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| Issue No.12 |
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| ECO-LABELLING |
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| KEY POINTS: |
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- Eco-labelling aims to identify and promote products that have a reduced environmental impact. Traditionally, eco-labelling systems have concentrated on products and their packaging.
- Eco-labelling schemes were first introduced in Europe in the late 1970s. The European Union (EU) has identified a number of priority product groups for possible consideration under the eco-labelling scheme. In addition, many EU countries have their own separate labels. Eco-labelling schemes also exist in a number of other countries including Japan, the United States, Canada, India, New Zealand, the Republic of Korea and Singapore
- An Environmental Choice Australia education and labelling program was launched by the Australian Government in 1991 but attracted widespread criticism, little support and is no longer in existence. The packaging industry in Australia has developed its own Environmental Code of Practice. The food industry has established a "Code of Conduct for the Provision of Information on Food Products".
- Eco-labelling schemes have numerous difficulties to overcome before they gain widespread acceptance. Without the support and active involvement of companies, any eco-labelling scheme will founder. Producers need to be convinced of the merits of eco-labelling. The criterion for awarding eco-labels remains contentious.
- Eco-labelling schemes can become trade restrictive. Such schemes may reflect exclusively the environmental conditions and preferences of the importing country and be inappropriate to the ecological conditions of foreign suppliers.
- Eco-labelling schemes are gaining importance internationally but wider acceptance will depend on these difficulties being overcome.
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| ECO-LABELLING PROGRAMS (Source UNCTAD) |
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Country/Group |
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Name of the Program |
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Created |
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GERMANY |
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Blue Angel |
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1977 |
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| CANADA |
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Environmental Choice Program |
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1988 |
| JAPAN |
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Ecomark |
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1989 |
| NORDIC COUNTRIES |
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White Swan |
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1989 |
| UNITED STATES |
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Green Seal |
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1989 |
| SWEDEN |
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Good Environmental Choice |
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1990 |
| NEW ZEALAND |
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Environmental Choice |
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1990 |
| INDIA |
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Ecomark |
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1991 |
| AUSTRIA |
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Austrian Eco-Label |
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1991 |
| REPUBLIC OF KOREA |
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Ecomark |
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1992 |
| SINGAPORE |
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Green Label Singapore |
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1992 |
| FRANCE |
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NF - Environment |
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1992 |
| NETHERLANDS |
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Stichting Milieukeur |
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1992 |
| EUROPEAN UNION |
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European Flower |
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1992 |
| CROATIA |
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Environmentally Friendly |
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1993 |
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The purpose of eco-labelling is to highlight those products which have a reduced environmental impact thereby enhancing that product's marketing appeal. In principle, eco-labelling follows a comprehensive, multi-criteria and life-cycle approach with a view to informing consumers about the environmental impact of the product. In practice there are different types of eco-labels which have different criteria and the approach to eco-labelling varies widely between countries.
State of Play
The first eco-label was the "Blue Angel" introduced in Germany in 1977. The countries listed in the table above now have eco-labelling programs.
The EU Ecolabel scheme is conducted by the relevant national bodies in the EU Member States. The eco-labelling criteria are defined on a "product-by-product" basis and are the same across all member states. Once a product has been awarded an Ecolabel, the label is valid across all member states without any supplementary tests or controls. It appears some of the country programs interpret this differently.
Recent developments in the Commission's eco-labelling process have resulted in a list of Priority Product Groups being suggested by Member States for future consideration under The European Union Eco-Label Award Scheme. The list includes: converted paper products such as envelopes; shopping bags; returnable bottles; and rubbish bags.
The Issues
While eco-labelling is gaining importance internationally, problems remain to be resolved:
Life-Cycle Assessment
Life-Cycle Assessment (LCA) is a key to eco-labelling schemes. Properly implemented, LCA assists governments, industry and consumers in: understanding the complex environmental effects of products from "cradle-to-grave"; reducing environmental burdens caused by products during their life-cycle; and making environmentally-informed production and purchasing decisions.
No internationally agreed methodology exists for the use of LCA. The ISO 14,000 series aims to address this deficiency. The use of LCA varies widely across eco-labelling programs. In the European Union and the Netherlands the most relevant environmental aspects are first identified on the basis of a list of environmental aspects at different stages of the product's life-cycle. Specific criteria are developed addressing these aspects. The French program is the most rigorous. In other programs, however, the criteria refer to only one or some environmental aspects and only part of the product's life-cycle. The German and Japanese eco-labelling program focus on one environmental aspect, normally related to the use and disposal of a product.
The ISO is currently drafting guidelines concerning environmental claims in relation to the supply of goods and services and formulating definitions and rules for the use of specific terms used in environmental claims as part of the 14,000 series. Testing and verification methodologies or the use of symbols will be addressed in future standards. Standards Australia is the Secretariat for the Enviro Label section of the work. |
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Trade Effects
Eco-labelling schemes can pose restrictive trade measures by increasing the difficulties of market entry for imported products. Trade restrictions will arise if procedures for obtaining the label are more difficult for foreign applicants to satisfy.
Discriminatory effects can be attributed to a number of factors. Eco-labelling tends to be based on the environmental priorities and technologies of the implementing country which may differ significantly from those in the country of production. They may require foreign producers to meet criteria which are not relevant to them. This is an important issue for Australia in our national drive to win new markets.
These issues are being addressed by the newly formed Global Eco-labelling Network (GEN). Reciprocity or mutual recognition between different eco-labelling schemes is an issue of growing importance. The ISO 14,000 series also aims to remove trade restrictive measures and improving common procedures.
Environmental Effects of Eco-Labelling
Has eco-labelling resulted in the marketing of more products with reduced environmental impact? No clear answer exists. A recent UNCTAD document noted:
Whether and how much eco-labelling has already contributed to reducing environmental stress is difficult to assess. Existing evidence of positive environmental effects which could be attributed to eco-labels is limited to specific cases. Unfortunately, however, there are no studies which have tried to make a systematic assessment of the effects of existing eco-labelling programmes on the environment. What can be said is that the environmental effects of eco-labelling depend largely on the relevance and significance of eco-labelling criteria as well as the market share of eco-labelled products, which in turn depends on consumer preferences for eco-labelled products and the responsiveness of producers and suppliers. Thus in order for eco-labelling to be an effective marketing instrument, there must be public awareness of eco-labelling programmes and eco-labelled products, and producers must be interested in making a significant volume of eco-labelled products available in the marketplace.
Situation in Australia
In October 1991, the Commonwealth Government launched the Environmental Choice Australia education and labelling program. This voluntary scheme failed to attract widespread support and no longer exists.
The Packaging Council of Australia, in conjunction with other organisations, has developed an Environmental Code of Practice for Packaging. The Code provides companies with guidelines to help evaluate the environmental impact of new packaging materials and products. In 1995, the food industry launched a "Code of Conduct for the Provision of Information on Food Products".
Australia has consumer protection and other regulatory mechanisms, both at State and Federal level, to ensure industry is held responsible for products proven to be harmful. Company obligations, when using environmental claims are covered by the Trade Practices Act. Guidelines prohibit a corporation from engaging in misleading or deceptive conduct or from making false or misleading representations. The test for misleading or deceptive conduct is objective - is the claim likely to mislead or deceive? It is not concerned with whether deception was intended. |
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THE PACKAGING COUNCIL OF AUSTRALIA'S POSITION |
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The Packaging Council supports initiatives that raise environmental standards and assist consumers to make informed decisions.
The packaging industry in Australia has been at the forefront of the environmental debate for over a decade. Its policies, practices and product reflect this fact. On environmental issues such as source reduction, recycling, cleaner production process and involvement in education and general community programs, the Australian packaging industry has a record of real achievement.
Eco-labelling can be an effective instrument of environmental policy-making, provided it is non-discriminatory, with principles and procedures that have wide acceptance both nationally and internationally. To date this point has not yet been reached.
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Read other Issues Papers:
No.01 - "Combustion with Energy Recovery"
No.02 - "Life Cycle Analysis"
No.03 - "Managing Packaging Waste in Europe - Lessons for Australia"
No.04 - "Waste Management "
No.05 - "Litter"
No.06 - "Mandatory Deposits"
No.07 - "Excessive Packaging"
No.08 - "Recycling"
No.09 - "Australian Packaging - How Competitive?"
No.10 - "The Packaging Council of Australia"
No.11 - "Mandatory Minimum Recycled Content"
No.13 - "Packaging - Ten Trends for The Next Ten Years"
No.14 - "Packaging - It's Essential Role"
No.15 - "The Internet - What it Means for Australian Packaging"
No.16 - "Single, Active, Post-Materialistic, and Grey?"
No.17 - "Digitisation in Printing - Implications for Packaging"
No.18 - "Australian Packaging: Issues and Trends" |
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