The European Parliament yesterday voted in favor of sweeping new regulations aimed at cracking down on claims of greenwashing by companies.
MEPs voted overwhelmingly in favor of the proposed Green Claims Directive, which could impose huge fines on companies found guilty of making deliberately misleading green claims.
Parliament has formally adopted its position on the proposed directive and supports proposals that would require companies to submit evidence of their environmental marketing claims before advertising products, using generic terms such as 'biodegradable', 'less polluting', ' water saving' or 'bio-degradable'. -based content'.
Under the proposed directive, EU member states would have to appoint inspectors to pre-approve the use of such claims, to better protect buyers against unfounded and ambiguous advertising.
MEPs said they wanted marketing claims and associated evidence to be assessed within 30 days, but simpler claims and products could benefit from faster or easier verification. Micro-enterprises would not be subject to the new rules, while SMEs would have an extra year to comply with the new rules compared to larger companies.
However, companies that break the rules could face significant fines, with the draft directive raising the prospect of companies making misleading claims being excluded from public tenders and facing fines of at least four percent of their annual turnover.
The proposed regulations could also have significant implications for the carbon offset market, with the rules aiming to ban green claims based solely on carbon offset schemes. Companies would still be able to promote their support of carbon offset projects, but they would also have to demonstrate how they have reduced their direct emissions as much as possible. Carbon credits should also be certified as coming from high-integrity projects.
“Research shows that more than 50 percent of environmental claims are vague, misleading or unfounded,” said Andrus Ansip, rapporteur of the Internal Market Committee. “We cannot talk about happy consumers when every other green claim is false. We cannot talk about a level playing field for our entrepreneurs while some traders are cheating. I believe the Green Claims Directive adopted today is balanced – it will bring clarity to our consumers and is less burdensome for traders than verification per claim.”
His comments were echoed by Environment Committee rapporteur Cyrus Engerer, who said it is “time to put an end to greenwashing”.
“Our position puts an end to the spread of misleading green claims that have misled consumers for far too long,” he added. “We will ensure that companies have the right tools to embrace real sustainability practices. European consumers want to make sustainable choices; anyone offering products or services must ensure their green claims have been scientifically verified.”
MEPs supported Parliament's position with 467 votes in favour, 65 against and 74 abstentions. However, the legislation is unlikely to be finalized before this summer's European elections, meaning the next Parliament will lead negotiations with the European Commission and Council.
As such, the proposed directive is likely to face significant opposition from some business groups, who fear the rules are too restrictive and could inadvertently undermine the promotion of credible green products and the use of high-integrity carbon removal projects.
Lobbying against the rules is likely to reflect recent opposition to the EU's proposed Corporate Sustainability Due Diligence Directive, in which companies have similarly warned that excessive compliance requirements and fines could lead to higher costs and negative consequences.
Yesterday's vote came during a busy day for the European Parliament, which also backed revisions to the Industrial Emissions Directive to tackle emissions from livestock farms, and adopted plans to significantly strengthen energy efficiency rules through the Energy Performance Directive of buildings.
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