EmpCo-Richtlinie und Green Claims Directive: Was gilt es zu beachten?

EmpCo Directive and Green Claims Directive: What do businesses need to know?

Startups for Tomorrow Festival 2025: Where Growth meets Impact Reading EmpCo Directive and Green Claims Directive: What do businesses need to know? 6 minutes

Brexit didn't end Brussels' influence on your marketing. If you trade with the EU, their tough new anti-greenwashing directives apply directly to you — often setting a higher bar than current UK rules.

Green advertising claims have boomed in recent years. Practically every sector now offers “green” or sustainable products and services. Many companies communicate clearly and transparently which environmental benefits their products provide, how these are achieved, which positive effects result, and even where further improvements are needed.

Others, however, appear mainly focused on giving their products a superficial green sheen. Environmental benefits are exaggerated, minor aspects are presented as representative of the entire product, or basic legal requirements are marketed as extraordinary features. Highly general statements such as “eco-friendly” or “environmentally friendly” are frequently used, without any clear indication of their actual meaning. The same applies to sustainability labels that consumers can barely decipher.

Although courts have already imposed extensive information obligations, there is often a sense of a tacit agreement between consumers and businesses: purchasing a supposedly green product provides a clean conscience. Especially for low-cost everyday items, consumers rarely ask for detailed substantiation; additional information via QR codes or links is hardly ever accessed.

This situation — widely known as “greenwashing” — has led the European Commission to initiate two legislative projects designed to ensure better consumer information and a fair, genuine competition for real environmental benefits and innovations.

EmpCo and Green Claims: Two new EU directives as a solution?

  1. Directive EU 2024/825 (the “EmpCo Directive” — empowering consumers for the green transition) has already entered into force. Germany has proposed legislative changes to its Act Against Unfair Competition (UWG), due to apply from 27 September 2026.

    Its primary objective is to massively restrict vague environmental claims, which consumers cannot clearly link to a specific environmental benefit. Stricter rules for sustainability labels will also have a significant impact on advertising and product labelling.

  2. Directive COM 2023/166 (“Green Claims Directive”), which caused concern due to the proposed mandatory pre-certification of environmental claims, remains stuck in the legislative process.

Discussions focus on exemptions for SMEs — which may struggle with costly certification — and on demands to first implement and evaluate the EmpCo Directive before introducing further restrictions. Several Member States have announced they will not support the directive, leaving its fate uncertain.

In any case, it is unlikely that these rules will apply in Germany before 2028. For now, businesses should concentrate on the changes that will take effect under the EmpCo Directive from 27 September 2026.


Key elements of the EmpCo Directive and its implementation in German competition law

Germany’s draft UWG reform introduces the following changes:

  • Sustainability labels may only be used if issued by a public authority or based on a certified system.

  • General environmental claims are only permitted where based on excellent and recognised environmental performance.

  • Advertising with the term “climate-neutral” or similar references to neutrality or reduced environmental impact is prohibited where neutrality is based solely on offsetting rather than actual reduction.

  • Environmental benefits relating only to specific aspects of a product (e.g. packaging) cannot be claimed for the product as a whole.

  • Claims based solely on compliance with legal requirements may not be advertised as special environmental benefits.

  • Claims about future environmental performance must be supported by a binding commitment, a concrete and realistic implementation plan, and external verification.

New rules reinforce existing case law

Many companies already comply with similar principles because German courts have long applied strict standards under misleading advertising rules — even without explicit statutory regulation.
For years, courts have prohibited:

  • advertising basic legal compliance as a special feature,

  • overstating environmental benefits that relate only to minor product components, and

  • claims about future environmental performance that are not demonstrably achievable.

Thus, the EmpCo Directive largely codifies existing case law rather than revolutionising it.


Where businesses will need to adapt in 2026

Even companies with responsible sustainability marketing will need to make changes:

1. General environmental claims

Terms like “eco-friendly”, “green”, “sustainable”, or “energy-saving” will be banned unless supported by proof of excellent environmental performance via recognised schemes.
Where no such schemes exist, businesses must switch to specific and verifiable claims, e.g.

instead of “biodegradable”,
“the packaging biodegrades in home compost within 30 days”.

2. Future-oriented claims

Companies must have concrete, realistic plans, backed by external verification.

3. Sustainability labels

Private labels must be upgraded to meet certification standards. Non-compliant labels may no longer be used after 27 September 2026, even if licences were purchased for long periods. Companies using printed packaging face particularly tight timelines.

4. “Climate neutrality”

After years of litigation, advertising with “climate-neutral” will be banned where neutrality is based only on compensation schemes such as offsetting or reforestation projects.
Companies may still conduct corporate image advertising about environmental initiatives — but not label their products “climate-neutral”.


To-Do list for businesses

  • Audit all sustainability labels and certifications

  • Prepare documentary evidence and external verification for environmental claims

  • Review current and planned advertising campaigns

Conclusion: Review environmental advertising now

For many companies, the required adjustments are less dramatic than publicly assumed — partly because German case law already demands strict proof for environmental claims.
Nevertheless, businesses should use the remaining time to scrutinise and, where necessary, revise their current and future marketing.

 

About the author:

Dr Jeannette Viniol, LL.M. (Warwick), is a specialised IP and competition lawyer and partner at JBB Rechtsanwält:innen in Berlin. She has been advising and litigating on greenwashing and green claims for many years.