Eco Friendly Labels in EU must be Verified

Proposed rules require companies to provide scientific evidence to back up eco-friendly labels

European officials rolled out proposals aimed at forcing companies to back up environmental and sustainability claims they make over consumer products with scientific evidence, part of a broad regulatory push that—like similar efforts in technology—could set precedents for corporate rules elsewhere.

The European Commission, the bloc’s executive body, on Wednesday (22.03.2023) proposed legislation targeting what critics have broadly defined as “greenwashing.” The rules target eco-friendly labelling, such as assertions that a product was made from recycled material or with neutral carbon emissions.

The commission said a range of environmental claims would need to be verified independently and backed up with scientific evidence. The proposals are part of a wider EU effort officials say is aimed at making it easier for consumers to choose environmentally sustainable products.

Consumer-advocacy groups said the legislation should help tackle a problem they see as pervasive at companies amid pressure from governments, investors and consumers for more environmentally sustainable products. Environmental claims are often vague or misleading, officials involved in drafting the rules say, and consumers have few tools available to them to determine whether a claim is justified.

The legislation, if passed, could have effects beyond Europe. Regulations adopted in the EU, a market of roughly 450 million people, often result in broader global changes because global companies prefer to avoid working under multiple sets of rules.

The labeling proposals are part of the bloc’s broader efforts to fight climate change, which include a bevy of legislation targeting vehicle emissions, renewable energy and other initiatives.

The proposed laws must be negotiated and approved by member countries and the European Parliament before they can become law, and could change during that process.

European consumer advocacy group BEUC said recently that environmental labeling rules should make a big contribution to the bloc’s green transition.

“We need to clean up the problem of greenwashing at the source,” said Monique Goyens, the group’s director general. She said setting up clear rules for environmental labeling should help consumers make better decisions, while rewarding companies that are working to make their products and services more sustainable.