Green Labeling System: A Slow and Complex Journey for the EU, With Potential Simplifications on the Horizon

EU grapples with combating greenwashing

The EU’s legislative process for the green labeling system has been a slow and complex journey, with the EU Commission proposing a system that was supplemented by the EU Parliament and agreed upon by the 27 EU states in the EU Council. The goal of this system is to ensure that companies can scientifically prove their green attributes according to uniform EU standards, making vague claims like “protects our nature” no longer possible.

However, concerns have been raised by some EU states, such as Austria, about the burden this system may place on smaller companies. In response to these concerns, a simplified procedure has been proposed that allows companies to reference existing environmental labels, such as the Ecolabel in Austria. This will provide consumers with confidence in the environmental claims of products.

Negotiations are still ongoing within the EU institutions, with details expected to be finalized in the autumn. Once a compromise is reached, each EU state will need to translate the directive into their own laws. However, there are still uncertainties and challenges around holding companies accountable for misleading claims and ensuring accurate carbon footprint calculations.

Despite these challenges and uncertainties, it is hoped that this legislative process will provide consumers with more information and transparency about environmentally friendly products. The process is ongoing and will likely continue to evolve in the coming months and years as new technologies emerge and regulations adapt to changing circumstances.

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