Tougher EU Rules on Green Claims Are Coming
Why change is needed:
Helping consumers make informed, sustainable choices is a priority for the EU as it works toward its goal of climate neutrality by 2050.
However, a 2020 European Commission study revealed that over half of environmental claims assessed in the EU were vague, and 40% lacked evidence. This widespread greenwashing undermines genuine sustainability efforts and misleads consumers. The new rules aim to bring this to an end.
The incoming laws on green claims will prohibit misleading claims and require companies to back up their environmental claims with credible evidence. For businesses making genuine sustainability efforts, these measures offer an opportunity to distinguish themselves from competitors.
Why this matters for the travel sector:
The travel sector is particularly affected, as environmental impact is a key concern for both corporate buyers and individual travellers.
What clearer, enforceable standards mean for:
• Travel managers: They will be better equipped to assess which providers are truly committed to sustainability.
• Online Booking Tools: Any sustainability metrics shown at the point of sale must be supported by reliable, third-party verified data.
• Providers (airlines, hotels, tour operators): They’ll be required to provide solid proof for any green marketing claims they make.
These regulations come after several greenwashing cases, including a recent German court ruling that banned Lufthansa from advertising a carbon offset scheme which misleadingly suggested their flights could be made carbon neutral.
There are two key EU laws on green claims to know about:
• Empowering Consumers for the Green Transition Directive: Passed in 2024, EU member states have to implement it by 2026. This law protects consumers by banning misleading sustainability claims and certain greenwashing practices.
• Green Claims Directive: This proposed directive is expected (subject to change) to be in national law by 2027. It sets out requirements for companies to substantiate and validate their environmental claims.
Summary
Here’s a helpful summary of the key information:
Title: | Empowering Consumers for the Green Transition (2024/825): | Green Claims Directive: |
Objective: | Aims to prohibit social and green claims that mislead consumers. | Aims to ensure that all green claims are properly substantiated. |
Timeline: | EU countries are required to implement the directive into their national law by 27 March 2026. The rules will then apply from 27 September 2026. | It is expected (subject to change) to be in national law by 2027. |
Who is affected: | It mainly applies to the B2C (Business-To-Consumer) context. | Businesses with more than 10 employees and an annual turnover over €2 million, making claims targeted at consumers. |
Requirements: | Businesses may not use misleading green claims that are blacklisted under the directive unless they have sufficient evidence. | Businesses must substantiate their claims with verification, certification, transparency and clarity. |
Penalty: | The directive refers to national law on this point; penalties will vary between EU states. For example, in France, misleading commercial practices can result in criminal fines of up to €1.5 million. | Under the directive, fines of up to 4% of the offending business’s annual turnover may be imposed. |
A Closer Look at the Directives:
Empowering Consumers for the Green Transition:
The Empowering Consumers for the Green Transition Directive aims to prevent companies from using deceptive environmental or social claims to drive sales of sustainability-branded goods and services. It was passed in 2024, and EU countries will have to implement it into their national law by 27 March 2026, with the rules applying from 27 September 2026.
Whilst it will mainly applies to B2C (business-to-consumer) contexts, it can also be relevant for B2B (business-to-business) claims. Some EU member states apply B2C advertising rules to B2B scenarios—for example, when a B2B customer intends to resell to consumers and may rely on the original seller’s environmental claims.
Prohibited Claims Under the Empowering Consumers Directive:
• Generic environmental claims
The directive prohibits sweeping, unsubstantiated claims. Examples of such vague or generic terms include “environmentally friendly", “green”, and “energy efficient" (this is a non-exhaustive list). Therefore, you cannot claim to be a ‘green’ company solely based on reducing business travel emissions—unless this reduction accounts for the vast majority of your overall environmental impact.
• Misleading sustainability labels
The directive adopts a broad definition of “sustainability label", including any trust mark or symbol—such as leaves, green seals, or trees—that imply environmental or social benefits. Under the new rules, sustainability labels will be prohibited unless they are either issued by a public authority or part of a certification scheme that meets specific minimum standards.
To qualify, a certification scheme must be third-party verified and be developed in consultation with relevant experts. This means that companies using self-created or in-house sustainability labels will likely need to phase them out by 2026, unless they transfer ownership to an independent body.
• Claims on future environmental performance
Claims about future environmental performance are prohibited unless they are substantiated by clear, objective, and publicly accessible commitments. Such claims must be supported by a detailed, realistic implementation plan with measurable, time-bound targets. Progress must also be regularly monitored by an independent third-party environmental expert, with findings made publicly available.
• Claims based on emissions offsetting
Claims suggesting a neutral, reduced, or positive environmental impact—such as “carbon neutral” or “net zero”—are prohibited if they rely on offsetting. Such claims are only permitted when they reflect the actual lifecycle environmental impact of the product or company. Businesses may still promote their support for environmental initiatives, including offset projects, but they must not present these as direct compensation for their own emissions. This change may pose a challenge for companies seeking globally consistent advertising, as many other countries still permit neutrality claims based on carbon offsetting.
• Misleading whole product claims
Environmental claims that refer to an entire product or service when they only apply to a specific component are prohibited. This provision reinforces existing consumer protection laws within the EU. For instance, under the current EU consumer law (Unfair Commercial Practices Directive), Dutch courts ruled that KLM made misleading claims regarding Sustainable Aviation Fuel (SAF). The court found the use of the term “sustainable” to be overly absolute, given that SAF represented only a small portion of the airline’s total fuel consumption at the time.
• Advertising mandatory requirements as a distinctive feature.
Only positive steps beyond the mandatory requirements may be advertised.
Green Claims Directive:
The upcoming Green Claims Directive is the second key EU law that limits voluntary environmental claims not already covered by other rules. The proposal for the Green Claims Directive was adopted in 2023, but the legislation is still under negotiation.
The new measures will establish clear, common criteria that companies must follow to substantiate their green claims and labels. Under the directive, claims must be supported by recognized scientific evidence and verified by independent experts before being marketed. Complementing the Empowering Consumers Directive, the Green Claims Directive sets the standard for responsible environmental marketing.
The directive applies only to claims or labels intended for consumers; it does not cover internal communications directed at travellers or other businesses. It will apply to all businesses, with the exception of microenterprises—defined as those with fewer than 10 employees and an annual turnover of less than €2 million.
Requirements under the Green Claims Directive:
• Thorough evidence
Companies must provide sufficient evidence to prove their environmental claims with support from independent accredited verifiers. Proof should be based on scientific evidence demonstrating that the claim applies to the entire product and is not merely standard practice or a legal requirement.
Comparative claims (e.g., stating one hotel emits 20% less CO₂ than another) must use a consistent methodology, data, scope, impact assessment, and assumptions across all products or businesses being compared.
• Mandatory Third-Party Verification
All environmental claims and labels must be verified and certified by independent, accredited bodies.
• Public Transparency
Verification information must be publicly available to ensure consumer access to reliable information.
Supporting documentation must include (at a minimum):
• details of the environmental impacts or performance addressed by the claim;
• underlying studies and calculations;
• for emissions claims, the extent of reliance on offsets and whether they represent emission reductions or removals; and
• a consumer-friendly summary provided in at least one official language of the EU member state where the claim is made.
• Regular Review Requirements
Claims and certifications must be reviewed and updated periodically. Businesses must ensure their claims remain up to date and are reviewed at least every 5 years or whenever significant changes impact the claim’s accuracy.
• Regulated Labelling Schemes
The Green Claims Directive differentiates between environmental claims and environmental labels, where environmental labels (such as product or business ratings and scores) can only be issued by EU-recognized environmental labelling schemes.
To gain EU recognition, a labelling scheme must:
• provide clear and accessible information about its ownership and goals;
• ensure membership requirements are fair and scaled to the size of the company;
• develop standards with expert input and stakeholder consultation;
• establish mechanisms for handling complaints and resolving disputes; and
• put in place procedures to address cases of non-compliance.
The officially recognised EN ISO 14024 ecolabelling scheme meets all these requirements.
Key takeaways:
The new laws aim to create a clear and consistent policy framework to help make sustainable products, services, and business models the standard across the EU, and to shift consumer habits toward more sustainable choices.
Risks of non-compliance:
• Reputational damage.
• Loss of brand loyalty among consumers.
• Fines.
How to prepare for incoming regulations:
• Review internal processes for making environmental claims and using sustainability labels.
• Evaluate whether any information provided to consumers could be considered misleading or unfair under the new rules.
• Use the transition period while the directive is being incorporated into national law to understand the new requirements and, if necessary, adapt your practices.
• Ensure that all environmental claims are supported by credible scientific evidence.
This guide is for informational purposes only and does not constitute legal advice. Organizations should seek professional legal advice to ensure compliance with applicable laws and regulations specific to their operations.
