An overview of the EU’s proposed law to increase transparency in environmental claims, its challenges, and implications for industry
The EU’s proposed Green Claims Directive aims to require companies making environmental claims—such as “eco” or “green”—to provide scientific evidence and obtain third-party verification. This initiative is rooted in the European Green Deal and the Circular Economy Action Plan and is intended to eliminate “greenwashing,” or misleading environmental claims.
Key elements of the proposal include:
- Clear standards for substantiating environmental claims
- Mandatory third-party verification
- Increased transparency in eco-labeling
These measures are intended to help consumers make more informed and trustworthy choices.
Impacts anticipated for the HVAC and heat pump industries include:
- Terms like “eco” or “carbon neutral” will be prohibited unless supported by evidence
- Environmental performance claims will require Life Cycle Assessments (LCA)
- Increased costs and time burdens due to third-party certification
- Concerns about excessive burdens and delays for SMEs (small and medium-sized enterprises)
However, as of June 2025, political disputes and administrative complexities have stalled progress on the directive. The European Commission has even signaled a possible withdrawal. With some member states retracting their support and strong opposition from companies and industry groups, it is highly likely that the directive will not be adopted in its current form.
Instead, the Directive on Empowering Consumers for the Green Transition, adopted in 2024, is expected to impose some regulations on environmental claims starting in 2026. There is also speculation that the Green Claims Directive may be revived in the future if administrative procedures are simplified and greater support for SMEs is included.
Key Terms
- Greenwashing: Marketing or labeling that falsely presents a product or company as environmentally friendly.
- Life Cycle Assessment (LCA): A scientific method to evaluate the environmental impact of a product throughout its entire life cycle, from production to disposal.
- Third-Party Certification: A system in which an independent organization validates and verifies the accuracy of a company’s claims or product performance.
