EU Enacts Sweeping New Greenwashing Prohibitions
A new EU directive, effective from September 2026, will prohibit many common environmental marketing claims, including generic terms like 'eco-friendly' and product-level 'climate neutral' statements based on carbon offsetting.
The EU has adopted the Empowering Consumers for the Green Transition Directive, which member states must begin applying from September 27, 2026. The new rules significantly amend the Unfair Commercial Practices Directive to prohibit common forms of 'greenwashing.' The directive’s scope is broad, capturing virtually any business-to-consumer communication across all sectors, from consumer goods to financial services.
For corporate counsel, the most critical changes are new per se bans on certain marketing claims. Companies will be prohibited from using generic environmental terms like 'green' or 'eco-friendly' without demonstrating recognized excellent environmental performance. Crucially, the directive also bans claims that a product has a neutral or positive environmental impact based on carbon offsetting. It further imposes stringent new requirements for any forward-looking environmental commitments, such as net-zero targets, which must now be supported by a clear, public, and independently verified implementation plan. Firms with EU consumer-facing operations should immediately audit all marketing materials, including brand names and packaging, to ensure compliance before the deadline.