EU Greenwashing Crackdown Faces Political Roadblock 

As the EU backtracks a key anti-greenwashing law, concerns grow that political convenience is undermining the bloc’s climate commitments. 

The European Union actively recognises the urgent need to combat greenwashing, where companies falsely amplify their environmental credentials to deceive consumers. Currently, more than 75% of products in the EU market carry some form of green claim, yet studies reveal over half of these are misleading or unverifiable. To address this, the European Commission proposed the Green Claims Directive (GCD) in 2023. The directive aimed to enforce strict, science-based rules for how companies communicate their environmental impact, ensuring that only substantiated claims could be used on products or in advertising. 

Currently, more than 75% of products in the EU market carry some form of green claim, yet studies reveal over half of these are misleading or unverifiable.

The GCD was designed to both protect consumers and empower businesses in making credible, transparent climate claims. With climate concerns driving purchasing decisions, such regulation is vital for fostering fair competition and rebuilding consumer trust. 

Why is the GCD at risk? 

Despite its ambitious goal, the GCD faces uncertainty. On 20 June 2025, the European Commission signaled it may withdraw the proposal entirely, even before negotiations between EU institutions conclude. This potential reversal appears to stem from pressure by political groups, notably the European People’s Party (EPP) and far-right factions, who argue the directive imposes excessive administrative burdens, particularly on small and medium sized businesses (SMEs). In line with the Commission’s broader simplification agenda, critics claim the GCD contradicts efforts to cut red tape. One of the Commission’s excuses for the potential withdrawal is the extension of the directive’s scope to include SMEs, which represent 99% of EU businesses. It claims including these entities would undercut the goal of simplifying EU regulation. 

However, many view this justification as politically driven. Green Deal policies are increasingly watered down or delayed under the guise of simplification, with the GCD becoming a focal point in a broader ideological shift. 

What’s next for the GCD? 

The future of the Green Claims Directive now hinges on one key question: will the SME amendment be dropped during the next trilogue negotiations? 

• If the amendment is removed, the Commission is likely to advance the directive with a focused scope, targeting larger companies better positioned to meet substantiation requirements. 

• If the amendment persists, the Commission has indicated it will likely scrap the proposal entirely, halting efforts to standardize green claim regulations across the EU. 

Either outcome will have lasting implications. Abandoning the directive would leave Europe without a unified approach to greenwashing, weakening climate accountability and consumer protection. Conversely, reviving the GCD with a narrowed scope could offer a pragmatic path forward, preserving the core ambition while addressing concerns around red tape. 

In the end, this isn’t just about one law. It’s a critical test of how committed the EU remains about its climate goals, and whether political convenience will overshadow environmental integrity.