"Climate-neutral" was for years the hallmark of green product advertising. From 27 September 2026 it becomes a foreseeable cease-and-desist risk: product-related climate claims based on the offsetting of emissions will then be prohibited without any examination of individual circumstances.
The background is the transposition of EU Directive 2024/825 (the "Empowering Consumers" Directive) into the UWG (German Act Against Unfair Competition). The amending legislation was promulgated in the Federal Gazette on 19 February 2026 and applies from 27 September 2026. This article examines two particularly significant elements in practice: the new per se prohibition on offsetting claims and the tightened requirements for future-oriented promises.
Summary for those in a hurry
- Per se prohibition: Product advertising using "climate-neutral", "CO₂-neutral", "climate-positive", "with climate offsetting" or "certified CO₂-neutral" will be unlawful in all cases from 27 September 2026 if it is based on (carbon) offsetting (no. 4c of the "Black List", Annex to § 3 para. 3 UWG).
- Scope: An environmental claim concerning the product as a whole is prohibited if it relates only to a partial aspect (no. 4b) — for example "made from recycled materials" where only the packaging is meant.
- Future claims: Advertising on the basis of future environmental targets is only permissible where there is a detailed, externally verified, and publicly accessible implementation plan (§ 5 para. 3 no. 4 UWG).
- No sell-off periods: Goods already in production and existing advertising materials are equally affected.
- Legal consequence: Because it is no longer necessary to prove deception in an individual case, cease-and-desist letters from competitors and associations will become considerably easier to pursue.
The starting point: the German Federal Court of Justice (BGH) ruling on "climate-neutral"
Even before the reform, "climate-neutral" was legally precarious. In its judgment of 27 June 2024 (Case No. I ZR 98/23), the BGH made clear: the term is ambiguous, because it can refer either to a reduction of greenhouse gas emissions in the production process or to mere (carbon) offsetting. Because reduction and offsetting are not equivalent, the advertising itself must explain which meaning is intended — a reference to a website or a QR code does not suffice. In the field of environmental advertising, the strictness principle imposes a particularly high standard of accuracy and clarity.
This case law remains relevant — but the amending legislation goes considerably further.
The new per se prohibition: offsetting claims (no. 4c)
Under no. 4c of the Annex to § 3 para. 3 UWG, the following will in future be unlawful in all cases:
making a claim that is based on the offsetting of greenhouse gas emissions and according to which a product has a neutral, reduced, or positive environmental impact with respect to greenhouse gas emissions.
All common formulations in product advertising are caught: "climate-neutral", "CO₂-neutral", "climate-friendly", "climate-positive", "with climate offsetting", "with reduced CO₂ footprint", "certified CO₂-neutral". Critically, the prohibition applies without any examination of misleading conduct — it is sufficient that the claim is based on (carbon) offsetting.
Narrowly defined exceptions remain:
- The claim is based on the actual effects across the entire life cycle of the product (production, use, disposal) and not on offsetting outside the value chain. Such claims must be substantiated by life-cycle analyses (cf. recital 12 of the Directive and the FAQ of the European Commission of 27 November 2025).
- The trader can demonstrate recognised excellent environmental performance (no. 4a). Note: no such highest-level performance standard under Union law currently exists for "climate-neutral".
Important for drawing the distinction: where a CO₂ reduction is based exclusively on improved production processes, no. 4c does not apply — a statement such as "reduced CO₂ impact" may then be permissible, provided it is stated clearly and specified on the same medium. However, as soon as (carbon) offsetting is included in the calculation, the claim becomes unlawful.
It should also be noted that the prohibition expressly applies only to product advertising. Company-level offsetting claims (e.g. relating to the overall corporate balance) remain possible — but continue to be subject to the general rules of the UWG and the BGH case law on "climate-neutral". Here too, the advertising itself must disclose whether and to what extent neutrality is achieved through offsetting rather than reduction.
The correct scope: partial aspect versus whole product (no. 4b)
Closely related is the prohibition in no. 4b: an environmental claim concerning the product as a whole or the entire business activity is unlawful if it in reality relates only to a specific aspect. The textbook example: "made from recycled materials" on packaging, when in fact only the packaging — not the product — is made from recycled materials.
The courts already apply a strict standard here today. The Berlin Court of Appeal (KG Berlin) (judgment of 21 January 2025, Case No. 5 U 103/22) found the claim "packaging and lid are bio-based" to be misleading, because it remained unclear whether the materials consisted entirely or — as was actually the case — only 82% of renewable raw materials. Here too: clarification must be provided in the advertising itself, not via an asterisk note with a reference to a website.
Advertising with climate targets: future-oriented claims require a plan (§ 5 para. 3 no. 4)
Anyone advertising on the basis of future environmental performance ("climate-neutral by 2050", "70% recyclate content by 2045") must, from 27 September 2026, be able to demonstrate a robust foundation. Under the new § 5 para. 3 no. 4 UWG, such a claim is misleading if it is not underpinned by clear, objective, publicly accessible, and verifiable commitments set out in a detailed and realistic implementation plan. That plan must:
- contain measurable and time-bound targets as well as information on resource allocation,
- be regularly verified by an independent external expert, and
- together with the audit results, be publicly accessible and made available to consumers (the legislative explanatory memorandum confirms that a QR code is permissible for this purpose).
This direction, too, has already been traced by the courts. The Nuremberg-Fürth Regional Court (LG Nürnberg-Fürth) (judgment of 25 March 2025, Case No. 3 HK O 6524/24) prohibited the advertising "By 2050 we will be climate-neutral", because the impression was created that the target would be achieved solely through the company's own emissions savings — whereas (carbon) offsetting measures were in fact planned. Clarification in the linked annual report was insufficient; it must be provided in the advertising itself (similarly LG Hamburg, judgment of 9 August 2024, Case No. 315 O 9/24).
What companies should do now
There are no sell-off periods. Any company that is still on the market with unlawful claims on the cut-off date may receive a cease-and-desist letter — irrespective of when the product or packaging was produced. The following steps are specifically recommended:
- Review all advertising materials — website, social media, product packaging, brochures, even business cards — for claims relating to climate offsetting or future targets.
- For products, remove offsetting-based statements such as "climate-neutral".
- Specify company-level claims and disclose the role of (carbon) offsetting.
- For future targets, draw up a verifiable implementation plan and arrange independent external verification.
Would you like to put your environmental claims on a legally sound footing before the cut-off date?
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FAQ
Are all "climate-neutral" claims prohibited from September 2026?
Product-related claims that are based on (carbon) offsetting are prohibited. Where the climate impact is demonstrably based on genuine improvements across the entire life cycle, a specified claim may remain permissible. Company-level claims remain possible under the general UWG rules.
Does a QR code or asterisk note suffice for clarification?
For offsetting-based product advertising, no — it is prohibited per se. For permissible claims, the specification must as a rule be provided in the advertising itself; for implementation plans relating to future-oriented claims, the legislature permits a QR code as access to the detailed information.
Who can send a cease-and-desist letter?
Competitors as well as associations and qualified entities with standing to bring proceedings, in particular the Wettbewerbszentrale (Centre for the Protection of Fair Trading) and environmental associations such as Deutsche Umwelthilfe.
Does this apply to small businesses as well?
Yes. The prohibitions apply irrespective of size and sector to all advertising directed at consumers.
