Businesses that use terms such as “climatically neutral,” “environmentally friendly,” or “sustainable” in their corporate communications will, as of autumn 2026, be operating within a fundamentally altered legal framework. With Directive (EU) 2024/825 – known in legal practice as the EmpCo Directive – the European legislator has fundamentally reorganised the rules governing environmental advertising claims. Transposition into German law is now complete: on 19 December 2025, the Bundestag adopted the corresponding legislative package; the new provisions enter into force on 27 September 2026.
This gives rise to a substantial need for adaptation on the part of businesses – not only with regard to individual advertising claims, but also in relation to certification marks, quality labels, and the overall compliance framework within marketing functions. The following sets out an overview of the key elements of the new legal position and their practical implications.
1. Background and Regulatory Purpose
The EmpCo Directive stands for “Empowering Consumers for the Green Transition” – empowering consumers for the green transition. Its aim is to protect consumers from misleading sustainability claims and to enhance the credibility of green product representations within the European internal market.
The regulatory measure is premised on a structural asymmetry: while businesses increasingly rely on sustainability arguments in their advertising, consumers frequently lack the means to assess the substantive basis of such claims. Studies conducted by the European Commission have demonstrated that a significant proportion of environmental advertising claims in the internal market are inaccurate, unsubstantiated, or misleading. The Directive establishes binding standards in this regard and, for the first time, renders sustainability communications systematically justiciable.
2. Dual-Track Transposition into German Law
In Germany, the EmpCo Directive is not being transposed by a single statute but through several measures adopted in parallel. The central instrument is the Third Act Amending the Act against Unfair Competition (UWG), which enshrines the new greenwashing prohibitions and disclosure obligations within the law of unfair competition. Supplementary amendments are being made to consumer contract law, in particular relating to pre-contractual disclosure obligations concerning, inter alia, the repairability of goods.
This dual-track approach is of practical significance: depending on the regulatory context – advertising on the one hand, contract formation on the other – different legal bases may apply, each carrying its own requirements and legal consequences.
3. The Key Amendments to the UWG
The revised UWG alters the law of unfair competition in three material respects:
Extension of the Blacklist (Annex to Section 3(3) UWG)
The so-called Blacklist – the catalogue of per se prohibited commercial practices – is supplemented with specific offences relating to environmental and sustainability claims. General terms such as “climatically neutral,” “environmentally friendly,” or “sustainably produced” will in future be impermissible as a matter of principle where they are not substantiated by a recognised and verifiable environmental performance. Inclusion in the Blacklist means that proof of actual consumer influence in any individual case is no longer required – the statutory offence is constituted by the mere use of the unsubstantiated claim.
New Statutory Definition of Environmental Claim in Section 2 UWG
The legislation introduces a statutory definition of “environmental claim” into Section 2 UWG. The definition is deliberately broad in scope: it encompasses explicit and implicit representations in any form – text, images, colours, symbols, as well as brand names and company logos – to the extent that they create the impression in the mind of the consumer that a product or business has a positive or reduced environmental impact. Businesses should bear this broad definition in mind when developing brand identities and product names.
Tightening of the Misleading Representations Offence in Section 5 UWG
The fundamental misleading representations offence under Section 5 UWG is reinforced by specific provisions addressing environmental claims. General environmental descriptors such as “green” or “climate-friendly” will, from September 2026 onwards, be permissible only where a “recognised excellent environmental performance” of the product or business can be demonstrated – a standard that in practice imposes substantial documentation requirements.
4. Specific Prohibitions and New Obligations
The new provisions introduce a series of specific prohibitions and obligations that directly affect day-to-day business operations:
- Prohibition of Offset-Based Climate Neutrality Claims: Advertising claims of climate neutrality that are based exclusively on CO₂-offsetting measures will in future be impermissible. Whereas the case law of the Federal Court of Justice (BGH) has hitherto required primarily transparency regarding the underlying offsetting models (BGH, judgment of 27 June 2024 – I ZR 98/23), the EmpCo Directive goes further and prohibits such advertising claims as a matter of principle.
- Prohibition of Private Sustainability Labels without Certification: Quality labels may only be used where they either originate from a public authority or are based on a certification scheme subject to independent third-party verification. Labels that are self-created or purely internal to a business are impermissible.
- Disclosure Obligation Regarding Environmentally Friendly Delivery Options: In the course of transposing new European consumer protection rules, traders will be required to inform consumers about environmentally friendly delivery options – such as consolidated shipments or lower-emission transport methods. There is, however, no obligation to actually offer such options.
- Repairability Information: Additional new disclosure obligations arise in respect of the repairability of certain products. Where a harmonised repairability score has been established for a product category, this must be communicated to consumers. In respect of smartphones and tablets, corresponding requirements have applied since June 2025.
- Forward-Looking Environmental Claims Require an Implementation Plan: Claims relating to future environmental performance are permissible only where they are based on publicly accessible, measurable targets and a detailed implementation plan that is subject to regular review by an independent expert.
5. Sanctions and Liability Risks
Violations of the new statutory offences under the UWG – including those within the extended Blacklist – trigger the established legal consequences under unfair competition law: injunctive relief, claims for damages, and cease-and-desist letters from competitors and qualified entities such as consumer associations. Since the new offences within the Blacklist do not require proof of actual deception, the exposure to cease-and-desist proceedings is substantially greater than under the previous regime.
At the European level, Member States may, in the event of widespread infringements of consumer protection provisions, impose fines of up to four per cent of annual turnover. These sanction mechanisms derive from the European Consumer Protection Cooperation system and may be invoked in particular in cross-border situations.
An open question concerns packaging and advertising materials produced prior to 27 September 2026: in an accompanying resolution, the Bundestag called upon the Federal Government to advocate before the European Commission for a one-year sell-off period. No binding provision currently exists in this regard; businesses should not rely on such a period being granted.
6. Action Required in Marketing, Sales and Compliance
The new requirements do not signal the end of green advertising, but rather the need to place it on a more robust footing. In practice, a systematic audit of existing corporate communications – product packaging, websites, social media, sales materials, catalogues – is advisable. The following questions should serve as guiding criteria:
- Which environmental claims are being used, and can they be substantiated by recognised scientific methods?
- Are the sustainability labels employed based on a state-recognised or independently verified certification scheme?
- Are offsetting models being used as the basis for climate neutrality claims – and if so, does the relevant communications strategy require fundamental revision?
- Are forward-looking environmental commitments supported by a publicly accessible, verifiable implementation plan?
- Is there a training need within marketing, sales, and communications teams with regard to the new restrictions?
Practical Tip:
Commence now with a structured greenwashing audit of your entire corporate communications – from product packaging and websites to social media profiles. For each environmental advertising claim, compile a substantiation file consolidating supporting evidence, methodologies, and audit reports.
Particular care is warranted in relation to offsetting models: claims such as “climatically neutral through CO₂-offsetting” will be prohibited as a matter of principle from 27 September 2026. Furthermore, review all sustainability labels to determine whether they are based on a state-recognised or independently verified certification scheme – if not, they will be impermissible under the new law.
Note also the dual-track transposition structure: while the revised UWG governs the advertising-law greenwashing prohibitions, the Act amending consumer contract law adopted in parallel gives rise to additional pre-contractual disclosure obligations, in particular relating to the repairability of goods and to environmentally friendly delivery options.
In cases of uncertainty, seek legal advice at an early stage – the deadline of 27 September 2026 is absolute, and last-minute adjustments made under time pressure are costly.
Contact:
Jens Borchardt