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Eco-Labeling    

What are Ecolabels?

Ecolabels are seals of approval given to products that are deemed to have fewer impacts on the environment than functionally or competitively similar products. Overall, the goal of environmental labels and declarations is to encourage the demand for and supply of these products and services that cause less stress on the environment, thereby stimulating the potential for market-driven continuous environment improvement.

Ecolabeling programs usually fall into one of the following categories:

1. First party labeling schemes:

These are established by individual companies based on their own product standards.
The standards might be based on criteria related to specific environmental issues known to informed consumers through the media of advertising.
This form of ecolabeling can also be referred to as self declaration.

2. Second party labeling schemes:

These are established by industry associations for their member products.
The members elaborate certification criteria, sometimes by drawing upon external expertise form academia and environmental organizations.
Verification of compliance is achieved through internal certification procedures within the industry, or employment of external certifying companies.

3. Third party labeling schemes:

These are usually established by an initiator (public or private) independent from the producers, distributors and sellers of the labeled products. Products supplied by organizations or resources that are certified are then labeled with information to the consumers that the product was produced in an “environmentally friendly” fashion.

The label (seal) is typically licensed to a producer and may appear on or accompany a product. Producers are expected to track down the “chain of custody” of their products in order to ensure that the products certified are those that are so labeled.

Environmental organizations and consumers generally prefer ecolabeling schemes of the third type because of the heightened confidence that private commercial interests will not compromise the criteria applied to the schemes and strict compliance with them based on verifiable and impartial certification procedures. Environmental labels can be either Mandatory or Voluntary.

Mandatory labels are government-backed and could act as a trade restriction for foreign producers (since imports may be rejected if they do not comply). On the other hand, Imports of products that do not comply with voluntary labels are not restricted. In the case of Voluntary labels, it is up to the manufacturer to decide whether or not to apply for certification of the product, and the consumer’s choice whether to buy (or import) an ecolabelled product.
Voluntary ecolabeling programs may be funded and supervised by the private sector. They could also be government sponsored.

Labeling is often the means by which producers provide information to consumers to address credence attributes of a product so that consumers may make an informed decision. Because the producer has information the consumer does not have, so it is necessary that a third party intervene to ensure that the producer provides the consumer with the truthful information.
In this climate, either 3rd party certification is required, or there may be government regulations. Governmental regulations can mandate labels, formats for labels or controls on voluntary industry claims. e.g. The US Labeling and Education Act of 1990 (NLEA) mandates a standardized form of nutrition information with date on macro and micronutrients found in food.

Ecolabeling

Opportunities Many industry groups, civil society organizations and governments acknowledge the economic and ecological opportunities that ecolabeling could offer. Environmental It provides economic incentives for better long term stewardship and availability of natural resources important for national economic welfare. Thus it can provide countries one tool to help them fulfill commitments made under international agreements on important environmental imperatives. The fundamental rationale for ecolabeling is, after all, to generate political support for improved environmental management and to raise environmental standards through consumer choice. Economic opportunities Voluntary ecolabeling provides one of the least-coercive market-based mechanisms to improve conservation outcomes e.g. ecolabeling for fisheries products is growing because of the potential of ecolabelled products is making it a compelling business choice. Ecolabeling is seen by some as an important element for gaining access to new premium green markets. For the ecolabeling presents an opportunity to: Add value to existing products, expand reach in existing markets, maintains share in a competitive environment. In both North and South, one can argue that labeling that responds to consumer interest is likely to grow. Thus, at the global level, it makes sense for producers to get on board, with environmental considerations in order to maximize their long-term competitiveness.


Principles

1. Voluntary nature of the environmental labeling

2. The principles set out in ISO 14020 shall apply

3. Compliance by the applicant with environmental and other legislation is a pre-condition for the granting & maintenance of a license to use type 1 environmental label.

4. Life cycle consideration
Reducing environmental impact is best served by considering the whole product life cycle. So when developing the product environmental criteria it should include all stages of production from extraction of resources, manufacturing, distribution and use and disposal.

5. Selectivity
Product environmental criteria are established to differentiate preferable product from others in the product category based on a measurable difference in environmental impact. Product Environmental Criteria should differentiate between products only when differences are significant and when testing and verification methodologies used have a good level of precision and accuracy.
All products which meet the environmental criteria are eligible to use the label.

6. Product environmental criteria * indicators are based on life cycle considerations and they should be set at attainable levels giving considerations to environmental impacts, measurement, capability and accuracy.

7. Product function characteristics
In developing the criteria, the fitness of purpose of the product (in terms that it satisfies health, safety and consumer performance needs) shall be taken into account. Here national, regional and international standards for the product are taken into account.

8. Validity of program requirement
The product environmental criteria and product function requirements for each product category shall be set for a predefined period and review periods.

9. Compliance and verification
All elements in the product environmental criteria and product functions characteristics should be verifiable by the ecolabeling body. The methods for assessing compliance should make use of, in order of preference:
  • ISO & IEC standards
  • Other internationally recognized standards
  • Regional and national standards
  • Repeatable & reproducible methods which follow accepted principles of GLP
  • Manufacturer’s evidence
10. Transparency
Environmental labeling program should be able to demonstrate transparency through all stages of its development and operation.
Transparency implies that information shall be available to interested parties for inspection and comment where appropriate.

This information should include:
  • Selection of product categories
  • Selection and development of product environmental criteria
  • Product function characteristics
  • Testing and verification methods
  • Certification and award procedures
  • Review periods etc…
11. International trade aspects
Procedures and requirements for environmental labeling programs shall not be prepared adopted or applied with view to or in any way effect creating unnecessary obstacles to international trade

12. Accessibility

13. Scientific basis of product environmental criteria

14. Avoidance of conflict of interest

15. Confidentiality

   
         

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