Has the EU Green Claims Directive been scrapped?

The EU’s much-anticipated Green Claims Directive (GCD), designed to protect consumers from greenwashing, is now on the chopping block.

On Friday 20 June, the European Commission confirmed its intention to withdraw the Directive entirely, just days before final talks were due to take place. The move follows mounting political pressure from the European People’s Party (EPP), which claims the law would be too costly and complex for businesses to comply with.

So, what does this mean for companies, consumers, and sustainability?

What is (was?) the Green Claims Directive?

The GCD aims to protect consumers from misleading environmental marketing practices.

It would require B2C companies wanting to use complex environmental marketing claims in Europe to submit these claims along with supporting evidence to national accredited verifiers for assessment and approval in advance. The draft law also aims to regulate the use of environmental labelling schemes in Europe.

With around 75% of products in the EU carrying some form of green claim – and more than 50% believed to be misleading – the Directive aimed to bring clarity and consistency to the market.

Key proposals included:

• A ban on claiming products are “carbon neutral”, “climate neutral” or “net zero” when based solely on offsetting.
• A requirement for all green claims to be backed by robust, scientific evidence.
• Independent third-party verification of environmental marketing claims.

Why is it being withdrawn?

The narrative is a little messy, but it centres around opposition from the EPP, ECR and ID – three right to far-right political parties.

They wrote a letter to the European Commission, asking them to withdraw the proposal, citing concerns that microenterprises would not be exempt. There are 30 million micro-enterprises in the EU – about 96 % of all businesses.

In a press conference on Tuesday 24^th June, two of the Directive’s co-rapporteurs (negotiators), were visibly frustrated at the “unprecedented” move to withdraw the GCD.

They argued that it had already been agreed that microenterprises were not in scope – and that a balanced compromise was in reach. One co-rapporteur said the Berlaymont (the European Commission building) was turning into the “EPP’s headquarters”

The Commission has stated that the withdrawal aligns with its broader aim to reduce administrative burdens on businesses – targeting a 25% reduction for large companies and 35% for SMEs by 2029.

These moves are part of a wider simplification strategy, which also includes proposals to scale back requirements under the Corporate Sustainability Reporting Directive (CSRD) and Corporate Sustainability Due Diligence Directive (CSDDD).

Why does it matter?

Supporters of the Green Claims Directive argue that withdrawing it risks:

• Undermining consumer protection against misleading environmental marketing.
• Weakening market clarity and consistency across EU member states.
• Delaying progress on credible sustainability reporting and communication.

Without a common framework, critics say, the risk of greenwashing could rise, making it harder for consumers to identify genuinely sustainable products and for honest businesses to compete.

What next?

Well, the GCD isn’t quite dead – but it’s certainly stalled, according to Euronews. 

“There are too many doubts; we need clarity from the Commission before deciding next steps,” one Polish diplomat said.

The Commission now appears unlikely to withdraw the proposal if the issue surrounding micro enterprises is resolved. We will watch this space.

It’s also important to note that robust anti-greenwashing rules are already in place in the EU. The Empowering Consumers for the Green Transition Directive (ECGT) is in force and will fully apply by September 2026. Existing consumer law regimes like the Unfair Commercial Practices Directive (UCPD) still apply to misleading environmental claims.

Stay tuned for further updates.

Content Coms is a strategic communications & marketing specialist for companies in the clean tech, energy and built environment space. Our Greenwash Advisory service helps businesses navigate fast-moving greenwashing regulations and make credible, compliant sustainability claims. To explore how we can support transparent, authentic communications in your business, get in touch.