EU votes to ban unsupported carbon neutral claims  

May 17, 2023

The European Parliament has voted to support a proposed ban on environmental claims that are based solely on carbon offsetting schemes. 

The ‘Directive on Green Claims’ would prohibit companies from using generic labels such as “environmentally friendly” or “carbon neutral” without detailed evidence.   

The proposed rules were first introduced in March after a greenwashing study revealed more than half of green claims by companies in the EU were misleading.  

As a result, the rules are designed to boost transparency and combat greenwashing to help consumers make more environmentally friendly choices. 

They also aim to encourage companies to offer consumers more durable and sustainable products. 

Biljana Borxan, a member of the EU parliament, said: “The jungle of false environmental claims will end as only certified and substantiated ecological claims will be permitted.” 

The rules set out minimum requirements for businesses to substantiate, communicate, and verify their environmental claims.  

To ensure the reliability of green claims, all claims must be independently verified and supported by quantified and science-based targets.  

Claims must also include a “detailed and realistic implementation plan to achieve this future environmental performance” supported by targets, a budget, and resource allocation.  

The rules will forbid the use of other misleading practices, such as making green claims about the whole product when only one part is sustainable.  

Lawmakers in the European Parliament passed the proposal with 544 votes in favour, 18 against and 19 abstentions.  

As a result, negotiations between the EU parliament and the EU member states will soon begin to decide on the final content and wording of the directive.  

The proposed rules have recently received criticism from the Environmental Coalition on Standards over claims the rules had been “substantially watered down.”