European Union bans vague environmental claims like ‘climate neutral’

The European Union has implemented the ‘Empowering Consumers for the Green Transition’ (EmpCo) directive, which imposes stricter regulations on environmental claims. As of September 27, 2026, companies are prohibited from using vague or unsubstantiated labels such as ‘climate neutral’, ‘eco-friendly’, or ‘fair’ on product packaging.

Under the new legislation, any environmental claims must be specific, verifiable, and backed by detailed evidence. This applies to sustainability, durability, repairability, and recyclability across all industries. The goal is to provide consumers, market actors, and courts with clear criteria to identify unfair environmental advertising.

The transition has created challenges for smaller businesses. For example, the Obstregion Bodensee association, which uses the label ‘fair to the environment’ for its apples, faces the prospect of losing its slogan unless it undergoes costly certification. The environmental organization BUND has called for state support to help small businesses manage the increased bureaucracy associated with these new requirements.