EU greenwashing rules: offset-based 'carbon neutral' claims banned from 2026

The EU is tightening rules on environmental claims. From September 2026, businesses marketing to EU consumers cannot call a product 'carbon neutral' if the claim relies on offsetting emissions outside the product's value chain. The ban comes from Directive (EU) 2024/825, which also requires generic environmental claims to meet a high standard of evidence. Companies can still invest in carbon projects, but they cannot use that investment to suggest the product has no climate impact. Future claims like 'net zero by 2030' now need a verified implementation plan with measurable targets and independent progress checks. To prepare, businesses should inventory all carbon-related claims across packaging, websites, and ads, separate product-level from company-level statements, and review whether any claim depends on offsets. Specific, substantiated language about measured reductions and clear baselines will become the safer route. The rules apply to existing products in the distribution chain, so action is needed before the deadline.