A key piece of anti-greenwashing legislation entered into force last month in the EU. The Directive to Empower Consumers for the Green Transition (Empowering Consumer Directive) cracks down on how companies can make sustainability claims. Where most greenwashing regulation is principles-based, the Empowering Consumer Directive is more prescriptive. Under this law, certain marketing practices are banned outright. A recent Bird & Bird memo provides a list of the banned practices:
- “displaying a sustainability label that is not based on a certification scheme or has not been established by a public authority;
- making a general environmental claim while being unable to demonstrate a recognised, excellent environmental performance to substantiate that claim;
- asserting that a product has a neutral, reduced, or positive impact on the environment in terms of greenhouse gas emissions;
- presenting requirements mandated by EU or national law as a distinguishing feature of the business’s offering;
- representing a software update as necessary when it only improves functional features;
- presenting goods as repairable while they are not in fact; and
- encouraging consumers to replace or refill consumables earlier than is technically necessary.”
As of September 27, 2026, these new rules are in full effect. Those marketing products in the EU should audit their marketing and labeling practices to ensure compliance. These rules apply to all products currently on the market, even those manufactured before the law’s effective date.
Many industries believed the outright ban on carbon neutral/positive claims was too restrictive. However, given the sub-par state of carbon offsets and the difficulty and complexity involved in validating neutrality claims, the EU opted to ban them outright. It will be interesting to see how the Empowering Consumers Directive impacts our globalized economy. Apple already changed its global package for Apple Watches in anticipation of this law. We’ll see what other firms alter their practices globally to avoid piecemeal compliance.
Our members can learn more about greenwashing regulation here.
