petrushevski martin - carbon labelling
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Carbon LabellingMartin Petrushevski MESPOM 2012-2014
9 November, 2013
Course: IPP – Product Policy Autumn 2013
the International Institute for Industrial and Environmental Economics
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Presentation Outline
What is a carbon label?
Why carbon labels?
Potential impact of carbon labels
Case study “Max Burger”
Implementation challenges
Case study “Tesco”
Discussion
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What is a carbon label?
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Image source: bbc.co.uk
First party certified
Third party certified
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Carbon labelling schemes
Martin Petrushevski MESPOM 2012-2014 Course: IPP – Product Policy
Autumn 2013
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2007
+
Image sources: KRAV, Svenskt Sigil, Ecobuild (Carbon Trust)
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Why carbon labels?
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CO2
CH4
N2O
Image source: Economist.com
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Image source: bbc.co.uk
Image source: housingworks.org
UN Agenda 21 (1992)
EU Sustainable Consumption and Production Action Plan (2008)
UK Sustainable Development Report (2005)
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Image source: The Wall Street Journal
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Potential impact of carbon labels
Publicly commit to reduce carbon embodied in their products
Encourage retailers to promote less-carbon intensive products
Utility maximization – consumers have the perfect information about price and
quality of the given product
“Search” vs. “Credence” attributes
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Consumer buys less expensive products without environmental benefits and uses the extra money to donate it to an environmental cause?!
Credence information
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What drives consumer preference in
selecting food products?
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Price
Information
Environmental Performance
Organic
Locally grown
Fairtrade
Quality
Guilt
Taste
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Max Burger (Sweden)
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Image source: Max Burgers
In 2008 CO2 labels on menus
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Life cycle approach of carbon labels
Materials Processing Transport Use Disposal
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Implementation challenges
LCA tool to calculate carbon emissions
▪ Cradle to grave assessment
Production
Transport
Storage
Consumption
Disposal
▪ Evaluate emissions
▪ Cost of assessment
▪ Time needed
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2007 - 70,000 products to be carbon labelled
2012 - Stops after labelling 500 products
Consumer complaints on the labels
Difficult to understand
Slow-take up among other retailers
“Minimum of several months’ work”
The Guardian
Rate - 125 per year
560 years to carbon label them all
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Implementation challenges (contd.)
System boundaries in the LCA
Cheaper and more efficient methods for data collection are needed
The way final information is conveyed by the producers
Increase consumer knowledge and awareness
Switch from “soft” (voluntary) basis to “harder” (mandatory) policies
Worldwide implementation to be fully effective
Align with other programmes to address more issues from climate change
(acid rain, eutrophication, water footprint)
Data availability and measurement of contribution to GHG reduction
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Discussion topics
Can consumer choices contribute to reducing GHGs?!
Is carbon labelling better in reducing GHG emissions than ISO 14001 and
EMAS?!
Better communication of labels or clean up your backyard?
Credibility (Greenwashing)
Globally accepted standardization process
Identify products that yield significant emissions reductions
Top level policies
World Trade implications?!
Worldwide implementation with awareness raising campaigns
The role of knowledge and time factor? (nutrition labels)
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Thank you for your attention
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Make your own carbon footprint label!
Choose any product
Determine method of acquiring the data
Scope and boundaries of the assessment
Price to make the study
Final design on how to convey the information
Determine success of the label
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3 mins – GO!
Image source: Martin Petrushevski
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References
BBC. Co.UK 2010. URL: http://news.bbcimg.co.uk/media/images/49486000/jpg/_49486286_ct_label_minimum.jpg
Economist 2011. URL: http://media.economist.com/images/images-magazine/2011/06/04/TQ/20110604_TQD004.jpg
Housingworks.org. URL: http://www.housingworks.org/i/blog/power-to-the-people02.jpg
Solarsedar 2012. http://solarserdar.wordpress.com/2012/07/09/eu-carbon-labels/
The Guardian 2008. URL: http://static.guim.co.uk/sys-images/Environment/Pix/pictures/2008/02/05/walkers_CheeseandOnion_460.jpg
The Wall Street Journal. URL: http://online.wsj.com/article/SB122304950601802565.html
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