EU Green Claims Directive – What Does It Mean For Companies?

Introduced by the European Commission (the "Commission") in March 2023, the EU Green Claims Directive (the "GCD") seeks to establish clear criteria for substantiating environmental claims. In March 2024, the EU Parliament adopted the draft directive, which is now at the trilogue phase. The GCD is expected to come into force in 2027. It further complements the Empowering Consumers for the Green Transition Directive (Directive (EU) 2024/825), which amends existing consumer protection laws to address unfair commercial practices related to greenwashing.

Under the GCD, the EU will introduce extensive regulations on the requirements for permissible environmental claims. The objective is to prevent greenwashing so that consumers can trust information about the environmental impact of products and make informed decisions when choosing more sustainable products.