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1term Paper Group10 Final
1term Paper Group10 Final
1term Paper Group10 Final
Extent
Rakesh Kumar and Saphallya Misra
Submitted to
Eco labelling
In recent times the responsible consumerism movement and responsible consumer
behaviour has brought into focus pollution control in manufacturing and production
process to attain sustainable growth.
Eco-labels are affixed to products that pass eco-friendly criteria laid down by
government, association or standards certification bodies. The criteria utilise
extensive research based on the product's life cycle impact on the environment.
The objective of eco-labelling is to affect production and supply through the
demand. The idea is to encourage the demand of those products and services which
are less harmful for the environment.
Ecolabelling Schemes
Eco labels are mostly formulated by non – governmental agencies and [private
organisations in collaboration with government. These schemes Are mostly limited
to a nations geographic reach.Though there re multi national ecalabelling agencies
yet they have not been effective enough.
• Use of label is not compulsory, national programs can coexist along with EU
label
• Targeted at consumer goods, not at manufacturers or companies. 200
products to-date
• Ecological criteria developed for 29 product groups and being developed for
15 product groups. Over 650 products carry the label
The paper begins with the brief introduction of emergence of the concept of eco
labelling came. The major beneficiaries were Chinese Government and the Chinese
enterprises .Government wanted to manage environmental problem where as
entrepreneurs endeavoured to eliminate non-tariff barriers for their exports and
allow them to expand their domestic market shares. However, the labelling
procedures had been developed in OECD countries; it was to be managed by
Chinese government. The certification is done voluntarily by a third party who can
either be public or private based on its eco-friendly effect. Different organisations
like OECD, UNCTAD and GATT had different definitions but the concept was same
i.e. product is environment friendlier than the similar other product in the market.
GATT also talks about different labels viz. eco-label, single-issue label, negative-
issue label. The China Certification Committee for Environmental Labelling of
Products (CCELP), which is very much similar like that of Germany, was established
in May 1994. There had been 22 environment labels issued by China by the end of
2007.
During 1990, there was a period of great economic growth which put pressure on
insufficient natural resources. As a result, Chinese government started making
people aware about environmental protection in place of “command and control”. It
was started by Xie- Zhenhua, administrator of NEPA (National Environment
Protection Agency). The awareness was made about choosing product not only on
the basis of price & functional quality but also the environmental impact. One
another factor was the export of refrigerators which had plummeted drastically (by
58%). As a result Xiament silk export company & some household refrigerators
company asked NEPA to establish eco labelling programme in china. The intention
was also to improve image among the Chinese customers. As a result of
surmounting pressure, Xie Zenhua was charged with the task of creating a Chinese
environmental labelling programme in 1992.
The logo contained mountain, sea and the sun in the middle. The circles
represented the people of china. The message of the logo was “human beings
should unite to protect the environment they live in.
Then in 1994, CCELP (China Committee for Environment labelling of products) was
established by NEPA.
There was establishment of CCELP secretariat which looked into the administrative
functions of labelling. Before giving labels, enterprises were investigated by CCELP.
SEPA and SBQTS provided leadership and guidance for the labelling programme.
The labelling was based on labelling procedures of OECD countries with some
changes as per china’s social, economic and environmental situation.
Since one of the objective was to promote Chinese export, so CCELP paid special
attention to products that had export potential.
Procedure to get labelled
CCELP Secretariat
sends notices to
EPB and Enterprise
No
Yes
Criterion Development
Effectiveness
At the end of 1997, the awareness of the Eco label was up to 30% in china and
there were some 3.5 million green products across the country.
Moreover to increase the awareness, SEPA and CCELP organise events on world
environment day and consumer day. Massive ads by refrigerator companies are the
biggest factor in bringing up the awareness. There has been a significant impact of
eco label on paint and laundry industry.
Behavioural changes that has been so far in enterprises is the rise in prices of
product. This is because of the additional cost incurred in taking the license. The
environmental benefit has not been considerably much as there are very less
product categories which have eco label. But then, there is reduction in CFC
emissions.
There are three committees involved with the criteria development for each product
category and the award of the EcoMark:
The Central Pollution Control Board has become the member of Global Eco-labelling
Network (GEN) since March 2000.
2. The Bureau of Indian Standards to assess and certify the products and draw up a
contract with the manufactures, allowing the use of the label, on payment of a fee.
The criteria are based on the cradle-to-grave approach, i.e. from raw material
extraction to manufacturing and to disposal. The basic criteria cover broad
environmental levels and aspects, but are specific at the product level. A product is
examined in terms of the following main environmental impacts:
• That they have substantially less potential for pollution than other
comparable products in production, usage and disposal.
• That they are recycled, recyclable, made from recycled products or bio-
degradable, where comparable products are not;
The product general requirements deal with the issues of compliance of the
pollution control acts; raising environmental awareness among consumers etc., in
addition to safety, quality and performance of the products.
• Biodegradability
The Government of India has notified the final criteria for the following 16
product categories:
• Paper
• Food Items
• Lubricating Oils
• Packaging Materials
• Batteries
• Electrical/Electronic Goods
• Food Additives
• Wood Substitutes
• Cosmetics
• Aerosol Propellants
• Plastic Products
• Textiles
• Fire-extinguisher
• Leather
Fees
The following fees are required to be paid to the Bureau of Indian Standards for
obtaining the Ecomark :
• Testing charges of the independent laboratories for the samples drawn prior
to the grant of licence;
• Marking fee, depending upon the quantum of the annual production of the
licence.
Issues Needs
License fee charged by BIS, is a Such regulatory eco labelling schemes
deterrent for companies to use would require free of cost processing.
this mark
Brand leaders give more Awareness monitoring and adhering to
importance to BIS’s ISI mark the scheme’s standards of Ecomark is
required. Certain sectors need
mandatory legislation to carry the
mark.
Customer awareness Awareness campaign through mass
media, vehicles is needed
ISI mark is mandatory for govt. Mandatory legislation to carry Ecomark
tenders whereas Ecomark isn’t to participate in govt. tenders
Process of obtain the license to use EcoMark
Centre for Science and Environment has started the green ratings project which is
an effort to rate industrial units within a specific sector on the basis of their
environment friendliness. The project aims at encouraging companies to
adopt better environment management policies.
Objective
Methodology followed by
CSE (see insert)
Criteria
• Input Management
• Process Management
• Waste Management
• Transparency
CSE has already undertaken three sectoral ratings programme in chloral alkali
sector, pulp and paper sector as well has automobile sector. Apart from these, it has
also undertaken a survey in cement industry. Outcomes of these reports has
created furore in media as well as in corporate world. A working paper by Mr.
Srikant Gupta and Vishwanath Golder of Delhi School of Economics has taken up the
impact of these ratings and other environmental standards and compared it to
capital markets.
CSE is and always has been a controversial body. Many industries boycott the
organisation. So, many companies decline to participate in its environmental rating
programme. CSE’s green rating is sometimes based on primary data and caters to
specific industry. In its nascent form the implication of such rating is difficult. Yet, in
course of time and with participation of various companies and industries, CSE’s
model of green rating by taking the regulatory standards as the benchmark would
be able to achieve larger recognition. Transparency of participating companies and
credibility of information provided and methodology has also been questioned.
Fair trade Labelling Organizations International (FLO), created in 1997, World Fair
Trade Organization (formerly the International Fair Trade Association), Network of
European Worldshops (NEWS), created in 1994 and European Fair Trade
Association (EFTA), created in 1990 together formed FINE.
• Increase the quality and efficiency of fair trade monitoring systems, and
Fair trade:
Fair trade:
• Fair trade help producers take more control over their lives.
• market-based approach that aims to help producers in developing countries
and promote sustainability
• Stable prices
• Partnership
Environment Aspect
Fairtrade rewards and encourages farming and production practices that are
environmentally sustainable. Producers are also encouraged to strive toward
organic certification.
• Protect the environment in which they work and live. This includes areas of
natural water, virgin forest and other important land areas and dealing with
(GMO).
Work out and monitor what affect their activities are having on the environment.
Then they must make a plan of how they can lessen the impacts and keep checking
Rug Mark
Conclusion
The concept of eco labelling has been existent for decades. Yet, implication of these
has not been spectacular. Issues concerning the failure of these schemes can be
attributed to many causes mostly pertaining to regulatory practices. Lack of
standard norm among policy makers and planners has resulted in imbalance in the
rating systems and methodology followed in various eco labelling schemes.
References
1. Alain Nadaï, 2007,Conditions of Development of a Product Ecolabel,
Department of Engineering and Public Policy ,Carnegie Mellon University
3. Jimin Zhao and Qing Xia, China’s environmental labelling program, Stanford
University, Chinese Research Academy of Environmental Sciences.