On June 23, 2023, the European Union suspended discussions on a proposed law aimed at requiring companies to substantiate their climate-friendly claims with verifiable evidence. This decision follows concerns from the European Commission that the legislation would impose excessive burdens on smaller businesses, leading to its potential withdrawal.
The proposal, which sought to regulate misleading environmental labels on products ranging from clothing to electronics, faced scrutiny from EU member states, particularly as some lawmakers advocated for an expansion of the law to include 30 million small enterprises. The Commission warned that this expansion would overwhelm these businesses, contradicting its initiative to simplify regulatory frameworks for European firms.
A spokesperson for Poland, which currently holds the EU presidency, announced the suspension of negotiations, stating, “We are hitting the pause button. There are too many doubts and we need clarity from the European Commission on its intentions – based on that we can decide on the next steps.” The timeline for when negotiations might resume remains uncertain.
The original aim of the green claims law was to eliminate vague or misleading product labels such as “natural,” “climate neutral,” and “recycled content.” An assessment conducted by the Commission in 2023 revealed that nearly half of the 150 environmental claims evaluated were found to be vague, misleading, or unsubstantiated.
The Commission’s recent stance appears to reflect a broader trend within the EU to reassess and potentially scale back its ambitious environmental agenda in the face of political opposition and economic pressures on various industries. Last week, center-right EU lawmakers underscored their demand for the cancellation of the proposed regulation, signaling a shift in priorities within the EU’s legislative framework.
As discussions remain on hold, the future of this regulation hangs in the balance, highlighting the challenges faced in enforcing corporate accountability for environmental claims within the EU’s legislative processes.
