Canada’s anti-greenwashing regulations have undergone changes that garnered approval from businesses but raised concerns among environmental advocates. The legislation targeting deceptive environmental claims will be maintained, with the Liberal government announcing adjustments to provide businesses with clearer guidelines on compliance.
The modifications are part of Bill C-15, an omnibus bill aligning with certain aspects of the 2025 Budget. The legislation will continue to require businesses to substantiate their environmental claims, but they will no longer be obligated to adhere strictly to international standards. Business entities argued that the global benchmarks were ambiguous, leading to fears that some companies might abandon valuable green initiatives due to the high and unclear burden of proof.
David Pierce, the Canadian Chamber of Commerce’s Vice President of Government Relations, expressed relief on behalf of the business community, citing the lack of clarity and readiness surrounding the international standards. Conversely, environmental activists are sounding the alarm over the absence of clear criteria to assess Canadian corporations’ fulfillment of commitments like reducing greenhouse gas emissions. Concerns also arise regarding alterations to the complaint resolution process.
Consumer awareness about environmental impacts has grown, prompting various companies to tout the eco-friendliness of their products. In 2024, the Trudeau government introduced Bill C-59, which included amendments addressing deceptive advertising regulations. However, as these regulations were enacted, backlash emerged from the business sector, leading to the abandonment of net-zero emission targets by some entities, including the Canada Pension Plan Investment Board (CPPIB).
The recent budget implementation act tabled by the Liberal government aims to enhance market certainty by eliminating certain aspects of the Competition Act while maintaining safeguards against false claims. Environmental groups emphasize the need for domestic benchmarks to supplement the removal of international standards for greenwashing evaluations. Advocacy group Environmental Defence stresses the importance of establishing clear guidelines and mandatory climate-related disclosures to combat greenwashing effectively.
Moreover, concerns linger over the capacity of the independent Competition Bureau to handle greenwashing complaints adequately. Ecojustice’s environmental law lawyer, Matt Hulse, highlighted potential delays in processing claims and the bureau’s capacity constraints. He also addressed corporate apprehensions about frivolous claims, noting that claimants risk substantial legal costs if unsuccessful in their complaints.
In response, the Competition Bureau plans to update its guidance for businesses post-implementation of the act, aiming to streamline the adjudication process for greenwashing cases. Hulse emphasized the bureau’s authority to dismiss frivolous claims and the financial risks for claimants, underscoring the need for thorough consideration before lodging complaints.
