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Canada Eases Its Greenwashing Rules: Here’s What That Actually Means for Your Business

Summary:

  • Canada’s anti-greenwashing laws have been amended again. Bill C-15 received Royal Assent on March 26, 2026, walking back two key requirements introduced by Bill C-59 in 2024.
  • The amendment removes the following requirements:
    • For businesses to substantiate environmental claims using internationally recognized methodologies;
    • and limits who can bring greenwashing cases directly to the Competition Tribunal.
  • However, companies aren’t off the hook. Misleading environmental claims are still prohibited, penalties haven’t changed, and regulators and courts are finding new ways to pursue greenwashing cases.
  • Now is a good time for companies to review what they’re claiming publicly and make sure the data actually backs it up.
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Overview

Canada’s approach to greenwashing regulation has shifted again. On March 26, 2026, Bill C-15 received Royal Assent, amending the anti-greenwashing provisions that were first introduced under Bill C-59 just two years earlier. 

 

While the changes offer some relief for businesses that struggled with the original rules, they do not signal a retreat from accountability, and companies that assume otherwise may be caught off guard.

What Changed?

Bill C-15 responds to industry feedback with two targeted amendments to Bill C-59

1. Removal of the “internationally recognized methodology” requirement.
Environmental claims about a business or its activities no longer need to be substantiated against a specific international standard (like the GHG Protocol or ISO 14064). Instead, they must meet the general standard of “adequate and proper substantiation,” which is a more flexible bar but also a less clearly defined one.

2. Restriction of private access to the Competition Tribunal for business claims. Third parties can no longer bring cases directly to the Tribunal over environmental claims about a business or its activities. Oversight of these claims now rests with the Commissioner of Competition.

What should Canadian companies be doing?

The amendments are a step toward a more workable framework, but they are not a signal to ease up. The Competition Bureau still hasn’t clarified what “adequate and proper substantiation” means in practice, so in some ways companies are working with less guidance than before. 

In the meantime, here is what’s worth doing:

  1. Review your existing environmental claims. Detailed review everything publicly communicated, including websites, social media, investor materials and marketing, and ask honestly: is there data to back this up? The burden of proof remains with the company.
  2. Don’t confuse flexibility with permission. The removal of the international recognised methodology requirement makes it easier to choose how you substantiate claims, but it doesn’t lower the bar for whether you substantiate them.
  3. Be especially careful with forward-looking claims. Net-zero targets, reduction commitments, and future-facing pledges must be backed by a realistic, verifiable plan with interim milestones and demonstrable progress.
  4. Be specific, not vague. Avoid broad terms like “eco-friendly” or “sustainable” unless they can be substantiated across the full scope of what is being claimed. Vague claims remain a violation risk under the general impression test.
  5. Watch for Bureau guidance. The Competition Bureau has committed to updating its guidelines following Bill C-15. Companies should revisit their compliance practices once that guidance is published.
  6. Consider your international footprint. If you operate or market in the EU, UK, or Australia, Bill C-15 provides no protection. Those regimes have their own, often stricter, requirements.

Need support substantiating your sustainability claims?

Navigating these new guidelines requires more than just good intentions. It requires solid data. Working with a Carbonhound, a greenhouse gas emissions reporting platform that follows internationally recognized standards (such as the GHG Protocol and ISO 14064) can help ensure your environmental claims are credible, and compliant. Get in touch today to get started on your compliant climate journey at hello@carbonhound.com

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