INSIGHT
B U S I N E S S

Green stamps of approval

  European consumers are more and more concerned about the environmental friendliness of the products and packaging they consume, but determining which items are genuinely green has not been easy. Voluntary eco-labelling, which aims to better inform customer choice in purchasing, is widely recognised as the most effective approach. With many eco-related labels on the market and few objective criteria, however, consumers often decide for themselves which claims are most credible.

  Until five years ago, eco-labelling in Western Europe was initiated by individual countries rather than on an EU-wide basis, leading to a variety of different programs with differing effectiveness. Since 1978, Germany's program has been awarding the Blue Angel mark to products that pass the eco-test. Now widely recognised, several other European countries have followed Germany's example.

  The need for a standardised method led the EU to introduce its own Union-wide Eco-label program in 1993. The program seeks to promote the design, production, marketing and use of consumer products that have reduced environmental impact during their life-cycle, and to provide consumers with better information on the environmental impact of products. It also aims to halt the proliferation of national schemes which are not in line with the creation of a single market in the EU.

  The program currently includes numerous product groups, ranging from washing machines to refrigerators and from laundry detergents to toilet paper, with more product groups under review for inclusion. It does not apply to food, beverages, pharmaceuticals or dangerous substances. The program is voluntary, leaving it to the producer to decide whether or not to apply for the eco-label, but the intention is to create more consumer demand for products that pass the EU's green test.

THE TEST - BED-LINEN AND T-SHIRTS

Identifying how the evaluating bodies look at individual product groups provides some insight to how successful applicants are determined. Criteria for bed linen and T-shirts, for example, were defined on the basis of a "cradle-to-grave" assessment of their environmental impacts. Main impacts were found to result from the use of pesticides in the growing of cotton, harmful processes during the production of polyester and the use of harmful substances during the processing and finishing of bed-linen and T-shirts.

The main environmental parameters were found to relate to pesticide residues in the cotton yarn; volatile organic compound (VOC) emissions and use of antimony in polyester production; use of detergents, bleaching agents, dyes and pigments during wet processing; and VOCs and formaldehyde in the final printing and finishing of bed-linen and T-shirts. Parameters also relate to wastewater treatment and discharges during production.

  Criteria for product groups are developed jointly by the European Commission and designated representatives of its Member States. It utilises the input of environmental experts constituted in an Eco-label Regulatory Committee which must agree with each Commission decision through a majority vote. In addition, an Eco-label Consultation Forum made up of representatives of industry, commerce, environmental and consumer organisations and trade unions contributes significantly to the development of criteria for product groups.

  Once a product has been awarded an Eco-label, it can be marketed as such - with the special Eco-label's flower logo - in any EU member country, as well as in Norway, Iceland and Liechtenstein. The Eco-label may only be used on the product itself and in direct advertising for this product.

  The application fee to the Eco-label Committee is ECU 500. After product evaluation, if an application is approved and the label is awarded, an annual royalty fee is assessed to cover the use of the label. This fee is calculated as a percentage of the annual volume of sales of the eco-labelled product in the EU - currently 0.15 percent of the total volume of sales. In the future, the maximum annual fee will be set at ECU 40,000, regardless of the quantity of sales. Moreover, the rate of fees will be reduced to 0.10% in the case of small and medium enterprises (SMEs) and manufacturers from developing countries, making the program more attractive for other industries to apply.

  Eco-labelling in CEE countries has begun on a country-by-country basis, placing them in the same situation as West European countries before 1993, with national programs and non-standard criteria. Croatia,the Czech Republic, Estonia, Hungary, Latvia, Romania and Slovakia have established national programs with mixed results, while other CEE countries are in the early stages of program development. The Czech program, one of the most advanced, has adopted EU program standards and includes 19 product categories with over 50 eco-labels awarded in 1997, bringing the total to over 220 Czech eco-labels.

  Even with the first steps taken toward reliable country programs, there is much to do before eco-labelling is accepted throughout the region. The next stage for the CEE countries will be to adopt the standardised EU product group criteria, while the first wave of EU accession countries will have to create institutions which mirror the country committees existing in the EU.

- Gerald Francoj  


REC * PUBLICATIONS * THE BULLETIN * SPRING 1998

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