EU Tightens Regulations to Combat Greenwashing: What Companies and Consumers Need to Know

More and more companies are incorporating terms like “green” and “sustainable” in their communications, but not all claims stand up to rigorous scrutiny. The European Union has decided to take clear measures to combat greenwashing and ensure a more transparent business environment.

In recent years, there has been much discussion about greenwashing, but few consumers—and even companies—fully understand what it really is.

When we talk about greenwashing, we are not only referring to misleading claims but also to unfounded statements about the environmental characteristics of a product, packaging, or brand, intended to attract environmentally or health-conscious consumers.

The Problem with Greenwashing

These practices undermine public trust and distort the market, giving an unjustified advantage to companies that do not genuinely adhere to sustainability principles.

What Does the European Union Say?

Through two key regulations—the Consumer Protection Directive in the Green Transition (EU) 2024/825 and the Green Claims Directive (GCD)—the EU is imposing strict rules that will change how companies communicate about sustainability.

The new regulations clarify that environmental claims must be specific and verified, and general or misleading statements are strictly prohibited. Consumers must know exactly what they are buying and be confident that a product marketed as sustainable truly meets environmental standards.

An “environmental claim” is defined as any message or representation, whether textual, visual, symbolic, or implied, that is not legally required by EU or national legislation. This includes labels, brand names, trade names, and product descriptions (Directive (EU) 2024/825).

Even temporarily changing a logo to green to suggest environmental commitment—without any real action—is considered greenwashing!

Implementation of the Directive in Romania

Directive (EU) 2024/825 was adopted on February 28, 2024, and published in the EU Official Journal on March 6, 2024. According to EU requirements, it must be transposed into national law by March 27, 2026.

This means that Romanian authorities must adopt and publish measures to ensure the Directive’s implementation so that companies comply with the new rules by September 27, 2026, when they become mandatory.

What Changes Will the Directive Bring?

The transposition of the Directive requires adjustments to consumer protection and commercial practice laws, establishing clear regulations on permissible environmental terms and claims. Additionally, collaboration between authorities, companies, and consumer protection organizations will be essential to ensure a uniform understanding of the new rules.

There might be an initial reluctance from companies to promote their products’ sustainability features due to fear of sanctions. However, after a period of clarification, communication about sustainability will become more accurate, honest, and standardized, says sustainability expert Mircea Ilie.

The Green Claims Directive: Still Under Debate

Besides Directive (EU) 2024/825, the EU is working on expanding the legislative framework against greenwashing through the Green Claims Directive (GCD). This proposal includes stricter requirements for verifying companies’ environmental claims.

Key provisions include:

• Clear and verifiable plans for any claim about climate neutrality.

• Environmental labels will only be permitted if validated by authorities or independent third parties.

• Regulators and consumers must have access to information backing environmental claims.

Currently, the Green Claims Directive is still under debate and negotiation between EU member states and the European Parliament, with its final version yet to be adopted.

Key Changes in Directive (EU) 2024/825

This Directive, which companies must comply with by September 2026, represents a major step in consumer protection and introduces several major changes:

1. Ban on General Environmental Claims Without Proof

Claims like “eco-friendly,” “green,” “sustainable,” “bio,” or “eco” will be banned unless backed by verifiable and documented evidence.

2. Stricter Rules for Product Comparisons

Companies can only compare products based on environmental characteristics if methods are transparent, objective, and verifiable.

3. Harsher Penalties

EU member states can impose fines of up to 4% of a company’s annual revenue for violations.

4. Increased Transparency

Companies must disclose details about product durability and repairability, as well as other factors that impact consumer choices.

Common Greenwashing Tactics That Will Be Banned

Directive (EU) 2024/825 prohibits the following deceptive marketing tactics:

Prohibited Claims Why?

Vague & Generic Statements “Eco-friendly,” “green,” “sustainable”—these are too broad and unverifiable.

Carbon Offset-Based Claims Terms like “climate neutral” based on tree planting, without actual emission reductions, are misleading.

Misleading Product Comparisons Claims like “more recyclable than others” are banned unless scientifically validated.

Fake or Ambiguous Certifications Labels such as “100% Sustainable” that are not backed by independent validation will be illegal.

Incomplete or Deceptive Information “Made from recycled materials” (when only the packaging is recycled) is misleading.

Legal Compliance Presented as a Benefit Statements like “Does not contain banned chemicals” will no longer be allowed.

What Environmental Claims Will Be Allowed?

Approved Claims Why?

Specific Material Percentages Example: “Made from 80% recycled materials”—clear and verifiable.

Details About Energy Sources Example: “Packaging made using 100% renewable energy”—only valid if documented.

Product Durability Example: “Reusable for X years”—must be backed by tests or studies.

Use-Phase Environmental Impact Example: “Zero carbon emissions during use”—must specify the usage phase.

Recognized Certifications Example: “Certified sustainable by ISO 14001”—validated by independent bodies.

Impact on Companies and Marketers

The new EU greenwashing regulations present both challenges and opportunities for companies and marketing professionals.

1. Marketing Strategies Must Be Fact-Based

Marketers must rely on concrete data to communicate sustainability claims transparently.

Example: Instead of saying “biodegradable packaging,” companies must specify “Fully decomposes in an industrial compost facility within 12 weeks.”

2. Increased Costs for Verification & Certification

Companies will have to allocate more resources to verify and document environmental claims.

Example: A company claiming “100% renewable energy” must provide certified documentation proving exclusive use of wind, solar, or other renewable sources.

3. Packaging Redesign

Companies must remove misleading claims and add specific details.

Example: A label stating “climate-friendly” must be replaced with “Made from 60% recycled cardboard and 40% FSC-certified wood.”

4. Reputational and Financial Risks

Non-compliance with the new regulations could lead to:

• Fines up to 4% of annual turnover

• Loss of consumer trust

• Negative media exposure

5. Internal Education & Compliance

Marketing and communication teams will need training on the new regulations, potentially collaborating with sustainability experts.

Why These Regulations Matter for Consumers

These changes are not just bureaucratic rules—they help protect consumers from misleading claims and ensure fair competition.

• Consumers will be better informed about products’ true sustainability.

• Greenwashing will become harder to execute.

• Companies will be incentivized to adopt genuine sustainability practices.

A More Transparent Future

The EU’s crackdown on greenwashing is a major step towards a sustainable and fair economy. While some companies may initially resist, long-term compliance will strengthen consumer trust and drive real environmental impact.

As sustainability expert Mircea Ilie concludes:

“Yes, some will try to find loopholes, but in the long run, greenwashing will be significantly reduced.”