The draft legislation approved late Tuesday prohibits such labelling unless it can be backed up with detailed proof.
The law will take effect from 2026 after getting final approval.
The deputy head of the European Consumer Organisation, Ursula Pachl, said the rules would go some way to "putting some order in the green claims' chaos".
She added that the current situation, with "generic environmental claims" slapped on all sorts of products, had created a confusing "jungle" for the public.
The legislation also bans companies from using carbon offsetting to allege that a product is beneficial or neutral for the environment.
And it puts limitations on how companies can present the durability of a product, requiring them to hew to approved certification systems, and its repairability.
European commissioner Didier Reynders said that protecting consumers from fraudulent or misleading environmental claims was "essential" as the European Union makes the transition to a greener future.
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