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Complete Guide

The EmpCo Directive explained simply

From 27 September 2026, EU Regulation 2024/825 ("Empowering Consumers for the Green Transition") radically tightens the rules on environmental claims. This complete guide explains clearly what the EmpCo Directive covers, which claims are prohibited, who is affected and how to identify compliance risks in your business.

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Last updated: 25 April 2026 · Reading time approx. 18 minutes

Contents

What you will find in this guide

  1. What is the EmpCo Directive? Definition, background, timeline
  2. The 4 per-se prohibitions in detail
  3. Fines and warning-letter risk
  4. Who is affected by the EmpCo?
  5. Which communication channels are covered?
  6. Recognised evidence and certifications
  7. Transition plan requirements for future commitments
  8. Implementation in Germany: §§ 5, 5a UWG
  9. Relationship with the Green Claims Directive (GCD)
  10. Practical steps towards compliance
  11. Frequently asked questions (FAQ)
Chapter 1

What is the EmpCo Directive?

The EmpCo Directive is officially Directive (EU) 2024/825 empowering consumers for the green transition through better protection against unfair practices and through better information — in short: the Empowering Consumers for the Green Transition Directive. It was adopted on 28 February 2024 by the European Parliament and the Council and published in the Official Journal of the EU on 6 March 2024. It amends the two central consumer-law directives — the Unfair Commercial Practices Directive (UCPD, 2005/29/EC) and the Consumer Rights Directive (CRD, 2011/83/EU).

The background is an empirical study by the European Commission from 2020, in which more than half of the environmental claims examined in advertising were rated as vague, misleading or unsubstantiated. More than 40 % proved to be entirely unfounded. The European Parliament responded with a clear political mandate: anyone who advertises "green" must be able to prove it — and anyone who cannot must not advertise at all.

In December 2025 the German Bundestag transposed the EmpCo into national law via the Act implementing EU Directive 2024/825. The amendments principally affect the Act Against Unfair Competition (UWG) and enter into force on 27 September 2026. Anyone still advertising today with terms such as "carbon neutral", "sustainable" or "eco-friendly" has only a few months left to revise their external communications.

Timeline of the EmpCo Directive

22 March 2023
European Commission proposal
The European Commission puts forward the proposal for the EmpCo Directive — alongside the proposal for the Green Claims Directive.
17 September 2023
European Parliament position
The European Parliament adopts its negotiating position with an overwhelming majority.
17 January 2024
Trilogue agreement
The Council and Parliament reach agreement in trilogue on the final text.
28 February 2024
Adopted by Parliament and Council
The Directive is formally adopted.
6 March 2024
Published in the Official Journal of the EU
The Directive enters into force at EU level 20 days later (26 March 2024).
19 December 2025
Transposition into German law
The Bundestag passes the transposition act; the UWG (Act Against Unfair Competition) is amended accordingly.
27 September 2026
Cut-off date — prohibitions take effect
From this date onwards, warning letters, fines and injunctions may be issued for any misleading environmental claim.
Chapter 2

The 4 per-se prohibitions of the EmpCo

The centrepiece of the EmpCo Directive is the new set of per-se prohibitions inserted into Annex I of the UCPD — that is, practices that are unfair in all circumstances and therefore prohibited without any further balancing exercise. The EmpCo extends the list of unfair commercial practices by four core environmental offences.

1. Generic environmental terms without evidence

Generic environmental claims without recognised evidence are prohibited. These include terms such as sustainable, eco-friendly, ecological, green, climate-friendly or natural. From 27 September 2026 these terms may only be used where their recognised excellent environmental performance is verifiable on the same web page or in the same advertising medium.

Example — prohibited: "Our sustainable packaging protects the environment." → Without concrete evidence (e.g. recycling rate, ISO 14021) this is forbidden. Permitted would be: "Packaging made from 87 % post-consumer recyclate, certified to ISO 14021."

2. Carbon-neutrality claims based on offsetting

Advertising claims such as carbon neutral, CO₂ neutral, climate positive or carbon zero that rest on the mere offsetting of greenhouse gas emissions are absolutely prohibited from 27 September 2026 — even if the offsetting projects are certified. The legislature takes the view that consumers falsely assume the advertised product has no climate impact of its own.

Example — prohibited: "Carbon-neutral chocolate through offsetting certified CO₂ projects." → Also impermissible even with "voluntarily offset". More detail in the article: Carbon neutral banned 2026.

3. Own sustainability labels

Companies may no longer use self-designed sustainability seals, logos or quality marks unless these are based on a recognised, externally audited certification scheme. The EmpCo requires every label to rest on publicly available award criteria and to be overseen by an independent third party. Pure marketing logos such as "Eco-Choice", "Green Star" or comparable proprietary creations are effectively dead.

4. Future commitments without a verifiable transition plan

Statements such as "Carbon neutral by 2030" or "Net Zero by 2040" are only permissible where a clearly defined, time-bound and publicly accessible implementation plan exists that is regularly reviewed by independent experts. Mere PR promises without underlying measures are prohibited. Anyone advertising for the future must already be able to deliver today — in the form of a transparent, verifiable roadmap document.

Chapter 3

Fines and warning-letter risk

Infringements of the EmpCo Directive can be sanctioned in Germany on three levels — each one can become an existential threat. Anyone who thinks "as long as nobody sues me, I will carry on" significantly underestimates the litigation density of German consumer protection organisations.

Up to 4 % of annual turnover

Under the framework for cross-border consumer cooperation (Regulation (EU) 2017/2394, the "CPC Regulation"), member states must impose fines of at least 4 % of the company's annual turnover in the affected member state for widespread infringements. For a group with EUR 200 million in German turnover, that could quickly amount to EUR 8 million per infringement. In serious cases involving multiple member states, the penalty framework can rise to up to 10 %.

BGH Katjes ruling (I ZR 98/23, 27 June 2024)

Even before the EmpCo cut-off date, the BGH (Federal Court of Justice) has set the bar high. The ruling Katjes I ZR 98/23 of 27 June 2024 makes clear that advertising as "carbon neutral" on product packaging without a clear explanation of the term is misleading. Consumers must be able to understand whether the product itself was manufactured in a carbon-neutral manner or is merely offset. The BGH requires transparent disclosure at the point of advertising itself — footnotes or links to explanatory pages do not suffice.

Deutsche Umwelthilfe and consumer organisations

Deutsche Umwelthilfe (DUH) has brought over 100 greenwashing actions since 2022 and wins regularly — from TotalEnergies ("green natural gas") to Apple ("carbon-neutral Apple Watch") to dm ("environmentally neutral" own-brand products). The Verbraucherzentrale Bundesverband (vzbv) and qualified trade associations under the UKlaG also have standing to sue. In addition, competitors can issue warning letters under the UWG — and in practice are often the first to arrive with a costly cease-and-desist demand.

Typical warning-letter costs

A first warning letter costs between EUR 1,500 and EUR 6,000 in legal fees — per challenged claim. Anyone who does not submit risks an interim injunction with additional court costs. Detailed cost tables and practical examples can be found in the guide EmpCo Directive: Summary for SMEs.

Chapter 4

Who is affected by the EmpCo?

Unlike some EU regulations with size thresholds (CSRD, CSDDD), the EmpCo Directive makes no distinction between large companies and SMEs. It is addressed to every trader who makes advertising claims about environmental properties, carbon neutrality or sustainability to consumers.

Sole traders

Even a sole trader with an online shop or landing page is affected. There are no exemptions based on small-business status.

SMEs (10–250 employees)

SMEs are the primary target of DUH litigation waves, because marketing copy here is often produced without legal review.

Large companies and corporations

Corporations advertising across Europe may face fines of several million euros for cross-border infringements.

B2C — directly covered

All communication directed at consumers (website, packaging, TV, radio, online advertising, influencer posts) falls under the EmpCo.

B2B — indirectly affected

Pure B2B communication is not the primary target, but is still indirectly affected: suppliers who pass on greenwashing claims risk damages claims from their buyers.

Marketplaces and platforms

Platforms such as Amazon, eBay or Etsy face increasing liability when sellers spread greenwashing claims on their platform.

Sector-specific risks? The industry guides show which terms are typical in which sector and which are particularly dangerous: Food, Fashion & Textiles, Energy, Finance, Tourism.

Chapter 5

Which channels are covered?

The EmpCo Directive refers to "commercial communication" — a deliberately broad term. It covers every form of external business communication capable of influencing consumers in their purchasing decision. Concretely, this means:

  • Corporate websites & online shopsHome pages, product pages, about-us pages, blogs, meta tags and alt text
  • Product packagingPrinted text, labels, sales packaging, package inserts, inlays
  • Traditional advertisingTV and radio spots, out-of-home poster advertising, print adverts, flyers, catalogues
  • Online advertisingGoogle Ads, display ads, YouTube pre-rolls, banner advertising, native ads
  • Social mediaInstagram, TikTok, LinkedIn, Facebook, X — both company pages and commissioned influencer posts
  • Email marketing & newslettersNewsletters sent to subscribers, transactional emails with promotional content, sales emails
  • Press releasesPublications with a sales-promoting character — including B2B trade media
  • Trade fairs & shop windowsStand banners, roll-ups, display advertising, sales videos at the point of sale

Important: Even older content published before 27 September 2026 falls under the new rules. There is no grandfather clause for existing content. Anyone who, for example, runs a 2020 blog article advertising something as "carbon neutral" must update that article by the cut-off date or take it offline — otherwise it counts as prohibited commercial communication from 28 September 2026.

Chapter 6

Recognised evidence and certifications

The EmpCo expressly permits environmental claims provided they are based on recognised certification schemes or independently verified standards. The following overview lists the most important recognised forms of evidence — they are effectively the toolkit for substantiable green communication.

ISO 14001

International standard for environmental management systems. External certification by accredited bodies such as TÜV, DEKRA or DQS.

EU Ecolabel

EU-wide harmonised ecolabel with lifecycle assessment. Only available for product categories with published award criteria.

Blauer Engel (Blue Angel)

German ecolabel since 1978. Awarded by RAL gGmbH based on criteria from the Federal Environment Agency.

FSC / PEFC

Certificates for sustainable forestry. Full chain-of-custody evidence required for timber and paper products.

GOTS

Global Organic Textile Standard — organic fibres and minimum social standards in textiles.

EMAS

EU Eco-Management and Audit Scheme. Considerably more rigorous than ISO 14001, with a public environmental statement.

SBTi

Science Based Targets initiative — science-based reduction targets compatible with the 1.5 °C pathway.

Cradle to Cradle Certified™

Circularity certificate at Bronze to Platinum levels, with a material health assessment.

OEKO-TEX Standard 100

Textiles tested for harmful substances; recognised for clothing, home textiles and baby products.

More on concrete wordings with supporting evidence can be found in the guide Carbon-neutral alternatives: 15 substantiable formulations.

Chapter 7

Transition plan requirements

Anyone advertising with future commitments — for example "We will be carbon neutral by 2035" — must demonstrate an elaborated transition plan under the EmpCo. The plan is effectively a climate protection roadmap and must meet the following minimum requirements:

  1. Clearly defined milestones: Concrete reduction targets in absolute figures (tonnes CO₂e) or intensity (kg CO₂e per product unit), including base year and target years.
  2. Science-based pathways: Reference to recognised reduction pathways, ideally SBTi-validated or aligned with the EU Taxonomy.
  3. Detailed measures: Breakdown of concrete measures (energy efficiency, electrification, renewables, material switching) with investment amounts and expected reductions.
  4. Scope coverage: Separation by Scope 1 (own emissions), Scope 2 (energy) and Scope 3 (supply chain, product use). Excluding Scope 3 is regarded as misleading.
  5. External verification: Regular review by independent experts — annually or at least every two years. Self-commitment without external review does not suffice.
  6. Publicly accessible: The plan must be freely accessible online without registration. A PDF in an internal compliance folder does not suffice.
  7. Reporting obligation: Annual progress report with a target-versus-actual comparison. Anyone who falls behind their own targets must explain why — and take corrective action.

For companies already subject to the CSRD (Corporate Sustainability Reporting Directive), the effort is manageable — transition plans are already required there. For SMEs that are not subject to the CSRD, however, the requirement is substantial. A clean solution: either substantiate future commitments with a verified plan — or forgo such claims entirely and instead advertise achieved reductions.

Chapter 8

UWG implementation in Germany

In Germany, the EmpCo Directive is implemented through the Act Against Unfair Competition (UWG). Three provisions are particularly relevant:

§ 5 UWG — Misleading commercial acts

§ 5 UWG prohibits misleading commercial practices in general. Through the EmpCo, the catalogue of offences falling under § 5 is extended: in future, any environmental claim not substantiated by recognised standards will be deemed misleading — and therefore an infringement of § 5 UWG.

§ 5a UWG — Misleading by omission

§ 5a UWG also covers the withholding of material information. Anyone who advertises as "carbon neutral" without disclosing the certification basis or without explaining the role of offsetting infringes § 5a UWG. That was precisely the core of the BGH Katjes ruling.

Annex to § 3(3) UWG — new per-se prohibitions

Analogously to Annex I UCPD, the German UWG contains an annex to § 3(3) listing practices that are per se unfair. That annex is extended by the EmpCo with numbers 23a to 23k — including carbon-neutrality claims based on offsetting, generic environmental claims and impermissible own labels.

Practical tip: UWG risk mapping

Create a UWG risk matrix for your website: list all environmental terms in a table and assign them — § 3(3) UWG (per-se prohibition, remove immediately), § 5 UWG (misleading, evidence required), non-critical (purely descriptive factual statement). A free automated version is provided by the Greenwashing Check.

Chapter 9

EmpCo vs. Green Claims Directive

The EmpCo and the Green Claims Directive (GCD) are frequently confused or treated as the same thing. They are in fact two related but substantively different legislative acts:

EmpCo (EU 2024/825)
  • Status: adopted, applies from 27 September 2026
  • Governs: prohibitions on misleading claims and own labels
  • Per-se prohibitions in UCPD Annex I
  • Implemented via UWG, Annex to § 3(3)
  • Direction: what may NOT be said?
Green Claims Directive (planned)
  • Status: still in EU legislative process (trilogue 2025/26)
  • Governs: substantiation of permitted environmental claims
  • Burden of proof via life-cycle analyses (LCA)
  • Pre-marketing verification obligation by third parties
  • Direction: how must a claim be SUBSTANTIATED?

In other words: EmpCo is the prohibition norm, GCD will be the evidence norm. Anyone who is EmpCo-compliant has already cleared two thirds of the GCD hurdle — but the additional LCA documentation required will still need to come on top. It is therefore worth starting data collection for future substantiation obligations now.

Chapter 10

Practical steps towards compliance

There are only a few months left until 27 September 2026. Anyone who starts now will comfortably meet the deadline. The following 8-step plan is the tried-and-tested roadmap for EmpCo-compliant external communications:

1
Inventory — scan all channels

Collect all texts: website, online shop, packaging, social-media posts, newsletters, adverts. Use automated scanners such as Empcora to identify all problematic terms in one go.

2
Categorise findings

Tag each hit as (a) per-se prohibition — remove immediately, (b) generic term without evidence — check for evidence or rephrase, (c) permissible with substantiation — secure the evidence.

3
Collect and file evidence

Create an evidence folder for each permissible claim: certificates, methodological documentation, measurement data, independent expert opinions. This collection is your defence line in any dispute.

4
Rephrase texts

Replace vague terms with concrete figures. Instead of "sustainable" → "87 % recycled material to ISO 14021". Instead of "carbon neutral" → "Emissions reduced by 47 % since 2019 (verified to ISO 14064-1)".

5
Revise own labels

Replace self-designed logos with recognised labels — or remove them entirely. A very common pitfall: stickers such as "dispatched in a climate-friendly way" on shipping boxes.

6
Document transition plans

If you advertise with future commitments: draw up a climate protection roadmap with concrete measures, investments, Scope-1-2-3 separation and external verification. Publish it on your own domain.

7
Roll-out and internal training

Train marketing, PR and social-media teams. Add an EmpCo clause to your style guide. Introduce a four-eyes principle for every piece of advertising copy with an environmental reference.

8
Ongoing monitoring

Websites change constantly. Set up a monthly re-scan. This way, new infringements are caught before warning-letter lawyers discover them.

A detailed step-by-step guide with templates can be found in the article Making your website EmpCo-compliant: step by step. Anyone in a hurry should keep an eye on the countdown: EmpCo deadline September 2026: what needs to happen before then.

Chapter 11

Frequently asked questions about the EmpCo

The most common questions from more than 200 client conversations with SMEs, marketing managers and in-house counsel — structured and answered.

What is the EmpCo Directive?

The EmpCo Directive (Empowering Consumers for the Green Transition, EU 2024/825) is an EU directive of 28 February 2024 designed to protect consumers from misleading environmental claims and unreliable sustainability labels. Germany transposed it into the UWG by 19 December 2025. The new prohibitions apply from 27 September 2026 to all forms of commercial communication.

When does the EmpCo Directive apply in Germany?

The substantive prohibitions (per-se prohibitions, generic environmental terms, own labels, transition plans) apply in Germany from 27 September 2026. Until then, businesses have time to bring their websites, packaging, adverts and social-media accounts into line with the new requirements.

What fines can be imposed for infringements?

Infringements may be fined up to 4 % of the company's annual turnover in the affected member state. For cross-border infringements, Regulation 2017/2394 provides for a minimum maximum fine of at least 4 %. In addition, competition-law warning letters, injunctions and damages claims are possible — for example from Deutsche Umwelthilfe, consumer organisations or competitors.

Does the EmpCo Directive also apply to small businesses?

Yes. The EmpCo does not distinguish by company size. Any trader who makes environmental claims to consumers — whether a sole trader, an SME, a mid-sized company or a corporation — is subject to the prohibition. The only indirect relief available is through the UWG, for example on the element of fault for minor infringements.

Are recognised environmental labels still permitted?

Yes. Recognised labels with independent third-party verification — for example EU Ecolabel, Blauer Engel, FSC, PEFC, GOTS, OEKO-TEX, Fairtrade, Cradle to Cradle, EMAS or ISO 14001 — may continue to be used. What is prohibited are company-own sustainability labels without a certification scheme and labels whose award criteria are not publicly verifiable.

What does a per-se prohibition mean in practice?

A per-se prohibition means that the relevant claim is automatically deemed misleading — without any case-by-case assessment. There is no enquiry into whether the advertising could actually mislead consumers. Example: "carbon neutral" based on offset certificates is absolutely prohibited from 27 September 2026 — even if the certificates are credible and verifiable.

What is the difference between the EmpCo Directive and the Green Claims Directive?

The EmpCo Directive (EU 2024/825) has already been adopted and takes effect on 27 September 2026. It governs the prohibition of misleading environmental claims and unreliable labels. The Green Claims Directive (GCD) is still in the EU legislative process and will add substantiation obligations — that is, the question of how a company must scientifically back up a permitted environmental claim. In short: EmpCo penalises unlawful claims; the GCD will tighten the evidential requirements for lawful ones.

More than 60 additional questions can be found in our FAQ database.

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Last updated: 25 April 2026 · Published: 20 April 2026 · Author: Empcora Editorial Team