European Commission Withdraws Green Claims Directive, Citing Concerns Over Complexity and Costs

On June 20, 2025, the European Commission announced it would withdraw the Green Claims Directive. This was a proposed law that would have required companies to prove any environmental claim, like "eco-friendly" or "climate neutral", using independently verified, science-based evidence before making that claim public.

Originally intended to bring clarity and trust to sustainability messaging, the directive has now been removed from the EU’s legislative agenda. The Commission explained its decision was driven by concerns over the complexity of the rules and the compliance costs, especially for the 30 million micro-enterprises across Europe.

Green Claims Directive aimed to stop greenwashing with science-based proof

The Green Claims Directive was first introduced in March 2023. It was designed to set minimum rules for how companies substantiate environmental claims. The goal was simple: if you say a product or business is sustainable, you must prove it clearly and credibly. This was meant to combat greenwashing and build consumer trust.

While the directive had strong support in the European Parliament, it faced pushback from some member states and business groups. Critics argued that the requirements would be too costly and complicated for small businesses to meet. Others worried it would overlap with existing environmental regulations, creating confusion.

By mid-2025, the directive had lost momentum. On June 20, the Commission formally announced its withdrawal and cancelled the final trilogue negotiation scheduled for June 25.

Existing EU Rules on Green Claims You Need to Know

Even without this new law, rules on environmental claims are already in place. 

The Consumer Empowerment Directive, which came into force in early 2024, already limits what companies can say in product marketing. Claims like "climate neutral" or "carbon positive" must now be backed by clear evidence and third-party data. Generic or vague terms with no supporting proof are not allowed under EU law.

Other legislation remains active as well. These include the Unfair Commercial Practices Directive, the Corporate Sustainability Reporting Directive, and new rules around packaging and product labeling.

The Commission has not ruled out returning with a revised version of the Green Claims Directive at a later date. But for now, companies should look to existing laws when planning their sustainability communications. Staying transparent, specific, and evidence-based is still the safest path forward.

Additional Reading and Official Statements

European Parliament: Committee Chairs react to cancellation of negotiations

Reuters: EU halts talks on law tackling companies' fake 'green' claims

AP News: EU suspends anti-greenwashing legislation as far-right influence grows

Vogue Business: The European Commission’s greenwashing U-turn, explained