Concept, Philosophy, Principles, Challenges and Opportunities

1. Concept, Philosophy, Principles, Challenges and Opportunities John Polak Ecolabelling

2. 1. Evolution of Environmental Concerns2. Environmental Information Systems3. Type I Ecolabels4. Theory of Ecolabelling5. Mutual Recognition and Collaboration6. Evaluating Ecolabel Programs Outline

3. 1. 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

4. 2 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

5. Environmental Information Systems • Types of Standards • Process standards • Design Standards • Performance Standards Some consider Ecolabels to be a sort of standard

6. Environmental 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)

7. Environmental Information Systems Relationship between Ecolabels

8. Environmental 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 - declarations Type I = voluntary, LC based, multiple sector, 3rd party verified and operated, and selective (leadership)

9. Environmental 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

10. Environmental 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

11. Environmental 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

12. 3. 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

13. Types I Ecolabels Examples of Type I Ecolabels

14. Types I Ecolabels • Product Category Selection • Must be: - scope for environmental improvement - level of business interest - target audience interest / understanding

15. Types I Ecolabels Extraction Manufacture Distribution Use Disposal Raw Material & Energy Emissions Physical Pollution Waste Material RRR - Material & Energy TOTALS • Ecolabels focus on differentiating factors • Life Cycle Assessment • modification from full LCA for ecolabelling • LC Thinking or LC Considerations

16. Types 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

17. Types I Ecolabels • Communication Different types required: • to raise public awareness • to create demand for certified products • to convince business to get products certified

18. Types 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

19. Types 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

20. Types 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

21. 4. Theory of Type I Ecolabelling • Purpose of Ecolabelling • Inform buyers • Create market advantage • Cause displacement So how does this all work…….

22. Theory of Type I Ecolabelling Criteria Development

23. Theory of Type I Ecolabelling Progression of Stringency

24. Theory of Type I Ecolabelling Population

25. Theory of Type I Ecolabelling Environmental Benefit

26. Theory of Type I Ecolabelling Environmental Awards

27. Theory of Type I Ecolabelling Environmental Awards

28. Theory of Type I Ecolabelling Environmental Awards

29. 5. 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..”

30. Mutual 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

31. Mutual Recognition and Collaboration • Trade Concerns • three potential issues [a] npr PPMs, [b] access, [c] TBT Code of Good Practice • still questions - must ecolabels comply?

32. Mutual 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

33. Mutual 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

34. Mutual 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

35. 5. 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

36. Evaluating 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

37. Evaluating 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

38. Evaluating Ecolabel Programs Evaluate Program Design Is / does program: (i) reflective of local conditions (ii) credible (iii) effective (iv) create no trade concerns (v) recognized (vi) encourage participation

39. Evaluating Ecolabel Programs Evaluate the Business Plan • objectives • processes • timeframe • benchmarks for progress

40. Evaluating 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

41. Thank You. Any Questions?