European Commission proposes rules to protect consumers from greenwashing

The European Union's executive arm proposed rules on Wednesday to protect consumers from businesses selling goods labelled as green which actually aren't.

The European Commission said greenwashing was a notable problem, with 53 per cent of green claims on products or services making vague, misleading or unfounded information.

About 230 sustainability labels are in use across the 27-nation EU, with vastly different levels of transparency, according to the commission.

With its green claims directive, the commission wants to set common criteria that would bring more clarity. The European Parliament and EU member countries need to approve the initiative for it to take effect.

Under the proposal, companies that claim the packaging for their products is made of 30 per cent recycled plastic would have to prove it with scientific evidence.

EU countries would be in charge of setting up verification processes overseen by independent bodies.

Businesses based outside the EU making environmen