What the Directive Actually Does
The ECGT amends the EU's Unfair Commercial Practices Directive (the foundational law governing misleading commercial behaviour toward consumers) and introduces a specific new category of prohibited practices around environmental and sustainability claims.
The key changes are direct and consequential:
Generic environmental claims are banned. Terms like "eco-friendly," "green," "natural," "sustainable," or "environmentally responsible" applied to a product without specific, substantiated context are prohibited. The directive blacklists these as inherently misleading because they create a positive environmental impression without any verifiable basis.
"Climate neutral" claims based on offsets are banned. A product cannot be described as "climate neutral," "carbon neutral," or "net zero" if that claim rests on the purchase of carbon credits or offsets rather than actual reductions in the product's emissions value chain. This closes off one of the most widely used greenwashing routes in the food and beverage sector.
Unverified sustainability labels are restricted. Sustainability labels must be based on independent, transparent, and credible certification systems. Self-declared ecolabels, logos or icons designed to look like third-party certifications but issued by the brand itself, are prohibited.
Forward-looking sustainability claims require a plan. Claims like "climate neutral by 2030" or "net zero by 2050" require a detailed, publicly available, independently verified implementation plan with measurable and time-bound targets. Vague future commitments without a documented roadmap are prohibited.
Crucially, enforcement is not waiting for September 2026. National authorities in several EU countries, notably the Netherlands' Authority for Consumers and Markets and Germany's Deutsche Umwelthilfe, are already pursuing greenwashing cases under existing consumer protection law. German courts have already found that vague climate claims must be clarified on the same medium to avoid misleading consumers. The Directive provides a harmonised framework; the enforcement is already here.
"Whether or not this directive goes through, you can't mislead consumers. That obligation already exists, and it's being enforced."
— Jellien Roelofs, greenwashing legal expert, Lasting Legal (Netherlands), speaking to Fi Global Insights
