[Regulatory Update] EU Opens Infringement Proceedings Against 20 Member States Over Transposition of the Green Transition Consumer Directive

EU Green Claims Directive (and Empowering Consumers Directive)

The Green Claims Directive is a proposed EU directive aimed at eliminating "greenwashing" — unsubstantiated environmental appeals and exaggerated advertising — and enabling consumers to choose products based on trustworthy environmental information. It was proposed by the European Commission in March 2023 and the European Parliament adopted its first-reading position in March 2024. At its core, the proposal would require companies to substantiate environmental claims (such as "eco-friendly" or "carbon neutral") and environmental labels with clear, science-based evidence — for example, a life-cycle assessment — and to obtain "ex-ante verification" from an independent, accredited third-party body before making such claims. As of 2026, however, the legislative process has effectively stalled: in June 2025, the European Commission signaled its intent to withdraw the proposal and halt negotiations, citing concerns over the excessive administrative cost of third-party verification and the disproportionate burden it would place on small and medium-sized enterprises. That said, enforcement against greenwashing has not slowed. The Directive on Empowering Consumers for the Green Transition (the EmpCo Directive, Directive (EU) 2024/825), developed alongside the Green Claims Directive, was adopted on February 28, 2024 and applies from September 27, 2026. Under the EmpCo Directive, claims based solely on offsets — such as labeling a product "carbon neutral" — are banned, and generic environmental claims for which the trader cannot demonstrate recognised excellent environmental performance are also prohibited.