Petrushevski Martin - Carbon Labelling

Carbon LabellingMartin Petrushevski MESPOM 2012-2014

9 November, 2013

Course: IPP – Product Policy Autumn 2013

the International Institute for Industrial and Environmental Economics

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

Martin Petrushevski MESPOM 2012-2014 Course: IPP – Product Policy Autumn 2013

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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)

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

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

What drives consumer preference in

selecting food products?


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Price

Information

Environmental Performance

Organic

Locally grown

Fairtrade

Quality

Guilt

Taste

Max Burger (Sweden)


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Image source: Max Burgers

In 2008 CO2 labels on menus

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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http://news.bbcimg.co.uk/media/images/49486000/jpg/_49486286_ct_label_minimum.jpg




http://media.economist.com/images/images-magazine/2011/06/04/TQ/20110604_TQD004.jpg




http://www.housingworks.org/i/blog/power-to-the-people02.jpg







http://solarserdar.wordpress.com/2012/07/09/eu-carbon-labels/





http://static.guim.co.uk/sys-images/Environment/Pix/pictures/2008/02/05/walkers_CheeseandOnion_460.jpg





http://online.wsj.com/article/SB122304950601802565.html

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Petrushevski Martin - Carbon Labelling