The 7 Things I Know About Cyber Security After 25 Years | April 2024
Petrushevski Martin - Carbon Labelling
1. the International Institute for Industrial and
Environmental Economics
Carbon Labelling
Martin Petrushevski MESPOM 2012-2014
9 November, 2013
Course: IPP – Product Policy Autumn 2013
2. 2
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
3. 3
What is a carbon label?
First party
certified
Third party
certified
Image source: bbc.co.uk
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
7. 7
EU Sustainable Consumption and Production Action Plan
(2008)
UK Sustainable
Development
Report (2005)
UN Agenda 21 (1992)
Image source: bbc.co.uk
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
Image source: housingworks.org
8. 8
Martin Petrushevski MESPOM 2012-2014
Image source: The Wall Street Journal
Course: IPP – Product Policy Autumn 2013
9. 9
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
Credence
information
Consumer buys less expensive products without environmental benefits
and uses the extra money to donate it to an environmental cause?!
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
10. 10
What drives consumer preference in
selecting food products?
Quality
Fairtrad
e
Environmental Performance
Organic
Locally grown
Price
Taste
Information
Guilt
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
11. 11
Max Burger (Sweden)
In 2008 CO2 labels on
menus
Image source: Max
Burgers
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
12. 12
Materials
Life cycle approach of carbon labels
Processing
Martin Petrushevski MESPOM 2012-2014
Transport
Use
Course: IPP – Product Policy Autumn 2013
Disposal
13. 13
Implementation challenges
LCA tool to calculate carbon emissions
▪ Cradle to grave assessment
Production
Transport
Storage
Consumption
Disposal
▪ Evaluate emissions
▪ Cost of assessment
▪ Time needed
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
14. 14
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
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
15. 15
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
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
16. 16
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)
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
17. 17
Thank you for your attention
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
18. 18
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
3 mins – GO!
Martin Petrushevski MESPOM 2012-2014
Course: IPP – Product Policy Autumn 2013
Image source: Martin
Petrushevski
Practice of publicly communicating, via a label associated with a product or service, the GHG emissions associated with the L.C. of that product or serviceAmendable to reduction (consumer picks the product with the lower carbon footprint)Strengthened and pro-active environmental commitment by a producer
Carbon Trust: chips, Tesco, Dysonairblades, building products, bread, oats, sugar, cementKRAV and Swedish SEAL MeatFishMilk GHG vegetablesAgricultural cropsAccompanied by an information and education campaignResulted in recommendations for climate compatible nourishment
Anthropogenic GHGs in the atmosphereRapid population growthIncreased pressure on resourcesLivestock raisingExpansion of agricultural practicesMany companies and organizations start to AssessLabelmarket the environmental performance of their products*** ONLY COMPANIES??? – PEOPLE?****
Support sustainable consumption in policy reports and declarationsExamples include: (PRESS SPACE)correcting market failure by providing reliable product information to the consumermain aim is for the consumer to make informed decisions
CARS: 1 mile = 1 gallon of CO2SHOES: leather, cow raising, transportation 5%, electricityThe recipe for a low-carbon load of laundry: Use liquid detergent instead of powder, wash your clothes in cool water and hang them out to dry.JACKETS: The majority of the footprint -- 71%, or about 47 pounds -- comes in producing the polyester, which originates with oil.MILK: from cows most emissions, what kind of cases are used for transport from milk processing plant to distribution centerBEER: refrigeration at stores, producing barley and malt, manufacturing glass bottles, open door vs closed door "Consumers are starting to put environmental values into their purchasing decisions, but it doesn't always translate into their being willing to pay a higher price,"
value of added information exceeds the cost of searchconsumers to be familiar with credence information and know its meaning and value. Companies will have the incentive to supply this information Increased revenues = compensate for the resources spent in providing that information, boost company profile and increase reputation among competition. These positive changes will improve relationships between owners, stakeholders and other related bodies in the business portfolio of the company
Social psychology suggests that just because people know their choices will be harmful to the environment does not necessarily mean they will change their behaviour.
Energy efficient grass roofsStarted buying wind powerPlant trees in UgandaReduce packaging from happy mealsIncreased consumer loyalty in the period 2007-2009Added extra 27% of vegetariansDoubled their market share in Sweden
Less competitive in very hostile market conditions.International agreement to reduce the amount of fossil carbon that is extracted each year (e.g. annual reduction of 5% to keep CO_2 below 450ppm).- Scarcity would cause traders to bid up the price of fossil fuels Normal accounting would feed the increases through to end productsConsumers would then get a good idea of the “carbon footprint” by how much each product goes upThey would stop buying those with a big footprint because they would be too expensive
Further research needs to be done on the potential impact of carbon labelling in reducing GHG emissionsRaising Awareness neededCarbon footprinting and labelling policy is relevant but largely top-down in nature, which will facilitate but not necessarily drive a decarbonised food chain. 32 years of lower carbon juice for a trip for 4 (Manchester – Malaga)1.8 years of lower carbon potatoes as avoiding 1 flight