The Brief
Shifts In Green Integrity Climate Agreements & Political Will
From policy crackdowns to corporate pivots, 2025 is testing the true depth of environmental commitments.
Globally, a convergence is happening. Climate urgency is increasing; however, the market remains sceptical. America under President Trump is pulling back on its drive for a positive impact on climate, and the EU has reservations about its own Green Claims Directive.
Goodbye to Greenwashing?
In March 2023, the EU’s Green Claims Directive was put in place to remove “greenwashing” from marketing so that companies couldn’t claim green credentials when they were not helping with climate change. The plan was that companies could no longer make unsubstantiated environmental claims. However, the EU directive faced major criticism as it would burden micro businesses with red tape and excess costs. Micro businesses make up 96% of businesses in the EU and are those with less than 10 employees and under two million euros in revenue.
At one point, a Commission spokesperson said that the EU would withdraw the Green Claims proposal. Which statement was reversed by another statement, which claimed that there had been no backtracking on the commitment to Green Claims and that President Ursula von der Leyen continued to back the proposal. As a result, the Polish council that is currently leading negotiations on the directive suspended them, and it was rumoured that the EU was even considering removing the directive. This confusion has not been helped by the fact that Italy has withdrawn its support for the directive. Then the EU announced its intention to withdraw its proposed directive on 20th June 2025. However, it has still not officially confirmed its reasons for this withdrawal, and until it does so, the proposal is in a sort of limbo.
While no longer part of the EU, the UK’s Competition and Markets Authority (CMA) implemented the Green Claims Code in 2021, with a similar remit to ensure honest green claims in company communications. Then, in the Digital Markets, Competition and Consumers Act 2024, the CMA was given powers to fine companies 10% of their global turnover.
Climate Truths
The latest UN Climate Progress Report reveals that emissions continue to rise. Its report in Goal 13: Climate Action acknowledges that if Nationally Determined Contributions (NDCs) are not seriously addressed, now and in COP30, and thereafter, coral reefs will disappear by 2050, cities on coasts will be compromised, and annual adaptation costs could rise to US$565 billion. An NDC is a plan that represents the efforts of a country to reduce greenhouse gas emissions and adapt to the climate change issue with specific timescales, as defined in the Paris Agreement. All countries that have signed up to the Paris Agreement have been given a deadline of September 2025 to submit their plans for reducing pollution over the next decade.
Unfortunately, the USA’s withdrawal from the Paris Agreement and the firing of the negotiators in its State Department’s Office of Global Change signal that the USA will not be attending the COP30 and will no longer be actively taking part in efforts to alleviate the massive global impact of climate change, despite being a major polluter with 4.4 billion tons of annual emissions. There is concern that other wealthy countries will see the USA’s stance as an excuse to reduce their efforts on climate change.
Ultimately, that leaves China with its massive implementation of solar and wind farms, with the ability to lead the agenda on plans for addressing climate change until at least 2035. Reality demands that countries make more than surface-level commitments. They need to address the fact that climate change is happening and implement ambitious plans that dovetail with a worldwide attack on the impacts of climate change.
Big Tech Enters the Restoration Game
In 2023, Amazon achieved its mission of only using renewable energy in all its operations, seven years ahead of schedule. Its mission took many people and billions to achieve. However, rather than sit on what it had achieved, Amazon set up a website, called the Amazon Sustainability Exchange, with all it had learnt from its mission to enable its suppliers to also get to net-zero without having to re-learn Amazon’s hard lessons. Global Optimism and Amazon co-founded the Climate Pledge Fund, which now has 560 companies across 46 countries pledged to be net-zero carbon by 2040. The fund invests in companies developing technologies and services that can help companies reach the net-zero goal and improve their sustainability.
The Climate Pledge is only one element of Amazon’s plan for sustainability. It also backs regenerative agriculture and nature-based carbon removal. It’s clear that even with aggressive decarbonisation, companies in certain industries will not achieve net-zero by 2050. Therefore, their emissions would need to be offset with carbon neutralisation. In 2021, Amazon formed the Lowering Emissions by Accelerating Forest finance (LEAF) collaboration, where countries would be given funds to halt deforestation by 2030 and invest in improving forests, wetlands and other natural carbon sinks.
Leaf is a public-private fund, initially formed by the governments of Norway, the UK, the USA and the Republic of Korea. However, the USA has withdrawn from LEAF and taken its funding, so that a reduction in funds will likely impact LEAF. Although Amazon seems committed to its sustainability and regeneration ventures, the exit of the USA will have an impact on the LEAF collaboration.
Political Will is Vital
President Trump’s withdrawal of the USA’s funding and participation in many of these agreements will have a major impact on all programmes and the countries and people that they support in the path to net-zero carbon. Equally, the change in stance by the European Union seems to signal a change in its emphasis. Certainly, there has been much rhetoric on climate change, but is too little being done too late? And will the lack of USA involvement mean that many countries see targets as just pipe dreams when a major polluter is not committed to net zero?
Hopefully, COP30 will alleviate our concerns.
