On 22 March 2023, the European Commission published a proposal for a Directive on environmental claims. The proposal aims to tackle greenwashing by setting requirements on how companies can promote environmental claims to consumers and by introducing sanctions against greenwashing. Companies would have to substantiate their environmental claims with a comprehensive assessment. The proposal also introduces stricter rules for the approval of new eco-labels.

On 3 May 2023, the Council adopted its negotiating position on the proposed directive on environmental claims. The Council also proposed to extend the implementation period from 18 months to 24 months.

Next steps: Negotiations between the Council and the European Parliament will start as soon as the Parliament adopts its position.

On 1 June 2023, the ESAs published their progress reports on greenwashing in the financial sector. In these reports, the ESAs present a high-level common understanding of greenwashing that applies to market participants within their respective competences; financial markets, banking, insurance and insurance and pensions.