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Green Claims Directive: a catalyst for transparency in climate investment

The Green Claims Directive must balance ensuring transparency with enabling businesses to make credible climate commitments. A well-designed regulation must support voluntary carbon markets and unlock private investment for decarbonisation and nature protection, accelerating the transition to net-zero.

As the EU moves forward with the Green Claims Directive (GCD), businesses across Europe and globally are paying close attention. The directive’s ambition is clear: protect consumers from misleading claims and ensure sustainability efforts are backed by credible evidence.

As a coalition of aligned businesses working to support climate impact, BACA supports the GCD’s objectives. Well designed regulation can strengthen trust in corporate climate action while empowering businesses to contribute effectively to net zero transition. Yet, in its current form, the directive raises concerns among companies genuinely committed to advancing climate action—especially those using voluntary carbon markets (VCMs) to drive meaningful environmental change.

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Founded by Anew Climate, Climate Impact Partners, ClimeCo, Imperative Global, Respira, Rubicon Carbon, and South Pole, BACA is a coalition seeking to advance carbon markets as a climate finance tool essential for climate change mitigation.