Introduction
In Germany, Directive (EU) 2024/825 (the Empowering Consumers for the Green Transition Directive, or EmpCo for short) was transposed by the Third Act Amending the Act against Unfair Competition (UWG), which comes into force on 27 September 2026. From this date, stricter requirements for environmental advertising claims will apply.
The EmpCo is of considerable importance to businesses that use environmental advertising. Environmental claims on packaging, in advertising materials and in corporate communications fall under the new regulations.
General environmental claims
In future, Section 2(2)(1) of the UWG (as amended) will contain a definition of a ‘general environmental claim’. Typical examples include terms such as ‘environmentally friendly’, ‘green’, ‘climate-friendly’, ‘ecological’, ‘energy-efficient’ or ‘biodegradable’. According to No. 4a of the Annex to Section 3(3) of the UWG (as amended), a general claim is always prohibited if no recognised outstanding environmental performance can be demonstrated (such as an EU Ecolabel or certification in accordance with DIN EN ISO 14024 Type I). If, however, the claim is clearly and prominently specified within the same medium, the terms mentioned are not subject to the prohibition. Visual representations such as trees, leaves or green symbols may also be regarded as environmental claims when used in conjunction with text or a logo.
Future environmental claims and scope
Claims regarding future environmental performance (such as ‘climate-neutral by 2045’) are, under Section 5(3)(4) of the UWG (as amended), if they are not supported by a detailed, measurable implementation plan that is regularly reviewed by an independent external expert. Furthermore, No. 4b of the Annex states that an environmental claim relating to the entire product or the entire business activity is always inadmissible if the claim actually refers only to a specific aspect.
Offset claims and sustainability labels
No. 4c of the Annex to Section 3(3) of the UWG (as amended) prohibits making a product-related claim based on the offsetting of greenhouse gas emissions (this applies, for example, to ‘climate-neutral’, ‘CO₂-neutral’ and ‘climate-friendly’). The prohibition is substantively linked to the purchase of CO₂ certificates or comparable offsetting instruments. A statement which is instead based on actual emission reductions within the product’s own life cycle and its own value chain is, by definition, not a compensation claim within the meaning of the provision and is not subject to the prohibition from the outset. Furthermore, the ban applies exclusively to product-related claims. Company-related claims, such as advertising investments in climate protection projects or the purchase of CO₂ certificates at company level, remain permissible provided they do not give the impression that the advertised product itself is climate-neutral.
Under paragraph 2a, sustainability labels will in future only be permitted if they are based on a certification system with independent third-party monitoring or have been established by public authorities. A sustainability label is defined as any voluntary trust mark or quality mark that aims to highlight or promote a product, process or business activity to consumers in terms of its environmental or social characteristics, with the exception of all mandatory labelling. Labels created in-house without independent monitoring are not permitted.
No phase-out period
The German implementing legislation does not provide for a sell-off period. Products lawfully manufactured before 27 September 2026 whose labelling contravenes the new regulations do not enjoy statutory grandfathering.
In June 2026, however, the Consumer Protection Cooperation Network (CPC) drew up a ‘Common Understanding’, according to which the authorities of the Member States intend to take transitional difficulties into account when enforcing the rules and to adopt a phased approach. In German practice, however, the significance of this understanding is limited, as the enforcement of fair trading law in this country takes place primarily through civil proceedings brought by competition authorities, consumer protection organisations and competitors, who are not bound by the CPC Common Understanding.
Recommendation for action
Companies should review their advertising claims without delay. All environmental claims on packaging, in advertising materials and in corporate communications must be identified, systematically recorded and assessed for compliance with the new regulations. General terms such as ‘environmentally friendly’ or ‘climate-friendly’ must be replaced with specific, verifiable information or removed altogether. Sustainability labels must be verified against a recognised certification standard with independent third-party monitoring; labels created in-house without external certification must be removed.
As there is no grace period, immediate action is required. In cases of doubt, any ambiguities shall be interpreted against the advertiser.