EU pulls Green Claims Directive: what it means for greenwashing, brands, and small businesses
The EU retreats on anti-greenwashing law. But is it a reprieve or a missed chance?
Words by Liam Aran Barnes | Eco Stay Awards Co-founder
In a last-minute move, the European Commission has withdrawn its support for the Green Claims Directive—a law designed to crack down on vague or unverifiable environmental claims.
Just days before final talks, Brussels said the current draft would overburden small businesses and run counter to its “simplification agenda.”
The issue?
A late-stage amendment by the European Parliament expanded the law’s scope to cover all companies, including 30 million micro-enterprises. That tipped the balance. According to Commission official Paula Pinho, unless that’s reversed, “we can reconsider our suggestion to withdraw.”
Critics have not held back.
“The Green Claims Directive should provide clarity for consumers and companies,” said Margaux Le Gallou of ECOS, “but confusion is what the European Commission has served up instead. Every day without this directive inflicts more harm on EU citizens … in a sea of greenwashing.”
And that sea is vast.
The Commission itself found that 53% of green claims in the EU are misleading, vague, or unsubstantiated. Brands like Ganni say the uncertainty is already damaging.
“If the Directive is pulled back, it only adds to the confusion brands are already facing,” said CCO Lauren Bartley. “Without clear, consistent frameworks, it becomes a minefield.”
Was scrapping the Green Claims Directive the right decision?
There’s a case to be made. The Directive would have required scientific proof and third-party verification before any green claim is made. For large brands, that’s manageable. For a small hotel, a family-run restaurant, or a local tour operator, it could be a barrier. Audits cost money. So does documentation.
Paula Pinho was clear: “The Commission’s proposal excluded micro-enterprises for good reason. The [amendment] risks being disproportionate.”
And there’s another risk: green-hushing.
Without the resources or clarity to comply, some small businesses might stay silent—even when doing the right thing—out of fear of being called out or penalised.
But NGOs argue the opposite: greenwashing is greenwashing, no matter the company’s size. And the Commission’s about-face, says ClientEarth and others, sends the wrong message. As ECOS put it: “A misleading green claim from a small brand can be just as damaging as one from a multinational.”
What’s next for sustainability claims in the EU?
The Directive isn’t dead. But it’s on ice.
If Parliament and Council drop the micro-enterprise requirement, talks may resume.
Until then, companies remain subject to other EU laws (like the Empowering Consumers Directive), but none require independent, pre-market verification of green claims.
In the meantime, the credibility gap grows. Lupita Inchausti-Moya, a sustainability lawyer quoted by Vogue Business, summed it up: “Clarity will help competitiveness. Not having clarity harms it.”
At Tuu, we believe the solution isn’t to lower the bar. It’s to make high standards easier to meet. That means tools that work for everyone. Storytelling powered by real data. And support for those doing the work, not just those who can afford the optics.
This setback might slow regulatory progress, but it also makes independent, verifiable claims even more important. Until legislation catches up, brands must lead the way on their own terms.
Not just saying you’re sustainable. Showing it.