Green Claims Directive: a double-edged sword for the VCM

The Belgian presidency of the Council of the EU has finalised its negotiating position (general approach), and subsequently voted in favour of the text at the environment council meeting on 17 June 2024. This will serve as basis for interinstitutional negotiations (trilogues) with the European Parliament in autumn, projecting the adoption timeline for late 2024 or early 2025, pending the trilogue outcome.

The positions on the text of the two institutions vary when it comes to implementation timelines and the scope of the companies covered. 

Depending on the final position adopted by the Council and the Parliament during trilogues, companies that make environmental claims could turn to carbon credits to back up their claims from 2027 onwards, depending on the legislation’s implementation timeline.

Depending on the final position adopted by the Council and the Parliament during trilogues, companies that make environmental claims could turn to carbon credits to back up their claims from 2027 onwards, depending on the legislation’s implementation timeline.