NextFin news, Germany's federal cabinet, led by Chancellor Friedrich Merz and Justice Minister Stefanie Hubig, approved new legislation this Wednesday in Berlin to tighten rules on environmental product claims. The law mandates that companies must provide verifiable evidence for claims such as "sustainable" or "environmentally friendly" when advertising their products. This legislation implements European Union directives and includes a transition period until the end of September 2026.
The new rules prohibit companies from making broad environmental claims about entire products if such claims only apply to parts of the product. Additionally, advertising statements like "all our packaging will be fully recyclable by 2030" must be accompanied by a realistic, publicly accessible implementation plan, according to the Ministry of Justice and Consumer Protection.
Justice Minister Stefanie Hubig emphasized, "Those who advertise with environmental claims must be able to substantiate their assertions. This protects consumers who want to make informed purchasing decisions and supports honest companies that want to compete fairly."
The legislation also introduces particularly strict regulations for advertising related to carbon dioxide emissions. For example, claims of "climate neutrality" will no longer be permitted if they rely solely on purchasing carbon credits to offset emissions.
Furthermore, self-certification of sustainability labels will be banned. Instead, such labels must be established by public authorities or based on certification systems that include third-party verification.
This legislative move follows a recent legal development in Germany where a Frankfurt court ruled on August 26, 2025, that Apple must cease advertising its Apple Watch Series 9 as "carbon neutral." The court found Apple's claim unsubstantiated because the carbon offsetting relied on eucalyptus plantations in Paraguay, where 75% of the land leases expire in 2029 without guaranteed renewal. The court concluded that this undermined the permanence of carbon storage and misled consumers about the product's environmental impact.
The environmental group Deutsche Umwelthilfe (DUH) had filed the complaint, with its head Juergen Resch stating, "The supposed storage of CO2 in commercial eucalyptus plantations is limited to just a few years, the contractual guarantees for the future are not sufficient, and the ecological integrity of monoculture areas is not guaranteed."
Apple disagreed with the ruling, asserting that its approach aligns with EU and German climate strategies and scientific consensus. The company highlighted its commitment to reducing emissions through clean energy, low-carbon design, and innovation, aiming for carbon neutrality across its entire supply chain by 2030.
The case exemplifies the increasing scrutiny of corporate environmental claims in Germany and the EU, where new consumer protection rules planned for 2026 will prohibit vague or unsupported green claims. The EU aims to ensure that environmental information such as durability, reparability, material content, production methods, and ecological impact is supported by verifiable data.
These developments mark a significant step in combating greenwashing and promoting transparency in environmental marketing, ensuring consumers receive accurate information to make sustainable choices.
Explore more exclusive insights at nextfin.ai.