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The European Commission said Friday it will scrap a proposed law targeting corporate greenwashing, the latest sign that regulatory momentum around sustainability initiatives is stalling.
The abrupt decision, announced just ahead of negotiations to finalise the legislation, comes amid a broad-based push by conservative policymakers in Brussels to simplify red tape and focus on the trading bloc’s economic competitiveness.
“The current discussions around the proposal go against the Commission’s simplification agenda,” EC spokesperson Maciej Berestecki said in an email. “It is therefore the Commission’s intention to withdraw the Green Claims legislative proposal.”
The Green Claims Directive was put forward in 2023 and aimed to stamp out fluffy and misleading eco-marketing of products like clothes and cosmetics. Under the proposed regulation, companies would have had to back up any green claims using defined and comparable criteria.
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The Commission said it is still committed to tackling greenwashing, pointing to other policy initiatives focused on the issue that are still in the works.
Still, the sudden pullback blindsided many who had been following the legislation closely, and raised concerns about what other bills might end up on the chopping block.
The risk now is that companies are left to contend with a complicated patchwork of national regulations governing green claims, said Pascale Moreau, founder of Brussels-based consultancy Ohana Public Affairs.
Learn more:
The EU’s Retreat on Sustainability Regulations, Explained
The European Union has unveiled plans to significantly water down landmark sustainability rules that would require large fashion brands to report more details about their environmental footprint and take on more responsibility for abuses in their supply chains.
