European Parliament Votes for Stringent Anti-Greenwashing Legislation
Generic environmental claims and other misleading product information will be outlawed.
Only sustainability labels based on approved certification schemes or established by public authorities will be allowed.
Guarantee information has to be more visible and a new guarantee extension label will be introduced.
The European Parliament, in a decisive meeting in Strasbourg, has taken a significant leap in environmental policy. With a commanding majority of 593 MEPs voting in favor against 21, the Parliament has passed a directive aimed at combating greenwashing, a practice where businesses make misleading claims about the environmental impact of their products or services. This legislation, which is likely to receive swift approval from the EU Council, marks a milestone in consumer protection and environmental integrity.
1. Robust Scrutiny of Environmental Claims
The new directive sets stringent standards for environmental claims in the EU market. It targets broad or ambiguous claims such as 'eco-friendly', 'environmentally friendly', 'natural', 'recycled', and 'biodegradable.' From now on, such claims must be substantiated with factual evidence. This measure addresses the concern that over half of the green claims in the market could be misleading, affecting consumer trust and the credibility of genuine sustainable products.
2. Strict Regulations on Carbon Offsetting Claims
A significant aspect of the directive is its stand against carbon offsetting claims. Businesses will no longer be able to label their products as 'climate-neutral' or 'carbon-neutral' if they rely on offsetting to balance their emissions. This change comes amidst skepticism about the authenticity of some carbon offsetting schemes. It underscores the need for direct action in reducing emissions rather than relying on compensatory measures.
3. Enhancements to Ecolabelling Schemes
The directive will introduce a temporary halt to the creation of new ecolabelling schemes and initiate a review of existing labels. This move aims to ensure that ecolabels have a third-party verification element, enhancing their credibility and reliability. Each EU member state will designate a national competent authority to oversee these ecolabel requirements, ensuring uniform enforcement across the bloc.
4. Focus on Product Repairability and End to Early Obsolescence
Another critical aspect of the directive is the emphasis on product repairability. Manufacturers and retailers will be required to provide customers with information about the repairability of products at the point of sale, covering a range of items including electronics, electrical goods, and furniture. This measure complements the existing 'Right to Repair' legislation from 2021 and aims to tackle the issue of early or planned obsolescence, where products are designed for shorter lifespans to encourage frequent replacement purchases.
5. Consumer Protection in the Used Goods Market
In the used goods market, the directive mandates clear advertising for used or faulty goods, ensuring customers are aware of any potential issues. However, a loophole exists where traders can claim exemption if they were unaware of any problems with the products.
Anticipated Impact and Implementation Timeline
Set to come into force from early 2026, the directive gives EU member states two years to incorporate it into their national laws. The broad scope of this legislation, affecting a vast array of products, signifies a substantial shift in how environmental claims are presented and substantiated in the EU market. While the directive does not apply to the UK due to Brexit, its implications are expected to influence product messaging in Britain, given the interconnected nature of European markets.
The passage of this directive is a testament to the EU's dedication to fostering a sustainable and transparent market, where environmental claims are credible and meaningful. As businesses adjust to these new requirements, consumers can look forward to more accurate information and sustainable choices, reinforcing the EU's position as a leader in environmental protection and consumer rights.
Jaime Amoedo is Co-founder and Executive Director at The ESG Institute
