Report on Green Claims

The Green Claims Directive (GCD) is transforming Europe’s sustainability regulations by requiring companies to back up their environmental claims through rigorous supply chain verification. While the goal is to promote accountability and combat greenwashing, the complex web of regulations—including the Carbon Border Adjustment Mechanism (CBAM), Renewable Energy Directive (RED), and the Deforestation Regulation—is already creating unintended consequences. Emerging economies, especially small and mediumsized enterprises (SMEs) in countries like Brazil, are bearing the brunt of these changes.
This report takes a deep dive into how the GCD and related EU regulations interact with global trade, environmental governance, and the scientific evidence driving climate policies. We explore the impact of regulatory asymmetry, legal uncertainties, and the economic costs that Brazilian exporters face.