Green Claims Directive (GCD)

The Green Claims Directive is a legislative proposal from March 2023 aimed at addressing greenwashing. It is part of a broader EU push to empower consumers in the green transition. More specifically, it is part of the broader European Green Deal, which aims to make the EU climate-neutral by 2050, and aligns with the Circular Economy Action Plan and Sustainable Product Initiative. It addresses increasing consumer demand for transparency and truth in sustainability claims and is designed to combat deceptive green marketing practices. 

The proposed directive sets out new requirements to ensure that businesses provide reliable, accurate, transparent, information and verifiable environmental claims to protect consumers from being misled and helping them making better choices that align with their sustainability goals.  

Companies must substantiate their environmental claims with scientific evidence. This evidence must be clear, specific, and based on verifiable data verified via an ex-ante verification system (Article 10).  

The proposed directive also seeks to regulate or ban self-declared environmental labels that aren’t verified by independent third-party certification schemes. Only certified or verified labels will be allowed, reducing consumer confusion misleading eco-labels (Article 7).  

If companies fail to meet these requirements, they may face penalties. National authorities in member states will be responsible for enforcing these rules and penalizing misleading claims (Article 17).  

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