Filling the Gap_Ismail Khater

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    Filling the Gap

    Table of Contents

    Introduction ........................................................................ 2

    Market-based Instruments (MBIs) ....................................... 4

    LCA overview ...................................................................... 7

    Non-governmental organizations ...................................... 12

    Eco-labeling ....................................................................... 15

    Green building certification ............................................... 19

    Estidama ........................................................................... 22

    Concluding remarks ........................................................... 26

    Bibliography ...................................................................... 28

    Table of Figures

    Fig. 1: Market-based instruments by type (S. Whitten, M. Bueren D. Collins 2003) ................ 5

    Fig. 2: Managerial capabilities (Crabb, Leroy 2008) ................................................................. 6

    Fig. 3: British attitudes towards green shopping (Marks & Spencer 2007) ............................... 9

    Fig. 4: Phases of a Life Cycle Assessment (European Commission 2010) ................................ 10

    Fig. 5: Various eco-labels logos (internet) ............................................................................... 18

    Fig. 6: Green building certification logos (internet) ................................................................. 21

    Fig. 7: Estidamas four pillars (Estidama.org)........................................................................... 22

    Fig. 8: A linear relationship between Estidama, UPC and Plan 2030 (Estidama.org) .............. 25

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    Introduction

    With the growing amount of information and general involvement in decision making, there

    is a recognized need for environmental regulation change, by all stakeholders, ranging from

    consumers to producers. Voluntary schemes of pollution prevention, as well as health and

    social issues, have made transparency one of the most important aspects of the policies.

    Transparency and raising awareness are key concepts of filling the information gap between

    the stakeholders. In the book Limits to Growth the authors talked about the concept,

    which is crystal clear to any thinking human being, that there is a limit to the physical

    growth on this physically finite planet. While pessimists say that the results of the ecological

    and economical overshoot will cause a collapse, there is still hope for oscillation.

    There is a current realization of the nature of environmental problems as being interrelated.

    We need certain ecological abilities to be able to survive these days. These must be a joint

    intelligence, and that exist in a distributed fashion among a wide range of networks of

    people, a lot of collaboration between scientists, industries and customers needs to happen,

    in order to overcome and deal with the situation. We are faced with assured challenges that

    are too complicated, too diverse and too delicate to be understood and overcome by a

    single person. We need to learn what dangers we face, what their causes are, and to see the

    new opportunities these solutions offer. We need the collective willpower to do all this as a

    group, and integrating ecological considerations, with effective communication, will

    improve and accelerate the realization of the time sensitive goals.

    There is no doubt on the role of governments to regulate and direct the market towards

    the right path. There is a need to continuously upgrade their policies, on a faster pace.

    Codes need to be more stringent, ecological violations need to be dealt with harsher. The

    world governments like for example the Kyoto protocol or the World Bank and other major

    stakeholders need to have a more substantial role and power in implementing their views

    and policies. In the past supporter groups concerned with everything from saving the

    rainforest to hunting down sweatshops would approach governments to pass regulations to

    promote their plans. Recently many have changed their strategies, trying to persuade

    consumers to boycott products that contribute to harming the environment. This strategys

    core is creating joint consumer action to shift markets to the kinds of products aligned with

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    what they endorse. Such a market strategy can be far more effective and work much faster

    than regulation.

    The commencement of market-based instruments, as tools to avoid pollution, is in some

    cases encouraged as it brings flexibility in the regulations, raising the efficiency, without

    altering the goals. Their benefits exceed economic and environmental aspects, as they also

    help creating the paradigm shift in information transparency and public consciousness. In

    the following paper, I provide an impression of recent adjustments in ecological directives

    that demonstrate the significance of information and stakeholder involvement in

    environmental policy, as well as providing some overviews about certain tools, which help

    understand, build awareness and deal with the issues. I start by demonstrating the concepts

    of market-based instruments. From that I will take a look over life cycle assessments and

    also non-governmental organizations, as they are key topics to understanding the

    subsequent sections, which will be taking one of the market friction MBIs, specifically

    ecolabelling, into more depth. Finally, I will zoom more in on the specific type of ecolabelling

    concerned with the built environment, green building certificates, taking after that an active

    example from the United Arab Emirates, Estidama, their local certification process.

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    Market-based Instruments (MBIs)

    Market-based instruments are systems that promote actions against the environmental

    issues through market indicators rather than through precise government environmental

    policy, such as command and control and usually use price or economic incentives. One of

    the goals of using MBIs is to achieve the goals through the focus on the needs or desires of

    the corporation and businesses themselves. This is done by letting them choose their own

    unique ways and technologies, and they would have the choice to even go further than the

    given limits, as it becomes a rewarded incentive, [1]in comparison to command and control,

    which works on the basis of process defined in-and-output as well as discharge quantity

    limits, and therefore could get in the way of innovative technology advancement and

    reduce the competition. [2]

    Another reason of why the market based instruments is being conducted is, in some

    instances, its cost effectiveness. They could achieve the same reduction demanded by a

    command and control system at a lower cost. To demonstrate, imagine two polluters, one

    and two, which emit the same amount of, for instance, CO2. If the cost of reduction for one

    is twice as much as for two, and the amount of reduction asked for is to half the quantity,

    the total charge of reduction would be more than, hypothetically speaking, if emitter two

    would reduce its whole emissions. Market based instruments could allow that by providing

    either carbon trading or taxing. In this example there is one major downside, which is that

    the mechanism did not take the location matter into consideration. Even when the overall

    cutback is achieved, focusing the pollution to one location could cause more environmental

    problems than when it is spread all over. Technically speaking, even if this does not apply for

    CO2 emissions, it is relevant to other forms of contaminations like SO2, which causes acid

    rain. This would have been solved using the command and control instrument, whereas it

    would be conveyed to the location and have a specific restricted capacity implemented. In

    that case it would be a good idea to use both systems and restrict the use of this type of

    MBI to non-location related pollutants.

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    Types of market based instruments

    Even with the arguments regarding the use of market instruments to date, an impressive

    range of MBIs has been employed all over the world. In the figure below, types of market

    based instruments are shown, divided into their three categories, price, rights-based and

    market friction.

    Price-based Rights-based Market friction

    Emission charges

    User charges

    Product charges

    Performance bonds

    Non-compliance feesSubsidies (materials and

    financial)

    Removal of perverse

    subsidies/taxes

    Deposit-refund systems

    Tradable permits, rights or

    quotas

    Offset schemes

    Reducing market barriers

    Extension / education

    programs

    Research programs designed

    to facilitate market exchangesLabelling

    Information disclosure

    Fig. 1: Market-based instruments by type (S. Whitten, M. Bueren D. Collins 2003)

    In short, a description is given to each type as following: Price-based MBIs influence

    behavior by changing or produce prices for environmental commodities and services to

    reflect their impact; they can work as positive or negative incentives. Right-based MBIs

    influence behavior by changing or indicating rights and obligations of using natural

    resources. They can be designed to control the quantity of the commodity and they are

    usually tradable. Market friction MBIs influence behavior by improving existing markets to

    achieve better and transparent environmental results. They increase the information flow

    between all parties, which leads to cost reductions. [1] [3]

    The use of market based instruments has been increasing gradually in environmental

    policies. However, their competence is still not fully identified and debatable. There is a

    difference of opinion on whether or not the same economic agents who created the current

    economical framework would have the same interests, and therefore have designed the

    MBIs (like cap and trade) this way. [4] Then again, everyone is impressively agreeing on the

    need for change and to battle climate change. There are many who doubt the efficiency of

    tradable permits and taxes over command and control, and also the attractiveness of taking

    full advantage of the finances for governments, as they use a lot of human resources. [5]

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    Command and control measures appear to be safer, as they have been in use for a long time

    and are widely accepted. They also offer more time for adjustments, nevertheless this does

    slow down the process to reach higher values and also slows down innovations. [6]

    There is one very clear thing about market based instruments, which is that their impacts

    are not clear. In order to successfully use them, the awareness and knowledge of them

    needs to be risen. This awareness needs to happen on three sides. The responsible

    environmental agency side, to monitor and control, the polluters side, to implement them,

    the public, to formulate their opinion, behavior and respond to them. Furthermore, good

    governance would be needed to adequately define for example property rights and set up

    the authority that will put a clear system into practice. In addition, the newly created

    markets need to be competitive, in order to have the polluters respond successfully to the

    incentives and make a change. Finally, the governments who will implement these

    instruments need to have the financial and administrative capacity to start, check and

    enforce these systems. In many countries there would be a need for technical, as well as

    financial help to be able to introduce these mechanisms. In order to avoid mishap, these

    systems need to proceed in stages with an allocation for a learning phase. [6]

    To conclude, market based instruments are to be incorporated and support, rather than

    replacing current policies and programs. It is also important to regularly evaluate and

    develop these new systems. The assistance of communities and non-governmental

    organizations should be highly recommended and welcomed, to form public opinion and

    awareness. This can only be achieved with radical transparency in all stages, from policy

    creation to realization.

    Fig. 2: Managerial capabilities (Crabb, Leroy 2008)

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    LCA overview

    A life cycle assessment (LCA) is a technique to assess all impacts related with all the phases

    of a process from-cradle-to-grave. It starts from raw materials through materials processing,

    manufacture, distribution, use, repair and maintenance, and disposal or recycling. [7] LCAs

    can help avoid a narrow point of view on environmental, social and economic concerns,

    through compiling a list of relevant energy and material inputs and environmental releases,

    evaluating the potential impacts associated with identified inputs and releases and

    interpreting the results to help you make a more informed decision. [8] There are many

    variants of LCAs. The most commonly known one is from cradle to grave, which is a full

    assessment of a product from start of manufacturing to the disposal phase. This type could

    include a cradle to gate, which means from start of manufacturing to the factory gate. This

    type could be for instance a windshield wiper blade, which will be added to the cradle to

    grave assessment of the whole car. Within the production of the same blade, a gate to gate

    partial LCA could be looked into. This means that for example the rubber part would be

    evaluated separately, which would result an assessment of only the added value of it. There

    is also the cradle to cradle LCA, which is kind of a cradle to grave assessment, but the end of

    life disposal step of the product is a recycling process.

    There are significant benefits of having LCA done by manufacturers. They would be able to

    tackle the weak points in the cradle to grave process by pointing them out from the LCA

    analysis. One good example is what Procter & Gambles (P&G) global sustainability

    department did a couple of years ago. They aimed to integrate sustainability into their

    strategy, and found out through the LCA of laundry detergents, that by far, the biggest

    contributor to the products entire energy footprint was the consumer himself. This is due

    to the need of using heated water to do the laundry. As a result, the companys R&D unit

    developed Tide Cold Water (known in Germany as Ariel Kalt-Aktiv), a laundry detergent

    that cleans clothes without consumers having to heat the water in the washing machine.

    This would result savings of 34 million tons of CO2 emissions annually if every U.S.

    household used the product, according to Len Sauers, VP for Global Sustainability at P&G.

    [9] This innovative technology also comes with no trade-offs, as Sauers puts it, as the money

    saved from not having to heat the water pays for the price difference of a box of detergent.

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    Other examples can be seen in packaging sizes and products compaction, the list is never

    ending. Each and every detailed step of an LCA is an opportunity to explore whether some

    industrial upgrade, a different chemical or a novel process might improve the products

    overall footprint.

    LCAs are one of the pioneering tools to create transparency in the ecological revolution,

    getting hands on the analysis makes us able to compare and judge products. But how would

    the regular citizen do that? What does it require to be able to comprehend such an analysis?

    The answer is: a lot of knowledge and education. I honestly think that the majority of the

    population would not even bother reading through the never ending steps and cycles of a

    LCA. Dara ORourke, an industrial ecologist, saw that problem and had a visionary project to

    bring transparency to the marketplace in the form of a software innovation called

    GoodGuide. GoodGuide provides the worlds largest and one of the most reliable source of

    information on the health, environmental, and social impacts of consumer products. [10]

    GoodGuide integrates hundreds of complex databases that evaluate everything from

    companies policies on animal testing to the carbon emissions in its supply chain to the

    specific chemicals concern in its products. It does that by drawing a huge amount of data on

    products and companies. By telling the story of a product in a convenient user friendly way,GoodGuide provides the information that customers need. If a customer wants to explore

    and go into more details of a product, and see how they came up with the summary rating,

    lets say the specific environmental impacts of a product during manufacturing, transport,

    use or disposal, it is possible, by simply opening the drop down menu of a category.

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    A survey of 25,000 customers by Marks & Spencer found that about a quarter of shoppers

    are simply not interested in whether an item is or isnt green. Ten percent, on the other

    hand, will go out of their way to get a more ethical item. The most telling group in that

    survey was the large majority of shoppers who lie somewhere between the two extremes.

    Roughly two-thirds of shoppers care about ethical choices but want the decision to be easy,

    or are vaguely concerned about ethics but feel their shopping preferences wont matter.[11] Radical transparency targets that two-thirds by making ethical choices easier, offering a

    shopper relevant data in a neat summary as he or she holds the item in their hand. This has

    been possible through new technologies such as the apps downloadable on Smartphones,

    such as the one by GoodGuide. One could get the info downloaded by simply taking a

    snapshot of the barcode of a product, that easy it is. While older shoppers may not have or

    want to use this technology, or are simply too set in their habits, younger generations are

    far more motivated to embrace it. A New York teen online survey, that polled a random and

    representative sample of 767 U.S. teens (13 to 19 years old, the mean age was 14.6), there

    are some of the most remarkable findings. [12] The survey shows us that teen awareness of

    environmental issues is on the rise. Seventy-four percent of teens, nationally, believe its

    their responsibility to help save the environment. Teens see themselves as part of the

    problem and as part of the solution83% agrees that if someone showed them how they

    could help the environment, they would do it if it was easy. Teens want to be

    environmentally conscious consumers: 69% nationwide say they would buy products or

    Fig. 3: British attitudes towards green shopping (Marks &

    Spencer 2007)

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    services that help the environment if they were more widely available; an even greater 85%

    of New York teens concur.

    Another upcoming technology and tool is Earthster. Earthster is the first free open source

    web based platform designed to provide the most current data and sophisticated

    assessment tools to measure and manage a products social and environmental impacts

    throughout the supply chain. [13] Their aim is to accelerate supply chain innovations that

    improve social and environmental impacts, with far reaching benefits for companies,

    consumers, and the planet. Its concept is based on collaboration, as an example, a company

    publishes its information on its product, lets say glass, then another company that produces

    windows and use this glass can take this information and plug it into their analysis. Once a

    part of a process is upgraded, there would be no need to re-do the whole analysis, every

    manufacturer would update their part that will show up automatically in other products

    that use the network. While these technologies are creating the means to be able to

    evaluate and choose, it is up to the purchasing power to give their preferences, driving all

    industries into sustainability.

    Fig. 4: Phases of a Life Cycle Assessment (European Commission 2010)

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    While Earthster is not meant to be for regulations, binding laws or a mandatory

    requirement, it is definitely a good tool to create policies with. Once the database of

    Earthster grows, it would benefit a lot of production lines, making it easy to compare

    suppliers environmental impacts and choose which ones are performing more efficient. It

    would also provide means of calculation to those small businesses or inexperienced ones,

    who had just joined the establishment of LCAs, since the concept of Earthster is based on an

    open source system. Whenever new technologies or ways of production are published,

    which are based on lower ecological impact, the rest competing companies or businesses

    would run to meet the new standards to stay on track. Other beneficial effects of having this

    tool are for policy and regulatory makers to be able to set new standards faster and update

    them regularly according to the available values. This would also keep corporations from

    lacking behind and being another incentive, next to the open markets, to keep their

    research and development departments looking for improving their products and

    production lines constantly. With Earthster, users can identify and point out the problems

    easily, making it easier to understand where they need to improve. When life cycle

    assessments are distributed to the public in a transparent way, it will eliminate

    greenwashing. This is another advantage of life cycle assessments, as it avoids transferring

    the environmental problems from one place to another. I believe that my proposal of

    adding the obligation of carrying out life cycles assessments as a tool alongside the market

    based instruments and making governments supporting the conduction and advancement in

    life cycle assessments and using it as a tool of measure, would benefit the whole economy,

    environment and the society.

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    Non-governmental organizations

    Non-governmental organizations are legally formed groups, usually private, that operate

    separately from any government. The phrase, NGO, is usually used to define the

    organizations that pursue social and environmental aims. [14] There are non-governmental

    organizations that are focused on the planets ecological conservation, working around the

    world to protect ecologically important weak points, such as lands, air and waters for nature

    and the people. This is the type of NGOs I will be focusing on. Apart from the social means,

    their environmental aims range from fighting global warming or climate change, ecological

    conservation, land degradation and nuclear issues, water pollution, resource depletion, to

    getting new regulations through to the governments and helping corporations to achieve a

    higher level of sustainable businesses and products that reflect the global public and

    ecological needs. Non-governmental organizations are in most cases Non-profit or voluntary

    organization. They are funded by international associations, private donations,

    governments, or a combination of these. Non-governmental organizations can use

    economic in-and-disincentives to change peoples behavior and shape the market and by

    using market based instruments. On the other extreme, they can promote and put pressure

    on companies and governments to make sure that the MBI tools and standards arechallenging to firms and will not become corrupted. Basically NGOs could become the 3

    rd

    party regulatory body, which in the perfect scenario would be genuine if they have no

    conflict of interest.

    Even when governments seek to address all environmental issues and the public needs, and

    do immense investments, they are not fit to achieve this duty. In addition the corporate

    sector is also not able to accomplish the missing links of the task. Non-governmental

    organizations have been developed and became present to bridge the gap between what

    governments and corporations are able to do and what society requires or expects. [15]

    Some time ago, non-governmental organizations used to embattle governments and the

    regulations and the government officials. Nowadays this trend has shifted quite towards the

    consumers and corporations. This became after realizing the power of those two parties, as

    they are the decision makers on the subject of production and consumption.

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    One of the good examples of non-governmental organizations that work towards motivating

    producers to change, as well as educating consumers about their impact, can be seen in the

    Electronics TakeBack Coalition. ETBC encourage green design and recycling in the electronics

    industry. [16] Their goal is to save the consumers and the environment from the harms of

    electronics, from the beginning phase of its production, to the end of its life cycle, by asking

    and encouraging the manufacturers to take the responsibility of their products after it has

    been used and recycle it. They have a desire for achieving an enforceable agreement or a

    policy to do so. Some leading manufacturers and designers are already taking actions by

    providing recycling and take back programs. Apple, for instance is taking all its electronic

    waste back, and also providing incentives like trading old for new, discount coupons or the

    least by offering free shipping. [17] However, not all manufacturers are on the same level as

    apple, so ETBC is providing information to the public on specific tested electronics on how

    they are scored compared to each other on their take back and recycling programs. The list

    is growing by the day and already includes most leading electronic companies. Other

    education data is also provided, regarding the dangers of toxic materials and the harms of

    global dumping and prison recycling.

    ETBC is not only taking passive actions of exposing the companies of their design for thedump strategies, or their externalizing cost schemes [18], they are actively involved by

    providing solutions as well. Their website explains what steps need to be taken in order to

    minimize the environmental footprint of our e-waste. It is clarified how to recycle right, buy

    green electronics, hold manufacturers accountable and how to promote good laws. By doing

    so, people would get the education and may act accordingly. As a result, companies would

    have to compete to invest and create more environmentally sound products, which would

    live longer and be easier to recycle, in order to preserve and develop their brands

    reputation. [16]

    While consumers behavior does not show in great measures that they would go out of their

    way, and do the effort, to find the good products, they tend to avoid the bad ones.

    Negative information shown by the NGOs about some business practices, work as an anti-

    advertising campaign, which could demolish a brands reputation. [19] Companies are

    therefore motivated to act on the demands to protect their reputation. In order for NGOs to

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    strengthen the impact of their campaign, they would also target other vulnerable links

    between the producer and the consumer. By targeting institutional buyers or reputation-

    sensitive retailers, the NGOs could get them to be on their side in pressuring the

    manufacturers to design and supply the good products. So the way NGOs work is both, to

    the inside and outside. The outer strategies are putting pressure on the companies and

    governments through campaigning, letters of protest, rallying, direct actions and boycotts.

    Inside strategies are negotiating solutions and working closely with the governments and

    manufacturers. [20] Above that, NGOs are supporting or creating mechanisms to monitor

    the fulfillment of the standards they are promoting. By creating a third party certification

    system they can avoid self certified greenwashing. These certificates, labels or standards

    would give the consumers clear and easy to understand data on the products, which they

    can trust for the reason that they have no financial incentives. By doing so, NGOs are

    building their own brands and seals of approval.

    The effectiveness of this type of NGOs has not been proven, but from my own experience,

    people tend to buy green labeled goods rather than un-labeled ones (given that there is no

    price difference). This does not necessarily be a good thing, as with the never ending

    creation of eco-labels people could get very confused and lose track of what they actuallymean. The strategy of connecting the consumer with the producer is also limited to the

    publically understood criteria. When it comes to more complicated industrial issues the

    same strategy could fail, just for the fact that people would not be interested. Therefore,

    there is no doubt that government regulations need to continue improving and supporting

    the dispose of ecological issues, and that the regulatory body should not be privatized. [19]

    However, even with these margins, there is no doubt that the role of non-governmental

    organizations is of importance, and they seek new strategies and ways of communication,

    filling the gap between producer and customers.

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    Eco-labeling

    An eco-label is a printed label that identifies products or services to be in a way either better

    produced in terms of their environmental and social impact and/or healthier for the

    consumer. The products would have to meet detailed environmental standards set by the

    eco-label program. Some of these labels are voluntary while others are required to have by

    law in some countries (mostly in the EU and US). [21] The main aim of the eco-label is to

    inform and help the buyer, whether individual, retailer or government purchaser, take

    environmental concerns into account while shopping. There is a wide range of currently eco-

    label covered products or services. This includes food, personal hygiene and cleaning

    products, electronics, construction materials, wood and paper and many more. They

    measure a wide variety of aspects, ranging from energy consumption and environmental

    footprint to social responsibility. When compared to green statements made by the

    manufacturers, eco-labels are usually awarded by a third party association. As an

    illustration, when a customer buys an energy star labeled product, which is focused on

    energy consumption during the appliances operating life, he or she knows that this product

    meets the energy efficient standards set by the United States environmental protection

    agency.

    Eco-labels could be developed by governments, such as the EU eco-label, or

    nongovernmental not for profit, such as the Forest Stewardship Council. There are different

    types of eco-labels, defined and divided into three categories by the International

    Organization for Standardization (a non-governmental worldwide federation of national

    standards). Type one is a third party certified environmental label. It is based on several

    measures, but usually not by carrying out a life cycle assessment. Type one eco-labels are

    awarded based on a set of criteria defined by an independent organization that have to

    meet some technical quantitative and qualitative requirements, which convene their

    ecological preferences. Type two is an informative environmental self-declaration claim.

    They are made by their producers and are not verified by a third party. Because of the

    reason that this type of declaration might be considered as greenwashing, it is specifically

    this type that governments frequently regulate under the consumer protection legislation.

    Greenwashing can occur when the claim is made on a specific life cycle phase and ignores or

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    worsens another aspect that creates a bigger impact on the environment. The third type is

    the quantified product information label, based on the life cycle impacts of the product (ISO

    14040) or the environmental product declarations. So in other words, it is similar to type

    one, except that it has to be based on the procedures and results from a life cycle analysis in

    compliance with ISO 14040 standards. Another type of Eco-label, not yet certified by the

    International Organization for Standardization, is the single issue label. This is known by

    most shoppers. As an example, energy star, fair-trade and forest stewardship council are

    considered as single issue labels. [22]

    Eco-labels are market based instruments. As mentioned before, they seek to change the

    buyers or consumers behaviors to take other qualities into account, other than price.

    Therefore, there is an economic incentive for producers to seek certification of their goods.

    With the eco-labels, consumers can influence the system through purchasing power and get

    educated on sustainable practices. Eco-labels can improve the ecosystems and decrease the

    reduction in biodiversity. Consumers would be able to benefit from the continued

    availability of their preferred products, and with the information shared; they would work

    towards a more sustainable world. [23]

    While eco-labels are increasing in the market with the increasing demand of consumers to

    more information and knowledge, there are concerns rising up. Labels are seen to need

    more legitimacy and transparency. An example for that would be the so observed

    greenwashing statements, like when a poultry product has the label free range on it. The

    official term is defined as Producers must demonstrate to the Agency that the poultry has

    been allowed access to the outside [24]. This is such a vague statement, as it could be

    sufficient to let a door open for about five minutes a day for the hens to go outdoors, even if

    in that limited time only a small percentage will notice and be able to actually leave the

    shed. While this could be the reality of what is happening, most consumers like me have

    imagined free range hens playing and moving as they wish like in vast green fields. When I

    learned about this slackly defined policy, I instantly boycotted the product, and the label lost

    its legitimacy. There are many other labels that are seen to be like the above given example,

    natural, environmentally friendly, healthy choice and many more. Those deceptive and

    misleading terms need to be removed from the market for the actual environmental

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    performance based and legitimately found eco-labels to achieve their designed effects. This

    can be seen in labels that have strict requirements and are regularly verified as the EU Eco-

    label, which is promoted only to the finest and best to the environment. [25]

    Another issue of eco-labels is the actual transparency and description of them. Consumers

    find themselves facing a good amount of eco-labels, which could for someone who notices

    them for the first time mean nothing but a nice picture, since the creation of the ecolabel

    was to address non-observable characteristics in the first place. Finding what the labels

    actually mean could be hard and complicated. Another struggle is having a different product

    in each hand labeled with different eco-labels, and trying to compare their environmental

    impacts. Therefore, some internet websites provide useful and easy to understand

    information on these eco-labels, and also have tools to compare them next to each other, in

    a user-friendly way. One good example is eco-label Index, which is the largest global

    directory of eco-labels, currently tracking 377 eco-labels in 211 countries, and 25 industry

    sectors. [26] It gives the consumers the ability to research, filter and compare eco-labels,

    whether set by category, name, sector or region.

    Having different types of labels provides solutions to different market needs [27]. But for

    customers, this could be a problem, especially when even single labels are non-constant.

    This is very time consuming, trying to figure out which label is the one Im looking for, while

    standing in a supermarket isle. Likewise, businesses have to spend more money and

    resource power to choose the right and credible eco-label for them. This is specially

    affecting the developing countries and small to mid-sized companies, which are unable to

    afford the incredibly expensive conveyance of a life cycle assessment, or the certification

    overheads [23]. There is a need for an oligopoly, with a handful of plausible labels to

    dominate the market and create a longer and more trustworthy relationship with customers

    and reduce the confusion and unnecessary complexities. [28]

    In view of that, there are different solutions and approaches to deal with eco-label

    problems. One could argue that if there is a need for a large number of certificates and

    certifiers, there could still be a comprehensive comparison tool or even creating a

    measuring unit, to identify and evaluate the labels side by side by the same standards. This

    would create a more transparent market, as it would require a high level of collaboration

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    between manufacturers. In order to expand the transparency to the retailers and

    consumers as well, the standardization could be strengthened by consumer-based

    information communities, such as GoodGuide. Such communications will allow for better

    brand management, improved organization values and the development of data in the

    sharing of collective resources. Another useful idea is to create an intermediate stage

    between the diminutive statement of the eco-label and the long complicated life cycle

    assessment. This would make it possible for a broader set of customers to be able to acquire

    more information on the products and services. Also the creation of a life cycle mark-up

    language could be used to distribute the results of the LCA analysis between the different

    businesses, in a computerized language format that could be read by any workstation

    system. [29] At last, it is most important to keep updating the eco-label standards and

    criteria, setting the goals higher by time, rather than creating new labels. There should be

    no settling, until there exists the closed sustainable product cycle.

    Fig. 5: Various eco-labels logos (internet)

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    Green building certification

    The use of energy in buildings accounts for about 40% share of the total end use of energy.

    [30] This includes energy used for controlling the climate in buildings and for the buildings

    themselves, but also energy used for appliances, lighting and other installed equipment.

    One of the longer-term cycles can be seen in the green building movement. We are nearing

    the end of that long era in the building business where, to maximize their revenue,

    developers set their budget for a buildings costs as low as possible, and architects,

    contractors, engineers, and everyone else who will construct a piece of the complete

    building compete for their share of that fixed budget. That system encourages bidders to

    find ways to cut their costs to the bare minimum to increase their profits. For instance, the

    subcontractor for the heating and cooling system has every reason to install the cheapest

    installation he or she can find that will do the job and just meet building codes, rather than a

    higher priced one that will save energy and money over the long utilization of the tenants,

    the real customers of the building.

    Disclosure of the ecological downside of commercial buildings has arrived in the

    construction sector in the form of a green building certificate, a form of a market based

    instrument and an eco-label, for instance LEED (Leadership in Energy and Environmental

    Design). LEED is an internationally recognized green building certification system, providing

    third-party verification that a building or community was designed and built using strategies

    aimed at improving performance across all the metrics that matter most: energy savings,

    water efficiency, CO2 emissions reduction, improved indoor environmental quality, and

    stewardship of resources and sensitivity to their impacts. LEED is flexible enough to apply to

    all building types commercial as well as residential. It works throughout the building

    lifecycle design and construction, operations and maintenance, tenant fit-out and

    significant retrofit. LEED for Neighborhood Development extends the benefits of LEED

    beyond the building footprint into the neighborhood it serves. It promotes a whole-building

    approach to sustainability by recognizing performance in the key areas of sustainable sites,

    water efficiency, energy and atmosphere, materials and resources, Indoor Environmental

    Quality, location and linkage, awareness and education and innovation in design. The rating

    system of LEED is divided into platinum, gold, silver and just certified. [31]

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    As a result, like any other product scoring system, LEED gives the consumer a sense of how

    the building is performing in all the above mentioned criteria. While some post-occupant

    studies have shown improvements in energy and resource use in buildings, they have yet to

    be conducted on a very large scale, providing for weak statistics on the matter. Once a LEED

    certification is granted, it does not have to be renewed. If the energy use of a building does

    not change even after certification, should the building be allowed to call itself LEED

    certified? One large problem lies in the fact that post-occupancy results do not play a role in

    granting the certification. This may allow many individuals to market their properties as

    green without the building having any significant reduction in electricity usage.

    Another major downside of the LEED certification is its globalization strategy. While the

    certification may have good results in one climate, it by no means indicate that it can be

    used everywhere. Therefore, local systems of performance based rating are encouraged to

    be created for every region and country, to aim for its climate, culture and economy. In the

    course of my stay in the UAE I have seen cases of buildings that were designed to meet the

    standards and get accredited with LEED, under the appeal of the developers. In my opinion,

    using LEED in the Emirates caused more harm than good. Clients were charged more for the

    design, the certification itself costs a lot of money, energy values were set to U.S. standardsand water saving points were too little for the desert environment. Other examples are like

    having bicycle racks and shower facilities integrated in the building design for the purpose of

    achieving its credit points. Those add-ons are a total waste, as they are not used because of

    the regions climate and its culture. But afterwards, a new and local system was created

    called Estidama, which means sustainability in Arabic. They focused more on integrated

    design principles that helped reducing the extra costs of construction. Estidama had the

    credit load distribution set to mirror the regional vernacular requirements, for instance

    having a larger number of credits, prerequisites and standards for water conservation. [32]

    While these examples are relatively easy to understand, there is another set of radical

    changes that need to happen in both the design and the marketing industries. To sincerely

    create a sustainable design, one has to start from within, in this case the design, up to the

    marketing phase till operation and maintenance. All members and actors have to be

    involved from the beginning of a project. Whole systems thinking needs to replace isolated

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    conventional systems to adapt sustainable processes. Interactive processed will have to

    replace linear ones. Time and energy will have to be loaded in the earliest stage possible.

    Life-cycle costing will replace the emphasis on upfront costs method.

    As for the accreditation, all systems I have been exposed to, LEED, BREEAM, GreenStar and

    Estidama, have the same 3 to 5 rating stars, points or pearls. These ratings do not translate

    directly into customers needs and understandings and therefore loose a part of their value

    through their ambiguity. A home buyer would want to see those ratings divided into

    categories like energy saving, water conservation, and so on, also accompanied by the

    optimal use setup and configurations, like that you get when you buy a new laptop labeled

    with an energy star. In order to speed up and encourage the improvement of the building

    sector, transparency has to exist, in abundance. The construction industrys bar for green is

    in continuous upgrade. Industrial designers envision a coming generation of living buildings

    that will operate like an accessory to nature, producing more clean energy and water than

    they use.

    I think that building certificates, like by now in Abu Dhabi, could be set to be mandatory.

    Having a tool that can link the producing and consumer power can set the bar higher in

    terms of performance based properties as buildings. With the competitiveness,

    instructiveness and flexibility nature of the certificates, developers would not only be

    forced, but also encouraged to decide on the right choices when it comes to things like

    building materials and contractor selection. A constantly updated environmental framework

    will speed up the worlds goal of achieving the demands to sustain the earths biodiversity.

    Fig. 6: Green building certification logos (internet)

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    Estidama

    As mentioned in the last section, achieving Estidamas pearl rating is since 2009 a

    mandatory requirement for any upcoming development or building in the emirate of Abu

    Dhabi. As it is stated on Abu Dhabis urban planning councils website Estidama is now

    incorporated into the planning approval and permitting processes. All new projects must

    achieve a minimum 1 Pearl rating. Government funded buildings must achieve a minimum 2

    Pearl rating. [33] The pearl rating system is Estidamas evaluation tool, which assesses

    sustainability performance of developments, buildings and villas. One of the main

    differences between the international green building certificates and Estidama is that its

    designed to address not only environmental, but also social and cultural aspects as part of

    the sustainability frameworks. So Estidama is both, an obligatory, legally binding and a

    voluntary tool (3-5 pearls are always voluntary). This is beneficial in having the same

    standards and measuring scales applied for both tools, which is set this way to avoid the

    otherwise known standardization problem discussed in the eco-label section.

    Fig. 7: Estidamas four pillars (Estidama.org)

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    The Abu Dhabi urban planning council (UPC) drives and supports the citys urban

    development strategy, by developing plans that create leading principles, which regulates

    critical projects designed to shape the Emirate. Their aim incorporates complex systems,

    which takes the analysis of the urban fabric, land availability and its best use into account. It

    also integrates a wide range of environmental aspects, mobility, infrastructure and urban

    services into the citys development policy. [33] The UPC created the Abu Dhabi 2030 plan,

    which is the citys urban structure framework, to optimize the city through an ongoing

    program lasting for the next 20 years. The Plan 2030 is aimed to draw the roadmap to a

    sustainable, socially interconnected community, which will achieve the infrastructure needs

    of the foreseen growth in population. This forethought to plan for infrastructure in advance

    is a key example of visionary governance. A US based think tank that researches and

    promotes good government and social responsibility by corporations, Abu Dhabi is on the

    right path in transforming itself into the sustainable capital of the Arab world. [34]

    The reason UPC and Plan 2030 is discussed here is to show the interconnectivity of the

    Estidama program and how they are all integrated into each other, with the overall goal of

    achieving a sustainable future of the citys urban built environment, and eventually later on

    applied country wide. The early fundamentals and ambitions of Estidama are built into Plan2030 and other UPC policies for. This can be seen in the UPCs development review process,

    as it sets a clear path for any project application regardless of its scale, to fulfill the

    compulsory requirements of the Pearl System beforehand. [35] This is to be able to apply an

    easy and comprehensible linear process for a complex integrated solution, which takes all

    aspects into consideration from the initiation phase. In other words, ensuring the integrated

    design process will take place, and avoiding the last minute solution crisis, which is

    commonly tremendously expensive and unsuitable.

    Additionally, it is worth noting that the obligatory Plan 2030 was formed without the

    consultation of public opinion. The ambitious and stringent standards in this sense could be

    seen as having been developed within a vacuum, without taking current structural and

    institutional into account. This has resulted in a lack of firms being able to participate in the

    scheme, due to a lack of financial and technical capacity. There is a need for supporting

    education and public awareness programs regarding the sustainability issues in the Middle

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    East, which Estidama has initiated. The training program is intended to create awareness,

    application and administration of the agenda.

    Although the Estidama principle is ideologically strong, in practice the results of these strict

    building standards at times fail to be realized. This is due in part to the tightened

    relationship community and the socio-economic structures, which can circumvent strict

    building requirements. Simply put, this is a very new system to the very old personal

    relationships in comparison to much older business ties, which at times leads to corruption

    or lax restrictions. Secondly, the application of new building technologies is costly and in

    most cases people built for profitability, not only for environmental concerns. So in order for

    firms to apply ambitions standards, significant capital is needed, which places small and

    medium size businesses at a disadvantage.

    As a final point, the pearl rating system, which requires a high level of integration in all

    project stages to demonstrate its collaboration, is the only government sustainable rating

    initiative that combines legally binding and voluntary schemes. It is based on performance

    liability and rewards projects that operate efficiently and optimally over the design,

    construction and occupancy phases.

    As described on their website: The Pearl Rating System for Estidama is a framework for

    sustainable design, construction and operation of communities, buildings and villas. The

    Pearl Rating System is unique in the world and is specifically tailored to the hot climate and

    arid environment of Abu Dhabi. The Pearl Rating System is part of the government wide

    collaborative initiative to improve the lives of all citizens living in Abu Dhabi Emirate, by

    supporting the social and cultural traditions and values of Abu Dhabi. It reinforces what this

    unique place has been in the past and hopes to be long into the future. [36]

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    Fig. 8: A linear relationship between Estidama, UPC and Plan 2030 (Estidama.org)

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    Concluding remarks

    Beneath disputes about defining, designing, or measuring sustainable consumption lie the

    critical questions of how to actually motivate the public to consume more environmentally

    and socially sound products and how to motivate producers to deliver these improved

    goods and services. To date, life cycle assessments have had limited impacts on actual

    consumption patterns. I believe this can be changed by supplying extreme transparency in

    information, and also user friendliness and education of social and sustainable awareness.

    Transparency would make consumers purchase greener products when they have credible

    information that allows them to feel confident in their ability to evaluate whether or not

    their choice is actually having an impact. Most consumers do not have access to information

    on the environmental or social impacts of the products they purchase, or do not trust the

    information that is provided by firms, or simply find it hard to understand them.

    Even, for some people, when they understand the impacts and consequences and savings of

    their decisions and choices of consumptions, it is sometimes hard to do the right thing. This

    is due to the human way of having habits, finding it hard to change even when knowing the

    real cost. Ethical and cultural changes need to happen, where the link between the cost and

    ecological impact need to be bridged. It is exactly like buying a stolen merchandize, ethically

    most civilized people would reject to buy such commodities, knowing that they were stolen

    and therefore offered with a cheaper price. So the same applies to all non-sustainable goods

    and all non-sustainable makers, where the maker can be seen as a thief, when they steal the

    earths ecosystem biodiversity, and next generations right to live the way we should have.

    To increase the significance and power of consumers, voters and tax payers, one could drive

    the idea of giving them more legal right to form and change the initiatives. In order to have

    the environmental problems solved through the majority rather than the minority,

    education, awareness and transparency need to be introduced. Programs, such as LCA

    comprehension and ecological measures could be introduced into new schools education

    curriculums.

    Business anywhere, including the so called developing countries, is no longer business as

    usual. Companies, producers, businessmen, retailers, NGOs and governments need to

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    develop new capabilities if they expect to be successful and sustainable. If they expect their

    business to continue to be relevant and meet its clients needs, they need to understand

    how design will reshape their expectations and their business environment. Organizations

    that incorporate effective design and harness creativity are more likely to succeed

    tomorrow. In a rapidly shifting environment, they must adopt new approaches to address

    regional and increasingly global challenges. In order to do that, they need new, creative and

    innovative tools. New thinking on the sustainability debates is a positive signal and should

    always be welcomed. All knowledgeable should offer their know-how, and engage the

    people in dialogues. It is time the world collaborates on design, creativity, experience and

    information, in a drastically transparent manner, in order to stimulate our capabilities and

    embolden us to embrace change, an act that is at times disruptive to our traditional

    practices, but can ultimately be uplifting and rewarding.

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