EU greenwashing regulations and industry impact

The European Union has implemented the Empowering Consumers for the Green Transition (EmpCo) Directive to combat greenwashing. The legislation aims to ensure environmental claims—including words, symbols, and brand names—are specific, substantiated, and transparent. This follows findings by the European Commission that more than half of environmental claims on the EU market are vague, misleading, or unfounded.

Recent data indicates that three out of four products on the EU market carry an explicit or implicit environmental claim, yet nearly half of the 230 identified ecolabels in the EU lack strong verification procedures. The directive prohibits various misleading practices and strengthens requirements for sustainability labels across sectors such as food, clothing, cosmetics, and detergents. It specifically targets unsupported claims like ‘eco-friendly’ or ‘carbon neutral’.

To ensure compliance, the regulatory framework, including Directive (EU) 2024/825, seeks to regulate generic environmental claims and assertions regarding climate neutrality. The Commission emphasizes that effective assessment must move beyond vague vocabulary—such as ‘clean’, ‘responsible’, or ‘nature-friendly’—to examine specific evidence regarding materials, manufacturing, transport, usage, and end-of-life impacts.

In Germany, the directive has created uncertainty within the food industry, particularly in Mecklenburg-Vorpommern and Brandenburg. Industry representatives warn that while factual statements regarding origin are not banned, there is a fear that regional labels may be misinterpreted as claims of environmental benefits. Agricultural associations, including AMV and Pro Agro, have reported that some companies are already removing regional seals, such as ‘Natürlich aus MV’, to avoid potential legal risks.