Canada’s anti-greenwashing rules are good business. Critics exaggerate the dangers

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On Thursday the Governor-General gave royal assent to Bill C-59, which introduces new anti-greenwashing rules in the Competition Act

Julien Beaulieu is a law lecturer at the University of Sherbrooke and a researcher with the Quebec Environmental Law Center.

Empty net-zero pledges, dubious eco-labels and vague green claims may now be a thing of the past in Canada – at least in theory.

Opponents are failing to recognize a fundamental fact: Canada’s green markets are broken and urgently needed fixing. According to a 2023 Deloitte survey, 57 per cent of Canadian consumers no longer trust firms’ environmental claims. Moreover, studies have found that up to 50 per cent of green claims have no supporting evidence and weak or non-existent verification. In short, greenwashing is rampant.

Here’s what critics of the bill take issue with: Under the new rules, organizations failing to substantiate their environmental benefits claims with “adequate and proper” evidence will be exposed to severe penalties. Importantly, green claims about businesses and business activities must be substantiated according to “internationally recognized standards,” a term not defined in the Competition Act.

 

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