European Commission to Withdraw Law Against Greenwashing

Today’s ESG Updates

• European Commission to Ditch Law Targeting Greenwashing: EU signals withdrawal of environmental claims directive as right-wing pressure mounts.
• UK Pledges £2B to Exempt Businesses from Green Levies: Industrial plan cuts energy prices for key sectors to boost industrial competitiveness.
• Scientists Urge Brazil President to Block Drilling: 250 scientists warn Lula of the consequences of newly approved licenses for offshore and Amazon drilling.
• Middle East War Threatens Global Oil Flow: Trump’s strike on Iran’s nuclear facilities triggers a spike in global oil prices to their highest since January.

European Commission moves to withdraw the Green Claims Directive

The European Commission signaled on Friday its intent to withdraw the Green Claims Directive, the latest in recent rollbacks of major Green Deal initiatives. The proposal, introduced in 2023 as part of the European Green Deal, aimed to prevent corporate greenwashing by requiring environmental claims to be verified and substantiated. Commission officials have offered no clear explanation for the withdrawal, and the announcement came just days ahead of a final meeting Monday, where the proposal is expected to be given the green light ahead of formal adoption. Abandoning the directive risks undermining trust in sustainable finance and ESG markets, where transparency is essential.

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Further reading: Commission moves to withdraw greenwashing proposal in another blow to Green Deal

UK government announces £2B investment in cutting energy costs for key sectors

The UK government has unveiled a £2B plan to cut electricity prices for more than 7,000 energy-intensive businesses by up to 25% under the new British Industrial Competitiveness Scheme. Targeting sectors like automotive, aerospace, and chemicals, the initiative will exempt companies across 8 energy-intensive sectors from green levies starting in 2027. It also includes a grid-access reform plan and investments in apprenticeships and clean energy hubs. The energy scheme will be funded through reforms to a range of environmental and green levies, including the Emissions Trading Scheme, but the question remains on how the project will be fully funded.

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Further reading: Energy prices cut for business as part of UK industrial strategy

Hundreds of scientists plead with Lula: no more Amazon drilling

Ahead of COP30, a coalition of 250 scientists has urged Brazilian President Lula to cancel plans for new fossil fuel projects in the Amazon and offshore regions. Delivered during UN climate talks last week in Bonn, Germany, the letter highlights the Amazon’s proximity to a climate tipping point and criticizes Lula’s energy development strategy. Despite prior environmental pledges, Lula has defended fossil fuel expansion as necessary for funding Brazil’s energy transition. Scientists argue that continued Amazon and offshore development undermines global climate targets and risks irreversible ecological collapse in one of Earth’s most vital ecosystems. Paulo Artaxo, a co-leader of the letter, said he’s not hopeful that it will have a substantial effect on Brazil’s policy, but insists that scientists need to continue to present scientific facts to politicians.

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Further Reading: Scientists’ Letter Urges Brazil’s President Lula to Reject New Amazon and Offshore Drilling

Oil surges to five-month high after U.S. attack on Iran

As conflicts escalate in the Middle East, Goldman Sachs warns that a disruption to the Strait of Hormuz, where 20% of global oil is sourced, could spike Brent crude to $110/barrel. A full blockade would trigger lasting supply shocks, with global oil prices projected to settle around $95 per barrel by Q4 2025. Prediction markets now reflect a 52% probability of Iran closing the Strait of Hormuz in 2025. Economic incentives for the U.S. to try to prevent a sustained disruption of the Strait of Hormuz are expected to be strong.

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Further reading: Goldman Sachs warns of oil price surge on Strait of Hormuz risks

Editor’s Note: The opinions expressed here by the authors are their own, not those of impakter.com — Cover Photo Credit: European Parliament