EU Reaffirms Commitment to ESG and Carbon Neutral Strategy Despite Green Claims Directive Confusion

EU Reaffirms Commitment to ESG and Carbon Neutral Strategy Despite Green Claims Directive Confusion

by  
AnhNguyen  
- July 3, 2025

The European Commission has clarified that the Green Claims Directive—a pivotal anti-greenwashing regulation—has not been withdrawn, reaffirming the EU’s commitment to its ESG and carbon neutral strategy goals. 

The directive, introduced under the European Green Deal in March 2023, aims to ensure that all environmental claims made by companies are scientifically substantiated, independently verified, and free from misleading eco-labels. This is in response to data showing that over 50% of current green claims in the EU are vague or deceptive, with 40% lacking any supporting evidence. 

Last week, confusion erupted after a Commission spokesperson suggested the directive might be pulled, leading to the cancellation of a crucial trilogue negotiation. However, the Commission later clarified that the proposal would only be withdrawn if microenterprises—which make up 96% of EU businesses—remained within its scope due to concerns over compliance burdens. 

Key political figures, including Rapporteur Sandro Gozi and MEPs Anna Cavazzini and Antonio Decaro, criticized the mixed messaging and warned of its potential to damage legislative trust. While the European Parliament had already agreed to exempt microenterprises, the debate remains divisive. Italy’s withdrawal of support has further stalled progress, depriving the Council of the qualified majority needed to advance the file. 

Despite the political turbulence, the Green Claims Directive remains a cornerstone of the EU’s ESG regulation agenda, reinforcing efforts to build a transparent, trustworthy framework for corporate sustainability claims. The Polish Council presidency is now awaiting further clarity before trilogue talks resume. 

As ESG regulations tighten, this episode underscores the EU’s resolve to align its internal market with robust carbon neutral strategies, ensuring credible environmental accountability across the bloc. 

 

Source: 

https://esgnews.com/eu-commission-confirms-green-claims-directive-not-withdrawn/ 

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