EmpCo Directive: New rules for environmental advertising from 2026

EmpCo Directive at a glance

• The new rules under the German Act against Unfair Competition (UWG) on environmental advertising will come into effect on 27 September 2026; there are no transitional provisions as yet.
• Generic environmental claims such as "environmentally friendly" are subject to (even) stricter requirements.
• Sustainability labels are now only permissible under certain conditions; even self-created icons resembling labels will no longer be permissible in future.
• Product-related climate neutrality claims based on offsetting CO₂ will be prohibited.
• New verification and testing requirements apply to future environmental performance and climate targets.

The EmpCo Directive aims to provide consumers with more accurate and reliable information on the sustainability of products in the future. For companies, this means significant changes to the design and justification of sustainability labels, as well as to climate-related and environment-related advertising claims. Transparent and credible claims, sustainability labels based on certification schemes and information on durability are essential for consumers to be able to make informed purchasing decisions. In the long term, this should encourage a more sustainable consumer behaviour.

EmpCo rules will apply from 27 September 2026

The specifications, which impose new obligations on advertising companies and certifiers with regard to their advertising activities towards consumers, were transposed into German law by the Implementing Act of 12 February 2026; the new provisions are to apply from 27 September 2026. 

As the EmpCo Directive does not provide for either an extension of the deadline or an exemption for advertising materials or packaging produced and/or placed on the market before 27 September 2026, the German Federal Council and the Bundestag called on the federal government to advocate at EU level for a one-year sell-off period for products produced before the deadline. It seems particularly sensible in light of the directive's objective of achieving progress in the green transition to destroying goods and advertising materials.

The EU has addressed this issue through the CPC network as part of the "Common understanding" published in June 2026: According to this document, consumer protection authorities of EU Member States should exercise restraint when initiating proceedings, particularly where these would be directed against goods produced before the EmpCo Directive came into effect. However, this publication emphasises that traders must already demonstrate that they have taken steps to comply with the new legal specifications, for example by ordering new packaging materials or amending online claims. 

It is doubtful whether this CPC publication will bring about any significant change to the application of the new provisions in Germany: It follows that the new EmpCo provisions, like the UWG as a whole, will generally be enforced through civil proceedings, meaning that a "common understanding" among consumer protection authorities is unlikely to be of any significance to civil courts. At best, this "common understanding" together with the German legislature's reference in the explanatory memorandum to the legislative bill (p. 40) to the courts' ability to grant use-up periods and transition periods might be of only limited help. This does not establish legal certainty regarding selling off "old products" or "hangovers" from before the directive. In any case, the German Centre for Protection against Unfair Competition (Wettbewerbszentrale) and Environmental Action Germany (DUH) have announced that they will take legal action against potential breaches of the law without further delay.

What new rules will the EmpCo Directive introduce for environmental advertising?

The German legislature had little leeway for the implementing law. It is therefore not surprising that the new provisions of the UWG are very close to the text of the directive. The legal definitions contained in the EmpCo Directive, such as those for "generic environmental claim" – an unspecified claim regarding the positive environmental impact of a product or company, the details of which are not clearly and prominently set out in the same medium – "environmental claim", "recognised excellent environmental performance", "sustainability label" and "certification scheme", are adopted almost unchanged in Section 2 UWG. The definitions, some of which are very broad, are explained in more detail in the recitals of the EmpCo Directive. However, ambiguities and, in particular, uncertainties regarding the interpretation of the definitions of "environmental claim", "recognised excellent environmental performance" or "sustainability label" in particular remain and will require clarification by case law. Here, the opportunity to achieve greater clarity of these legal terms at least at national level through the explanatory memorandum to the law has been missed.

Support is provided, at least to a certain extent, by the European Commission's preliminary and non-binding "Questions & Answers" document on the EmpCo Directive ("FAQ"). In addition to explanations of the individual new prohibited practices, including their broad definitions (see above and below), the Commission proposes, in view of the applicability of the new rules from 27 September 2026, that stickers (with additional information) be affixed to packaging or that additional information be displayed or used at the point of sale (Question 18 of the FAQs).

Another significant change is the expansion of the "list of business practices that are prohibited without exception" in the annex to the UWG. Consequently, from 27 September 2026, the following practices will be among those prohibited if they cannot be rated:

Generic environmental claims such as "environmentally friendly" and "climate-friendly"

In future, companies will no longer be allowed to make generic environmental claims such as "environmentally friendly", "ecological" or "climate-friendly" with no further specifications without being able to demonstrate recognised excellent environmental performance in this regard. An exception applies if the generic environmental claim is included in a permissible sustainability label or is clearly and prominently specified by supplementary information in the same medium.

Although the FAQs do not really offer any assistance in interpreting the term "generic environmental claim" per se, they clarify in question 4 that a lack of space (e.g. on packaging) does not exempt a company from the obligation to provide specific information. In this case, generic environmental claims should not be used at all (if recognised excellent environmental performance cannot be demonstrated).

Generic environmental claims without sufficient specification can only be used if recognised excellent environmental performance can be demonstrated, which requires exceptional environmental performance in accordance with EU law or environmental labelling schemes. Question 7 of the FAQs cites the EU Ecolabel, the Nordic Swan and the Blue Angel as examples in this context and states that claims such as "better for the environment", "environmentally friendly", "green" or "ecological" may be permissible under the EU Ecolabel. The German explanatory memorandum on the legislation (p. 28) indicates here that it is not necessarily the term when used as a generic environmental claim that is subject to these regulations; instead, advertisers can allow themselves some creativity in this regard.

Environmental claims relating to the product or company as a whole

Environmental claims may not refer to the entire product or the entire business if they actually only concern individual characteristics or components of the product or business activities. This expressly rules out "cherry-picking"; at the same time, this principle is already in line with existing practice, according to which advertising claims as a matter of principle must not be selectively or misleadingly highlighted if this distorts the overall impression.

Sustainability labels: New requirements for certification schemes

Companies may no longer use their "own" or "self-created" environmental or sustainability labels, even if they contain accurate factual statements. Such labels have to be based on a recognised certification system or have been established by a government agency.

The FAQs under question 5 also point to the very broad definition of sustainability labels, suggesting that a wide range of applications is likely:

When designing packaging artwork, companies should be mindful that certain visual elements, such as green leaves, water drops, or similar nature-related icons, may be interpreted by consumers as implicit environmental claims, that in combination with a claim made in written form or with a logo, depending on the context and presentation, could be subject to the requirements of the ECGT Directive, such as related to generic environmental claims or sustainability labels. (…) For example, a green leaf or water drop, when combined with logos or positioned next to statements about sustainability or natural ingredients, may be seen by the average consumer as a voluntary trust mark or quality mark.

Even though the FAQs emphasise that an individual assessment based on subjective consumer understanding must always be carried out, the interpretation of sustainability labels is very broad and can therefore be applied to a wide range of designs. The design of logos, colour schemes, registered trade marks and/or concepts, etc. should therefore be checked with regard to the possibility of a sustainability label.

Question 17 of the FAQs clarifies that sustainability labels awarded or introduced by authorities of non-EU Member States are prohibited unless these labels are based on a certification scheme.

Climate neutrality and CO₂ offsetting in product advertising

Product-related advertising with environmental claims based on greenhouse gas offsetting measures will no longer be permitted from 27 September 2026. The legislation is not aimed at company-related advertising involving offsetting measures, nor at product-specific climate-related claims where actual measures have been taken in the production process.

Future environmental performance and climate targets

In addition, advertising claims about future environmental performance, such as "climate neutral by 2040" – will in future be subject to strict requirements in accordance with Section 5 para. 3 lit 4 UWG, which include in particular the provision of a detailed and realistic implementation plan and verification by an expert. According to the FAQs (question 12), a "regular" expert review at intervals or one or two years is recommended, depending on the type and scope of the advertising claim.

The consequences of breaching the new greenwashing rules

Like many current unfairness offences, the new prohibitions are not only punishable with civil law consequences such as injunctive relief, damages and information rights; they can also be punished with fines of up to 4 % of annual turnover if they are committed as part of a widespread infringement in several EU Member States. It is no secret that the CPC network has initiated corresponding proceedings in recent years for breaches of the Unfair Commercial Practices Directive (UCPD).

What companies should do before 27 September 2026

Even though the German courts already apply a very strict standard when scrutinising sustainability-related advertising claims, companies are well advised to keep themselves regularly informed about the latest developments at the judicial and legislative level. The use of environmental claims and sustainability labels on products, in online shops and on social media advertising should be reviewed on a regular basis.

In addition to the requirements for environmental advertising discussed here, the EmpCo Directive contains further provisions, in particular regarding durability, reparability and guarantee information, which also must be borne in mind.

In practice, the new requirements give rise to a number of specific questions. In the FAQs below, we answer the most important questions about the EmpCo Directive and permissible forms of environmental advertising from 27 September 2026 onwards.

FAQs on the EmpCo Directive and new rules on environmental advertising

When does the EmpCo Directive come into effect in Germany?

The new regulations will apply from 27 September 2026. Germany has transposed the Directive by means of the Third Act Amending the Act against Unfair Competition. There is no transition period. 

Which green claims will be banned from September 2026?

Generic environmental claims without a sufficient basis, unauthorised sustainability labels (without a certification scheme), insufficiently specific environmental claims, product-related carbon neutrality claims based on offsetting and future environmental targets without an implementation plan.

Will advertisements using the term "climate-neutral" still be permissible?

Company-related claims are not affected by the ban per se, nor are product-related claims, provided that the claim of carbon neutrality is based on actual measures. 

What are the rules on packaging that has already been produced?

There is no statutory sell-off period; however, the CPC network provides for a proportionate enforcement approach by the authorities in the event of genuine transitional difficulties. No legal certainty is established. 

Will companies be prohibited from inventing their own sustainability labels from September 2026?

Labels awarded solely on a producer's own initiative without a rules-based certification scheme or official authorisation are not permissible.

What requirements apply to climate targets such as "climate neutral by 2040"?

These may only be advertised if they are based on clear, objective, publicly available and verifiable commitments, which are set out in a detailed and realistic implementation plan with measurable and scheduled targets and are regularly reviewed by an independent third party, the results of which are made available to consumers.