Green Claims Directive in Limbo as EU Commission Denies Withdrawal

Key Impact Points:

• The European Commission now says President von der Leyen still backs the Green Claims Directive—days after signaling its withdrawal.
• Confusion over exempting small businesses derailed final negotiations, prompting Italy to pull its support and collapse the legislative majority.
• EU diplomats and lawmakers accuse von der Leyen of caving to political pressure from her center-right party.

Von der Leyen’s Support for Anti-Greenwashing Law Reaffirmed

European Commission President Ursula von der Leyen never intended to kill the proposed Green Claims Directive, a Commission official said Tuesday, reversing previous comments from the EU executive just days earlier.

“The president’s support for the Green Claims has not changed,” the official told POLITICO, speaking anonymously due to political sensitivities.

The statement contradicted a Friday announcement from a Commission spokesperson, who said the executive planned to withdraw the law—sparking backlash across Brussels.

Political Firestorm Follows Mixed Messaging

The Green Claims Directive is designed to prevent companies from making false or misleading sustainability claims. Friday’s announcement triggered a wave of criticism from centrists and left-leaning lawmakers, who accused von der Leyen’s team of derailing green policy efforts for political gain.

“At no point has there been a backtrack on commitment to the Green Claims,” the Commission official insisted.

The issue at the heart of the controversy: whether micro-enterprises—businesses with fewer than 10 employees—should be exempt. The Commission had proposed excluding them, while several EU countries wanted them included.

“The Commission made the point that that would go beyond the scope of the original proposal and change the nature of it,” the official explained.

Talks Collapse as Italy Withdraws Support

Uncertainty from the Commission forced the Polish Council presidency to pause negotiations, seeking clarity from Brussels. Italy then formally withdrew its support on Monday, eliminating the majority backing the proposal and halting progress.

Despite this, the Commission official placed responsibility for the next steps on EU governments:

“It’s up to the Council to state what its intentions are, and then we see from there. But that’s because of the Italians withdrawing; the Commission has not withdrawn.”

EU ambassadors will reconvene Wednesday to assess the future of the directive.

“Since a lot has happened in recent days, it’s important to take time to hear from [EU countries] and carefully reflect on the way forward together,” a Polish presidency spokesperson told POLITICO.

Related Article: EU Commission Withdraws Greenwashing Law Proposal, Raising Concerns Over Green Deal Commitment