The EU Is Cracking Down on Greenwashing: Is Your Business Ready?
In 2023, Carbon LCA Certified addressed the European Union (EU) law to stop greenwashing.
The European Union has now taken a tougher approach to greenwashing and misleading sustainability claims through the Empowering Consumers for the Green Transition Directive (Directive (EU) 2024/825), also known as the EmpCo Directive. The Directive amends existing EU consumer protection legislation to strengthen the rules around environmental claims, sustainability messaging and environmental labelling.
EU Member States were required to transpose the Directive into national law by 27 March 2026, with the new measures applying from 27 September 2026. Among the key changes are restrictions on generic environmental claims, stricter requirements for future environmental commitments, and greater controls over sustainability labels and certification schemes.
The rules apply broadly to business-to-consumer (B2C) commercial practices, meaning companies making environmental or sustainability-related claims when marketing products or services to consumers may be affected. This can include businesses across sectors such as manufacturing, consumer goods, packaging, energy and a wide range of services.
Importantly, compliance with existing sector-specific environmental regulations does not necessarily mean that other voluntary sustainability claims are compliant. Companies should therefore ensure that environmental statements are specific, substantiated and supported by credible evidence. Some EU Member States have also extended aspects of the new requirements beyond B2C activities, potentially bringing certain B2B communications within scope.
In summary the legislation makes the below major change:
A major change concerns carbon neutrality and offsetting claims. Companies cannot claim that a product is “carbon neutral”, “climate neutral”, “carbon positive” or has a reduced environmental impact when the claim is based on offsetting emissions outside the product’s own value chain. Instead, claims about a product’s actual climate impact must be based on its real lifecycle impact and verifiable emissions reductions. The Commission specifically states that proper Life Cycle Assessment can be used to substantiate claims based on a product’s actual lifecycle emissions. Companies may still communicate about investments in carbon credit or environmental projects, provided these communications are transparent and not misleading.
Broadly speaking, the legislation address the following:
Restricts vague environmental claims such as “green” or “eco-friendly” unless they can be properly substantiated. The rules can also affect existing brand names and trademarks that contain environmental messaging.
Tightens rules around carbon-neutral claims. Companies cannot simply describe a product as “climate neutral” or “carbon positive” based solely on purchasing carbon offsets to compensate for emissions.
Requires evidence for future sustainability commitments. Companies making forward-looking environmental promises must be able to support them with a detailed, credible and independently verified plan.
Prevents misleading claims about regulatory compliance. Businesses cannot promote something as a unique environmental benefit when it is already required by law across an entire product category or industry.
Strengthens controls over environmental labels. Sustainability claims and labels must be supported by recognised certification schemes and credible evidence, helping consumers distinguish genuine environmental performance from marketing claims.
What Else Is the EU Doing to Promote Sustainable Consumption?
The EU is taking a broader approach to promoting sustainable consumption and protecting consumers, with several initiatives designed to make products more sustainable and environmental claims more credible.
Green Claims: The proposed Green Claims Directive would complement the EU’s new anti-greenwashing rules by introducing stronger requirements for environmental claims. Companies would need to substantiate their claims with evidence and, under the proposed system, have them verified before they can be used. The aim is to give consumers greater confidence that sustainability claims are accurate and credible.
Ecodesign: The EU is also introducing stronger sustainability requirements for products placed on the European market. The focus is on making products more durable, repairable, reusable and resource-efficient, helping to reduce their environmental impact throughout their life cycle.
Right to Repair: New EU measures are designed to make it easier for consumers to repair products rather than replace them. By encouraging repair and extending product lifespans, the EU aims to reduce waste and support a more sustainable, circular economy.
The Directive also raises the standard for sustainability labels and future environmental commitments. Sustainability labels must generally be based on a qualifying certification scheme or established by public authorities, with certification schemes requiring independent third-party verification, publicly available requirements and credible monitoring. Companies making claims about future environmental performance must have clear, measurable and time-bound commitments supported by a realistic implementation plan and resources, with regular independent verification. Importantly, the rules apply to existing products and packaging already in the supply chain from 27 September 2026, meaning businesses should review their current environmental claims and labels, not just those used on new products.
Carbon Neutrality Claims Cannot Rely on Offsets Alone
The new EU rules make it much harder for companies to call a product “carbon neutral” or “climate neutral” simply because they have purchased carbon offsets.
In simple terms, you can’t create the impression that a product has no carbon impact just by paying to offset emissions somewhere else. For example, a company could no longer claim a flight is “climate neutral” simply because it funds a tree-planting project.
However, companies can still make genuine claims about reducing a product’s actual carbon footprint, provided they have reliable evidence, such as data from a Life Cycle Assessment (LCA).
Companies can also make net-zero or future sustainability commitments, but these claims need to be backed by a clear, properly funded action plan, with progress independently checked and transparently reported.
The message is simple: measure your emissions, reduce them, and have the evidence to prove your progress.
Sources
FAQs: European Commission (read here to explore the specifics)
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