The New EU Law That’s Looking to Stamp out Greenwashing

April 11, 2023

April 11, 2023


Today's guest blog is authored by Tom Howarth of GreenBiz Group. The original post can be read here.


Consumers today face a barrage of eco-friendly messaging from the corporate world as it hopes to cash in on increasing concern for the environment. At the same time, an absence of common rules for companies making voluntary green claims has left the door open to greenwashing, making it increasingly difficult to gauge the fact from fiction when it comes to sustainable business practice. This is not just a problem for the eco-conscious shopper, who must now sift through reams of "sustainable" products to find one with bona fide green credentials — it is a problem for businesses, too. 


Companies making a genuine effort to reduce their environmental impacts, often at significant cost, are having to compete against others making the same claims but without putting in the work. This effectively negates the economic rewards for caring about the planet, particularly in industries with complex supply chains, where clearly communicating environmental impacts can be tricky. 

Conversely, businesses caught practicing greenwashing, or even those who are perceived to be, can expect drops in customer satisfaction and serious financial repercussions.


At the extreme end, the case of German car manufacturer Volkswagen springs to mind, after it saw profits tumble 20 percent following revelations in 2015 that the company had installed software to cheat U.S. emissions tests. Whilst sympathy for a company purposefully trying to dupe regulators should be limited, the case highlights the toxicity of greenwashing for all parties involved; businesses, consumers and, of course, the planet. 


The Green Claims Directive, proposed by the European Commission in late March, seeks to address this issue by establishing "common criteria against greenwashing and misleading environmental claims." The hope is that by homogenizing the standards for claims made by businesses across the trading bloc, consumers will have "more clarity, stronger reassurance that when something is sold as green, it actually is green, and better quality information to choose environment-friendly products and services." Businesses will also benefit, "as those that make a genuine effort to improve the environmental sustainability of their products will be more easily recognized and rewarded by consumers … rather than face unfair competition."


The need for the legislation is clear. An assessment of environmental claims carried out by the Commission in 2020 across a broad range of industries found that 53.3 percent "provided vague, misleading or unfounded information" about products’ environmental characteristics, while 40 percent had no supporting evidence at all.


What’s more, there are currently 230 sustainability labels and 100 green energy labels in use in EU markets, each with different criteria and levels of transparency. Even if some labeling schemes provide genuine sustainability credentials, it's unlikely the average person on the street would have any idea which ones they are.


Virginijus Sinkevičius, European commissioner for Environment, Oceans and Fisheries, put it well: "We want to help consumers become more confident about their choices and ensure that those companies that make genuine efforts to reduce their impacts on nature, resource use, climate emissions or pollution are rewarded."


How will the new rules work?


The objective of the new proposal is simple — prevent greenwashing by enforcing clear and harmonized rules and labels. Specifically, the measures will target explicit claims, examples of which might include: "T-shirt made of recycled plastic bottles," "CO2 compensated delivery," "packaging made of 30 percent recycled plastic" or "ocean friendly sunscreen."


Under the new rules, companies will need to have any such claims independently verified and proven with scientific evidence. Possible trade-offs will also need to be highlighted, to give a full and accurate picture of a product’s impacts.


Environmental labeling schemes, in the form of trust and quality marks that certify that a product or business meets the requirements set up by the scheme, are another target of the legislation. Such schemes can lack transparency and are not always credible; in response, the new proposal suggests banning the proliferation of new public labeling schemes unless they are developed at EU level, preventing individual Member States from developing their own. Private labeling schemes, on the other hand, can be approved at Member State level, but will need to demonstrate that they provide "added value" in terms of environmental ambition before going through the approval process. Labeling schemes from third countries (those that are not members of the EU, including the U.S.) will also need to be submitted for approval before products brandishing them are admitted into the EU market.


An assessment of environmental claims carried out by the European Commission in 2020 across a broad range of industries found that 53.3% 'provided vague, misleading or unfounded information' about products’ environmental characteristics ...


The penalties for non-compliance will not be cheap, either. Rogue traders caught making unfounded claims can expect fines of at least 4 percent of total annual revenue within any region in which they have been in breach of the rules — the same level as the penalties to be doled out under the EU’s recent law on deforestation-free products, set to be implemented next year.


Does the proposal go far enough?


Despite a warm reception from businesses and trade organizations, including the International Chamber of Commerce, the new proposal has drawn some criticism from environmental groups that claim months of lobbying by companies have left the rules "substantially watered down."


In particular, the new laws will not cover phrases such as "carbon neutrality," a favorite term used by companies looking to give their image a green makeover, according to the watchdog and think tank Carbon Market Watch. Others have argued that because the bill does not outline a single methodology to substantiate green claims, businesses will simply "cherry-pick" the ones that suit them best.


"Sadly, without harmonized methodologies at the EU level, the new Directive will provide little clarity to consumers and business, and will only complicate the job of market surveillance authorities," said Margaux Le Gallou, program manager for environmental information and assessment at the Environmental Coalition on Standards.


How successful the Green Claims Directive will be at stamping out greenwashing in the European Union market remains to be seen. Indeed, the bill is still subject to the approval of the European Parliament and Council before it becomes law, which will take at least a few months. However, if you consider this proposal in its broader context — as part of a package of recent legislation being pushed by the EU — then it’s clear that the world’s third largest economy is becoming an increasingly hostile environment for unsustainable businesses. Where the EU is succeeding is in making rules that must be followed by any company, operating anywhere in the world that wishes to sell to the half a billion or so customers who reside within its borders.


Disclaimer: Guest blogs represent the opinion of the writers and may not reflect the policy or position of the Northeast Recycling Council, Inc.

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New program prepares the next generation of recycling professionals

By Recycling Product News • October 14, 2026
The Recycled Materials Association (ReMA) and the Northeast Recycling Council (NERC) have launched a new pilot initiative to train the next generation of recycling professionals: the Sustainable Materials Careers Program (SMCP). Take a look inside the Sustainable Materials Careers Program Building on the success of NERC's Emerging Professionals Program, which offers new professionals exposure to sustainable materials management (SMM), mentorship, and career guidance, SMCP will focus on college students — with the potential to engage high school students in the future. The program will give students a deeper understanding of career opportunities in SMM and provide hands-on pathways from the classroom to the workplace. Through Career Exploration events and professional development training, students will gain industry exposure, build foundational knowledge, and chart a clear path toward careers in sustainable materials. Career Exploration events will be part of ReMA's Recycling Jobs Day initiative, a national program connecting students with careers in the recycled materials industry. Event activities will include tours of material recovery, recycling, and/or manufacturing facilities, as well as panels highlighting diverse career pathways in the sector. "Many students want to work in sustainability, but they rarely see the diverse career paths available across the materials lifecycle," said Megan Schulz-Fontes, executive director of NERC. "By combining hands-on facility tours with foundational training, this program opens doors across every corner of the industry — including state and municipal governance, equipment and technology manufacturers, recycling infrastructure, and corporate sustainability teams — ensuring the next generation is equipped to lead." Growth in sustainability has increased the number of professionals needed to run the industry The material economy accounts for over 40 percent of U.S. greenhouse gas emissions, according to the EPA. Recycling and composting in the United States prevent the release of roughly 186 million metric tons of carbon dioxide equivalent into the air each year — an impact equal to taking over 39 million gasoline-powered cars off the road annually. Compared to the processing and transportation needed for mining, drilling, harvesting, or other methods of extracting natural resources for manufacturing, the use of recycled materials typically produces fewer greenhouse gas emissions. Global demand for green jobs is growing at 8 percent per year. Yet, LinkedIn's Global Green Skills Report highlights a shortage of qualified talent, with many roles unfilled due to limited training and a lack of mixed skills, as noted by the Institute of Sustainability Studies. SMCP addresses these gaps by increasing awareness of sustainable materials careers and offering free training to participating students. In the 2026-2027 academic year, NERC plans to hold six Career Exploration events and provide enrollment in its Foundations of Sustainable Materials and Recycling course at no cost to students from participating Academic Partners. Current Academic Partners include MIT Department of Materials Science & Engineering, Rowan University Advanced Materials & Manufacturing Institute, University of Massachusetts Lowell, University of New Hampshire Sustainability Institute, University of Southern Maine, and Yale. Read on Recycling Product News.

Northeast Recycling Council and ReMA Launch Sustainable Materials Careers Program

By Waste Advantage • October 9, 2026
In partnership, Northeast Recycling Council (NERC) and Recycled Materials Association (ReMA), announce the launch of a new pilot initiative: the Sustainable Materials Careers Program (SMCP). Building on the success of NERC’s Emerging Professionals Program, which offers new professionals exposure to sustainable materials management (SMM), mentorship, and career guidance, SMCP will focus on college students – with the potential to engage high school students in the future. The program will give students a deeper understanding of career opportunities in SMM and provide hands-on pathways from the classroom to the workplace. Through Career Exploration events and professional development training, students will gain industry exposure, build foundational knowledge, and chart a clear path toward careers in sustainable materials. Career Exploration events will be part of ReMA’s Recycling Jobs Day initiative, a national program connecting students with careers in the recycled materials industry. Event activities will include tours of material recovery, recycling, and/or manufacturing facilities, as well as panels highlighting diverse career pathways in the sector. “Many students want to work in sustainability, but they rarely see the diverse career paths available across the materials lifecycle,” said Megan Schulz-Fontes, Executive Director of NERC. “By combining hands-on facility tours with foundational training, this program opens doors across every corner of the industry—including state and municipal governance, equipment and technology manufacturers, recycling infrastructure, and corporate sustainability teams—ensuring the next generation is equipped to lead.” The material economy accounts for over 40% of U.S. greenhouse gas emissions, according to the EPA. Recycling and composting in the United States prevent the release of roughly 186 million metric tons of carbon dioxide equivalent into the air each year—an impact equal to taking over 39 million gasoline-powered cars off the road annually. Compared to the processing and transportation needed for mining, drilling, harvesting, or other methods of extracting natural resources for manufacturing, the use of recycled materials typically produces fewer greenhouse gas emissions. Global demand for green jobs is growing at 8% per year. Yet, LinkedIn’s Global Green Skills Report highlights a shortage of qualified talent, with many roles unfilled due to limited training and a lack of mixed skills, as noted by the Institute of Sustainability Studies. SMCP addresses these gaps by increasing awareness of sustainable materials careers and offering free training to participating students. In the 2026-2027 academic year, NERC plans to hold six Career Exploration events and provide enrollment in its Foundations of Sustainable Materials and Recycling course at no cost to students from participating Academic Partners. Current Academic Partners include MIT Department of Materials Science & Engineering, Rowan University Advanced Materials & Manufacturing Institute, University of Massachusetts Lowell, University of New Hampshire Sustainability Institute, University of Southern Maine, and Yale Office of Sustainability. NERC invites forward-thinking businesses and organizations to support and expand the Northeast Sustainable Materials Careers Program. By becoming a Program Partner, sponsors directly enable more students to access free training and hands-on industry exposure—building a strong, qualified pipeline for the future circular economy workforce. Read on Waste Advantage.

Ramping up reuse of construction materials

By Brian Clark Howard | Resource Recycling • October 8, 2026
The construction and demolition industries send a massive volume of materials to landfills, but reuse can make a big difference, panelists said at the Northeast Recycling Council’s (NERC) Annual Rethink Resource Use Conference in Plainsboro, New Jersey on Wednesday. In New York City, 60% of the total waste stream is construction and demolition (C&D) waste, said Kelly Tigera, the founder and CEO of Orbit , an online marketplace for reclaimed construction materials launched in 2005 in the Big Apple. In the US overall, C&D waste has been estimated at 23% of the total waste stream . According to the EPA , 600 million tons of C&D debris were generated in the United States in 2018, which was more than twice the amount of generated municipal solid waste. Just over 455 million tons of C&D debris were directed to next use (primarily as aggregate); the rest went to landfills. Construction is “one of the most wasteful industries,” said panelist Andrew Sigal, a market manager at the U.S. Green Building Council (USGBC). “Within that 145 million tons lies a significant opportunity to really decrease waste and direct more material towards its highest and best use.” At New York construction sites, 10% to 15% of all new materials are thrown away unused, said Tigera. So reuse has the potential to draw from brand new stock as well as used materials. And reuse can help address supply chain and affordability concerns; construction material costs have increased 43% since February 2020, said Tigera. “In terms of value for users, we can provide access to free and low-cost materials,” said Tigera. “We can provide tax write-offs for donated materials, and we also help sellers save on hauling and dumping costs.” From panels to seats Tigera gave a few examples of recent salvage efforts that have leveraged her marketplace. Deconstruction contractor CO Adaptive recovered wood panels from an auditorium at Hunter Brookdale School of Nursing. The panels ended up in four different sites around Brooklyn. Auditorium seats were donated to SoHo Playhouse. In another project, Orbit worked with the city’s Port Authority to salvage historic bricks from retaining walls in Lincoln Tunnel. Orbit is also working with the agency to design a reuse plan for a bus terminal that is scheduled to come down in a few years. New York City also has a new initiative called the Circular Construction Hub, which is going to be a reuse center for contractors where they can drop off material. Orbit is the online marketplace for that project, said Tigera. She added that some of the most popular materials on her platform have been doors, shelving, cabinets and acoustic panels. In addition to traditional contractors, buyers include the film industry (for building sets) and the events industry. A lot of reuse work is already happening around the city and country, “we’re just helping it scale,” said Tigera. Yarden Jarari, an architect and sustainability adviser at Arcadis , a design and engineering firm, said her recent research suggests the value of pilot projects when it comes to reuse in the C&D space. “You can have pilot projects that are not going to totally overwhelm someone trying something new,” she said. “And also iterate over time with a lot of long-term relationships where you have repeat partners, repeat teams, and have that opportunity to build and bite off more and more rather than trying to do everything at once.” Jarari added that she would like to see “ways that we can start to measure outbound materials that are coming out of a space the same way that we’re thinking about what’s going into a space.” Having that data could make it easier to drive reuse, she said. Sigal said certification systems, like those offered from the USGBC, can incentivize reuse. The organization’s True certification for zero waste (with Green Business Certification Inc.) has a particular focus on reuse, he noted. As a case study, Sigal mentioned 270 Park Ave. in midtown Manhattan. The 60-story headquarters of JPMorganChase opened in October 2025 as a LEED platinum project. The previous building at the site, the former headquarters for Union Carbide, was deconstructed, with 97% of its materials reused or recycled. Evolving mindset The panelists agreed that the mindset in the C&D industry is starting to tilt toward reuse, spurred by environmental and cost concerns. “Our thesis has been if we can provide demand and show that there’s demand for these materials, everything else will wind up behind it,” said Tigera. She added that government procurement can help drive more reuse in the industry. Tigera also pointed out that salvaged materials are often routed through resellers, who clean and organize them, making purchasing of used goods as easy as buying new. Sigal added that he would like to see more policy support for C&D reuse. In New York, several bills have been introduced that would bolster reporting and encourage reuse. “Building reuse saves carbon, but also saves resources from having to be extracted, harvested, manufactured and installed,” said Sigal. “Not to mention the end-of-life considerations there.” Read on Resource Recycling.