EU greenwashing regulation implementation

The European Union is implementing the ‘Empowering Consumers’ Directive (EmpCo) to combat greenwashing by requiring that all environmental claims be verifiable and evidence-based. While the directive entered into force in March 2024, the regulations are set to become binding for companies on September 27, 2026. Non-compliance carries significant financial risks, including potential fines of up to 4 percent of a company’s annual turnover within an EU member state.

In Germany, legislative steps have been completed via an amendment to the Act Against Unfair Competition. In Italy, the Antitrust Authority is increasing scrutiny on sectors such as laundries, where terms like ‘ecological laundry’ or ‘green laundry’ cannot be used without scientifically proven data. Under these rules, company names and storefront signage are treated as advertising claims, with uncertified ‘green’ labels risking fines starting at 5,000 euros.

Alongside these regulatory shifts, the rising demand for sustainable goods has led to increased counterfeiting. For example, the Danish company Sproutworld has encountered imitations on international marketplaces, a trend driven by consumer willingness to pay premiums for sustainable brands.