German Parliament Approves Law to Combat Greenwashing Claims

The German Bundestag has enacted new legislation designed to address and reduce misleading environmental claims, commonly referred to as 'greenwashing.' The newly approved law introduces stricter requirements for companies that market their products as environmentally friendly or climate neutral. The intent is to ensure that any assertion regarding sustainability or climate benefits is substantiated by verifiable evidence.

Under the legislation, businesses will be obligated to provide credible proof when promoting products using terms such as 'eco-friendly' or 'climate neutral.' If these claims cannot be substantiated, companies may face legal actions, including warnings and potential compensation for misleading consumers.

The law also sets clear standards for the use of environmental certifications. Sustainability labels can only be displayed if they are based on recognized certification systems or are issued by governmental authorities. This measure is intended to prevent the proliferation of fictitious or self-created labels that may mislead consumers about the true environmental impact of a product.

The legislative initiative aligns with European Union directives aimed at increasing transparency and accountability in environmental marketing. The law received broad support from major political parties, highlighting a collective effort to address deceptive marketing practices and promote genuine sustainability in the marketplace.

The new regulations are scheduled to take effect from September 27, 2026. Concerns were raised regarding the transition period for products and packaging already manufactured but not yet sold. While the Bundesrat advocated for an extended sell-off period, the Bundestag committee referenced the strict timelines set by the EU. The Federal Justice Minister has been tasked with seeking an extension for the transition period at the European level to avoid unnecessary disposal of unsold goods.

Additionally, the implementation of these rules is expected to increase the administrative burden on companies, as noted by both the Bundesrat and the National Regulatory Control Council. However, the goal is to ensure that sustainability claims are reliable, thereby fostering consumer trust and supporting businesses that genuinely adhere to sustainable practices.

The law marks a significant step in Germany's efforts to protect consumers from misleading environmental advertising and to encourage responsible corporate behavior in line with international standards.