The draft legal proposal by the European Commission aims to clamp down on companies promoting their products as "climate neutral" or "containing recycled materials" if such labels are not substantiated.
"By fighting greenwashing, the proposal will ensure a level playing field for businesses when marketing their greenness," said the draft, which could still change before it is published. Under the proposal, companies that claim their product has a positive environmental impact must also disclose if this causes an negative impact in another area.
EU countries would need to establish a system to verify companies' claims, and impose penalties for non-compliance.
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