EU Greenwashing Ban Receives the Green Light

Editorial TeamEditorial Team
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January 22nd, 2024

The European Union has banned vague environmental marketing claims, requiring terms like "environmentally friendly" and "climate neutral" to be backed by concrete evidence, marking a significant move to combat greenwashing and protect consumers.

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The European Union has taken a decisive step in the battle against greenwashing by outlawing vague and unsubstantiated environmental marketing claims. Terms such as "environmentally friendly," "natural," "biodegradable," "eco," and "climate neutral" will only be permitted if accompanied by concrete evidence validating the assertions. This landmark decision, referred to as the "final green light" by the European Parliament, aims to protect consumers from deceptive commercial practices and empower them to make informed choices.

With an overwhelming majority of 593 votes in favor, 21 against, and 14 abstentions, the EU officially endorsed this measure on Wednesday. The directive, titled "Empowering Consumers for the Green Transition," seeks to enhance the clarity and reliability of product labeling within the 27-country coalition. Under the new rule, only sustainability labels backed by official certification schemes or approved by public authorities will be permitted. Additionally, claims suggesting positive environmental impacts through carbon offsetting, a practice criticized as ineffective or fraudulent, will be strictly prohibited.

 

Directive Targets Deceptive Practices and Boosts Product Transparency

The directive addresses other problematic practices, such as baseless durability claims, premature replacement prompts for consumables, and misleading implications regarding the repairability of goods. Instead, the focus will shift towards emphasizing product durability, accompanied by a visible and standardized label highlighting products with extended guarantee periods.

Companies will no longer be able to employ deceptive tactics, such as claiming plastic bottles are eco-friendly because trees were planted somewhere, without providing substantive evidence. This move is hailed as a significant victory for consumers and represents a step towards eliminating misleading practices in the marketplace.

The directive responds to growing concerns about the prevalence of unreliable environmental information. A 2020 study by the European Commission revealed that over 53 percent of environmental claims in the EU lacked clear, factual, or trustworthy information, with an additional 40 percent lacking any supporting evidence. Nearly half of the 230 eco-labels in the bloc were found to have weak or non-existent verification procedures.

 

 

Scrutiny on Eco-Designations and Challenges in Directive Implementation

This regulatory action has consequences for in-house eco-designations, such as H&M's "Conscious Choice," Asos's "Responsible Edit," Zalando's sustainability "flag," and Zara's "Join Life," which have faced regulatory scrutiny due to flimsy evidence or inaccurate data. Notably, the Sustainable Apparel Coalition's Higg Materials Sustainability Index, criticized for its questionable environmental impact ratings, has distanced itself from consumer-facing labeling.

Despite its approval, the directive faces a two-year implementation period by member states, with potential enforcement beginning as early as 2026. The effectiveness of the law, according to Nusa Urbancic, CEO of the Changing Markets Foundation, will depend on the thoroughness of implementation and enforcement, though she anticipates a swift impact on the market. Major corporations like Gucci and Nestle have already abandoned carbon-neutral labels, opting for a focus on emissions reductions following investigations into questionable offsets.

While celebrated by many, the directive has its critics. The European Environmental Bureau highlights a perceived shortfall in not explicitly banning planned obsolescence, where products are intentionally designed with a limited lifespan. The requirement for companies to be aware of the problem to prevent the sale of faulty products raises practical challenges, according to Miriam Thiemann, a policy officer for sustainable consumption.