The EU’s Greenwashing Crackdown Collapses: Why Brussels Blinked First
What Happened?
- Negotiations paused: On June 23, 2025, the European Commission announced it would halt trilogue talks on the Green Claims Directive, which aimed to require companies to verify environmental claims using independent scientific proof.
- Intent to withdraw: Between June 20–24, the Commission signaled its intention to withdraw the proposal unless micro-enterprises (around 30 million firms) are exempted from its scope.
Why the Withdrawal?
1. Political Pressure
The center-right EPP, along with far-right and conservative parties, pushed to scrap the directive, arguing it imposed excessive complexity and administrative costs.
2. Burden on SMEs
Micro-enterprises—96% of all EU businesses—would have faced costly and time-consuming verification requirements, taking 30–90 days per claim.
3. The "Simplification" Agenda
As part of a broader deregulatory push, the Commission cited the need to streamline EU rules to improve competitiveness and reduce red tape.
The Fallout
Criticism from MEPs and Activists
MEPs such as Tiemo Wölken and Sandro Gozi called the move politically motivated and warned it would undermine consumer trust and penalize genuinely sustainable businesses.
Retreat from Green Goals
Critics see the directive’s collapse as part of a wider EU rollback on environmental policies, including diluted pesticide rules and stalled emissions standards.
What Remains?
Despite this setback, some anti-greenwashing tools still stand:
- The Empowering Consumers for the Green Transition Directive (2024) and the Unfair Commercial Practices Directive will prohibit misleading environmental claims starting in September 2026.
- National authorities in countries like Denmark, Germany, and the Netherlands already enforce laws against greenwashing through existing legal frameworks.
The European Council and Parliament could amend the proposal to exclude micro-enterprises and resume talks. Otherwise, the directive may be abandoned entirely.
Why This Matters
- Political Lens: Another example of Brussels caving to pressure at the cost of long-term policy consistency.
- Economic Angle: Raises questions about whether this is genuinely protecting small businesses—or providing political cover.
- Broader Context: Symbolic of the EU’s growing shift from ambitious green goals to a more deregulation-focused agenda.