposition is unlikely based on current sentiment.

Implications for EU Environmental Policy

Without the Green Claims Directive, environmental marketing regulation will revert to national laws, potentially creating:

Inconsistent compliance obligations for businesses operating across EU member states.

A fragmented approach to tackling greenwashing, undermining the Green Deal’s ambitions.

This withdrawal marks another setback for the EU Green Deal, raising questions about the bloc’s ability to standardize sustainable practices and enforce environmental accountability.

 Subscribe to ESG News Daily Brief to stay informed with trusted ESG and sustainability news every afternoon. 



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