New rules allowing companies to comply with the EU ban on product greenwashing. The Internal Market and Environment committees adopted their positions on Wednesday on rules governing how companies can validate their environmental marketing claims.
The so-called Green Claims Directive complements the already approved EU ban on greenwashing. It defines the type of information companies must provide to substantiate their environmental marketing claims in the future. It also creates a framework and deadlines for verifying evidence and approving claims, and clarifies what happens to companies that break the law.
Verification system and sanctions
MEPs agreed with the Commission that companies should submit any future environmental marketing claims for approval before using them. Claims would be assessed by accredited verifiers within 30 days, according to the adopted text. Companies that break the rules can be excluded from public procurement, lose revenue and face a fine of at least 4% of their annual turnover.
The Commission should draw up a list of less complex claims and products that could benefit from quicker or simpler verification, MEPs say. It should also decide whether green claims for products containing dangerous substances should remain possible. MEPs also agreed that micro-enterprises should be excluded from the new obligations and that SMEs should be given an extra year before applying the rules.
Carbon offsetting and comparative claims
MEPs confirmed the recent EU ban on green claims based solely on so-called carbon offset schemes. They now clarify that companies could still mention offsetting schemes if they have already reduced their emissions as much as possible and use these schemes only for residual emissions. Program carbon credits must be certified, as established under the Carbon Removal Certification Framework.
Special rules would also apply to comparative claims (i.e. advertisements comparing two different products), including if the two products are made by the same producer. Among other provisions, companies must demonstrate that they used the same methods to compare relevant aspects of the products. Additionally, claims that products have been improved cannot be based on data older than five years.
Citation
Parliament rapporteur Andrus Ansip (Renew, EE), on behalf of the Internal Market Committee, said: “Studies show that 50% of companies’ environmental claims are misleading. Consumers and entrepreneurs deserve transparency, legal clarity and a level playing field. Traders are willing to pay for it, but not more than they get for it. I am pleased that the solution proposed by the committees is balanced, provides more clarity for consumers and, at the same time, is, in many cases, less burdensome for businesses than the solution initially proposed by the Commission.”
Parliament rapporteur Cyrus Engerer (S&D, MT) said on behalf of the Environment Committee: “It is time to put an end to greenwashing. Our agreement on this text puts an end to the proliferation of misleading green claims that have deceived consumers for far too long. It also ensures that businesses have the appropriate tools to adopt true sustainability practices. European consumers want to make environmental and sustainable choices and everyone offering products or services must ensure that their green claims are scientifically verified.
Next steps
The draft report was adopted by 85 votes to 2 with 14 abstentions. It will now be put to a vote in an upcoming plenary session and will constitute Parliament’s position at first reading (most likely in March). The file will be followed by the new Parliament after the European elections from June 6 to 9.
Originally published in The European Times.
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