The EU’s Green Transition Directive (the “Directive”) is intended to promote transparent sustainability communication by tackling misleading environmental claims and labelling for consumer goods and establishing increased protection for consumers against unfair practices. The European Union (Empowering Consumers for the Green Transition) Regulations 2026 (the “Regulations”) were published on 3 April 2026, thereby transposing the Directive into Irish law. The Regulations will come into force on 27 September 2026, meaning that businesses must prepare for their obligations under the Regulations.
Objectives of the legislation
The Directive aims to ensure that consumers receive reliable and verifiable environmental information on products, amending and strengthening the two existing pieces of EU consumer legislation: the Unfair Commercial Practices Directive and the Consumer Rights Directive.
The main objectives of the Directive are:
- to protect consumers against unfair commercial practices such as greenwashing, premature failure of goods, and unreliable sustainability labels by establishing rules for making environmental claims and banning unaccredited sustainability labels; and
- to provide consumers with clear and trustworthy information about the environmental, social, and circular impacts of products and services. The Directive will introduce minimum requirements required for companies to substantiate their sustainability claims.
The Regulations amend both the Consumer Protection Act 2007 (the “CPA”) and the Consumer Rights Act 2022 (the “CRA”). Currently the CPA prohibits businesses from engaging in misleading commercial practices in Ireland. The Regulations will extend the scope of what is considered to be a ‘misleading commercial practice ’. Environmental claims related to future environmental performance without clear, objective and verifiable commitments and targets, and an independent monitoring system, will be considered ‘misleading commercial practices ’ if they cause a consumer to make a decision which they wouldn’t have otherwise made.
Additionally, the Regulations extend the list of commercial practices which are always considered unfair (‘prohibited commercial practices ’ under the CPA). This list will be extended to encompass the following practices associated with greenwashing:
- displaying a sustainability label which is not based on a certification scheme or which has not been issued by a public authority;
- making a generic environmental claim without being able to demonstrate recognised excellent environmental performance relevant to the claim;
- making an environmental claim about an entire product when it actually concerns a certain aspect of the product;
- making claims that a product has a reduced, neutral or positive impact on the environment in terms of greenhouse gas emissions, based on offsetting;
- presenting legally required features as a distinctive feature of the trader’s offer; and / or
- carrying out certain practices in relation to the planned obsolescence of goods.
Key features of the regulations
All businesses which make environmental or sustainability claims about products or services should be aware that specific misleading commercial practices relating to such claims will be prohibited by the Regulations. In particular, it will be prohibited for a business to:
- mislead consumers as to a product’s environmental or social characteristics;
- make an environmental claim related to future environmental performance without clear, objective, publicly available and verifiable commitments set out in a detailed implementation plan with measurable targets;
- advertise benefits to consumers that are irrelevant and not directly related to any feature of that product or business (eg, claiming bottled water is gluten-free);
- display a sustainability label that is not based on a certification scheme or issued by a public body. The Directive proposes criteria for environmental labelling / certification schemes which would certify that a product, process or trader complies with the requirements for an environmental label;
- make a generic environmental claim (eg, that a product is ‘eco-friendly ’ or ‘green ’) unless the business can demonstrate relevant excellent environmental performance;
- suggest an environmental benefit applies to the entire product or business when it only relates to a certain aspect;
- claim, based on the offsetting of greenhouse gas emissions, that a product has a neutral, reduced or positive impact on the environment in terms of greenhouse gas emissions; and
- provide inaccurate information regarding the durability or repairability of products.
The Competition and Consumer Protection Commission (“CCPC”) is responsible for overseeing compliance with the Regulations and has the authority to issue compliance notices, fixed payment notices or seek prohibition orders through the Court. In cases of widespread infringements, fines of up to 4% of turnover or €2 million may be imposed.
Next steps
Consumer facing businesses have until 27 September 2026 to prepare internal protocols and governance structures that are in compliance with the Regulations.
Contact us
Please contact Kate McKenna, Susanne McMenamin, or your regular Matheson contact with any queries.
