Today threats arising from environmental problems bring about an increased sensitivity at the global level. In this period, where production, consumption, and investment decisions are reshaped in line with environmental sensitivities, the number and the variety of labels and reporting initiatives regarding the environmental performance of businesses and products have increased. There is also an observed increase in ‘greenwashing’ practices, where businesses deliberately give a deceptive impression about their environmental impacts or benefits. In line with its transition to a green and circular economy objective, The European Union (EU) has announced several interrelated initiatives under the European Green Deal and the 2020 Circular Economy Action Plan. The ‘Initiative on Substantiating Green Claims’ aims to ensure that information regarding the environmental performance of businesses and products are reliable, comparable, and verifiable across the EU, while it also aims to prevent deceptive claims. The latest development in this area has been the proposal to introduce new consumer rights and a ban on greenwashing in the new circular economy package announced by the Commission on 30 March 2022. At the national level, steps to be taken in an area where the parliaments, governments, public institutions, and supervisory and surveillance authorities must assume important responsibilities, will provide significant advantages for Turkey. These steps will contribute to sustaining competition in green trade and will also contribute to the achievement of the goal of green transformation. Examining the scope and possible effects of the initiative launched by the EU, this study evaluates the role of the fight against greenwashing, which will be strengthened by this initiative, in ensuring green transition and sustainability.