Overview

• The Commission announced on June 20, 2025 that it will withdraw the proposed Green Claims Directive, ending plans for independent verification and penalties to curb corporate greenwashing.
• The European People’s Party secured the withdrawal by arguing that the directive would impose excessive compliance burdens on the EU’s 30 million micro-enterprises.
• President Ursula von der Leyen linked the decision to a broader agenda of cutting red tape to boost competitiveness following rightward gains in the European Parliament.
• Renew group lawmaker Sandro Gozi and advocacy groups warned that scrapping the directive undermines consumer protections and weakens the bloc’s fight against misleading environmental claims.
• The withdrawal coincides with delays to a global supply chain ethics law until 2028 and reports that the Commission is considering scrapping a separate forest-monitoring regulation.