Directive (EU) 2024/825 on empowering consumers for the green transition – how will the new directive affect marketing regulations and companies’ obligations?

The Empowering Consumers for the Green Transition Directive ((EU) 2024/825) tightens the regulation of environmental claims and increases companies’ disclosure obligations. The objective of the Directive is to prevent greenwashing, i.e. untruthful and misleading sustainability communications, and to strengthen consumer confidence in environmental claims. Companies should promptly assess whether their marketing practices meet the upcoming requirements.

The Directive entered into force on 26 March 2024, and Member States were required to transpose it into national legislation by 27 March 2026. The new rules apply from 27 September 2026. In Finland, the Government Proposal (HE 47/2026) was submitted to Parliament on 9 April 2026. The Directive’s marketing-related amendments are reflected in Finland primarily as changes to the marketing provisions of the Consumer Protection Act.

Additionally, Finland has ordained a six-month transitional period for products and packaging materials already in stock. Without such a transitional period, the original application timeline could have resulted in costs of up to hundreds of millions of euros for Finnish companies due to product and packaging waste, if they would not be allowed to sell products already in stock. The transitional period has been enacted by Government Decree 664/2026. In accordance with the transitional period, certain legislative amendments required by the Directive will become fully part of national legislation by 27 March 2027.

Restrictions on the Use of Generic Environmental Claims

Potentially the most significant change introduced by the Directive concerns generic environmental claims used in marketing. A generic environmental claim refers to any environmental claim made in written or oral form, including through audiovisual media, that is not included on a sustainability label and where the specification of the claim is not provided in clear and prominent terms on the same medium. Brand, product and company names may also constitute a generic environmental claim.

Going forward, the use of generic environmental claims such as “environmentally friendly”, “green”, “eco” or “climate friendly” is, in principle, prohibited. Such claims are permitted only if a recognized excellent environmental performance can be demonstrated in support thereto, for example by means of an EU Ecolabel or an equivalent officially recognized environmental labelling scheme.

However, a generic claim may be made if its content is clearly and prominently specified in the same medium of communication. For example, the claim “100% of the energy used in the manufacture of the packaging comes from renewable sources” is permissible, whereas a mere claim of “climate friendly packaging” is generally not.

It is important for companies to note that the definition of an environmental claim in the Directive is remarkably broad. An environmental claim may be a message presented in any form which states or implies, for example, that a product or company has a positive impact or zero impact on the environment, or that it is less damaging to the environment than other products or companies. Accordingly, the definition of an environmental claim may also apply to colors, nature-depicting symbols and other visual elements, if they can be considered to create an impression relating to, for example, environmental friendliness in the mind of the consumer.

Uncertified Sustainability Labels

Sustainability labels may only be used if they are based on an independent and objective certification scheme or a scheme established by a public authority. A company’s own uncertified sustainability labels are not permitted.

Presenting a Partial Feature as a Feature of the Entire Product or Company

An environmental claim must not be presented in such a manner that it gives the consumer the impression that it relates to the environmental features of the entire product or company, when the claim concerns only a certain aspect of the product or a specific activity of the company.

Carbon Neutrality Claims Based on Offsetting

It is prohibited to make claims such as “carbon neutral”, “climate neutral” or “CO₂ neutral” about a product if the claim is based on greenhouse gas emission offsets outside the value chain and not on the product’s actual life cycle impacts. Companies may still communicate about emissions credit projects and investments in environmental initiatives, but claims relating to these must not be presented as an environmental feature of the product.

Marketing Statutory Requirements as a Distinctive Advantage

A company must not present as a competitive advantage a feature that is based on a statutory requirement applicable to all comparable products. For example, the claim “does not contain X” may be prohibited if the substance in question is already banned by law in the relevant product category.

Future-Related Environmental Claims

Claims based on future environmental objectives, such as “carbon neutral by 2030″, are not automatically prohibited. However, they may be misleading unless they are supported by publicly available, verifiable and measurable commitments together with a detailed implementation plan. In addition, progress towards the objectives must be monitored by an independent third-party expert.

New Disclosure Obligations

The Directive also creates new disclosure obligations, particularly concerning the provision of information on the durability and repairability of products.

All commercial communication concerning a product that contains a feature introduced to limit the product’s durability is prohibited despite information on the feature and its effects on durability being available to the trader. In addition, it is prohibited to make a false claim about a certain durability of a product in terms of usage time or intensity under normal conditions of use.

For products containing digital elements, consumers must be informed of the minimum period during which software updates will be provided. In addition, an update must not be presented as necessary if it merely enhances functionality features.

Where a manufacturer offers a commercial durability guarantee covering the entire product for a period exceeding two years and has made the relevant information available to the trader, the trader must inform the consumer thereof by means of a harmonized GARAN label.

Regarding repairability, information must be provided on the reparability score that may be established by the EU, or alternatively on the availability of spare parts, repair instructions, costs, and any restrictions related to repair. It is prohibited to present a product as allowing repair when it does not.

Impact on Corporate Communications and Marketing

As set out above, the Empowering Consumers for the Green Transition Directive imposes significant and concrete requirements on corporate communications from the coming autumn onwards. Companies should, before 27 September 2026 at the latest, do the following:

• review all marketing materials and identify and examine any environmental claims contained therein;
• assess whether existing or planned brand, product and company names or marketing imagery create environmental impressions for consumers;
• discontinue offset-based carbon neutrality, climate neutrality and equivalent claims, or adapt them to comply with the regulations;
• ensure the regulatory compliance of sustainability labels in use;
• properly document future environmental commitments;
• update product information, packaging and sales channel communications (e.g. websites) to comply with the new disclosure obligations; and
• train marketing, sales and product development personnel on the new requirements.

The new regulation is also offering companies an opportunity to strengthen the credibility of their sustainability communications as well as consumer confidence in the company and its products. Our experts are happy to assist in assessing risks related to environmental claims, sustainability labels and sustainability communications, as well as in identifying any necessary changes well in advance of the regulation entering into force.