Eco-labelling

• What is an eco-label?
• Eco-labels and forest certification

What is an eco-label?

'a policy instrument selected by an issuing entity that attempts to communicate and promote distinctions in similar products based on the relative impact of the products on the environment' (Caldwell, 1996).

Eco-labels are usually awarded following an assessment of the environmental effects of a product using life cycle analysis. LCA takes many forms, but the basic idea is to conduct an assessment of environmental impacts associated with the production and consumption (Caldwell 1996).

For a comprehensive analysis and set of case studies of eco-labelling and trade, see Zarrilli et al, 1997.

On this web site forest certification has been discussed under the more general banner of eco-labelling. This is because many of the trade issues as discussed at the WTO are similar. However there are some important differences:

• Forest certification does not always result in the award of a label. It is the site that is assessed, not the product. Chain of custody assessment is required as well if the forest products are to bear a label.
• Forest certification is a single-issue assessment concerned with the management of the forest resource. Eco-labelling tends to assess many issues from production, to processing to product use.

However, the similarities between eco-labelling and forest certification in terms of potential trade effects and their status in trade law means that the literature on eco-labels covers many of the trade arguments related to forest certification.

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