Empowering Consumers for the Green Transition Directive^[1] Regarding Sustainability Claims and the Use of Ecolabels

This Legal Bulletin addresses implications of the new EU regulatory framework and provides recommendations for companies making product sustainability claims, and for those companies using ecolabels that may be in consumer-facing packaging, labels, and marketing material, including online marketing material or similar communication placed on the market in Europe.
 

          (i)                    ECGT Scope and Relevance

From 27 September 2026, the new provisions included in the EU framework governing green claims covered in the Directive on Empowering Consumers for the Green Transition (ECGT) will be enforceable. The provisions will form part of and be incorporated into the national laws covering the Unfair Commercial Practices Directive^[2] (UCPD) and the Consumer Rights Directive^[3] (CRD). The Directive was published in 2024, with an implementation deadline of 27 March 2026. There is no transition period provided for. As of 27 September 2026, the ECGT provisions are enforceable as a further measure to combat greenwashing.

Key changes that the ECGT will bring include, but are not limited to:

• 12 newly prohibited practices are identified to target misleading environmental claims, including generic environmental claims without proof, and self-created or self-certified sustainability labels/ecolabels
• Private ecolabels from non-governmental organizations will only be permitted where they are part of a certification scheme meeting strict requirements on independence, transparency, and third-party verification
• New definitions for ‘environmental claims’, ‘general environmental claims’, and ‘recognised excellent environmental performance’ are provided

The ECGT is expected to drive the use of third-party verified sustainability labels developed with diverse stakeholder input. Alignment with the ECGT will reduce compliance risk, preserve market access, enhance trust, and continue and enhance commercial advantage with customers and procurement teams.

          (ii)                    Business Functions Impacted

The ECGT is expected to affect activities across multiple business functions, including:

• Marketing: All product-level and corporate advertising claims, including environmental messaging, must be substantiated and aligned with ECGT requirements.
• Sales and Distribution Channels: E-commerce platforms, distributor listings, and digital content must avoid implied or unsubstantiated sustainability claims.
• Sales and Product Teams: Teams must be trained to communicate sustainability claims accurately, ensuring compliance while leveraging verified sustainability claims to support competitive positioning.
• Product Development / R&D: Product design and product information—including logos, colours, naming, imagery, and trademarks—may qualify as sustainability labels and must meet certification scheme criteria.
• Supply Chain: Any claims related to raw materials, packaging, labelling, and transportation must be accurate, verifiable, and consistent across the product lifecycle.
• Finance / Corporate Communications: ESG disclosures, sustainability reporting, and investor communications referencing ecolabels must align with the standards for accuracy, verification, and transparency.Effect on B2C and B2B Practices

          (iii)                    Effect on B2C and B2B

The ECGT addresses Business-to-Consumer (B2C) practices, and EU case law also supports ECGT requirements being used to define ‘misleading’ advertising in a Business-to-Business (B2B) context. The implications for B2B businesses are direct and material. Sustainability claims are inherently lifecycle-based, and upstream claims—across product composition, manufacturing, supply chain, and R&D—are often carried into consumer-facing communications.

The ECGT effect on B2B extends beyond traditional marketing. Sustainability information is routinely embedded in product catalogues, distributor platforms, and online databases that can be publicly accessed. These channels function as consumer touchpoints, again bringing B2B claims within the scope of the ECGT.

Environmental claims developed for B2B use should meet ECGT requirements if they are used in downstream communications or procurement decisions. This includes product-level sustainability claims, ecolabels, and public disclosures including sustainability reports, websites, and some corporate messaging. Corporate sustainability reporting, such as annual sustainability reports or disclosures required under the Corporate Sustainability Reporting Directive (CSRD), is typically not in scope of the UCPD/ECGT Directive. However, if a company uses information from its sustainability report in voluntary advertising or marketing directed at consumers as part of B2C commercial practices, such communication falls under the UCPD/ECGT Directive if it constitutes an environmental claim concerning the product or the company in general. Businesses operating in B2B markets, including those outside the EU supplying to the EU, should therefore account for ECGT requirements. The distinction between B2B and B2C claims is increasingly limited; what matters is whether the claim ultimately reaches or informs the end user on the product or company.

          (iv)                   Requirements for Use of Ecolabels, and Enforcement

Going forward, businesses are advised to use only sustainability labels/ecolabels established by public authorities or a private ecolabel based on a compliant certification scheme.

Amongst other ECGT requirements, non-government private ecolabels must be based on a certification scheme meeting the following requirements:

• The ecolabel certification must be run by a third-party and be based on publicly available terms and requirements
• The certification scheme must be open under transparent, fair, non-discriminatory terms to all traders willing and able to comply with the requirements
• The ecolabel standard must have been developed in consultation with relevant experts and stakeholders
• The certification program must have procedures in place in case of non-compliance, providing for withdrawal or suspension
• The certification scheme must certify and monitor trader compliance via an objective procedure carried out by an ISO- or similar certified third-party

The European Commission suggests that with these requirements are intended to shift from self-declared sustainability claims to externally validated sustainability, to enhance trust, comparability, and legal certainty that enables consumers to make better-informed choices.

If the requirements of a sustainability ecolabel certification scheme are not met, companies face significant legal risk where national authorities may take immediate enforcement action ex officio. Both consumers and competitors may initiate complaints before these bodies. For widespread infringements affecting several Member States, enforcement may be coordinated at the EU level. This include actions through the Consumer Protection Cooperation authorities (CPC) network or signals from the European Consumer Organisation (BEUC). Fines of up to 4% of annual turnover in the relevant Member States may apply under EU consumer enforcement rules.

In short, from 27 September 2026 onwards the laws of the 27 European Member States prohibit certain practices, including generic environmental claims made without proof, and the use of self-created or self-certified sustainability labels/ecolabels. Additionally, the use of sustainability labels will only be permitted if they form part of a robust, independently verified certification scheme developed through a rigorous stakeholder consensus process. Use of labels based on internal company standards, hidden scoring methods not based on recognized certification schemes, or unverified sustainability claims are prohibited and pose a serious risk of enforcement actions.

Beyond regulatory enforcement, non-compliant sustainability labels/ecolabels may result in restricted market access, removal from distribution platforms, and exclusion from procurement processes that will require verified sustainability claims.

          (v)                   Advised Actions

Manufacturers should take immediate steps to align with the Directive on Empowering Consumers for the Green Transition:

• Inventory – Develop a comprehensive inventory of all environmental claims and ecolabels used across packaging, product documentation, digital platforms, and marketing materials.
• Qualification (RAG assessment) – Assess used and available ecolabels against the ECGT required criteria, including third-party verification, transparency, and governance structure.
• Remediation – Remove or replace non-compliant ecolabels and claims, prioritizing products placed on the EU market.
• Transition strategy – Shift toward recognized certification schemes that meet ECGT requirements to ensure continuity of sustainability claims and market access.
• Internal governance – Establish controls across legal, marketing, and product teams to prevent future non-compliant claims.
• Training – Educate commercial teams on restrictions around general environmental claims and the proper use of verified ecolabels.

[1] Directive (EU) 2024/825 see http://data.europa.eu/eli/dir/2024/825/oj

[2] Directive (EU) 2019/2161 see http://data.europa.eu/eli/dir/2005/29/2022-05-28

[3] Directive (EU) 2011/83 see http://data.europa.eu/eli/dir/2011/83/2022-05-28