Following our earlier newsflash on the European Commission indicating that it might withdraw the Green Claims Directive, recent developments show that the proposal is still formally in place. Although the final round of negotiations has been cancelled and political uncertainty persists, the European Commission has reiterated its commitment to the EU's sustainability and consumer protection agenda.
Confusion over withdrawing the Green Claims Directive
The Green Claims Directive proposal aims to combat greenwashing by requiring companies to substantiate, communicate and verify green claims (please be referred to our earlier publication on this).
On 20 June 2025, the European Commission announced its intention to withdraw the proposal for the Green Claims Directive. Although the final negotiations on 23 June 2025 were cancelled, the European Commission did not formally withdraw the proposal, leaving its legal status unresolved.
Confusion over the withdrawal of the proposal arose after lawmakers in the European Parliament wrote a letter citing concerns about the compliance burden on micro-enterprises. The final round of negotiations between the EU institutions was cancelled after the European Commission appeared to confirm the withdrawal of the proposal in a public statement. However, the European Commission has now clarified that withdrawal would only be considered if micro-enterprises remained within the scope of the Green Claims Directive proposal, which the European Parliament has already agreed to exempt.
Despite the setback, the European Commission has reaffirmed its commitment to the Green Claims Directive as part of the EU's broader plan to regulate sustainability claims and consumer protection.
What to expect next?
While the proposal remains formally on the table, the next steps still remain uncertain. As of 1 July 2025, Denmark holds the rotating Presidency of the Council and will be responsible for determining the way forward in interinstitutional negotiations. Following the withdrawal of Italy's support for the Directive a new negotiation mandate for the Council will be required. Additionally, the Danish Presidency will be responsible for ongoing negotiations on the sustainability support omnibus and the new EU 2035 and 2040 climate targets. The European Parliament has reaffirmed its willingness to resume the negotiations on the final text of the Directive. The timing and direction of further discussions will depend on the Council's ability to re-establish a common position.
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