Green Claims Directive: negotiations stall

The legislative process for the EU’s Green Claims Directive – intended to combat greenwashing – has come to a standstill following a sudden breakdown in negotiations between the European Commission, Council and Parliament.

Initially proposed in March 2023, the Directive aims to introduce detailed requirements obliging companies to substantiate environmental marketing claims, such as “climate neutral” or “recyclable”, through independently verified evidence.

Its objective was to prevent misleading practices and create a level playing field for businesses making credible sustainability claims.

On 21 June 2025, just days before final talks were set to conclude, the European Commission unexpectedly announced it intended to withdraw the proposal.

This followed criticism that the directive was overly complex and burdensome for businesses, especially smaller companies.

The Polish Council Presidency, citing the Commission’s unclear position, cancelled the trilogue negotiations scheduled for 24 June.

The European Parliament, which had not agreed to stop the talks, strongly criticised the move, with Parliament’s co-rapporteurs and committee chairs expressing concern that the move undermined two years of negotiations and parliamentary work, and warned it could set a dangerous precedent for the legislative process.

Adding to the confusion, the Commission issued conflicting statements in the days that followed, when a senior Commission official said President von der Leyen still supported the directive and that the Commission had not officially withdrawn it.

According to the official, the Commission only raised concerns because Member States were trying to include very small businesses (with fewer than 10 employees) in the scope, which was not part of the original plan.

Nonetheless, momentum has stalled.

Following Italy’s formal withdrawal of support for the file, the Council no longer holds the necessary majority, making it impossible to continue with the file under current conditions.

Member states are now expected to discuss the matter further in July.

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