On March 22, 2024, the Council of the European Union published a draft directive on “green claims,” aimed at standardizing and regulating practices related to environmental marketing. The directive seeks to eliminate misleading claims and ensure that statements about the environmental benefits of products and services are backed by credible evidence.

What Are Green Claims?

In the context of the directive, “green claims” refer to statements about the environmental attributes of products, services, or corporate activities that suggest a positive impact on the environment. Examples include terms such as “eco-friendly,” “biodegradable,” “carbon neutral,” or “made from recycled materials.” The directive aims to protect consumers from misinformation and promote fair competition in the marketplace.

Key Objectives of the Directive

  • Consumer Protection: The directive is designed to shield consumers from misleading environmental claims by ensuring access to reliable information that supports informed purchasing decisions.
  • Fair Competition: Harmonizing rules around green claims aims to create a level playing field, eliminating unfair advantages for companies that engage in deceptive marketing practices.

Who Is Covered by the Directive?

The draft applies to all businesses that make environmental claims about their products or use eco-labeling systems. It also covers non-EU companies that target such claims at EU consumers, with the exception of:

  • Providers of financial services, such as banks, insurance companies, and investment funds.
  • Micro-enterprises, defined as companies with fewer than 10 employees and annual turnover below €2 million.

What Does the Directive Introduce?

The proposal sets minimum requirements for environmental claims, including justification, publication, and verification. Key provisions include:

  • Criteria that companies must meet to substantiate the accuracy of their environmental claims and eco-labels.
  • Rules for displaying environmental claims on products, such as via hyperlinks or QR codes.
  • A requirement that claims be verified by an independent, accredited verifier.
  • Standards for eco-labeling systems to ensure their reliability, transparency, and credibility.

Implementation in Poland

Polish law does not currently include a dedicated statute on greenwashing. However, false environmental claims are subject to existing legislation, including the Act on Combating Unfair Competition and the Act on Counteracting Unfair Market Practices.

Under the directive, EU member states will be required to designate a supervisory authority responsible for enforcing the rules. This authority will also be empowered to impose administrative penalties. The draft allows for fines of up to 4% of annual turnover.

Current Status of the Directive

The Council of the EU is currently in consultation with the European Parliament regarding the final wording of the directive. Once adopted, member states will have 18 months to implement the provisions, which will apply 24 months after the directive enters into force.

In line with EU principles, directives do not have direct legal effect on individuals but require member states to transpose them into national law. This means that although the “green claims” directive is already sparking debate, its actual implementation at the national level may take several more years.

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