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Sabhi banner Sep 25 T

European Businesses Urge Caution in Finalising the Green Claims Directive

As the European Union nears a crucial political trilogue on the Green Claims Directive, a broad coalition of industry associations is urging EU institutions to prioritise the quality and clarity of the legislation over speed. In a recent joint statement, the signatories call for a proportionate, harmonised, and workable regulatory framework that fosters sustainable innovation and ensures legal certainty, warning that a rushed adoption risks unintended negative consequences for both consumers and businesses.

 

European Businesses Urge Caution in Finalising the Green Claims Directive p
Image credit: Shutterstock

With the final political trilogue on the Green Claims Directive imminent, a coalition of leading European and international business associations has called on EU policymakers to avoid hastily finalising the legislation. The coalition argues that without clear, harmonised, and practical rules, the Directive could deter companies from communicating their sustainability efforts, leading to so-called “greenhushing” and diverting essential financial and human resources away from innovation and towards compliance. This, they argue, would run counter to the EU’s objectives of enhancing consumer information and supporting industrial competitiveness.

The associations reaffirm their commitment to advancing sustainable practices through research and innovation. However, they stress that the ability to transparently communicate progress is crucial for both consumer empowerment and maintaining global competitiveness, two key drivers of the green transition.

The joint statement highlights that businesses are already grappling with the challenges posed by the Empowering Consumers for the Green Transition (ECGT) Directive, set to apply from September 2026. Ambiguities in the ECGT Directive, compounded by the complexity of the Green Claims Directive, have created significant legal uncertainty and operational burdens. The coalition criticises the proposed one-size-fits-all approach to substantiation and verification, calling it overly rigid and impractical for diverse sectors and business sizes.

Since the beginning of the legislative process, the signatories have advocated for a balanced and clear framework that supports sustainable communication, levels the playing field across the internal market, and protects competitiveness. They warn that unless addressed, the current shortcomings could lead to frequent revisions and regulatory instability, such as those seen in past “Omnibus” amendments.

Despite discussions aimed at reducing the burden of the substantiation and ex-ante verification processes—such as introducing a “simplified procedure”—the proposed framework remains ambiguous and lacks sufficient harmonisation. The statement raises several key concerns, including:

  • Disproportionate and unclear substantiation and verification requirements that increase costs and discourage investment in sustainability;

  • The lack of a predictable and effective simplified procedure that ensures fair treatment for eligible claims;

  • Unrealistic transition periods that may result in increased waste and logistical challenges;

  • Overlaps with existing EU legislation on information, chemicals, packaging, and reporting, which add further complexity.

The signatories strongly urge EU institutions to resist concluding the trilogue at any cost, advocating instead for a measured approach that prioritises coherence, clarity, and effectiveness. They emphasise that only a well-constructed Directive can truly empower consumers, stimulate innovation, and advance the EU’s environmental objectives.

The coalition concludes by reiterating their readiness to work with EU policymakers to co-develop a practical and legally sound framework for green claims that benefits both consumers and industry.

Signatories:

  • AIM, European Brands Association

  • A.I.S.E., International Association for Soaps, Detergents and Maintenance Products

  • AmCham EU, American Chamber of Commerce to the EU

  • Brewers of Europe

  • BusinessEurope

  • CEPI, Confederation of European Paper Industries

  • CLEPA, European Association of Automotive Suppliers

  • Cosmetics Europe

  • EDANA

  • EuroCommerce

  • EUROPEN, The European Organisation for Packaging and the Environment

  • FESI, Federation of the European Sporting Goods Industry

  • FoodDrinkEurope

  • NATRUE, International Natural and Organic Cosmetic Association

  • TIE, Toy Industries of Europe

  • UNESDA, Soft Drinks Europe

  • WFA, World Federation of Advertisers
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