Concept, Philosophy, Concept, Philosophy, Principles, Principles,

Challenges and OpportunitiesChallenges and Opportunities

John Polak

EcolabellingEcolabelling

1. Evolution of Environmental Concerns

2. Environmental Information Systems

3. Type I Ecolabels

4. Theory of Ecolabelling

5. Mutual Recognition and Collaboration

6. Evaluating Ecolabel Programs

OutlineOutline

1. Evolution of Environmental Concerns1. Evolution of Environmental Concerns

• Initial thrust - manufacturing and processing

• Now - moving toward products and services

• Europe (RoHS, WEEE, EUP)• Europe leading the way• environmental information systems and

ecolabels can have significant role with respect to products and services

2 Environmental Information Systems2 Environmental Information Systems

• Different approaches available to provide environmental information

• range of product related environmental labels

• ISO standards have been developed• ecolabel goal - to communicate verifiable

& accurate information, which in turn leads to environmental improvement

Environmental Information SystemsEnvironmental Information Systems

Types of Standards• Process standards• Design Standards• Performance Standards

Some consider Ecolabels to be a sort of standard

Environmental Information SystemsEnvironmental Information Systems

Elements of Environmental Labels• mandatory or voluntary• degree of environmental coverage• sectoral application• degree of independence• type of label (information, relative rating,

leadership)

Environmental Information SystemsEnvironmental Information Systems

Relationship between Ecolabels

Reward

Rate

Report

Market Recognition Framework© TerraChoice

Information Structure

LeadershipIdentification

ComparativeAnalysis

ObjectiveInformation

Environmental Information SystemsEnvironmental Information Systems

ISO Types of Labels• series of guidance standards on

ecolabelling• ISO 14020 - all Types• ISO 14021 - Type II - self declared• ISO 14024 - Type I - selective - leadership• ISO 14025 - Type III - declarationsType I = voluntary, LC based, multiple sector,

3rd party verified and operated, and selective (leadership)

Environmental Information SystemsEnvironmental Information Systems

ISO Types of Labels - cont’d

• Principles for ISO 14020 - all Types accurate, relevant and not misleading avoid unnecessary barriers to trade science based, accurate and reproducible

results Information available upon request account taken of all aspects of the life cycle shall not inhibit innovation administrative requirements limited open, participatory consultation information available to purchasers

Environmental Information SystemsEnvironmental Information Systems

ISO Types of Labels - cont’d • Principles for ISO 14024 - Type I Ecolabels- voluntary - 14020 principles to apply- legislative compliance - life cycle considerations- differentiation - attainable and measurable- fitness for purpose - validity period, predefined

review- open participation - verifiable, acceptable standards- transparency - obstacles to trade - open access - scientific & engineering

principles- no undue influence - low as possible and equitable fees- confidentiality - mutual recognition

Environmental Information SystemsEnvironmental Information Systems

Other Types of Labels• ISO identified 3 Types (I, II, III)• however, many more possible• examples of existing ecolabels:

- organic- sustainable forest management- energy consumption- fair trade

3. Type I Ecolabels3. Type I Ecolabels

Type I Ecolabels• all issues considered• focus on differentiating attributes• purpose is to “reduce stress on the

environment by encouraging the demand for and supply of products and services that are more environmentally responsible”

• environmental values of buyers• policy and sales tool

Types I EcolabelsTypes I Ecolabels

Leadership LabelsLeadership Labels

Examples of Type I Ecolabels

Types I EcolabelsTypes I Ecolabels

Product Category Selection• Must be:

- scope for environmental improvement

- level of business interest- target audience interest /

understanding

Types I EcolabelsTypes I Ecolabels

Life Cycle Assessment• modification from full LCA for ecolabelling• LC Thinking or LC Considerations

Extraction Manufacture Distribution Use Disposal

Raw Material & EnergyEmissionsPhysical PollutionWaste MaterialRRR - Material & EnergyTOTALS

• Ecolabels focus on differentiating factors

Types I EcolabelsTypes I Ecolabels

Criteria Development• research into product life cycle stages &

marketplace• identify differentiating attributes• three common types of criteria

[a] Threshold[b] Load Points[c] Exclusion Lists

Types I EcolabelsTypes I Ecolabels

CommunicationDifferent types required:• to raise public awareness• to create demand for certified products• to convince business to get products

certified

Types I EcolabelsTypes I Ecolabels

Verification, Licensing & Monitoring• after criteria established• after applications received• need to confirm compliance• grant legal right to company to have

product carry ecolabel• ensure ongoing compliance

Types I EcolabelsTypes I Ecolabels

Government Perspective• governments have historically used three

types of policy tools: regulatory, economic, education

• ecolabels can be used as market-based policy tools to:- inform buyers

- deliver environmental and economic benefits- cause market transformation

• policy tool-kit with 4 tools• can be combined in strategies

Types I EcolabelsTypes I Ecolabels

Private Sector Perspective• ecolabels can be used to promote the sale of

products, together with price and quality• ecolabels can serve as an environmental

credential

- but, should follow marketing principles of:(1) no transference of impacts(2) verifiability(3) vagueness(4) relevance(5) absolutely non-green products(6) truthfulness

4. Theory of Type I Ecolabelling4. Theory of Type I Ecolabelling

Purpose of Ecolabelling• Inform buyers• Create market advantage• Cause displacement

So how does this all work…….

Theory of Type I EcolabellingTheory of Type I Ecolabelling

Criteria Development

Theory of Type I EcolabellingTheory of Type I Ecolabelling

Progression of Stringency

Theory of Type I EcolabellingTheory of Type I Ecolabelling

Population

Theory of Type I EcolabellingTheory of Type I Ecolabelling

Environmental Benefit

Theory of Type I EcolabellingTheory of Type I Ecolabelling

Environmental Awards

Theory of Type I EcolabellingTheory of Type I Ecolabelling

Environmental Awards

Theory of Type I EcolabellingTheory of Type I Ecolabelling

Environmental Awards

5. Mutual Recognition and Collaboration5. Mutual Recognition and Collaboration

Ecolabelling and Trade• long debate• major issue npr PPM• however, unclear about focus of

concerns• 2002 WSSD - promoted “..effective,

transparent, verificable, non-misleading, and non-discriminatory consumer information tools such as environmental performance information labels..”

Mutual Recognition and CollaborationMutual Recognition and Collaboration

World Trade Organization (WTO)• several agreements contain rules that could be

relevant to ecolabels, most notably:

• GATT- basic disciplines for trade between members- treat imports no less favourably than “like” domestic products- some questions about applicability of npr PPM requirements

• TBT- technical regulations (mandatory) and standards (voluntary)- Code of Good Conduct:

- MFN obligations - no unecessary obstacles to trade- standards based on international standards- harmonization - publish work programs

Mutual Recognition and CollaborationMutual Recognition and Collaboration

Trade Concerns• three potential issues

[a] npr PPMs, [b] access, [c] TBT Code of Good Practice

• still questions - must ecolabels comply?

Mutual Recognition and CollaborationMutual Recognition and Collaboration

Global Ecolabelling Network (GEN)• launched in 1994 - 6 members• today 26 members, including EU and Nordic Council• members all Type I• GEN evolution driven by

- globalization - importance of environment issue- spread of ecolabelling - trade concerns- ISO standards

Mutual Recognition and CollaborationMutual Recognition and Collaboration

GENICES• GENICES is a response to drivers• Coordinated Ecolabelling System - four

steps[a] information exchange, [b] mutual confidence, [c] mutual recognition of verification, [d] mutual recognition of certifiation

• tested bilaterally, now multilateral

Mutual Recognition and CollaborationMutual Recognition and Collaboration

GENICES• Benefits of GENICES:

- quick launch for new programs- interest to multinationals- facilitate access to export markets- share costs of criteria development- raises importance of GEN role- deals with trade concerns

5. Evaluating Ecolabel Programs5. Evaluating Ecolabel Programs

If decision is taken to evaluate program, suggest following steps

(1) Take Stock(2) Test the Foundation(3) Evaluate Program Design(4) Assess the Business Plan(5) Assess Implementation

Evaluating Ecolabel ProgramsEvaluating Ecolabel Programs

Take Stock• consider current economic, social,

environmental, and public policy conditions

• identify objectives, are they still relevant • consider options and alternatives• examine presence of building blocks. Is

there:[a] adequate funding[b] appropriate expertise[c] knowledge of client needs

Evaluating Ecolabel ProgramsEvaluating Ecolabel Programs

Test the Foundation• how does the program fit within:

- national strategies & priorities- environmental and economic objectives

• data that could be helpful:- key economic sectors - export-import levels- nature of domestic market - environmental status- public attitudes - environmental infrastructure- public & industry interest - public policy context

• assess current relevance of:- mission and objectives - scope of application- target sectors - product/service categories- scope of gov’t involvement - business model

Evaluating Ecolabel ProgramsEvaluating Ecolabel Programs

Evaluate Program DesignIs / does program:(i) reflective of local conditions (ii) credible (iii) effective (iv) create no trade concerns (v) recognized (vi) encourage participation

Evaluating Ecolabel ProgramsEvaluating Ecolabel Programs

Evaluate the Business Plan• objectives• processes• timeframe• benchmarks for progress

Evaluating Ecolabel ProgramsEvaluating Ecolabel Programs

Assess Program Implementation• adequacy of funding, staff and infrastructure• adequacy of processes, methods and

procedures • flexibility• responsiveness to concerns & criticisms• demand & supply side market strategies• monitor relevant international developments

Thank You.Any Questions?