Key Changes in Cyprus Environmental Claims and Sustainability Regulations from 2026
What businesses need to know about environmental claims, sustainability labels and the new consumer protection requirements applying from 27 September 2026
Cyprus has introduced significant new rules governing environmental claims and other sustainability-related marketing practices through the Consumer Protection (Amendment) (No. 3) Law of 2026 (Law 122(I)/2026).
The Law, published on 17 July 2026, transposes Directive (EU) 2024/825 on empowering consumers for the green transition into Cyprus law and will come into force on 27 September 2026.
The changes are particularly relevant to businesses using environmental or sustainability claims on their products, packaging, websites, advertising or other consumer communications.
A stricter approach to environmental claims
The new legislation expands the existing rules on unfair commercial practices to expressly address environmental and social characteristics and circularity features such as durability, repairability and recyclability.
Importantly, the definition of an environmental claim is broad. It can include text, images, graphics, labels, brand names, company names and product names which state or imply that a product, brand or business has a positive or zero environmental impact, has less environmental impact than alternatives, or has improved its environmental impact over time.
Businesses should therefore not assume that the rules apply only where an advertisement expressly makes an environmental claim. The overall presentation of a product or brand may also be relevant.
Generic green claims require particular care
One of the most significant changes concerns generic environmental claims.
Under the new rules, making a generic environmental claim will constitute a prohibited commercial practice where the trader cannot demonstrate recognised excellent environmental performance relevant to the claim.
This means that broad claims suggesting that a product or business is environmentally preferable should be approached with considerably greater caution. Rather than relying on broad sustainability language, businesses should consider whether the claim can be made more specific, transparent and appropriately substantiated.
The legislation also prohibits making an environmental claim about an entire product or business where the claim actually concerns only a particular aspect of the product or a specific activity of the business.
For example, an improvement in the environmental characteristics of packaging should not automatically be presented as an improvement in the environmental performance of the product as a whole.
Carbon offsetting claims
The Law also directly addresses carbon-offsetting claims.
Claims based on the offsetting of greenhouse gas emissions which state that a product has a neutral, reduced or positive environmental impact in terms of greenhouse gas emissions are added to the list of commercial practices which are prohibited in all circumstances.
This is particularly important for businesses currently using product claims based on purchased carbon credits or offsetting programmes. Existing wording such as carbon or climate neutrality claims should therefore be reviewed carefully before the new rules become applicable.
Sustainability labels
Businesses should also review environmental and sustainability logos and labels appearing on products and marketing materials.
Under the new Law, displaying a sustainability label which is not based on a certification scheme or established by a public authority is expressly prohibited.
A business-created sustainability logo or trust mark can therefore present a compliance risk unless it falls within the permitted framework.
The legislation sets detailed requirements for qualifying certification schemes, including third-party verification, publicly available requirements, appropriate procedures for dealing with non-compliance and independent monitoring.
Future environmental commitments
Businesses increasingly make forward-looking statements such as commitments to reduce emissions or improve their environmental performance by a particular year.
The new rules do not prohibit such commitments, but they impose substantially greater discipline on how they are made.
Claims concerning future environmental performance may be misleading unless supported by clear, objective, publicly available and verifiable commitments contained in a detailed and realistic implementation plan. That plan must include measurable and time-bound targets and must be regularly verified by an independent third-party expert, whose findings are made available to consumers.
Corporate sustainability ambitions should therefore be reviewed not only by ESG teams, but also from a consumer and advertising law perspective before being incorporated into consumer-facing communications.
Durability, repairability and consumer information
The amendments go beyond greenwashing.
The Law introduces additional consumer information requirements concerning matters such as product durability, software updates, repairability, spare parts and commercial guarantees of durability. It also introduces the EU harmonised notice concerning the legal guarantee of conformity and the harmonised label for qualifying commercial durability guarantees.
The European Commission has published practical guidance and the relevant harmonised materials for businesses ahead of their application from 27 September 2026.
What should businesses do now?
With the new rules taking effect on 27 September 2026, businesses selling to consumers in Cyprus should review their environmental and sustainability communications without delay.
As a practical compliance exercise, businesses should:
- Audit environmental claims appearing on websites, packaging, labels, advertising, social media and promotional materials.
- Identify generic sustainability language and determine whether it can be properly substantiated or should be replaced by a more precise claim.
- Review sustainability labels and logos to confirm that they are based on an appropriate certification scheme or established by a public authority.
- Review carbon-neutrality and offsetting claims, particularly where the claimed environmental benefit depends on carbon credits rather than reductions relating to the product itself.
- Verify future environmental targets and commitments, ensuring that consumer-facing claims are supported by the required plans, measurable targets and independent verification.
- Review product information processes relating to guarantees, durability, repairability, software updates and spare parts where applicable.
The Cyprus Chamber of Commerce and Industry has similarly advised businesses to make reasonable efforts to comply by 27 September 2026, including, where necessary, updating online and advertising references and adapting product packaging.
The changes represent an important shift in the legal treatment of sustainability marketing. Environmental credentials can remain an important part of brand communication, but businesses will increasingly need to ensure that such claims are specific, supportable and accurately reflect the environmental benefit being promoted.
B Legal can assist businesses with reviewing environmental claims, packaging, advertising materials and sustainability communications for compliance with the new Cyprus and EU consumer protection requirements.
This article is intended for general information purposes only and does not constitute legal advice.
