The EmpCo Directive applies to other member states in the EU and does not directly apply in the UK; however, UK businesses selling to or targeting consumers in the EU should be aware that these rules are now in effect.

Why this matters

As governments and stakeholders gather in Antalya for COP31,climate pledges and sustainability messaging will be everywhere. Every such claim made to consumers in Germany is now tested against the new rules, including net-zero and carbon-reduction targets announced around the conference. Enforcement is also immediate: in Germany, competitors, consumer associations and competition associations can send warning letters (Abmahnungen) and seek injunctions, so a single campaign can quickly lead to costly proceedings.

German courts had already set a high bar

In a decision of the German Regional Court of Bochum (19 O 24/25) concerning green claims in online advertising, the court held that advertising “CO2-neutral shipping” is misleading where the underlying shipping service is in fact only CO2-reduced. While “CO2-reduced” suggests a decrease in emissions, “CO2-neutral” conveys a significantly stronger environmental claim. The court also emphasised that what matters is the specific statement used in the advertising, not whether consumers may generally understand that transport services are not entirely emission-free. The decision is in line with the German Federal Court of Justice’s case law on claims such as “climate neutral”, confirming that environmental claims must be accurate, clear and sufficiently explained in the advertising itself.

The Regional Court applied the same approach to the broader claim “sustainable & regional”. The court held that such wording is too vague and open-ended unless the advertisement itself clearly explains what aspects of the product or business are considered sustainable and in what sense they are regional. General references to the circular economy, sustainable processes or local operations were considered insufficient, particularly where the business operated a nationwide online shop. According to the court, consumers must be able to understand directly from the advertising itself what specific environmental or regional qualities are being claimed and what factual basis these claims rely on.

Therefore, German courts were already applying a strict standard to green claims under the existing rules on misleading commercial practices. Businesses should nevertheless check their marketing communications are compliant with the UWG, as the new rules build on the existing approach with a more specific regulatory framework for environmental claims and sustainability labels. 

What the UWG requires

The reform is based on the recognition that environmental messaging can significantly influence consumer choices. Where green claims are broad or unsubstantiated, they risk creating misleading impressions. The rules therefore aim to enhance transparency and support better-informed purchasing decisions.

In substance, the reform focuses on environmental claims and sustainability labels. General environmental claims such as “green”, “environmentally friendly” or “sustainable” are now subject to stricter scrutiny. Such broad statements are generally permissible where they can be substantiated by recognised excellent environmental performance or where the relevant explanation is clearly provided in the same medium. The same applies to claims regarding future environmental performance. In particular, forward-looking claims, such as net-zero pledges or carbon-reduction targets, require a sufficiently detailed, realistic and verifiable implementation plan, including measurable and time-bound commitments.

In addition, the blacklist of prohibited commercial practices has been expanded. The rules now strictly ban generic environmental claims without substantiation; outlaw product advertising based solely on the offsetting of greenhouse gas emissions; and prohibit the use of sustainability labels that are not based on a recognised certification scheme or established by a public authority. Companies should therefore review their product communication, packaging, labels and marketing materials as a matter of priority. Green claims remain possible, but they must be concrete, substantiated and supported by a sound factual and legal basis.

When your brand name is a green claim

For brand owners, the rules do not stop at advertising slogans. Brand, company and product names containing terms such as “eco”, “green” or “climate neutral” can themselves be environmental claims and must meet the same requirements. A trade mark registration does not shield a business from an unfair competition claim: a registered mark can still be used in a misleading way.

Green terms also create risks at the registry. At the EUIPO and the UKIPO, such terms may be refused as descriptive or non-distinctive, or as deceptive where they suggest environmental qualities the goods or services do not have. Registered marks can also be challenged later in invalidity or revocation proceedings if they are, or have become, misleading. Clearance searches and filing strategies for new sustainability brands should therefore take account of both trade mark law and the new advertising rules.

Sustainability labels raise a separate question of ownership and control. In Germany, a label may now only be used if it is based on a certification scheme with independent third-party verification or established by a public authority. Businesses that run their own schemes should check whether they meet these requirements and whether the label is protected, for example as an EU or UK certification mark. According to the European Commission, ordinary individual trade marks will generally not be treated as sustainability labels , but in-house badges, icons and logos with an environmental message are high risk.

Finally, where a claim rests on a green innovation, the underlying technical evidence matters. Technical documentation, test data and life-cycle assessments, often generated alongside patent filings, can help substantiate specific environmental claims and show that they are accurate. Generic claims, by contrast, generally require recognised excellent environmental performance, such as the EU Ecolabel. IP and marketing teams should therefore agree together what is said and how it is supported.

What businesses should do now

Now that the rules are in effect, businesses should treat compliance with the new green claims framework as an immediate priority rather than a future planning exercise.

In practical terms, this means auditing existing green claims and sustainability labels to ensure they are specific, accurate and substantiated. Generic terms like “green”, “eco-friendly” or “sustainable” should either be dropped or accompanied by a clear, factual explanation in the same medium. Forward-looking claims such as net-zero targets or carbon-reduction pledges must be backed by a concrete and verifiable plan. Sustainability labels should only be used where they are based on a recognised certification scheme or established by a public authority. Trade mark portfolios should form part of this review: existing and planned marks, logos and badges containing environmental terms or imagery should be checked, and the evidence supporting them kept on file.

Outside of Germany

Companies operating across the EU should also be aware that similar rules should now apply in all member states under the same Directive, although national implementation can vary, making a consistent EU-wide review of marketing materials advisable.

From a UK perspective, “green” claims, including green trade marks, continue to be regulated through, in particular, the Competition and Markets Authority’s (CMA) Green Claims Code, Advertising Standards Authority (ASA) enforcement against misleading environmental advertising, and the application of the Trade Marks Act 1994 (including the examination of “green” terms and whether they are descriptive or deceptive), alongside broader consumer protection rules and, for FCA-authorised firms, anti-greenwashing rules. The CMA, for example, has the power to fine businesses directly for misleading green claims under the Digital Markets, Competition and Consumers Act 2024, with penalties of up to 10% of global turnover or £300,000 (whichever is greater).

The bottom line: green claims are not off the table, but the bar for using them in the EU has risen. Clear, honest and well-documented environmental communication is now essential for businesses seeking to avoid legal and regulatory risk, and it is increasingly what consumers and regulators expect. Looking ahead, the proposed EU Green Claims Directive, which would have required claims to be verified in advance, has stalled since the European Commission announced its intention to withdraw it in June 2025. For now, the EmpCo rules and national unfair competition law set the standard, and the climate pledges made around COP31 to consumers in the EU will need to meet it.

Useful link

European Commission, Directorate-General for Justice and Consumers, Questions & Answers on Directive (EU) 2024/825 as regards empowering consumers for the green transition (Brussels, September 2026), Question 3: https://dycip.com/ec-green-directive-questions 

With thanks to Chartered Trade Mark Attorney Jennifer Heath for the provision of UK-related content in this article.