Current Developments in Domestic

Climate Mitigation Measures

Carbon footprinting and energy

efficiency labelling schemes and
relevant WTO rules and activities

Ludivine Tamiotti, Counsellor

Trade and Environment Division, WTO
ludivine.tamiotti@wto.org
 Outline of presentation

Relevant Activities of the WTO

Relevant WTO rules

Carbon footprinting and energy efficiency

discussions in the WTO
Relevant Activities of the WTO
 WTO/UNEP Report on Trade
and Climate Change
Key objectives Key policy instruments

Internalize Carbon tax, emissions

environmental costs trading schemes
Economic
incentives Promote development & Financial mechanisms:
deployment of climate- R&D, fiscal, price and
friendly technologies investment measures

Regulatory Improve energy Emissions and energy

instrument efficiency and reduce performance standards
GHG emissions and labelling
 WTO/UNEP Report on Trade
and Climate Change
Key objectives Key policy instruments Key WTO Agreement

Internalize Carbon tax, emissions

GATT
environmental costs trading schemes

Promote development & Financial Mechanisms:

deployment of climate- R&D, fiscal, price and SCM Agreement
friendly technologies investment measures

Improve energy Emissions standards,

efficiency and reduce labelling on energy TBT Agreement
GHG emissions performance
 WTO Specialized Committees

A negotiating forum
The core functions of the
WTO may have a place
Specialized committees
in the trade and climate
change debate:
The administration of a set of
rules
 WTO Specialized Committees

Committee on Trade and

2 WTO Committees are Environment (CTE)
directly relevant to issues
related to Carbon
footprinting and energy
Committee on Technical Barriers
efficiency
to Trade (TBT Committee)
 WTO Specialized Committees

General discussions of the

environmental benefits of removing
restrictions in the energy sector, the
forestry sector, the effect of energy
Committee on Trade efficiency labelling on market access
and Environment
(CTE)
Specialized discussions on Carbon
Footprinting in 2010: exchange of
national experiences, briefings by
international institutions
 WTO Specialized Committees

In recent years the TBT Committee

Committee discussed a number of product
Technical Barriers standards and labelling requirements
to Trade (CTBT) targeted to energy efficiency or
emission control

Fuel economy standards for cars

Eco-design requirements for energy-
Examples of regulations using products
discussed so far include: Energy efficiency programmes for
consumer products

Emission limit values for diesel engines

Relevant WTO Rules
 Philosophy of the TBT Agreement

Right to Take
Avoid Unnecessary
Regulatory
Obstacles to Trade
Measures
 Key principles

Agreement on Technical Barriers

to Trade / GATT

Non discrimination

Key principles Avoidance of unnecessary

include trade barrier

Harmonization
 Non-Discrimination
Treatment
Treatment no
no Less
Less Favourable
Favourable to
to
Like
Like Products
Products
Originating
Originating

Of
Of national
national origin
origin From
Fromany
any other
othercountry
country

National Most-Favoured
Treatment Nation (MFN)
 Philosophy of the TBT Agreement

Stated Preference for

International Standards International Conformity

Assessment Procedures
Avoid unnecessary obstacles to trade
National security
requirements

Article 2.2 Protection of human

health or safety

Legitimate Protection of animal

or plant life or health
objectives
Protection of the
Article 5.1.2 environment
Prevention of
deceptive practices

…Inter alia…
 Carbon footprinting and energy
efficiency discussions in the WTO
 Global Proliferation of PCF – Key
Examples of National Schemes
All follow ISO lifecycle analysis principles and harmonizing with ISO
14067, but with specified methodologies (and labels)
• UK – PAS 2050
– Carbon Trust, Carbon Reduction Label
– Becoming a world standard
• used by companies in United States, China, Korea, Australia, etc
• Japan – TS Q0010
– Reliance on PCR
– July 2010 revision following road testing
– Pilot project 2009-2011
• France – BP X30-323
– Multi-criteria, Mandatory?
– Road testing starting 1 July 2011
– Multiple labelling formats will be tested by firms in 2011 trials
 Other Emerging Government Schemes

• Korea – Korea Carbon Footprint Label

• New Zealand – National GHG Strategy for
agricultural exports
• Chile – wine, agricultural goods
• Thailand – Carbon Reduction Label and Carbon
Footprint Label
• Chinese Taipei – Carbon Label
• Singapore – Singapore Carbon Label
• China – carbon footprint label on sea scallops
24 October 2010
Concerns expressed in the CTE

Lack of transparency

Cost of conformity assessment

Lack of harmonization

Harmonization is underway on methodology (for

government schemes), but labels and
communication of claims of vary greatly
Concerns expressed in the CTE

Market access impacts of the

proliferation of private standards

Non-neutrality of CFP
methodologies

Confusion of consumers created

by multiple labelling schemes
Key Characteristics of Emissions/ energy
efficiency standards
Emissions/ energy efficiency
standards and regulations can be…
Based on design Based on performance

Best used when few options Prevalent to improve energy

for controlling emissions efficiency in appliances and
buildings  more flexibility

Japan’s Top Runner Program (the energy

performance of the most efficient model (e.g.
household appliances) on the market is used to set a
target for all manufacturers.
 Key Characteristics of Emissions/ energy
efficiency standards

Emissions/ energy efficiency

standards and regulations can be…

Based on design Based on performance

Defining products Defining processes

Mainly address energy May result in direct environmental

efficiency & emissions related to outcomes, as they improve energy
the use of the product efficiency or limit emissions to a
certain level during production
Key Characteristics of Emissions/ energy
efficiency standards
Emissions/ energy efficiency
standards and regulations can be…
Based on design Based on performance

Defining products Defining processes

Mandatory Voluntary
Minimum Energy Performance ENERGY STAR
Standards (MEPS) for (United States)
appliances (Australia)
 Key Characteristics of Emissions/ energy
efficiency standards
Emissions/ energy efficiency standards
and regulations can be…

Based on design Based on performance

Defining products Defining processes

Mandatory
Public
Minimum energy-efficiency
performance standards for major
domestic appliances (Canada)
Voluntary
Private
Leadership in Energy and
Environmental Design (LEED) in
the building sector (United States)
Key compliance tools: Labelling

Most OECD countries (energy-efficiency

labelling)
Scope
Many non OECD countries, e.g. South
Africa, Argentina, Sri Lanka and Tunisia
Also examples of voluntary energy labelling programmes for household
appliances (E.g. Thailand, Hong Kong, China, India, Brazil)
 Key compliance tools: Labelling

Most OECD countries (energy-efficiency labelling)

Scope
Many non OECD countries, e.g. South Africa,
Argentina, Sri Lanka and Tunisia

Product’s energy performance/emissions levels

while in operation

Information e.g. EU, Australia, Canada and US require energy-

efficiency labels for several household appliances
covered
Product’s entire life-cycle, including its energy
efficiency
e.g. Nordic Swan, German Blue Angel and the EU’s
eco-label Flower
 The issue of food miles
 Key compliance tools: Labelling

Comparative labels
 compare performance among similar models

Type of e.g. for household appliances in

Australia, EU, Canada, US, Brazil,
instrument Tunisia, China, Thailand and Korea

Endorsement labels
 Seals of approval assuring consumers that a
product meets certain criteria

e.g. Energy Star label (US), Brazil,

Thailand and China (Certificate for
Energy Conservation Product)
 Key compliance tools:
Conformity assessment

to determine whether the requirements

in standards & regulations are fulfilled

give consumers confidence in the

Objectives integrity of products

add value to manufacturers’

marketing claims
 Key compliance tools:
Conformity assessment
Testing
Ex post efficiency testing on labelled appliances
(Electricity Generating Authority of Thailand)
Inspection
In the building sector, the Leadership in Energy and
Type of Environmental Design (LEED) (US)
instrument
Certification
Mark that energy performance of regulated energy-
using products has been verified (Canada)

Accreditation

Metrology
 Environmental effectiveness

Increase in energy efficiency of

products, e.g. electrical equipment
In California, the energy use of refrigerators in 2000 was
more than two-thirds lower than in 1974 (energy-efficiency
Measurement standards are in place and regularly updated since the late
tools 1970s)

Behavioural changes of consumers

and manufacturers
In the United States, recognition of the Energy Guide label
was found to be quite good; however understanding was
limited, with respondents unable to determine which
appliance was more energy-efficient, based on the labels
Current Developments in Domestic
Climate Mitigation Measures

Carbon footprinting and energy

efficiency labelling schemes and
relevant WTO rules and activities
Ludivine Tamiotti, Counsellor
Trade and Environment Division, WTO
ludivine.tamiotti@wto.org