Sustainable Consumption

Sustainable Consumption

e.g. standards, taxes, subsidies,

Promoting sustainable consumption and production are important

aspects of sustainable development, which depends on achieving long-term economic growth that is consistent with environmental and social needs.

Most government policies in this area focus on stemming the environmental impacts of unsustainable industrial production practices, primarily through regulations and taxes. Promoting sustainable consumption is equally important to limit negative environmental and social externalities as well as to provide markets for sustainable products.

In this study, sustainable refers to both the environmental (pollution, waste, resource use) and social (health, welfare) characteristics of products.

It focuses on consumption by households and governments. It discusses government tools and instruments (communications campaigns, education) put in place to encourage sustainable consumption. It also discusses approaches for protecting

consumers from misleading information on sustainability in areas such as labelling, advertising and corporate reporting.

The trend towards considering the social dimensions of sustainable

consumption has led to more attention to how products are produced.

Consumers are increasingly concerned with not only the polluting or health effects of the consumption of products, but also the impacts which that consumption may have on the factors of production, including workers and resources. As a result, sustainable consumption policies and initiatives are

broadening to take into account the effects of processes as well as products and the provision of services as well as goods.

Increasingly sophisticated approaches are being used by governments to target policies to consumer groups based on better understanding of social and economic behaviour. Mixes of instruments tend to be more effective in promoting sustainable consumption in certain product groups. The complexity and array of government tools and initiatives directed at sustainable consumption underline the need for more integrated programmes

as well as institutionalisation of sustainable consumption in sustainable development strategies. These trends are also reviewed here.

e.g. promoting energy efficiency in

Standards and Mandatory Labels

Sustainable Consumption

Mandatory government actions to promote sustainable consumption

include performance standards and mandatory labels to limit damages from

products when they are consumed or used. In terms of changing

consumption patterns, these tools are the most direct policy instruments for

eliminating unsustainable products from the market. As the range of

consumer concerns widens, governments are being called on to regulate

more products in the interest of the environment and general welfare.

The most common sustainability-related performance standards are

those aimed at reducing energy use,

household appliances, effectiveness of home insulation, and fuel economy in

motor vehicles. These standards have become stricter and more widespread

as climate change concerns intensify. The Marrakech Task Force on

Sustainable Products, led by the United Kingdom, is focusing on energy

efficiency standards for lighting, home entertainment products and electric

motors through Global Sustainable Product Networks (GSPN). The Task

Force also intends to include computers, standby power, and waste and

water use issues and to set targets for phasing out the least sustainable

products in these categories.

Most OECD countries have established energy efficiency standards for a

variety of household appliances, most commonly refrigerators, air

conditioners, washers and dryers, heating, ovens and lighting. For example,

Canada amended its Energy Efficiency Act in 2006 so that 80% of the

energy used in homes will soon be regulated. The European Union (EU) has

established minimum efficiency standards for hot-water boilers, refrigerators

and florescent lighting. Under the Energy-Using Products Directive of 2005,

the EU is considering energy efficiency standards for a fuller range of

consumer products including other appliances, computers, printers and

electronics.

Standards for lighting efficiency, with the intent of phasing out less

efficient incandescent light bulbs, have been introduced in Australia and

Canada. Australia was the first country to announce that incandescent light

bulbs would be completely phased out by 2010 and replaced by florescent
e.g. the

Green Dot

Mandatory labelling on consumer products for health reasons includes

warning labels on cigarettes, health-declaration requirements for nutritional

values of food products, labelling of foods with genetically modified

contents, and labelling rules for organic food. Nutritional labelling is a main

tool for preventing increasing rates of obesity and unhealthy diets in OECD

countries. While the need for nutritional labels has generally been accepted,

debate continues on their comprehensiveness in terms of elements covered

as well as clarity and ease-of-use for consumers. Studies show that

compulsory food labelling has a greater influence on consumer behaviour

than energy efficiency labelling.

Nutritional labelling is now in place in Australia, New Zealand, Canada

and the United States, with the latter two prescribing easy-to-read tabular

formats. The US Food and Drug Administration (FDA) has recently issued a

regulation requiring manufacturers to list transfats on the nutrition facts

panel required for pre-packaged foods. At the same time, localities such as

New York City are imposing minimum standards for the level of transfats in

certain food products owing to their contributions to high cholesterol and

heart disease. The European Union, through its recently published White

Paper on strategies for health, diet and obesity, is reviewing the need for

making nutrition labels obligatory.

Many OECD countries, following intense consumer demands, require

labelling of foods containing genetically modified organisms (GMOs). This

applies in all European Union countries, Norway, Switzerland, Iceland,

Korea, Japan, Australia and New Zealand. Growing demand for organic

food, coupled with consumer confusion and deceptive claims, has prompted

many OECD countries to require that only government-certified producers

can use the term “organic”. This includes all European Union countries,

Japan and the United States. For example, the USDA organic label certifies

that dairy, wine, produce, grains, and processed and frozen foods have been

produced and processed consistent with national organic standards (no

hormones, antibiotics, genetic engineering, radiation, synthetic pesticides or

fertilizers). The European Commission has also issued regulations on the

use of the word “organic” when marketing agricultural products.

Box 1. Good Practice Examples: Standards and Mandatory Labels

Australia and New Zealand

by more than 95% of consumers, complement Minimum Energy Performance Standards for a

comprehensive range of household electrical products.

www.energyrating.gov.au

: Mandatory energy efficiency rating labels, now recognised

Mexico

to standards and labels developed for washing machines, refrigerators, water heaters, lights,

water pumps, boilers, thermal insulation materials and other household products.

www.ises.org/sepconew/Pages/Efficiency_Standards_MX/document.pdf

: Energy consumed in Mexico by household appliances fell by more than 50% due

United States

prepackaged foods in the form of a “nutrition facts panel,” including nutrients associated with

diet-related disease. www.fda.gov/ora/inspect_ref/igs/nleatxt.html: The US Nutrition Labeling and Education Act requires labelling on allin Germany.

models which use about 20% of the electricity to produce the same amount

of light. Canada has developed new standards with the intent of eliminating

incandescent lighting by 2012.

Mandatory labels indicating the energy efficiency of household

appliances are common in many OECD countries, where these goods are

grouped into different categories with an indication of energy consumption

levels. Studies show that labels for promoting energy-efficient consumption

have not increased consumer prices (IEA, 2007).

For example, the European Union has issued a directive for labelling of

refrigerators, washing machines, tumble dryers, dishwashers, lamps, air

conditioners, and electric ovens. EU Member states have the responsibility

to ensure that the labelling schemes are accompanied by educational and

promotional information campaigns aimed at encouraging more responsible

use of energy by consumers. Several countries, including Canada and New

Zealand, are proposing to extend these labels to electronic equipment such

as televisions and home entertainment products.

Labels are also used to provide information to consumers on their

recycling obligations to encourage greater involvement in the collection and

recycling of products and packaging waste. Labels often show the collection

and recovery systems available to consumers, the meaning of markings on

the packaging itself, and the consumer role in recovery and recycling.

Symbols may be required which indicate the type of materials a product is

made of, whether it is composed of recycled parts, whether it can be

recycled, and/or compliance with a recognised recycling scheme,