Environmental Labelling - Environmental Audit Committee Contents


6  Carbon labelling

52)  Carbon labelling has great potential to transform decision making by consumers and the way producers of goods and services conduct their business. It can be applied to all products and services and is cross-sectoral. The Carbon Trust has led the way in this field and we acknowledge the contribution they have made although we are again concerned that this may unwittingly add to the continuing proliferation of environmental labels and hope that its methodology could be incorporated into a universal and comprehensive scheme by sector in the same way that, for instance, saturated fat labelling is incorporated into the food labelling schemes. The importance of carbon to the global environment might demand more prominence for this element in any comprehensive environmental labelling scheme.

Carbon labelling for consumers

53)  Some argue that the carbon impact of a product has the potential to act as a universal environmental measure. It is true that more progress seems to have been made in measuring and quantifying carbon impact than has been achieved with other environmental and sustainability issues. The Carbon Trust said that:

… carbon equivalent (including all six Kyoto GHG emissions) provides a common measure of climate change impact across all products and services. It also covers the carbon related impact of other environmental issues, such as waste, water and land use change. Carbon is therefore a good measure to start conveying complex information in a single metric. In addition, carbon has the potential to become a 'common currency', applicable to all products and services.[82]

54)  Not all witnesses were as confident in carbon's potential to represent the full range of environmental impacts. The SDC said issues like use of chemicals, animal welfare, trade conditions, labour conditions and water use, were all significant global issues that would not be reflected in a carbon label, and concluded that "concentrating solely on carbon could potentially be detrimental to these other sustainability objectives".[83] Carbon labelling cannot account for all environmental impacts or be a universal environmental label. But the value of the carbon label will be increasingly important as consumers' awareness and knowledge of embedded carbon grows. Embedded carbon labelling is a form of environmental label that can be applied to all products and all sectors, and may be the single most important measure, given the challenge we face in decarbonising the economy. It is necessary to support efforts to raise an individual's awareness of their overall consumption of carbon, like the Act on CO2 campaign, and to support the goal of reducing the carbon intensity of products.

55)  The Government should encourage carbon labelling for all products and services as a priority but ultimately as part of a universal and comprehensive environmental labelling scheme. It should legislate for this if necessary. An asymmetric devolution of powers presents a challenge to the development of legislation for a UK wide labelling scheme and the Government should open discussions with the Scottish Executive, the Welsh Assembly Government and the Northern Ireland Executive on how a UK wide sector-based universal labelling scheme can be developed.

Carbon labelling for business

56)  In 2007 the Carbon Trust began piloting its carbon reduction label, largely on grocery products. The label displays the embodied greenhouse gas emissions of the product, and imposes a requirement on the producer (if it is to retain the right to use the label) to reduce these emissions over a two year period. The label consists of a logo with a number in grams showing consumers the precise quantity of carbon emitted during the manufacture of the product. Criticism of the project has largely focused on this number, and whether it is understood by consumers or relevant to their interests. The SDC set out their concerns:

What are people to do with the information they are given? A carbon footprint in grams of CO2 provides no clear message or reassurance about the sustainability of a product. It may even confuse people into thinking that the grams of carbon are actually in the product.[84]

57)  The key is whether the consumer's product choice would be the factor driving change in the supply chain. The Carbon Trust told us that even the pilot scheme had encouraged manufacturers significantly to reduce carbon from their production processes.[85]

58)  Manufacturers and retailers can take action on their carbon footprint without using labels. For example, Marks & Spencer have chosen to work together with the Carbon Trust on measuring and reducing carbon emissions from supply chains, without using the Carbon Reduction Label.[86] Working behind the scenes work with the Carbon Trust can be an effective way of driving down emissions. But labels have a part to play in communicating these actions to the consumer.

59)  The Carbon Trust has recently launched a further label, the Carbon Trust Standard, which recognises carbon reductions across organisations as a whole, rather than over single product lines. The measurement standard for embodied carbon in products and services (i.e. their carbon footprint) has been developed by the British Standards Institution (BSI), at the request of the Carbon Trust and Defra. BSI has published a Publicly Available Specification (PAS 2050) that can be used for a variety of formal and informal processes for improving and communicating the greenhouse gas performance of products and services. We welcome the launch of the Carbon Trust Standard label, the Carbon Reduction Label and the new Publicly Available Specification on carbon footprinting. They provide different ways for businesses to promote their commitment to emissions reduction and will help to focus efforts on cutting emissions across company operations. Government and the Carbon Trust should ensure that the difference between labels that focus on individual products and schemes that focus on the performance of organisations overall is well understood by consumers and manufacturers.

60)  Ultimately there is no reason why a comprehensive and universal environmental labelling scheme could not be applied just as effectively to businesses and services as it could be to products. The Government should investigate how any sector-based universal labelling scheme could be used by companies, national and local government and other organisations to report on their environmental performance. An annual report carrying the 'traffic light' environmental impact label would inevitably hide much complex methodology and require rigorous auditing but it would send an admirably simple and effective message to shareholders and other stakeholders.

Lifecycle assessment

61)  Labels can cover a product's pre-purchase life (origins, manufacture, transport and other supply-chain issues) and/or its post-purchase life (energy consumption, product use guidelines, guidelines on disposal, &c.). 'Lifecycle' labels aim to assess environmental impact from the product's origins through to disposal or recycling. Products will have a carbon footprint from their pre-purchase phase, and there will also be a carbon impact for their post-purchase phase, ranging from significant (e.g. a car) to negligible (e.g. a packet of crisps). Taken together, these measurements could form a lifecycle footprint. The Government has signalled its intention to make greater use of lifecycle analysis as a first step in identifying the appropriate actions and standards to be used for a particular product.[87] This kind of assessment could certainly be valuable, but it is too complex to be transferred wholesale into consumer-labels.

62)  Attempts to reach lifecycle footprints even for basic products can result in complex calculations based on a highly hypothetical average usage. EST noted that a carrot could be eaten raw, cooked in a microwave, or boiled in a pan of water.[88] It is difficult to see how any in-use measurement for food and drink products could ever be of genuine use to a consumer, whereas labels allowing them to select locally-produced or organically grown carrots could engage their interest and have a significant impact in at least one environmental dimension. For shampoo, only seven per cent of its carbon footprint is in the manufacturing, bottling and distribution; 93 per cent comes from heating the water and using the product itself.[89] Information of this kind would be of little use to consumers: their choice becomes irrelevant as most shampoos would have a similar in-use impact. It is more important to encourage consumers to install more efficient boilers and use less hot water. In vehicles or white goods, the in-use phase is crucially important to total environmental impact and it is easily measured and described and is directly relevant to consumer choice. The issue of in-use emissions and how these might be addressed in labelling needs further thought and research. This doesn't mean that manufacturers of products whose embedded carbon is relatively small when compared to the carbon associated with its use should not be encouraged to reduce the embedded carbon it their products. The scale of the challenge we face is so great and the consequences potentially so grave that every effort is needed to decarbonise the economy. None of the problems with lifecycle assessment diminish the need for carbon labelling of products and services.

63)  For example, embodied carbon measurements could allow consumers to compare products on the basis of their 'pre-purchase' carbon footprint and send a signal to manufacturers to reduce carbon in the supply chain. The question is, on what should consumers be asked to base their decision? When buying a fridge should they be most concerned about how it is made, how much energy it consumes when in use, or the impacts of its disposal? Ideally, consumers should consider all three areas; being realistic, it is unlikely that consumers would do this and labelling should be focused on the areas where it will make the biggest difference to the behaviour of consumers and producers.

64)  The Government must identify areas where lifecycle assessments could be translated into consumer labels that would encourage the most environmentally benign choice and that would send the right signal to manufacturers.

65)  Carbon labelling could have a profound effect on manufacturers and their supply chains. We believe that the Government must do more to support and encourage carbon labelling, including providing a statutory basis if necessary as part of a sector-based universal and comprehensive labelling scheme.


82   Ev 23 Back

83   Ev 34 Back

84   Ev 34 Back

85   Ev 23 Back

86   Q 54 Back

87   Defra, Progress Report on Sustainable Products and Materials, July 2008, p7 Back

88   Ev 57 Back

89   Q 20 (Mr Kendall) Back


 
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