EU Parliament positions itself in favor of a strong Green Claims Directive

On 12 March 2024, the European Parliament (“Parliament”) adopted its position on the Green Claims Directive (COM (2023) 166 final 2023/0085 COD, in the following “GCD”) and positioned itself in favor of strong legal regime for environmental claims (see here). While safeguarding most of the Commission’s proposed main provisions, the Parliament voted to improve some parts.

Among other things, the Parliament confirms the Commission’s proposal that companies are to be expected to submit environmental marketing claims for verification before being allowed to use them with the adjustment that the respective claims and their evidence should be assessed within 30 days. An even quicker respectively “easier” assessment should be possible regarding simpler claims. The proposed exemption of non-applicability of the GCD for micro enterprises remains unchanged. Moreover, the Parliament addresses stakeholders concerns by stating that SMEs – compared to larger businesses – should have one more year to become compliant with the GCD. Regarding the sanctions, the Parliament keeps the Commission’s strong approach and refers to the proposed exclusion from public procurement tenders as well as high fines.

In accordance with the “blacklist” of the Empowering Consumers Directive (Directive EU 2024/825; “ECD”), the Parliament states that green claims which are solely based on carbon offsetting schemes remain banned. However, the Parliament considers it permissible for companies to refer to offsetting and carbon removal schemes in their advertisement as long as they have already reduced their emissions as much as possible and use these schemes for residual emissions only. This applies only under the condition that the carbon credits of the schemes are certified and of high integrity. It remains to be seen to what extent this proposal might collide with the provision under lit. 4c) of the so-called blacklist of the ECG. The Parliament also expresses its opinion on green claims for products containing hazardous substances. With the reservation that the Commission reassesses their potential ban in the future, these should remain possible for now.

The Parliament adopted this first reading with 467 votes to 65 (and 74 abstentions). The legislative process will continue with the new Parliament which is to be elected in June this year.

Return to News