EU Cracks Down on Greenwashing: What Businesses and Consumers Need to Know

Climate neutrality claims were often more perception than reality. Now, Brussels is shifting the burden of proof to companies, demanding verifiable evidence for environmental promises. This change has significant implications for both businesses and consumers.

The Rise of Greenwashing and the Need for Regulation

For years, companies have benefited from “greenwashing”—marketing products or services as environmentally friendly when they are not. Eco-labels proliferated, often lacking clear standards and becoming difficult for consumers to decipher. According to a scientific study by the EU Commission, 53% of all environmental claims on products were vague, misleading, or unfounded, with 40% providing no evidence whatsoever.

The EU is responding with stricter regulations aimed at increasing transparency and protecting consumers. More than 230 environmental labels existed within the EU, creating a confusing landscape even for industry experts.

The Empowering Consumers Directive (EmpCo)

On January 30th, the German Federal Council ratified the implementation of the EU directive “Empowering Consumers” (EmpCo) into German law. The directive, which comes into effect on September 27th, 2026, aims to standardize and clarify business-to-consumer (B2C) communication regarding environmental claims.

Under the new rules, broad statements like “green,” “climate neutral,” or “sustainable” will no longer be sufficient. Companies will be required to provide a verifiable life cycle assessment for each product to substantiate their environmental claims. The burden of proof shifts from consumers to companies, who must now demonstrate how they achieve their stated environmental benefits.

Part of a Larger Strategy: The European Green Deal

The EmpCo directive is a key component of the broader European Green Deal, launched in 2019. This comprehensive strategy aims to build Europe climate-neutral by 2050, encompassing not only environmental protection but also a significant transformation of industry and the economy.

The Green Deal includes major industrial projects, such as the development of an electric vehicle industry, the promotion of hydrogen technologies, and the “Fit for 55” program, which targets a 55% reduction in CO2 emissions by 2030.

What Changes for Businesses?

Companies operating within the EU will need to adapt to the new regulations. This includes:

• Providing verifiable evidence: Supporting environmental claims with robust life cycle assessments.
• Transparency in labeling: Clearly demonstrating the scientific basis and third-party verification of any sustainability seals used.
• Avoiding vague terms: Refraining from using broad, unsubstantiated claims.

Failure to comply could result in warnings and claims for damages, although the specifics of enforcement are still being determined.

Examples of Past Greenwashing

Greenwashing is not a new phenomenon. Examples include:

• British Petroleum (BP): Promoting itself as a sustainable energy company through the “Beyond Petroleum” campaign while continuing to heavily invest in fossil fuels.
• Coca-Cola: Downplaying the continued use of fossil plastics in its “recycled” bottles.
• Danone and Nestle: Engaging in deceptive practices regarding their environmental impact.
• TotalEnergies: Facing legal action for claiming climate neutrality despite the vast majority of its revenue coming from fossil fuels.

Investigations revealed that over 250 million euros from the oil and gas industry were spent on lobbying to prevent stricter anti-greenwashing regulations and a more targeted taxonomy.

What Consumers Can Do

Consumers can protect themselves from greenwashing by:

• Checking labels: Looking for recognized, independent certifications.
• Seeking specific information: Prioritizing measurable goals over vague terms.
• Examining supply chains: Looking for transparency regarding production and sourcing.
• Comparing information: Cross-referencing claims on websites, advertising, and social media.
• Utilizing consumer platforms: Consulting apps, NGO rankings, and consumer reports.
• Asking questions: Actively inquiring about CO2 values and raw materials.
• Maintaining skepticism: Critically evaluating claims of “100% climate neutrality.”

The new EU directive represents a significant step towards a more transparent and sustainable marketplace. While challenges remain, it empowers consumers and holds businesses accountable for their environmental claims.