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EU bans carbon neutral claims in a bid to crack down on greenwashing

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The European Union has unveiled laws to ban carbon neutral claims, aiming to protect consumers against greenwashing.

As reported by the Financial Times, the rules say “generic environmental claims” that could be banned include phrases such as “green”, “nature’s friend”, “energy efficient” and “biodegradable”, unless the products can demonstrate “excellent environmental performance”.

The law will see changes take effect in 2026.


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BEUC deputy director general Ursula Pachl said a ban on carbon neutral claims is “great news for consumers” as there is “no such thing as ‘carbon neutral.’”

“Carbon neutral claims are greenwashing, plain and simple,” Pachl added.

“It’s a smoke screen giving the impression companies are taking serious action on their climate impact.

“The new EU rules will enable consumers to navigate through a sea of green claims and choose durable products that live up to expectations,” she continued.

The new EU law will also bring:

  • Ban on generic environmental claims for which the trader cannot demonstrate an excellent environmental performance.
  • Ban on sustainability labels which are not based on certification schemes or established by public authorities.
  • Stricter rules for future environmental performance claims which will only be allowed if they include a realistic implementation plan, feasible targets and if they are regularly reviewed by independent third-party experts, whose findings shall be made available to consumers.
  • Ban on ‘carbon neutral’ claims, which are highly misleading to consumers and are everywhere on the market, often in the most environmentally-harmful sectors such as aviation and food.
  • New information obligations on repairability and software updates to help consumers choose more sustainable products at the point of sale.
  • New harmonised guarantee label to allow consumers to make more informed choices. Consumers will be informed about the durability of products on the market which could influence their purchasing decisions.
  • Ban on business’ premature obsolescence practices which can cause early product failures.
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