Greenwashing, Eco-label Confusion, and the Postponement of the EU Green Claims Directive

Abstract

Climate change mitigation has placed increasing pressure on businesses to adopt sustainable practices, yet the absence of clear rules has led to widespread greenwashing, i.e., misleading claims about environmental benefits. This paper examines the evolution of EU policy responses, with particular focus on the proposed Green Claims Directive, designed to regulate and harmonise environmental claims across Member States. The analysis reviews the historical context of greenwashing, notable corporate scandals, and the rise of both mandatory and voluntary environmental labels such as the EU Energy Label, EU Ecolabel, and EMAS, which, while useful, contribute to consumer confusion due to their variety and inconsistent standards. The Directive aims to strengthen consumer trust by requiring third-party verification and transparent life cycle evidence for claims. However, its implementation faces obstacles, including political negotiations, industry resistance over costs, and concerns for micro-enterprises. Despite delays, the Directive is integral to the European Green Deal, as credible sustainability communication is essential for empowering consumers, ensuring market fairness, and accelerating the transition to a climate-neutral economy.