The Environmental Damage Act in practice: How companies can avoid environmental damage and liability risks

Oil boom on a river.

Work with us to identify and prevent environmental and liability risks at an early stage.

With the publication of the new practical guide to the Environmental Damage Act (USchadG) in July 2026, the Federal Environment Agency aims to provide public authorities and businesses with an accessible introduction to environmental damage law. The aim is to highlight the key steps in the assessment process and to facilitate the legally compliant application of the Act.

The publication makes it clear that the Environmental Damage Act is not only intended to address damage that has already been caused to biodiversity, water bodies and soil. It also expressly obliges those responsible to prevent imminent environmental damage at an early stage and to take the necessary preventive measures.

Of particular interest to businesses are the chapters on ‘Professional Activities’ and ‘Liability and Causality’. The practical guide explains that the concept of professional activity must be interpreted broadly and covers a wide range of business activities. Furthermore, it depends on whether there is a causal link between an activity and the damage that has occurred. Even licences or authorisations do not automatically exempt a business from liability.

For businesses, this leads to a clear conclusion: environmental regulatory requirements should be integrated into planning, authorisation and operational processes at the earliest possible stage. This is because the sooner potential risks are identified and assessed, the less likely it is that environmental damage will occur in the first place, or that extensive obligations relating to prevention, information and remediation will be triggered.

This is precisely where the experts at Müller-BBM Industry Solutions can help. Our specialists support companies in areas including:

  • environmental licensing procedures
  • immission control and environmental impact assessments
  • water and soil protection issues
  • environmental monitoring and risk assessments
  • prevention strategies for plants and sites
  • environmental compliance and environmental management

An early expert assessment enables risks to be identified, appropriate protective measures to be developed and legal requirements to be met. This prevents environmental damage before it occurs, while at the same time enabling companies to reduce their liability and remediation risks.

Are you facing a licensing process, planning a new project, or looking to further strengthen your environmental compliance? Get in touch!