The new rules aim to put a stop to greenwashing and increase opportunities for the circular economy.

Autor: Maria-Antoanela Ioniță – Sustainability Communications Specialist

• Following an increased focus on increasing the quality of sustainability communications and avoiding greenwashing via regulation, The European Parliament backed a draft legislation on improved product labelling and durability.

• With an overwhelming majority of 544 votes to 18 no’s and 17 abstentions, the plenary approved the proposal for a new directive aimed to aid consumers make more informed choices and support the green transition.

• The new rules propose the banning of unsubstantiated environmental claims, claims that are based solely on carbon offsetting schemes, and planned obsolescence via product design.

There is growing noise in the market for environmental claims, as companies fight for customer’s attention and loyalty by showcasing eco-conscious appealing features of their products and services. Yet the same effort aimed to differentiate more responsible products is confusing consumers, as terms and labels, lacking external coordination, get mixed up and used erroneously or without necessary explanations. As a consequence, consumer trust in environmental claims is at its lowest.

Following the proposal of a Green Claims Directive by the European Commission in March 2023, the Parliament has recently approved a draft legislation that would pave the way to a new directive.

Two key dimensions stand out: the banning of misleading ads and generic environmental claims, and the fight against early obsolescence.

Putting a stop to misleading ads and unsubstantiated environmental claims

The approved negotiating mandate will see the banning of general environmental claims such as “natural”, “environmentally friendly”, “biodegradable”, “eco”, and even “climate neutral” if these are not substantiated – accompanied by detailed evidence.

Other misleading practices under focus include claims made for the whole product, when in fact it applies to only a part of it, as well as claims that are based solely on carbon offsetting schemes, without any direct reduction in the amount of company-generated CO2 emissions.

To further minimize the amount of information provided on packaging MEPs aim to limit the use of sustainability labels to those based on official certification schemes or established by public authorities.

Helping products last longer in the spirit of the circular economy

Another challenge with current products that favours the excessive consumption of resources and goods, as well as resulting waste, is planned early obsolescence. Under the new legislation, the Parliament wants to ban the introduction of design features that would limit the life of the product or lead to premature malfunctioning.

In addition, it aims to ban producers from limiting a product’s functionality when it is used with consumables, spare parts or accessories made by other companies. Shoppers should be informed of any repair restrictions before making a purchase. MEPs also propose the introduction of a new guarantee label communicating not only the length of the legally required guarantee but also the length of any potential guarantee extensions offered by producers. Companies should therefore be more motivated to focus on prioritizing durability.

Overall, these measures would open even more opportunities for consumers and companies to participate in the circular economy, via reusing, repairing, and refurbishing products.

Negotiations between the  Parliament and EU member states on the final content and wording of the directive are expected to start soon after the announcement. The proposed directive is part of the first circular economy packaging.