- Companies must get their environmental marketing claims like “biodegradable” or “less polluting” verified before they can use them
- Simpler and common claims should be easier or faster to verify
- Penalties include being excluded from procurement processes, losing revenue, and facing a fine of at least 4% of annual turnover
Parliament has taken a stand on setting up a system to verify and approve environmental marketing claims to shield citizens from misleading advertisements.
The green claims directive would make companies provide evidence for their environmental marketing claims before advertising products as “biodegradable”, “less polluting”, “water saving” or having “bio based content”. EU countries would have to designate verifiers to approve the use of such claims, to protect buyers from baseless and unclear advertising.
Deadlines, penalties, and exemption for micro enterprises
Parliament wants claims and their evidence to be evaluated within 30 days, but simpler claims and products could be verified more quickly or easily. Micro enterprises would not be subject to the new rules, and SMEs would have an additional year to comply compared to larger businesses. Companies that violate the rules may face penalties, such as temporary exclusion from public procurement tenders, loss of revenue, and fines of at least 4% of their annual turnover.
Carbon offsetting and removals
Green claims based only on carbon offsetting schemes will remain prohibited. However, companies could mention offsetting and carbon removal schemes in their ads if they have already reduced their emissions as much as possible and use these schemes for residual emissions only. The carbon credits of the schemes must be certified and of high integrity, such as those established under the Carbon Removals Certification Framework Parliament also decided that green claims about products containing hazardous substances should remain possible for now, but the Commission should assess in the near future whether they should be banned entirely..
Press conference
Both rapporteurs will hold a press conference on Tuesday after the vote, at 14.30 CET. More information available
Internal Market Committee rapporteur here.
Andrus Ansip (Renew, EE) said: “ Studies show that more than 50% of environmental claims are vague, misleading, or unproven. We can't have satisfied customers if every other green claim is false. We can't have a fair playing field for our entrepreneurs while some traders are deceiving. I believe the Green Claims Directive adopted today is fair – it will bring clarity to our consumers and is less burdensome for traders than the claim-by-claim verification.Environment Committee rapporteur”
Cyrus Engerer (S&D, MT) said: “ It's time to put an end to greenwashing. Our position stops the spread of misleading green claims that have duped consumers for too long. We will ensure businesses have the right tools to adopt genuine sustainability practices. European consumers want to make sustainable choices; all those offering products or services must ensure their green claims are scientifically verified.Parliament has approved its stance on creating a process to confirm and approve environmental advertising claims in order to safeguard people from deceitful advertisements. The directive concerning eco-friendly claims would require companies to…”
