EU Ban on Misleading Environmental Claims: What's Prohibited and When
On March 6, 2024, the EU formally adopted Directive 2024/825 — the Empowering Consumers for the Green Transition (ECGT) directive. It amends the Unfair Commercial Practices Directive (2005/29/EC) to add a series of specific prohibitions on environmental claims. Some of these prohibitions are absolute (Black List items that are always illegal). Others require case-by-case assessment.
This article provides the definitive list of what's prohibited, when enforcement begins, and what businesses must do to comply.
Black List: Always Prohibited (No Defence)
The ECGT adds the following to Annex I of the UCPD — the list of commercial practices that are unfair in all circumstances, regardless of context or intent:
1. Generic Environmental Claims Without Substantiation
What's banned: Making a generic environmental claim for which the trader cannot demonstrate recognised excellent environmental performance relevant to the claim.
Examples: "Eco-friendly," "green," "sustainable," "environmentally friendly," "climate friendly," "nature-friendly," "ecological," "environmentally conscious," "kind to the planet" — used without specific, documented evidence.
Key point: The ban applies to the use of these terms without substantiation. If you can demonstrate "recognised excellent environmental performance," the terms may still be used — but the evidence bar is extremely high.
2. Product Claims Based on Single Attributes
What's banned: Making an environmental claim about the entire product when it actually concerns only one aspect.
Examples: Calling a product "sustainable" because its packaging is recyclable, while the product itself has significant environmental impact. Claiming a car is "green" because it's electric, without addressing manufacturing emissions or battery disposal.
3. Future Environmental Claims Without Plans
What's banned: Making environmental claims about future performance without clear, objective, verifiable, and publicly accessible commitments, with an independent monitoring system.
Examples: "Net zero by 2050" without published transition plan, interim targets, and third-party verification. "We will be fully sustainable by 2030" without specific milestones.
4. Self-Certified Sustainability Labels
What's banned: Displaying a sustainability label that is not based on a certification scheme or not established by public authorities.
Examples: Company-created "eco" badges, self-designed green stamps, internal sustainability ratings displayed as labels. Any label where the company that benefits from the label also controls the certification criteria.
5. Carbon Neutrality Claims Based on Offsets
What's banned: Making a claim based on greenhouse gas emission offsets that a product has neutral, reduced, or positive impact on the environment.
Examples: "Carbon neutral product," "climate neutral company" (achieved through offset purchases), "net zero" based primarily on credit purchases.
Additionally Prohibited: Misleading Actions (Case-by-Case)
Beyond the Black List, the amended UCPD Article 6 prohibits misleading actions related to environmental characteristics. These require case-by-case assessment of whether the average consumer would be misled:
- Misrepresenting environmental characteristics: Claiming environmental attributes that the product or service doesn't actually have
- Presenting legal requirements as distinctive: Highlighting environmental compliance that's legally mandatory as though it's a voluntary differentiator ("CFC-free" aerosols, "REACH-compliant" chemicals)
- Durability misinformation: Misleading claims about product lifespan, repairability, or recyclability
- Planned obsolescence concealment: Hiding that a product was designed with limited lifespan
Additionally Prohibited: Misleading Omissions
The amended Article 7 addresses what companies leave out:
- Omitting material environmental information that the consumer needs to make an informed decision
- Hiding limitations of environmental claims (e.g., claiming recyclability without noting that recycling infrastructure isn't available in the consumer's market)
- Not disclosing scope of environmental claims (e.g., "carbon neutral" without specifying which emission scopes are covered)
What's Still Allowed
The ECGT does not ban environmental marketing. It bans misleading environmental marketing. Compliant claims include:
- Specific quantified claims: "Contains 85% post-consumer recycled PET" with certification reference
- Certified environmental attributes: EU Ecolabel, FSC, GOTS, and other recognised certifications displayed according to their guidelines
- Documented progress claims: "We reduced Scope 1+2 emissions by 40% from 2020 to 2025, verified by [assurer]"
- Transparent comparative claims: "30% less carbon per unit than our 2020 product, per ISO 14064" with methodology disclosure
- Factual environmental information: "Carbon footprint: 2.3 kg CO₂e per unit" as informational disclosure
Enforcement Timeline
| Date | Event |
|---|---|
| March 6, 2024 | Directive 2024/825 adopted |
| March 27, 2026 | Member state transposition deadline |
| September 27, 2026 | Enforcement begins for large enterprises |
| ~March 2028 | SME enforcement begins (18-month delay) |
| 2027-2028 | Green Claims Directive expected to add pre-approval requirements |
Penalties
- Maximum fines: at least 4% of annual turnover in the member state where the violation occurred
- Where turnover unknown: at least €2 million
- Revenue confiscation: profits from non-compliant claims recoverable
- Corrective advertising: at the company's expense
- Public procurement exclusion: up to 12 months
Compliance Checklist
- Search all marketing channels for Black List terms. Remove or substantiate before September 2026.
- Remove carbon neutrality claims based on offsets. Replace with specific reduction data.
- Remove self-created sustainability labels. Switch to recognised certifications.
- Add evidence references to all remaining environmental claims.
- Review future environmental commitments — ensure each has a published plan with interim targets.
- Scan your website with our free greenwashing checker for automated detection of prohibited terms.