European Commission Withdraws Green Claims Directive — ICC Welcomes Opportunity for Constructive Recalibration

After months of uncertainty, the European Commission has formally withdrawn the Green Claims Directive. ICC invites members to shape the next phase of environmental marketing policy.

Brussels, June 2025 – In a significant development for sustainability regulation and business communication, the European Commission has announced the withdrawal of its proposal for a Green Claims Directive. The decision, shared during the Commission’s midday press briefing, comes amid growing concern over the administrative burden the legislation would have imposed—particularly on Europe’s 30 million micro-enterprises.

The Directive, originally introduced in 2023, aimed to tackle greenwashing by requiring businesses to substantiate environmental claims—such as “climate neutral” or “100% recycled”—through detailed criteria and mandatory third-party verification. While widely supported in principle, the approach raised major concerns across the business community for its potential to hinder innovation, create disproportionate compliance costs, and undermine existing good practices.

A milestone for business engagement

ICC has consistently supported the goal of credible, science-based sustainability communication, while also advocating for a more balanced, proportionate approach. As ICC noted in its response to the proposal, mandatory ex-ante verification risked penalising responsible companies and disincentivising voluntary leadership, particularly among SMEs.

Thanks to continued feedback and coordinated outreach from ICC members across Europe, these concerns were heard. Today’s withdrawal marks a milestone in collaborative advocacy—and opens the door for a more workable path forward.

What comes next?

While the Commission has withdrawn the Green Claims Directive, existing EU consumer protection legislation remains in place:

· The Unfair Commercial Practices Directive (UCPD) already prohibits misleading environmental claims and will remain a key enforcement tool.

· The Empowering Consumers for the Green Transition Directive, adopted earlier this year, will also enter into force in 2026 with new requirements around environmental marketing.

These frameworks continue to provide a baseline for action against greenwashing, and ICC will work to support their consistent and practical implementation.

More importantly, this moment provides an opportunity to co-design better solutions. As the Commission considers future steps, ICC encourages a renewed focus on:

• Supporting self-regulatory mechanisms, such as the ICC Marketing Code and Environmental Claims Checklist

• Promoting clear, scalable guidance that builds trust without excessive red tape

• Ensuring that frameworks are workable for all business sizes, especially SMEs

ICC’s call to members

This is not just a regulatory win—it’s a call to action. ICC is inviting members to help shape the next phase of policy by sharing real-world examples, common challenges, and practical alternatives. Constructive engagement now can ensure the next iteration of EU policy supports credible sustainability claims—while enabling business innovation and competitiveness.

Once again, ICC thanks its network for the active engagement that helped deliver this outcome. The work ahead is equally important—and we look forward to continuing the conversation with you.

📄 Read ICC’s response to the Green Claims Directive