New European Union rules targeting greenwashing are now in effect, introducing stricter requirements for businesses making environmental claims about their products and packaging.
The Empowering Consumers for the Green Transition (EmpCo) Directive aims to protect consumers from misleading environmental marketing and ensure sustainability claims are clear, credible and supported by evidence.
EU Member States were required to apply their national implementing measures from 27 September 2026. The rules concern business-to-consumer marketing in EU markets, including relevant environmental claims made by UK businesses targeting EU consumers.
This article outlines what EmpCo is, the key restrictions it introduces and what businesses need to consider when making environmental claims about their packaging.
What Is the EmpCo Directive?
The EmpCo Directive (EU) 2024/825 was adopted in February 2024 as part of the EU’s wider efforts to promote sustainable consumption and tackle greenwashing.
It amends existing EU consumer protection legislation, introducing more specific rules on how businesses communicate the environmental characteristics of their products and services.
The Directive also addresses misleading information about product durability and repairability, although its restrictions on environmental claims and sustainability labels are particularly relevant to the packaging industry.
EU Member States were required to transpose the Directive into national legislation by 27 March 2026, with national implementing measures required to apply from 27 September 2026. Businesses should check the applicable legislation in their destination markets.
EmpCo primarily concerns marketing directed at consumers. Packaging suppliers operating solely business-to-business may nevertheless need to support their customers with accurate information and evidence for claims appearing on consumer packaging.
What Are the Key Requirements?
Restrictions on Generic Environmental Claims
One of the most significant changes is the restriction on generic environmental claims that cannot be supported by recognised excellent environmental performance.
Terms such as “eco-friendly”, “green”, “environmentally friendly” and “biodegradable” cannot be used as generic environmental claims unless the business can demonstrate the required level of environmental performance relevant to the claim.
For packaging producers, this means broad statements such as “environmentally friendly packaging” may no longer be acceptable without meeting these requirements.
Instead, businesses should consider communicating specific, accurate environmental characteristics, such as the recycled content of packaging, provided these claims can be substantiated and comply with applicable legislation.
Stricter Rules on Sustainability Labels
EmpCo also introduces restrictions on the use of sustainability labels and environmental certification logos.
Under the new rules, sustainability labels must either be based on a qualifying certification scheme or be established by public authorities.
This means businesses using their own sustainability badges or environmental logos on packaging will need to assess whether these meet the Directive’s requirements.
The restrictions are intended to reduce confusion caused by the wide range of sustainability labels currently used across the market and improve consumer confidence in credible schemes.
Restrictions on Carbon Neutrality Claims
The Directive prohibits claims that a product has a neutral, reduced or positive greenhouse gas impact where that claim is based on carbon offsetting.
For example, businesses cannot describe packaging as “carbon neutral” where that claim relies on carbon credits used to offset emissions, even if they have also reduced some emissions.
Claims about genuine emissions reductions must reflect the product’s actual lifecycle performance within its own value chain and comply with the other applicable rules on environmental claims.
Businesses can still communicate investments in environmental initiatives, provided the information is accurate and does not misleadingly imply that these investments neutralise or reduce the product’s own greenhouse gas impact.
Claims Must Accurately Reflect the Product or Packaging
EmpCo also prohibits environmental claims that suggest an entire product is environmentally beneficial when the claim only relates to a particular component or characteristic.
For example, a business cannot market a packaged product as “made from recycled materials” if only its packaging contains recycled material and the statement creates the impression that the product itself is made from recycled content.
Businesses must clearly distinguish between environmental claims relating to the packaging and those relating to the product inside it.
How Will EmpCo Affect Businesses Selling Packaging or Packaged Products to the EU?
For businesses supplying packaging or packaged products to EU consumers, EmpCo introduces additional considerations when designing packaging, developing marketing materials and communicating environmental performance.
- Packaging artwork and labelling: Businesses may need to review existing packaging designs to identify generic environmental claims, unsupported sustainability logos or misleading statements about recycled content, recyclability and carbon emissions.
- Evidence supporting environmental claims: Businesses should ensure environmental statements are accurate, specific and supported by appropriate evidence. Simply replacing a broad claim with a more specific one does not automatically guarantee compliance.
- UK exporters: Although the Directive does not apply directly to products marketed solely to UK consumers, businesses selling into EU consumer markets must consider the rules applicable in their destination countries. This could require different packaging artwork or marketing materials for UK and EU markets.
- Existing packaging stock: The Directive provides no general exemption for older packaging. However, EU consumer protection authorities have agreed a common understanding on existing stock, allowing a proportionate, case-by-case enforcement approach where genuine transitional difficulties arise. This does not create a guaranteed sell-through period, and businesses are expected to take timely, good-faith steps towards compliance.
Businesses should also consider requirements under other EU legislation, including the Packaging and Packaging Waste Regulation (PPWR).
Article 14 of PPWR introduces specific conditions for environmental claims about packaging properties covered by the Regulation. These include limiting claims to properties that exceed applicable minimum requirements and specifying whether the claim relates to the packaging unit, part of it or all packaging placed on the market by the business.
What Are the Consequences of Non-Compliance?
Businesses that fail to comply with the national rules implementing EmpCo could face financial penalties and enforcement action under EU consumer protection legislation.
EmpCo strengthens the existing framework for unfair commercial practices. Enforcement takes place through national authorities, and the framework already provides for penalties and consumer remedies.
Potential consequences of non-compliance include:
- Financial penalties: For certain serious cross-border infringements affecting consumers in multiple EU Member States, fines can reach at least 4% of a business’s annual turnover in the relevant Member States, or at least €2 million where turnover information is unavailable. Actual penalties depend on national legislation and the circumstances of the infringement.
- Enforcement action: National authorities may require businesses to stop using misleading environmental claims or non-compliant sustainability labels, potentially requiring changes to packaging artwork, advertising and other marketing materials.
- Consumer remedies: Consumers harmed by unfair commercial practices may be entitled to remedies such as compensation or a price reduction, depending on applicable national law.
For businesses selling packaged products into the EU, non-compliance could therefore result in additional costs associated with updating packaging, alongside potential financial penalties and reputational damage.
What Should Businesses Consider?
Businesses marketing packaging or packaged products to EU consumers should review the environmental claims and sustainability labels currently used across their packaging and promotional materials.
Particular attention should be given to generic environmental statements, self-created sustainability logos, carbon neutrality claims and statements that could confuse the environmental characteristics of packaging with those of the product itself.
EmpCo represents a further step towards stricter regulation of environmental marketing across the EU, reinforcing the importance of transparent, accurate and evidence-based sustainability communications.
For UK businesses trading with the EU, understanding these changes and the national rules in their destination markets will help ensure that packaging and environmental marketing claims remain compliant.
