The European Commission announced on Friday, 20 June 2025, that it plans to withdraw its proposal for a directive that would have regulated the way companies in the European Union promote their products as "green" or "environmentally friendly". The decision comes amid opposition from the European People's Party (EPP), which has explicitly called for the draft to be abandoned.

Proposal, known as the Environmental Declarations Directive (Green Claims Directive), was launched in March 2023 with the aim of combating misleading commercial practices related to sustainability. The document introduced clear requirements: any environmental claim made by a company would have to be backed up with verifiable data and assessed by an independent party. In addition, the directive set strict conditions for the use of eco-labels, in an attempt to limit the proliferation of unclear symbols and certifications that in practice confuse rather than enlighten consumers.

The reasons for the withdrawal are mainly political

PPE has argued that the text is too complex and would impose too high administrative costs, especially for small businesses. Although in its original form the directive excluded micro-enterprises, this protection could have been lost during the negotiations. The EPP also criticised the lack of a detailed impact assessment to justify the proposed rules.

The European Parliament had not formally called a halt to negotiations, and EU Council Presidencycurrently in Warsaw, said it remained ready to participate in the technical talks scheduled for next week.

The directive would have provided a clear level playing field

For companies that communicate responsibly about their environmental performance, the news may come as a surprise. The directive would have provided a clear level playing field, where those who truly invest in sustainability are no longer overshadowed by the aggressive marketing of those who use "green" merely as a profitable label.

Even if the final decision will have to be formally adopted by the College of Commissioners, the Commission is sending a clear signal: in its current form, the directive will not go further. But the issue will remain: trust in the green consumer information.