20. February, 2024

Parliamentary committee adopts position on the greenwashing directive, ecolabel GOs to come under increasing scrutiny

The Internal Market and Environment committees adopted its position on the Green Claims Directive and amended the text on 14 February 2024. The Directive establishes criteria for environmental labels and voluntary environmental claims made in the EU by traders and for products made available on the internal EU/EEA market in business-to-consumer commercial practices.

GO – substantiated renewable claims made by electricity suppliers and environmental information reported by companies under the European Sustainability Reporting Standards are not covered; however, ecolabel GOs, apart from Bra Miljöval and TÜV Rheinland Standard, will need to go through additional steps.

In case of infringement, companies will face penalties, including partial confiscation of revenues and a fine of 4% of their annual turnover. Any individuals or organisations, including environmental NGOs, can complain to the competent authorities if they have good reasons to believe that a company is not following the rules of the Directive. This exposes ecolabel GOs users to risk and may push them towards ISO14024 – certified GO labels to avoid it.

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