Green Claims under the new UWG – Implementation of the EmpCo Directive (EU) 2024/825

With the Third Act amending the Unfair Competition Act (UWG), Germany is implementing the requirements of the Directive on Empowering Consumers for the Green Transition (EU) 2024/825 (“EmpCo Directive”) into national law. The new rules on environmental claims (“green claims”) and sustainability labels will apply from September 27, 2026 without any transitional period. The legislator expects that the number of environmental claims and sustainability labels used on the market will decrease significantly. As regards sustainability labels, it is assumed that in future only around 20% of companies will meet the criteria for displaying a sustainability label.

IIn the Annex to the UWG (“blacklist”), four types of green claims are now prohibited under all circumstances:

• Displaying a sustainability label that is not based on a certification scheme nor established by public authorities (No. 2a of the Annex).
• Generic environmental claims (e.g. “environmentally friendly”, “climate friendly”, “biodegradable”) for which no recognised excellent environmental performance can be demonstrated (No. 4a of the Annex).
• Making an environmental claim about the entire product or the trader’s entire business when it in fact concerns only a certain aspect of the product or a specific activity of the trader’s business (No. 4b of the Annex).
• Product-related claims that a good is carbon-neutral or has a reduced, compensated, or positive impact on the environment in terms of greenhouse gas emissions, where such claims are based on the offsetting of greenhouse gas emissions (No. 4c of the Annex).

In addition, Section 5 (3) No. 4 UWG, as amended, tightens the requirements for environmental claims related to future environmental performance. Such claims require clear, objective, publicly available and verifiable commitments set out in a detailed, realistic implementation plan that includes measurable, time-bound targets and resource allocation, as well as regular review by an independent third party expert. The findings of the expert must be made available to consumers.

Generic environmental claims such as “environmentally friendly,” “green”, “climate friendly”, “biodegradable”, or “CO₂-friendly” are only permissible if a specification of the claim is provided in a clear and prominent manner on the same medium (for example: “100% of energy used to produce this packaging comes from renewable sources”). Where such wording appears generic within a sustainability label, it is not regarded as a “generic environmental claim” within the meaning of the legal definition. However, it still qualifies as an “environmental claim” and is fully subject to the general prohibition of misleading commercial practices and to the new per se prohibitions, in particular on the scope of claims and on claims relating to environmental impacts where greenhouse gas emissions are offset. Therefore, a sustainability label is not a “safe haven” for misleading claims, as expressly clarified in the Commission’s Q&A on the EmpCo Directive (as of May 18, 2026). Given the high requirements for a certification scheme under Section 2 (2) No. 6 UWG (as amended) - which reflects the minimum conditions of transparency, credibility and third‑party monitoring - resorting to sustainability labels is unlikely to be a realistic option anyway. A certification scheme must be open to all traders under transparent, fair, and non-discriminatory terms. Its requirements must be developed by the scheme owner in consultation with relevant experts and stakeholders. Therefore, a “house standard devised behind closed doors” for selected participating traders is excluded. In addition, a certification scheme must provide for procedures and sanctions in case of non‑compliance. Compliance with the scheme’s requirements must be monitored on the basis of an objective procedure by independent third parties whose competence and independence are ensured under international, Union or national standards.

As of September 27, 2026, a significantly stricter regulatory framework will apply to environmental claims and sustainability labels, both in terms of substantive terms (per se prohibitions, claims related to future environmental performance) and formal terms (certification schemes, third-party verification, transparency). Therefore, environmental claims must be reviewed now, generic statements must be specified or removed, and labels must be designed in a legally compliant manner.