In brief
From 27 September 2026, businesses marketing products to consumers in the European Union (EU) will face stricter rules on environmental claims, sustainability labels, and climate-related advertising as the new rules under the Directive on Empowering Consumers for the Green Transition (ECGT) will start to apply. While the ECGT, which introduces a new regime governing environmental or "green" claims made to consumers, is formally part of EU consumer protection law, its practical implications extend to non-EU exporters, including Thai businesses that market products within the EU.
In more detail
A new chapter in the EU’s green regulatory landscape
As the European Union (EU) continues to expand its sustainability-related regulatory framework under the European Green Deal, the ECGT forms part of the EU’s broader effort to ensure that consumers receive accurate and reliable information when making purchasing decisions. The regime is designed to combat "greenwashing" by introducing targeted restrictions on environmental claims and sustainability labels in commercial communications.
The ECGT entered into force on 26 March 2024. EU member states were required to transpose it into their national laws by 27 March 2026, and the new rules will apply from 27 September 2026. As the ECGT is a directive rather than a regulation, individual member states must implement the requirements through their own national legislation and enforcement mechanisms. Currently, several EU Member States, including Germany and Italy, have completed transposition, while others remain in the legislative process. Nevertheless, the ECGT will apply across the EU from 27 September 2026, and businesses marketing products to EU consumers should prepare for compliance regardless of the implementation status in any particular member state.
For environmental claims, several key restrictions are particularly relevant, including:
- Generic environmental claims such as "eco-friendly," "green," "environmentally friendly," or “climate friendly" are generally prohibited unless supported by recognized excellent environmental performance.
- Sustainability labels may only be used if they are established by public authorities or based on qualifying certification schemes with independent third-party verification.
- Claims that a product is "carbon neutral" or has a positive climate impact based solely on carbon offsetting are prohibited.
- Claims regarding future environmental performance, such as net-zero or emission reduction targets, must be supported by clear, verifiable, publicly available plans and independent verification.
Importantly, the rules extend beyond product packaging and traditional advertising. Company websites, social media content, online marketplaces, and other commercial communications directed at consumers may also fall within scope.
Why Thai operators should pay attention
Although the ECGT is an EU consumer law instrument, its impact will be felt throughout global supply chains. The EU remains one of Thailand’s largest export destinations, and Thai exporters increasingly face sustainability-related requirements as the EU incorporates environmental objectives into market access conditions. EU Green Deal developments have created a clear regulatory trend whereby environmental performance is becoming an increasingly important condition for access to EU markets.
For Thai manufacturers, brand owners and exporters selling products into the EU, the ECGT may affect:
- Product packaging and product labels
- Environmental statements on websites and social media
- Sustainability disclosures that are repurposed for marketing purposes
- Use of sustainability logos and certification marks
- Claims regarding recycled content, reduced carbon footprint, biodegradability, or carbon neutrality
Businesses may therefore need to review not only the claims they make, but also the evidence supporting those claims and whether the relevant certifications satisfy EU requirements.
In practice, compliance challenges may arise in several areas.
- Advertising and marketing practices
The ECGT focuses heavily on how products and businesses are presented to consumers. Even visual elements such as green leaves, water droplets, sustainability-themed icons, or color schemes may contribute to the overall assessment of whether consumers could be misled.
- Digital content and websites
Environmental claims appearing on websites, online stores and marketing materials may require the same level of substantiation as claims appearing on physical product packaging. Businesses operating across multiple jurisdictions may therefore need greater consistency in their sustainability messaging.
- Existing inventory and packaging
Products manufactured before September 2026 may still be affected if their packaging contains non-compliant environmental claims. While EU authorities have indicated a pragmatic approach toward certain "old stock" situations, businesses are expected to take genuine and timely steps to achieve compliance.
Regulatory gap with Thai law
Thailand already prohibits misleading advertisements under the Consumer Protection Act and has adopted guidelines requiring advertisers to possess evidence supporting factual claims. Advertisers must be able to substantiate statements based on research, testing, statistics, awards, or certifications when challenged by regulators.
However, Thailand does not currently have a comprehensive regulatory regime specifically targeting environmental claims or greenwashing to the extent seen under the ECGT. As a result, certain claims that may be relatively common in Thailand could face closer scrutiny when used in the EU market.
Looking ahead
The ECGT represents another step in the EU’s broader shift toward sustainability-focused trade and consumer regulation. While the compliance burden may initially appear significant, the development is consistent with a wider global trend toward greater transparency and accountability in environmental communications.
Moreover, similar policy discussions are emerging globally. Environmental product disclosures, anti-greenwashing initiatives, and sustainability-related marketing controls are increasingly being considered in jurisdictions outside the EU as governments seek to improve consumer confidence and support environmental objectives.
For Thai businesses exporting to the EU, the ECGT is therefore more than a compliance issue. It may signal the future direction of global trade regulation. Businesses that are able to substantiate environmental claims, maintain reliable supporting data, and align commercial communications with evolving international expectations are likely to enjoy stronger competitiveness and market access in the years ahead.
About our Sustainability group and how we help
With the growing global recognition of the importance of Environmental, Social, and Governance (ESG) and digitalization considerations in various markets, we are witnessing a notable shift in the approach taken by policymakers and industry players. This shift opens up new opportunities, but also new challenges for market participants navigating the evolving sustainability ecosystem. Strong ESG practices relating to environmental sustainability, human rights, labor, governance, supply chains, and corruption are now a prerequisite for good business practice. This represents an enormous opportunity for many organizations. However, failing to take this responsibility seriously brings potential legal, financial and reputational liabilities, as well as a loss of trust among consumers and other stakeholders.
At Baker McKenzie, we help our clients achieve their targets by clearly analyzing and identifying the areas of legal risk and scope for growth. As your Green Partner, we help transform operations, manage risk, and drive growth as we make greater strides toward a more sustainable future. We also assist clients by providing the information and insight needed to support informed, comprehensive and ambitious decision-making. With our experience, global perspectives, industry expertise, and geographic reach, we are the law firm best equipped to provide the entire spectrum of legal and regulatory advice in a manner that is consistent with your business objectives.
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Dhiranantha Rithmanee and Dr. Muanjit Chamsilpa, Sustainability Specialists, have contributed to this legal update.