CarbonSquare/Blog/1 October 2026/5 min read

The EU's green claims rules are now in force. Here's what changes for climate and circular startups.

Since 27 September, "sustainable", "eco-friendly" and "carbon neutral" are no longer words a brand can use on their own in the EU. A plain language summary of Directive 2024/825 for startups and scale-ups, whatever they sell: what changed, who it reaches, what didn't change, and the patterns we keep seeing on startup websites.

Two shoppers reading the label on a product in a small grocery shop

Since 27 September, a new set of EU rules applies to what companies can say about the environmental performance of their products. The rules come from Directive 2024/825, often called the Empowering Consumers Directive. They apply to every business selling to consumers in the EU, from a food startup with one product to an energy scale-up with a million customers. There's no transition period, no small business exemption, and no "we're a climate company, we're the good guys" exemption either.

We spend a lot of our time reading the environmental claims on startup websites. Most of them are made in good faith by founders who believe in what they're doing. That's exactly why we think this is worth a plain language summary. Not because anyone is about to get fined, but because the habits that used to be normal now carry a risk, and the fix is usually easy.

01What the directive actually does

It adds a handful of practices to the EU's list of misleading commercial practices. Four of them matter most for a startup, whatever it sells.

Generic claims without proof

Words like "sustainable", "eco-friendly", "green", "climate friendly" and "biodegradable", used on their own, are no longer allowed unless you can show recognised excellent environmental performance. In practice, for a small brand, that means: don't use them as a tagline.

Claims about the whole product that only cover one part

If your packaging is compostable, you can say your packaging is compostable. You can't say the product is.

Carbon neutral claims based on offsetting

Saying a product is carbon neutral, climate positive or has a reduced impact because you bought offsets is now on the banned list. You can still talk about offsetting. You can't use it to describe the product itself.

Sustainability labels and future promises

A badge or label has to come from a certification scheme or a public authority; a logo you designed yourself doesn't count. And a promise like "net zero by 2030" needs a detailed, public plan with measurable targets and independent monitoring behind it.

From the Commission's own FAQ, September 2026

A QR code doesn't rescue a generic claim. The specification that makes "eco-friendly" mean something has to sit next to the claim, on the same label or page. And if there's no room to specify it, the Commission's answer is simple: then don't make the claim.

02Who it reaches, and it's not only brands with a shelf

The examples people use for this directive are usually packaging: a jar, a tray, a box. That's where the claims are easiest to photograph. But the rules are about the claim, not the product category, and we see the same patterns on the websites of mobility apps, energy startups, building material companies, food tech and software platforms.

If you sell to consumers

Directly covered. Apps, subscriptions, energy contracts, rental and swap platforms, repair services, a web shop, a market stall: if a consumer can buy it, the directive applies to how you describe it.

If you're B2B

Not directly covered: the directive sits inside EU consumer law. But your customers are. A consumer brand that puts your ingredient, material or software on its label is liable for the claim, so it will ask you for the evidence. B2B claims also fall under the EU's misleading advertising rules, enforced through the courts rather than the consumer authority.

If you're bigger than a startup

Same rules, more exposure. Enforcement follows visibility, investors and corporate buyers now ask for substantiation as standard, and a scale-up's homepage is read by far more people than a market stall's sign.

Six claims from outside the supermarket

Lightly disguised, all from sectors we work in or see at accelerator programmes. Same test every time: generic, or specific and sourced?

Mobility app
"Climate neutral rides"
"X g CO₂e per km, measured over [period]. We also buy carbon credits, reported separately."
Energy
"100% green energy"
"Electricity from Dutch wind and solar, backed by guarantees of origin, matched [yearly / hourly]."
Built environment
"Circular façade panels"
"Panels made from X% recovered steel, designed for disassembly, with a take-back contract."
Food tech, B2B
"Our protein cuts emissions by 80%"
"80% lower CO₂e per kg of protein than [reference], cradle to gate, [method], [year]."
Fashion platform
"Every swap saves the planet"
"Average avoided emissions per swap, by category, with the projection kept separate from what's been achieved."
Software
"A carbon negative company"
"Scope 1 to 3 measured for [year], reduction targets published, removals bought and reported separately."
Try it

Allowed or not? Six claims we've seen on real websites, lightly disguised.

Tap your answer. The rule behind each one is explained after you choose.

"Eco-friendly packaging"
Not allowed as it stands. "Eco-friendly" is on the directive's own list of generic claims. Say what the packaging is made of instead.
"Our panels contain 72% recovered steel, verified by [scheme], [year]."
Allowed, if it's true. Specific, about one property, with a named verifier and a date. Works on a building site as well as on a shelf.
"Carbon neutral delivery, thanks to our offsetting partner"
Not allowed. A neutral or reduced impact claim based on offsetting is now a banned practice. You can still mention the offsets, in a separate sentence, as what they are.
"Net zero by 2030" on the homepage, and nothing else
Not allowed without the plan. A future claim needs public, measurable commitments, an implementation plan and independent monitoring. The promise alone doesn't count.
"Sustainable" on the pack, with a QR code to the sustainability page
Not allowed. The Commission's FAQ is explicit: the specification has to be next to the claim, on the same medium. The QR code can hold the evidence, not the meaning.
"0.59 kg CO₂e avoided per kg of rescued bread. ADEME factors, screening level, method on request."
Allowed. A measured number, a named source, a stated boundary. This is what a claim looks like after September.

03What didn't change

This is the part that gets lost. Specific, measured and sourced claims are still fine. "Made from 80% rescued bread" is fine, if it's true. The sentence below is also fine, and it says more than "sustainable" ever did:

0.59 kg CO₂e avoided per kg of bread we rescue · ADEME emission factors · screening level

One thing to check before you believe it

The directive does not require third party verification of your claims before you publish them. That requirement was part of a separate proposal, the Green Claims Directive, which has not been adopted. Negotiations on it stalled in 2025 and its future is unclear.

If someone tells you that you now need a certified verification of every number, check what they're selling.

DIRECTIVE (EU) 2024/825 IN FORCE 27.09.2026 ECO FRIENDLY CLIMATE POSITIVE via offsets 100% GREEN CERTIFIED BY US SUSTAINABLE CARBON NEUTRAL* NET ZERO BY 2030 0.59 kg CO₂e avoided per kg of rescued bread ADEME EMISSION FACTORS · SCREENING LEVEL · BOUNDARY STATED GENERIC: NEEDS PROOF · SPECIFIC: FINE

04Five patterns, shown on things you can hold

After reviewing the public claims of a few dozen circular and climate startups this year, the same things keep showing up. None of them are lies. All of them are now a problem. We've put them on consumer products because they're easiest to see there; the same five appear on B2B decks and SaaS landing pages.

A founder at a demo day, the slide reads Sustainable. Circular. Green. The same slide now reads We turn surplus bread into snacks, 12 tonnes rescued in 2025, method on request Claim as publishedWhat it should say
01

"Sustainable" in the tagline

Replace the adjective with what you actually do. "We turn surplus bread into snacks" is a fact an investor can picture and you can prove. "Sustainable" is a mood.

Drag the bar
A delivery van on an Amsterdam street with 70% less CO2 printed on the side The same van now reads 70% less CO2e per parcel than our diesel vans, 2025 routes, method on request Claim as publishedWhat it should say
02

A percentage with no baseline

Compared to what? Name the comparison and where the number comes from. A percentage without a baseline is a feeling, not a claim.

Drag the bar
A jar of sauce with a self-made eco certified sticker The same jar without the sticker, the label states 82% rescued bread Claim as publishedWhat it should say
03

A homemade badge

A circle that says "eco certified" with no scheme behind it is now a banned practice. Either get the real certification, with the scheme's name on it, or drop the badge and let the label speak.

Drag the bar
A meeting room whiteboard reading Carbon neutral, all services from Q1, via offset partner The same whiteboard now reads Measured 1,240 t CO2e scope 1 to 3 2025, Reduced 18% vs 2023, Credits bought and reported separately Claim as publishedWhat it should say
04

"Carbon neutral" via offsets

Say what you measured and what you reduced. Keep the offsets in a separate sentence, described as what they are. This is the one we see most on B2B and services websites.

Drag the bar
Ingredient sacks in a food facility printed Plastic free packaging, with a plastic inner liner visible The same sacks now read Paper outer sack, PE inner liner, recyclable Claim as publishedWhat it should say
05

A whole product claim for one part

Be precise about which part. "Plastic free packaging" printed on a paper sack with a plastic liner inside it is exactly the kind of claim the directive names.

Drag the bar

The scenes are staged and the companies and figures in them are fictional examples. Drag each bar to compare the claim as published with a version that would survive a question.

Two shoppers in a supermarket reading the label on a jar
A specific claim gives the reader something to check. "Eco" gives them nothing.

05Our take

Regulation didn't invent any of this. What it did is turn a vague marketing habit into a legal exposure, and that changes who in the company has to care. The founders we work with usually welcome it, once they see that the specific version of their claim is stronger than the generic one anyway.

If you're going to put a number on your website, show where it came from, what it covers and what it leaves out. That was good practice before September. Now it's also the rule.

Rough check

Paste a sentence from your website.

We'll flag the words the directive treats as generic. It's a first pass, not legal advice, and it can't tell whether your number is true.

Nothing you type leaves this page.
Directive (EU) 2024/825 applies from 27 September 2026 and is enforced by national consumer authorities, in the Netherlands the ACM. The status of the separate Green Claims Directive proposal is as of our last check and may change.

Not sure which of your claims are still allowed?

Checking claims like these is a big part of what we do. Send us your website and we'll tell you which sentences are fine, which need a source, and which should go.