EU Green Claims Directive Proposal

On March 22, 2023, the European Commission published a proposal for a new EU directive on the substantiation and communication of explicit environmental claims (the "Proposal"). This Proposal sets out specific rules for consumer protection, obliging businesses that sell goods or services within the EU to substantiate and verify any voluntary, explicit environmental claim they make, and to present it accurately to consumers. It also complements the March 2022 proposal for a directive on empowering consumers for the green transition, amending the Unfair Commercial Practices and Consumer Rights directives.

The Proposal applies to all voluntary claims made by companies in either textual form or in an environmental label that are directed to EU consumers and relate to the environmental impact, aspect, or performance of the company's products, services, or organization (such as "eco-friendly," "green," "carbon neutral," or "ecological"). However, the scope of the