The Green Claims Directive, intended to stamp out vague or misleading environmental claims by companies, has ground to a halt in Brussels, scuppered by a potent cocktail of industry lobbying and political infighting.
At the heart of the legislation was a simple premise: no more empty boasts. Under the proposal, companies marketing their products as “climate neutral”, “eco-friendly”, or “sustainable” would need to back up such claims with verifiable, scientific evidence. Independent audits would assess these statements, and national authorities would enforce compliance across the bloc.
But after months of wrangling, and with European elections now in the rear-view mirror, the directive lies dormant. Negotiations between the European Parliament and the Council of the EU have been suspended indefinitely, following a failure to agree on the role of third-party verification—one of the directive’s central tenets.
It is, critics argue, a textbook case of Brussels blinking under pressure.
A Lobbying Blitz
Sources close to the discussions describe a deluge of lobbying from business groups in the run-up to the trilogue collapse earlier this month. Industry associations, particularly in the retail, food, and fast fashion sectors, warned that the requirement for independent assessments of environmental claims would be “excessively burdensome” and “unworkable” for small and medium-sized enterprises.
Others went further. One prominent European business confederation branded the directive a “regulatory overreach” that would “chill innovation” and “harm competitiveness”, particularly in light of growing challenges from China and the United States.
Unsurprisingly, such rhetoric found fertile ground among more business-friendly Member States, notably Germany and Italy, whose governments have reportedly resisted giving the European Commission sweeping oversight powers. As the Czech presidency of the Council pushed to water down the directive’s scope last autumn, momentum behind the law began to wane.
An official involved in the negotiations said on condition of anonymity: “There was very little appetite from several Member States to give the Commission teeth. Industry’s arguments about red tape have clearly struck a chord.”
A Fractured Parliament
But it wasn’t only national governments standing in the way. The European Parliament, itself split along ideological lines, failed to present a unified position.
Green and liberal MEPs had pushed for the strictest interpretation possible, with obligatory product-level evidence and pre-approval of all green claims by certified experts. By contrast, the centre-right European People’s Party (EPP), which has emerged reinvigorated after the June elections, sought to dilute the requirements in the name of cutting bureaucracy.
“We all agree that greenwashing is a problem,” said one EPP staffer. “But we can’t strangle businesses with layers of compliance costs when they’re already struggling with energy prices and supply chains. This is not the time for eco-puritanism.”
The result: a deadlock. With Parliament unable to reconcile internal divisions, and Member States wary of alienating key industries, the file has been quietly shelved.
Victory for Vague Virtue
Environmental campaigners have reacted with dismay. The Green Claims Directive, they argue, was one of the few EU initiatives directly targeting the booming market for “green” consumer goods—a market that often bears little resemblance to environmental reality.
“Companies can slap ‘net zero’ on a bottle of shampoo or a plane ticket with no evidence and face zero consequences,” said Margaux Dumas of Environmental Standards Watch, a Brussels-based NGO. “This law was supposed to change that. The fact that it’s now been abandoned tells us all we need to know about the EU’s commitment to its own Green Deal.”
The Commission itself has been tight-lipped. While not formally withdrawing the proposal, officials now refer to it as “under review” and “pending further consultations”—Brussels-speak for a file that will gather dust until the political winds shift.
In private, however, some Commission staff have acknowledged that the directive is unlikely to be revived in its original form. “The horse has bolted,” said one senior official. “We’re looking at a much narrower framework now, maybe something that focuses only on the worst offenders or biggest companies.”
A New Political Landscape
The wider political context is inescapable. June’s European elections delivered a sharp rightward shift, particularly in France, Germany and Italy. Green parties, once the champions of the von der Leyen Commission’s environmental ambitions, lost ground to more conservative and nationalist forces—many of whom see climate regulation as an elite project disconnected from voters’ day-to-day concerns.
The collapse of the Green Claims Directive may well be the canary in the coal mine for the Green Deal writ large. With rising discontent over energy costs, food prices, and inflation, Brussels appears to be retreating from its more ambitious climate promises in favour of a more conciliatory approach to industry.
For now, it seems, Europe’s consumers will have to rely on corporate good faith—and a hefty dose of scepticism—when navigating the “green” aisle.
