EU's Green Claims Directive: A Political Flip-Flop Driven by Business and Parliamentary Pressure
Business organizations applaud policy reversal on EU regulations targeting greenwashing practices. - EU Rules Alteration Praised by Business Associations: Greenwashing Curb Initiative Approved
There's a shift happening within the European Union (EU) regarding the Green Claims Directive, a proposal aimed at cracking down on "greenwashing" — deceptive environmental marketing — by requiring companies to back up their sustainability claims. Top officials are now reconsidering the directive following intense pressure primarily from business associations and a leading parliamentary group.
- Green Claims Directive Retreat
While the directive presents an essential step to combat misleading environmental declarations, concerns over burdensome bureaucracy for businesses have prompted a political U-turn. On June 20, 2025, the European Commission declared plans to withdraw the Green Claims Directive proposal, following a call from the European People's Party (EPP)—the largest parliamentary group in the EU Parliament—just two days prior. This move comes after the Parliament and member states have essentially agreed to the project, with a final agreement meeting on June 23, 2025, now canceled.
- Business Associations: Practical Solutions, Not Red Tape
Business representatives have expressed relief at this development. Felix Pakleppa, CEO of the Central Association of the German Construction Industry, commented that the EU's decision reflects a welcome acknowledgement of the need for practical solutions to bolster climate protection, rather than new obstacles for businesses working tirelessly to implement them. Meanwhile, Holger Schwannecke, General Secretary of the Central Association of German Crafts, stated that this announcement suggests economic reality and proportionality are finally being considered in political decision-making.
- Consumer Organisations: Clear Green Advertising Rules Necessary
However, the Federation of German Consumer Organisations (vzbv) Chairwoman, Ramona Pop, has sharply criticized the decision. She emphasizes the importance of clear rules for green advertising, arguing that consumers should be able to recognize whether a product is genuinely sustainable or if the manufacturer is simply making unfounded claims. The Commission should not even consider withdrawing the proposal, Pop insists.
- A Political Dance
While specific opinions from business associations in this situation have not been detailed, the controversy likely reflects the influence of certain political groups, especially the EPP, shaping the Commission’s decision, potentially reflecting concerns from business or political circles about the directive's scope or impact. European Parliament co-rapporteurs have expressed readiness to continue negotiating and have criticized the Commission's withdrawal as disruptive to the legislative process. The future of the directive remains uncertain, as the Commission hasn't provided an official justification for withdrawing the proposal, potentially facing challenges in court.
- The European Commission's decision to withdraw the Green Claims Directive proposal on June 20, 2025, comes after intense pressure from business associations and the European People's Party (EPP), a leading parliamentary group in the EU.
- Business representatives, such as Felix Pakleppa and Holger Schwannecke, have welcomed the Commission's decision, arguing for practical solutions to bolster climate protection instead of new obstacles for businesses.
- However, Ramona Pop, Chairwoman of the Federation of German Consumer Organisations (vzbv), has criticized the decision, emphasizing the need for clear rules for green advertising to protect consumers from deceptive environmental claims.
