The European Union¡¯s proposed Green Claims Directive, intended to combat greenwashing,?is currently under question after the European Commission this week moved to stall negotiations.

First proposed in May 2023, draft law aims to protect consumers from misleading environmental marketing claims by requiring companies to provide supporting evidence to accredited verifiers for assessment and approval in advance. It also aims to regulate the use of environmental labelling schemes in Europe and was due to be finalised in a meeting on Monday 23 June.

However, this meeting was abruptly cancelled after the Commission pushed back against an amendment it said ¡°goes totally against the simplification agenda¡± by extending the scope of the law to 96 per cent of companies ¨C a move the Commission said would include and unfairly burden 30 million ¡®micro enterprises¡¯.

In a press briefing, European Commission spokesperson, Maciej Berestecki, said the Commission would withdraw the Green Claims legislative proposal if the amendment is not changed or removed.

¡°One of the priorities of this Commission is to reduce administrative burden for small companies and, in particular, for micro enterprises. It is an essential part of our simplification agenda,¡± she said, adding that ¡°the Commission remains fully committed to fighting greenwashing and ensuring consumers are correctly informed.¡±

Addressing concerns as to when the proposal will be reconsidered, the spokesperson said it was up to the co-legislators, the European Parliament and European Council, to set the agenda. ¡°We are not setting the next steps in the procedure of the co-decision. It¡¯s not up to us.¡±

Berestecki added, however, that the Commission has made its position ¡°very, very, clear¡± to both co-legislators.

Criticised as yet another rollback of the EU¡¯s green agenda, the move follows the recent decision to delay implementation of the Corporate Sustainability Reporting Directive and reduce its scope as part of wider simplification efforts to boost the EU¡¯s competitiveness.

Representatives of the European Parliament have since hit back, stating the Commission has no veto power during the legislative process, especially at this late stage, said Parliament co-rapporteur?Sandro Gozi.

¡°The Commission is bound to a duty of impartiality and independence and cannot take instruction from anybody ¨C be it a government, a firm or political group and we have the feeling the Commission was taking instruction from three political groups,¡± he said during a dedicated press conference.

Gozi added that the motivation behind the Commission¡¯s move was ¡°surprising¡± because the co-legislators had already agreed to ?exempt micro enterprises from the directive, suggesting the Commission had been unduly influenced by right-wing political groups the European People's Party (EPP), the European Conservatives and Reformists (ECR) and the Patriots for Europe to withdraw its support of the directive.

¡°We are ready to resume negotiations at any time¡­ and if there is a need to discuss specific issues the best way is to hold the meeting, go to the meeting and discuss in the meeting and not to cancel the meeting,¡± Gozi said.