Teaser: EU Directive 2024/825, known as EmpCo for short, is changing competition law across the EU. From 27 September 2026, six new ‘blacklist’ offences will come into force, expressly prohibiting typical greenwashing practices. We explain what the Directive covers, how Germany is implementing it, and what companies need to do now.

What is the EmpCo Directive?

Directive (EU) 2024/825 of the European Parliament and of the Council of 28 February 2024 bears the official title ‘Empowering Consumers for the Green Transition’. In short: EmpCo. It forms the core of current EU legislation to combat greenwashing and amends two existing consumer protection directives:

• the Unfair Commercial Practices Directive (UCPD, 2005/29/EC) and
• the Consumer Rights Directive (CRD, 2011/83/EU).

EmpCo is an amending directive, it adds new articles to the UCPD and six new prohibited practices to its ‘blacklist’ (Annex I). These ‘blacklist’ practices are deemed unfair in all circumstances, that is to say, they are always prohibited, regardless of whether they have led to misleading behaviour in a specific case.

Key formal details

The transitional period ends on 27 September 2026. From that date, all environmental claims in commercial communications to consumers must comply with the new requirements, and the supervisory authorities may impose sanctions.

The five categories of new bans

The EmpCo expands the EU ‘blacklist’ to include six new categories of prohibited practices, which in Germany have been incorporated into the annex to Section 3(3) of the Unfair Commercial Practices Act (UWG). The five most important categories are:

1. General environmental claims (No. 4a)

Terms such as ‘environmentally friendly’, ‘climate-friendly’, ‘green’, ‘ecological’, ‘bio-based’, ‘climate-positive’ or ‘energy-efficient’ are only permissible as general environmental claims if the product can demonstrate recognised outstanding environmental performance. Key criteria are:

• the EU Ecolabel under Regulation (EC) No 66/2010
• national Type I eco-labels such as the Blue Angel
• Energy efficiency class A under Regulation (EU) 2017/1369

Exception: If the statement is specified in a prominent manner on the same medium (packaging, advertisement, online shop), it is not considered to be general.

2. Misleading scope (No. 4b)

A claim that refers to the entire product or the entire company, even though it relates only to one aspect, is not permitted. A classic example: a product is advertised as being ‘made from recycled material’, even though only the packaging is made from recycled material.

3. CO₂ offsetting (No. 4c)

The most significant new provision. Statements such as ‘climate neutral’, ‘certified CO₂-neutral’, ‘climate positive’, ‘climate net zero’ or ‘climate compensated’ are always inadmissible if they are based on the offsetting of greenhouse gas emissions outside the product value chain, that is, on traditional offsetting projects such as reforestation in Peru or wind power in India.

Only life-cycle-based in-house reductions remain permitted. Investments in climate protection projects may still be communicated, but not under the label of ‘neutrality’.

4. Sustainability labels (No. 2a)

Self-certified or in-house labels are prohibited. Sustainability labels are only permitted if they are based on an ISO 17065-compliant certification system or have been awarded by a government body.

5. Statutory standards and obsolescence (No. 10a, 23d a–g)

Further provisions relate to:

• No. 10a: Presenting legally required product characteristics as a special benefit (example: “free from [prohibited substance]”)
• No. 23d a–g: Seven new prohibitions on planned obsolescence, including the concealment of disadvantages associated with software updates, the false impression of reparability, and the premature replacement of consumables

From the Green Deal to the date of application: a timeline

The EmpCo Directive is a key component of the European Green Deal. Key milestones:

Anna Cavazzini (Greens/EFA), Chair of the IMCO Committee, commented on the trilogue agreement, saying: “The end of greenwashing as we know it.”, a phrase that quickly became the catchphrase for the entire regulation.

German implementation: The 2026 Amendment to the Unfair Commercial Practices Act (UWG)

Germany has not implemented EmpCo through a standalone law, but rather through selective amendments to existing legislation. The Act amending the Act against Unfair Competition, the Act on Injunctions and the Consumer Protection Act of 19 February 2026 (BGBl. 2026 I No. 43) has been in force since June 2026.

The structure of the Directive is reflected in the UWG:

• Section 2(2) of the UWG (as amended) defines key terms such as ‘general environmental claim’, ‘sustainability label’, ‘environmental performance’ and ‘certification scheme’
• Section 5(3)(3) and (4) of the UWG (as amended) covers future environmental performance and irrelevant benefits (assessed on a case-by-case basis)
• The Annex to Section 3(3) of the UWG contains the new ‘black list’ offences (Nos. 2a, 4a, 4b, 4c, 10a, 23d a–g)
• Section 5a of the UWG (as amended) incorporates social and circular economy criteria

The Annex is directly applicable by German courts, no separate law is required for each individual offence.

Fines and sanctions

Article 13 of the EmpCo obliges Member States to provide for “effective, proportionate and dissuasive sanctions”. Implementation in Germany:

Other EU Member States are, in some cases, significantly stricter: France stipulates up to 10 per cent of global annual turnover, whilst the Netherlands stipulates up to €900,000 or 1 per cent of turnover. This range demonstrates that companies operating across the EU need country-specific compliance strategies.

EmpCo vs. the Green Claims Directive: What actually applies?

A common misconception: the Green Claims Directive (Commission proposal COM(2023) 166 final) is not in force. It was shelved in February 2025 following opposition from several Member States and is effectively on hold.

The only legislation currently in force is the EmpCo Directive, and its national implementations. The key difference:

In practice, this means that companies must now implement the EmpCo requirements. Waiting for the Green Claims Directive is not a strategy.

Who is affected?

The new rules apply to all companies that make environmental claims to consumers (B2C) in the course of their business. There are no exceptions for SMEs, nor for specific sectors. Particularly affected are:

• Consumer goods & FMCG: packaging claims, product labelling
• Fashion & textiles: ‘Sustainable’ collections, origin of materials
• Energy & mobility: climate neutrality pledges, green electricity advertising
• Financial services: ESG fund marketing, ‘green’ investments
• E-commerce: product descriptions, filter labels, categories
• Tourism: ‘Climate-neutral travel’, hotels with a ‘green’ logo

B2B communication is also partly covered by the guidelines, for example, where it is visible to end consumers or relates to competitors’ behaviour.

Checklist: 10 steps to EmpCo readiness

There is little time left until 27 September 2026. These 10 steps will help you prepare:

1. Stock-take: Record all environmental claims, website, product pages, packaging, adverts, social media, newsletters, PDFs.
2. Claim categorisation: Classify each claim according to the new ‘blacklist’ criteria. Is it a general environmental statement (4a)? A reference to CO₂ offsetting (4c)? A self-designed label (2a)?
3. Specification: Replace general claims with specific statements. Instead of ‘environmentally friendly’: ‘95% post-consumer recycled material, certified to the Global Recycle Standard’.
4. Review CO₂ claims: Verify or reformulate climate neutrality claims on a life-cycle basis. “Climate neutral through offsetting” will be prohibited from 27 September 2026.
5. Audit labels: Replace in-house labels with ISO 17065-certified schemes or initiate the certification process.
6. Check scope: Ensure that claims do not imply they apply to the entire product or company if they relate to only one aspect.
7. Check visual language: Use green icons, natural landscapes and leaf symbols only where there is concrete substance behind them.
8. Documentation: Store evidence for each claim centrally, including certificates, life-cycle assessments and measurement reports.
9. Establish a process: Continuously monitor new communication content prior to publication. Not just a one-off exercise.
10. Training: Train marketing, PR and product teams on the new guidelines.

This is how the GreenClaims Manager helps

Our algorithmic tool analyses your marketing texts, from product pages and adverts to social media posts, for potential risks under the new EmpCo and UWG provisions. You receive a structured report with specific recommendations for each identified finding, categorised by risk class. The analysis is based on the current legal situation (Federal Law Gazette 2026 I No. 43, EmpCo Directive 2024/825).

Take the first step now → free scan of your homepage

Conclusion

The EmpCo Directive marks the most comprehensive change to the environmental communication regime under competition law in decades. Six new ‘blacklist’ offences explicitly prohibit typical greenwashing practices, without case-by-case assessment and with no scope for justification. The deadline is 27 September 2026. Companies that do not adapt now risk receiving warnings, fines of up to 4 per cent of their annual EU turnover and reputational damage.

The good news is that the requirements are clear, the offences are precisely defined, and the implementation checklists are readily available. Anyone who takes the deadline seriously will have plenty of time for a smooth transition.

FAQ

When does the EmpCo Directive come into force?

EU Member States were required to transpose EmpCo by 27 September 2025. The date of application under EU law is 27 September 2026. In Germany, the amendment to the Unfair Commercial Practices Act (UWG) (Federal Law Gazette 2026 I No. 43) has been in force since 19 February 2026 and will apply from 27 September 2026.