Draft bill: new greenwashing rules in Germany

Germany is set to introduce significant new requirements for companies making environmental claims about their products or services according to a draft bill the government adopted on 3 September 2025. As required by EU law, the proposal seeks to counter greenwashing and to introduce strict rules for sustainability labels. Businesses will need to take concrete action to comply with the upcoming changes.

Legislative context

On 3 September 2025, the German government adopted a draft bill to implement, amongst others, the EU Empowering Consumers for the Empowering Consumers Directive (Empowering Consumers Directive) by way of a one-to-one transposition. As outlined in our client alert in more detail, the Empowering Consumers Directive aims to promote sustainable consumption by (i) tackling unfair commercial business practices such as greenwashing that prevent consumers from making sustainable consumption choices, and (ii) improving consumer information to enable sustainable transactional decisions.

Key proposals for green claims

In line with the Empowering Consumers Directive, the German government inter alia proposes far-reaching rules for the use of environmental claims in advertising, packaging, product information etc., including the following ones:

• General environmental terms (e.g., “environmentally friendly”, “climate neutral” or “sustainable”) may only be used if the advertiser can substantiate these claims with credible evidence.
• Advertising that looks to the future (e.g., “all our packaging will be fully recyclable by 2030”) must be backed by a realistic and publicly available implementation plan. 
• General environmental statements may only be made about a product if the claim applies to the product as a whole, not merely to individual aspects.
• It will no longer be possible to advertise products on the basis of a positive environmental impact if this impact is (also) based on the offsetting of emissions.
• Companies promoting sustainability through labels – indicating ecological or social benefits – will need to ensure these labels are issued by an official body or through a robust certification system involving independent third-party verification. 

These rules apply broadly, covering all industries and sectors.

Next steps

The bill will now be subject to the ordinary legislative procedure. While the Empowering Consumers Directive only requires transposition by 27 March 2026, the government expects the legislative process to be completed still this year. In any case, no major changes are expected to the draft – the proposal provides for a one-to-one transposition of the Empowering Consumers Directive, whose requirements are binding for EU Member States. 

Practical implications for businesses

To facilitate a smooth transition and in line with the Empowering Consumers Directive, the draft bill provides a transition period until 27 September 2026. Should the draft become law (as expected and required by EU law), businesses should use the time until next September to familiarise themselves with the new requirements and ensure compliance by reviewing and, where necessary, adapting their environmental marketing, product packaging, and labelling practices. This includes, in particular, the following aspects:

• Companies will need to thoroughly substantiate any green claims. Maintaining up-to-date records and ready access to evidence supporting any environmental statements will be essential.
• Marketing materials should be screened for prohibited green claims (in particular, claims that are unsubstantiated or based on offsetting).
• As all sustainability labels must now be externally certified or provided by recognised public authorities, businesses will have to review relationships with labelling organisations to ensure compliance.

While the transition period allows for preparation, companies with significant sustainability claims should be mindful of the time needed to meet the new requirements, as many details remain unclear and there are likely to be interpretation issues. We would be happy to provide you further guidance on how these changes may affect your business and to discuss compliance strategies ahead of the September 2026 deadline!