The eco-friendly sector in Austria and EU

Market Drivers

• After something of a lull during the 1990s, the green movement gained significant momentum in the 2000s, due to a near universal recognition of the need for governments, companies and consumers to work together to reverse the process of climate change to avert potential environmental disaster.
• The green movement has infiltrated all aspects of consumers' lives, from the need to conserve energy and reduce fuel bills, to the way people eat and drink, what they wear and how they travel.
• Reducing one's "carbon footprint" has become the catch-phrase of the "noughties", whether this be through recycling, energy efficiency, buying organic or local foods, using phosphate-free detergents, travelling shorter distances, carbon offsetting, sharing transport or using alternative energies.
• Rising disposable incomes have enabled consumers to become choosier about what they buy, often leading them to pay a premium for "safer" and more eco-friendly products and services. However, current economic uncertainty may adversely impact the market in the short term, as consumers look to cut costs.
• Government measures have an impact on markets for green products, either directly or indirectly, as they can force manufacturers, retailers and consumers to take action to protect the environment.
• In January 2008, the European Commission published its climate change action plan, with the aim of delivering a 20% cut in EU emissions and ensuring that 20% of energy comes from renewable sources by 2020.
• Governments often sponsor labelling systems and certification programmes which allow consumers to easily identify green or ethical products, eg Green Seal in the US, Eco-label in the EU and Eco-Mark and Mobius Loop in Japan.
• Another example of legislation that will directly impact consumer choice is the EU ban on incandescent light bulbs, which is due to take place by 2009, following similar moves in Australia and California. The change to energy-efficient bulbs is expected to cut EU carbon emissions by some 20 million tonnes a year.
• Non-profit organisations (NGOs) such as Greenpeace are able to exert a significant influence on consumer behaviour, campaigning for environmental issues and lobbying and exposing eco-enemies. They may incite consumers to boycott certain brands, which can seriously dent a company's sales and profits.
• Companies are increasingly using corporate social responsibility (CSR) as a tool to promote and improve their public image worldwide. In response to investors' demands for disclosure, businesses are now "embedding" CSR into the core of their operations, so that it influences decisions across the company.
• Procter & Gamble is one of the latest consumer giants to declare its green intentions. In October 2007, the company announced that it would reduce the impact of its manufacturing operations on the environment, promising to reduce CO2 emissions by a further 10% by 2012.
• Retailers are also using green CSR as a promotional tool. For example, in 2007, Marks & Spencer launched "Plan A", a set of 100 targets over five years, including educating Ugandan children, reducing CO2 emissions, recycling clothes hangers; trebling sales of organic food and converting some of its clothing to Fairtrade cotton.
• In many cases, surveys point to a big gap between companies' aspirations and their actions. The phrase "greenwashing" is applied to corporations that try to make themselves look more environmentally friendly than they really are, often by withholding truths rather than lying outright, or by acquiring green businesses.
• The UK's Carbon Trust and BSI British Standards are developing a draft standard to enable companies to carbon-footprint their products by measuring embodied greenhouse gas emissions across their lifecycle. The standard has already been adopted by companies including Walkers Crisps, Boots and Innocent.
• The past couple of years have seen FMCG multinationals purchase ethical brands in order to improve their green credentials, such as Cadbury's acquisition of Green & Black's; L'Or?al's purchases of both The Body Shop and organic beauty company Laboratoire Sanoflore; and Clorox Co's acquisition of Burt's Bees.
• Many companies, including on-line travel agents, airlines, car rental companies and oil producers, have introduced carbon offsetting schemes which allow consumers to contribute to efforts to reduce carbon emissions by purchasing carbon credits.
• The number of green banking services has soared in recent years, encompassing a range of services such as energy-efficiency mortgages, green consumer banks and climate-friendly credit cards.
• The media has contributed to the growth of green consumerism by creating a huge amount of hype about the potential effects of climate change, and effectively scaring or shaming consumers into action. This has included magazine covers and articles, film documentaries, celebrity causes, organised concerts and Internet campaigns.

Green Consumer Characteristics

• In Western countries, ethical consumerism is at an all-time high. As business becomes more globalised, concern is rising about the way companies operate and the origins of products. Consumers are also realising that their actions can force governments and businesses to change for the better.
• Attitudes towards the environment vary considerably from country to country. For example, consumers in Northern Europe have traditionally taken a very strong interest in green issues, while emerging markets, such as China, have a bad track record with regard to the environment.
• A 2007 Reader's Digest survey revealed the 10 greenest places to live to be, in order: Finland, Iceland, Norway, Sweden, Austria, Switzerland, Ireland, Australia, Uruguay and Denmark. African countries ranked lowest.

Developments in Consumer Markets

• The green movement has infiltrated most consumer market sectors in some way or another, but sales of organic and other eco-friendly products are still relatively low, and market data are scant.
• The large kitchen appliances sector was one of the first to embrace the green trend, and water and energy-saving features have now become commonplace in sectors such as home laundry, refrigeration and dishwashers.
• Some governments have offered financial incentives to encourage the purchase of energy-efficient devices, including buying back old appliances and lending consumers the money to buy new appliances.
• One of the latest environmentally-friendly features to be embraced by domestic electrical appliances manufacturers is the use of steam generators, which convert water into steam under pressure. Steam created this way takes less energy than heating up water, and is therefore deemed far more efficient.
• Following criticism and exposure by NGOs for being significant contributors to toxic waste, consumer electronics companies have been cleaning up their acts recently by assuming more individual responsibility for taking back and re-using or recycling their discarded products.
• Eco-fashion, including items made from organic cotton, fair trade textiles and clothes made from recycled material, has become very fashionable in recent years, and its adoption by major supermarkets shows that it is even beginning to go mainstream.
• Within the travel and tourism industry, eco-tourism is currently a fast-growing area, as consumers seek a more exciting and "natural" holiday experience, without harming the environment. Specialist agencies and tour operators are springing up to cater to this demand.
• In cosmetics and toiletries, natural and organic beauty products represent a strong growing niche, although this is due rather to consumer concerns over the perceived harmful effects of man-made chemicals rather than a desire to support the organic farming industry.
• Organic toiletries (which unlike natural toiletries require certification of their status) are particularly popular in the baby care segment, as parents seek products with minimum use of chemicals and are prepared to pay a premium for this.
• L'Oreal's Absolue BX, an anti-ageing skin cream launched by Lancome in 2006, was hailed as the first truly green beauty product to be produced by a mass-market manufacturer. Absolue is made with sustainable raw materials, has undergone a minimum of manufacturing processes and is easily biodegradable.
• The disposable paper products industry has felt the impact of the green movement, with demand increasing for eco-friendly biodegradable, flushable, organic products made from pure and natural materials in the nappies/diapers/pants, sanitary protection, toilet paper, kitchen towels, tissues and wipes sectors.
• Household care products have become more eco-friendly in recent years, as a result of government regulations and consumer scepticism regarding the harmful ingredients used in many household care products, including chlorine bleach and insecticides.
• Many household care products are now phosphate-free, and use more natural "active" ingredients, such as oxygen and orange oil, although some consumers are doubtful about the efficacy and effectiveness of these products over the more traditional "chemical" and bleach-based products.
• Specifically green household care ranges, such as Ecover in Europe, and Method Products and Seventh Generation in the US, are seeing rapid sales growth. This has led multinationals and retailers to roll out their own green lines, such as Clorox's Green Works and Sainsbury's Cleanhome.
• Organic foods are in the process of moving from niche to mainstream, as they become more widely available through major chains. Demand is driven by food safety issues, including food scares such as BSE, bird flu, anti-GM campaigns and fears over the long-term effects of pesticide residues, as well as support for local farmers.
• The high cost of organic food is still a major obstacle to its acceptance by mass-market consumers
• Product segmentation is a prominent trend within organic packaged foods in recent years. Children's varieties are especially popular, such as Hipp
• Premiumisation is another important trend within organic products, especially in the confectionery sector.
• Dairy products is the largest sector within organic packaged foods. This is thanks largely to the popularity of organic milk, due to parental concerns over the use of bovine somatotrophin (also known as BST or bovine growth hormone) in non-organic milk.
• Surging demand for natural and organic products at the retail level has spilled over to the consumer foodservice industry. Not only have a number of foodservice outlets sprung up that specialise in organic and fair trade food and drinks, but the large chains are also introducing more ethical options.

Retailing Trends

• In developed markets, large grocery chains have been under pressure from consumers, governments and NGOs to support sustainability and reduce "food miles" by sourcing more from local suppliers. Many retailers are now attempting to source locally where possible, while buying out-of-season products abroad.
• Most major supermarket chains have increased their offer of organic and fair trade foods, and eco-friendly household care products in recent years, in response to consumer demand. More recently, many have also ventured into eco-fashion by offering organic clothing and bed linen ranges.
• Retailers are under increasing pressure to reduce their own waste and packaging, and to encourage consumers to recycle and re-use.
• The rise of green consumerism has benefited stores which have traditionally specialised in selling organic, fair trade or eco-friendly products, and enabled them to become mainstream retailers.
• In some developed markets, farmers' markets are an increasingly popular way for consumers to buy traceable and wholesome foods that have not travelled long distances.

• The market for green products and services offers significant growth potential and will be driven over the forecast period by factors such as legislative changes, efforts by companies to "green" their operations, and the influence of media and NGO campaigns on consumers' consciences.
• Climate change is an issue that is here to stay, and has serious implications for the future of the planet. Therefore, addressing the issue will continue to be a core focus for governments, companies and NGOs, which will have a knock-on effect on consumers.
• Even if many consumers are currently not enthusiastic about buying green products, it is likely that constant exposure to environmental issues through the media will lead them to make greener purchasing decisions in the future, whether consciously or subconsciously.
• New legislation forcing manufacturers to introduce more fuel-efficient cars and appliances, less toxic cleaning products, more environmentally-friendly packaging, etc, will increase the range of green products available, and raise the bar for others wanting to differentiate themselves through greening.
• Another significant factor that will push consumer demand will be efforts by all types of company to enhance their image and gain consumer and shareholder trust, either through "greenwashing" or through genuine efforts to reduce their carbon footprint.
• Manufacturers may become greener in a number of ways, for example by buying up specialist organic or fair trade producers, introducing greener lines or incorporating more environmentally-friendly ingredients or technologies into existing products.
• The most successful companies will be those that can make green improvements to their manufacturing processes or products, while minimising the sacrifices that consumers must make in order to buy and use them. Eco-entrepreneurs must also take heed of the traditional values of price, quality, convenience and availability.
• Retailers will look upstream, requiring suppliers to improve their environmental credentials, for example by reducing packaging, eliminating hazardous materials, and using more organic or bio-based ingredients. This should lead to a spate of green product launches over the forecast period.
• At the same time, retailers will undertake their own measures to reduce waste, for example by offering recyclable carrier bags or charging for bags.
• Packaging companies will also have an important role to play in the face of growing environmental concerns. Packagers must convince consumers and retailers of the vital role that innovative packaging solutions can play in reducing waste and improving the efficiency of resource use, while encouraging consumer to recycle more.
• Environmental labelling will become a major trend over the next decade. Carbon-footprinting standards are in the process of being developed, which will tell consumers at a glance how many greenhouse gas emissions have gone into a product's manufacture and transportation.
• An economic downturn in developed markets may hinder growth of premium priced green products in the short term, but in the longer term, the desire to preserve the environment and to be seen to be doing good will take precedence in consumers' minds.
• In developed markets like Austria, demand for hybrid petrol-electric cars will grow strongly in the light of escalating oil prices and threats of scarcity in the future. The forecast period will see the development of a wider range of hybrid cars, which will bring average prices down.
• The future will also see a gradual shift towards disposable paper products that are more eco-friendly, as new biodegradable technologies are adopted by multinationals. Ironically, however, this may necessitate the use of a genetically enhanced crop, such as Ingeo, which may alienate some hard core environmentalists.
• Environmentally responsible tourism will move up the consumer agenda, resulting in more "green" demands being placed on travel companies, such as the need for carbon offsetting options as part of travel bookings, or demand for more eco-tourism destinations.
• Reflecting trends in the retail industry, consumer foodservice operators will introduce more organic and fair trade food and drink options, and adopt more eco-friendly measures, for example by banning bottled water. The latter may lead to a backlash against bottled water in the retail market.
• The prospects for organic food are promising, as such products become more widely available on the mass market. However, with more organic food being grown in developing countries, this may cause a backlash from consumers worried about food miles.

Northern European consumers are the greenest

Some countries are perceived as being "greener" than others. Consumers in northern Europe have traditionally taken a very strong interest in environmental issues. In Germany, the Green Party played an active role in government between 1998 and 2005. As a result, recycling, reductions in packaging waste and other methods of minimising the impact that modern consumption habits have on the environment have long been important issues in the country. Although the Green Party is no longer a part of the coalition government, all major political parties have now incorporated large parts of the green agenda into their own policies, recognising the electoral potential the issues holds.

In 2007, Reader's Digest published the results of a survey of 141 countries to determine which are the greenest places to live. The leading countries, in order, were: Finland, Iceland, Norway, Sweden, Austria, Switzerland, Ireland, Australia, Uruguay, Denmark, Canada, Japan, Israel, Italy, Slovenia, France, the Netherlands, Portugal, New Zealand and Greece.

Austrian and EU Government Initiatives

Environmental measures introduced by governments have an impact on markets for green products, either directly or indirectly, as they force manufacturers, retailers and consumers to take actions to protect the environment.

Kyoto Protocol

The Kyoto Protocol is an international treaty on global warming, made under the United Nations Framework Convention on Climate Change (UNFCCC). Countries which ratify the protocol commit to reduce their emissions of CO2 and five other greenhouse gases. The Kyoto Protocol limits emissions to a percentage increase or decrease from their 1990 levels, which is expected to lead to a marginal reduction in the average global rise in temperature by 2010.

The agreement came into force in February 2005, and as of November 2007 174 parties had ratified the protocol. Of these, 36 developed countries (plus the EU as a party in its own right) are required to reduce greenhouse gas emissions to the levels specified for each of them in the treaty; while 137 developing countries, including Brazil, China and India, have no obligation beyond monitoring and reporting emissions.

EU Climate Change Plan

On 22 January 2008, the European Commission published its long-anticipated climate change action plan, which consisted of a raft of measures and targets that will put greater pressure on companies to take on low carbon business models and technologies. The aim of the plan is to deliver a 20% cut in EU emissions and ensure that 20% of energy comes from renewable sources by 2020.

One of the key aspects of the action plan is proposals to strengthen significantly Europe's emissions trading scheme (ETS) from 2013, by extending the number of industries included in the scheme, expanding it to incorporate other greenhouse gases besides CO2, tightening limits on the number of carbon credits that can be bought in from outside the EU to cover firms' obligations, and progressively lowering the cap on overall emissions to 21% below 2005 levels in 2020.

The commission also confirmed separate 2020 targets for each member state on emissions from organisations outside the ETS, and the proportion of energy they generate from renewables based on their current readiness to deliver.

EUROPEAN FUTURE SUSTAINABLE CONSUMPTION AND PRODUCTION POLICIES

The great challenge faced by economies today is to integrate environmental sustainability with economic growth and welfare by decoupling environmental degradation from economic growth and doing more with less. This is one of the key objectives of the European Union, but the consequences of climate change and the growing demand for energy and resources are challenging this objective. It is now time to move towards an energy and resource efficient economy.

Sustainable consumption and production maximise business' potential to transform environmental challenges into economic opportunities and provide a better deal for consumers. The challenge is to improve the overall environmental performance of products throughout their life-cycle, to boost the demand for better products and production technologies and to help consumers in making informed choices. THE SUSTAINABLE CONSUMPTION AND PRODUCTION ACTION PLAN

On 16 July 2008 the European Commission presented the Sustainable Consumption and Production and Sustainable Industrial Policy (SCP/SIP) Action Plan. It includes a series of proposals on sustainable consumption and production that will contribute to improving the environmental performance of products and increase the demand for more sustainable goods and production technologies. The action plan comprises the following actions:

• The scope of the Directive on the Ecodesign of energy-using products will be extended to cover all energy-related products. Minimum requirements will be set for products with significant environmental impacts, focusing on key environmental aspects. To provide markets with information on best performing products, advanced benchmarks of environmental performance will also be identified. Periodic reviews of minimum requirements and advanced benchmarks will take place to adapt them to technological change and provide businesses with a long-term perspective of future regulatory environment.
• Product labelling under the Energy Labelling Directive and Ecolabel Regulation will be further developed and, following a review of the Ecodesign Directive in 2012, complemented as appropriate by an Ecodesign Labelling Directive to provide consumers with information about the energy and/or environmental performance of products.
• The energy efficiency and environmental criteria under the above schemes will be used to establish a harmonised base for public procurement and incentives provided by the EU and its Member States. This would overcome the current fragmentation of stimuli and incentives in the Internal Market.
• A range of other actions to arrive at smarter consumption will also be undertaken. In particular, action will be implemented with retailers and producers of products to “green” their own activities and supply chains, as well as raising the awareness of consumers at large and increasing their proactive role.

A broad range of environmental challenges can be tackled through this policy. Applying this approach for products with significant environmental impacts could lead to substantial environmental and economic gains. For example, the proposed actions would increase the current rates of home refurbishment that use better performing windows and improved insulation, thus enabling households to reduce energy consumption, the direct and indirect green house gas emissions and save in heating.

http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:52008DC0397:EN:NOT

It also seeks to encourage EU industry to take advantage of opportunities to innovate.

A range of policies at EU and national level already foster resource efficient and eco-friendly products and raise consumer awareness. The proposals complement these policy instruments and provide measures where gaps exist.

The EU is dependent on imports of energy and natural resources and an increasing proportion of products consumed in Europe are produced in other parts of the world. Unsustainable consumption and production patterns are increasingly affecting the natural environment, society, the economy, and business.

Much can be done to make the way to consume and produce in Europe more sustainable, without additional costs, and with benefits for companies and households. The European Union and its Member States recognise that a shift to more sustainable economies and lifestyles is vital and is taking action. In July 2008, the European Commission presented an Action Plan on Sustainable Consumption and Production and Sustainable Industrial Policy.

This aims to improve the overall environmental performance of products throughout their entire life cycle, to promote and stimulate the demand for better products and production technologies, and to help consumers make better choices. It also seeks to encourage EU industry to take advantage of opportunities to innovate in order to ensure its continued leadership in environmental performance. The action plan builds on existing approaches, such as legislation on the design of energy-using products, labelling schemes, environmental management systems and incentives for citizens and public authorities for buying environmentally friendly products. It complements these and provides for new actions where gaps exist to make them work together in an integrated way. It also explores ways of promoting sustainable production and consumption internationally. EU measures on sustainable consumption and production focus on four main objectives: better products, smarter consumption, leaner and cleaner production, and supporting global efforts.

Designing in energy and resource efficiency

The first important step is to phase out products that use excessive energy and natural resources, or that contain hazardous substances or release harmful emissions. The next step is to promote energy and resource-efficient products with good environmental performance. This means starting at the design phase. It is estimated that 80% of all product-related environmental impacts are determined at this stage.

In 2005, the EU adopted a law to make manufacturers focus on energy use and other environmental aspects during the conception and design phase of a product. Under the Directive on Ecodesign of Energyusing Products, product-specific measures can set performance requirements for a vast range of everyday products that use a large amount of energy, such as boilers, water heaters, computers or televisions. Products that do not meet these requirements cannot be placed on the European market.

Although its main purpose is to reduce energy use, the Directive imposes an obligation to consider the entire life cycle of products. This allows environmental considerations, like materials use, water use, emissions, waste issues and recyclability to be taken into account.

Consumers can play an important role in protecting the environment through the choices they make when buying products. Buying green is easier than you may think. Th ere are a number of labelling systems that help consumers by providing details about the environmental performance of certain products. While EU legislation like the Ecodesign Directive ensures technical improvement of products, labelling is helpful in providing crucial information for consumers to make informed choices.

The EU's Eco-label

In 1992, the EU introduced the Eco-label scheme in order to promote products and services with a reduced environmental impact. Each EU Member State has a competent authority, which helps companies that want to obtain the Flower logo with information on how to apply, and which checks compliance. A dedicated website was set up, Green Store, which is a database allowing consumers to search for products bearing the Flower. By 2005, more than 235 licences had been awarded, covering several hundred different products. Between 2003 and 2005, it is estimated that sales of EU Eco-labelled items rose by more than 200%, with the largest increases occurring in Italy, Denmark, France and Spain.

The EU’s Energy Labelling Directive already requires manufacturers and retailers to provide consumers with labels showing the energy consumption of household appliances, such as washing machines or dishwashers. The action plan extends this labelling to a wider range of products, including energy-using and energy-related products. This will bring multiple benefits. Labels indicating the insulation capacity of windows can, for example, enable consumers not only to choose better windows when renovating their homes but also to save money on their energy bills.

A dedicated website was set up, Green Store (http://www.greenstore.com/), which is a database allowing consumers to search for products bearing the Flower. By 2005, more than 235 licences had been awarded, covering several hundred different products. Between 2003 and 2005, it is estimated that sales of EU Eco-labelled items rose by more than 200%, with the largest increases occurring in Italy, Denmark, France and Spain.

The EU Ecolabel currently covers cleaning products, appliances, paper products, clothing, home and garden products, lubricants and services such as tourist accommodation. The action plan will strengthen the EU Ecolabel, widening the number of products and services covered and focusing on those with the most significant environmental impacts and highest potential for improvement. This broader scope includes the possibility to develop criteria for food and drink products. The revised EU Ecolabel will also reduce bureaucracy and simplify criteria for companies applying for the label.

Source: http://ec.europa.eu/energy/effi ciency/labelling/labelling_en.htm

The product group with the highest number of Eco-label companies in 2005 (68) was textile products. In August 2005, Sweden-based fashion retailer H&M was awarded the Eco-label for some of its new-born baby range. The company intends to expand the range of Flower-labelled products according to consumer response. Textiles are followed by paints and varnishes, with 45 companies, tourist accommodation services with 28 companies, and all-purpose and sanitary cleaners with 23 companies.

In May 2005, it was announced that green lubricants had won the right to apply for the EU Eco-label if their product has a low impact on the environment. The aim is to encourage sales of more environmentally benign lubricants throughout Europe, which help companies reduce harm to water and soil and reduce emissions of the greenhouse gas CO2.

Contact agency in Austria regarding Eco Label:

Mr. Andreas Tschulik

Bundesministerium for Umwelt

Stubenbastei 5

A-1010 Wien

Tel: 0043 1 515 22 1651

Fax: 0043 1 515 2276 49

Email: andreas.tschulik@lebensministerium.at

URL: www.umweltzeichen.at

Mr. Christian Kornherr

VKI Austrian Consumer Association, Ecolabel

A-1060 Vienna, Linke Wienzeile 18

Tel: 0043 1 588 77 254

Fax: 0043 1 588 77 99207

Email: ecolabel@vki.at

URL: www.umweltzeichen.at

More information about the Eco Label can be found under:

http://ec.europa.eu/environment/ecolabel/contacts/competent_bodies_en.htm

Buying and selling green

If we are to change our consumer habits then we need to know where and how to buy environmentally friendly products. As key messengers between consumers and producers, retailers have enormous power to raise awareness and infl uence shopping choices by putting more sustainable options on our shelves. Retailers are increasingly recognising sustainability as a signifi cant opportunity for their businesses to grow, compete and innovate. However, greater eff orts are needed in the retail sector and its supply chain to promote more sustainable products and give better information to consumers. Th ey can commit, for example, to off ering more sustainable timber products, promoting the purchase of energy-saving light bulbs, and reducing their own environmental footprint.

To help achieve this, the European Commission has set up a Retail Forum, involving a number of other stakeholders, including producers, as well as consumer and other non-governmental organisations. Th e aim is to get large individual retailers to commit to a series of ambitious and concrete environmental actions, which will be monitored regularly. Th e European Commission will also support measures to increase consumer awareness and help shoppers make more sustainable choices.

Source: http://ec.europa.eu/environment/industry/retail/index_en.htm

Besides the work of the Retail Forum to promote sustainable shopping, a number of tools have been developed to provide information to young people and adults about sustainable consumption, among other issues. Th ese include the Europa Diary for young students, which is distributed in schools in the EU, and an online information and education tool which will include a module on sustainable consumption from November 2009.

Sources:

http://www.dolceta.eu

http://ec.europa.eu/consumers/empowerment/cons_education_en.htm#diary

EU energy labelling regulations

In 2007, the European Commission reviewed energy labelling symbols on domestic appliances to make them more meaningful and useful for consumers. The current labelling system, which gives products an A to G efficiency rating, is becoming obsolete as most products fall into the A or even A+ band. As products continue to become more energy efficient, this leaves no scope in the current system to differentiate the most efficient appliances.

The review, which forms part of the EC's Energy Labelling Directive, is considering several options. A completely new system could be launched, based on stars, as is used in Australia and the US. However, this would be a complete departure from the current system, which is well recognised by consumers. Another option is to recalibrate the old A to G classes. The current A level would be re-classified as C to allow space for more efficient appliances. However, this would downgrade existing appliances, and could lead to significant confusion among consumers.

The CECED (European Committee of Domestic Equipment Manufacturers) has also suggested another approach — to keep the shape and colours of the existing system but replacing the A to G with 1 to 7 (with 1 being the least efficient). This keeps the existing design but allows for higher numbers to be added once the 7 becomes obsolete. Fair Trade Certifiers

One problem facing poor countries is that farmers find it difficult to compete in an international marketplace. Their goods are often shut out of richer countries, while subsidised farm products from industrialised countries are sold at or even below production cost in poor countries. This has led to the development of a global Fairtrade movement, which works to guarantee that producers in poor countries receive a fair price for their produce. The positive result of this is an improved quality of life for individuals and their families, with investment in safe water supplies, sanitation, healthcare, and education for communities.

The Fairtrade movement dates back to 1988, when world coffee prices began to drop sharply. The Max Havelaar label was launched in the Netherlands, offering mainstream coffee industry players the opportunity to adopt a standardised system of Fairtrade criteria. In 1997, the Max Havelaar brand was brought together with its counterparts in other countries by Fairtrade Labelling Organizations International (FLO).

FLO

Fairtrade Labelling Organizations International (FLO) is the global Fairtrade standard setting and certification organisation. It consists of a consortium of Fairtrade groups in Japan, Canada, the US, and 17 European countries, and allows more than 800,000 producers and their dependants in more than 40 countries to benefit from labelled Fairtrade. FLO guarantees that products sold anywhere in the world with a Fairtrade label marketed by a National Initiative conform to Fairtrade Standards and contribute to the development of disadvantaged producers. The various national initiatives include:

• TransFair Austria
• Max Havelaar Belgium
• TransFair Canada
• Max Havelaar France
• Max Havelaar Denmark
• TransFair Germany
• Fairtrade Foundation UK
• TransFair Italy
• Fair Trade Mark Ireland
• TransFair Japan
• TransFair Minka Luxemburg
• Stichting Max Havelaar Netherlands
• Max Havelaar Norge
• Reilun kaupan edistamisyhdistys ry. Finland
• Foreningen for Rattvisemarkt Sweden
• Max Havelaar Stiftung Switzerland
• TransFair USA
• FLO Branch Office El Salvador

The organisation works with importers and manufacturers in this country to document business practices, providing a reliable consumer guarantee that indicates what coffees, teas, and chocolates have been purchased from producers according to international Fairtrade criteria.

In 2002, the Fairtrade logo was standardised in 17 countries ensuring that it represents a mark of product quality and ethical trading. This standardisation has also allowed the concept of fair trade to become a useful marketing tool for products and outlets.

Contact details:

FLO

Bonner Talweg 177

53129 Bonn

Germany

Email: info@ fairtrade.net

URL: www.fairtrade.net

Tel.: +49 228 949230

Fax: +49 228 2421713

Board:

Mr. Jean-Louis Home (Chair of Board of Directors)

Mr. Rob Cameron (Chief Executive Officer of FLO)

Energy-saving light bulbs

In March 2007, EU leaders called for a push to equip homes and offices with energy efficient alternatives to traditional incandescent light bulbs (which contain a filament) within two years. This followed similar moves by Australia and California. The summit conclusions asked the European Commission "to rapidly submit proposals to enable increased energy efficiency requirements on office and street lighting to be adopted by 2008, and on incandescent lamps and other forms of lighting in private households by 2009".

It was reported that banning traditional light bulbs across the EU may cut carbon emissions by about 20 million tonnes a year, and save between ?5 billion and ?8 billion a year in domestic fuel bills. The UK was the first European country to start phasing out traditional bulbs, from January 2008. However, the scheme has been highly criticised, due to factors such as the high cost of buying energy-saving light bulbs; the fact that they have been found to adversely affect sufferers of epilepsy and migraine; and the fact that they are not as bright or effective as incandescent bulbs.

Packaging and waste legislation

EU packaging legislation

The European Community first introduced measures on the management of packaging waste in the early 1980s. Directive 85/339/EEC covered the packaging of liquid beverage containers intended for human consumption only, but it was not specific enough to bring about the effective harmonisation of national policies. As a consequence, diverging national legislation appeared in several Member States.

Only some EU Member States introduced measures on packaging and packaging waste management with a view to reducing their environmental impacts. Serious Internal Market problems arose when cheap secondary materials from countries with recycling schemes that provided funding for collection and recycling appeared for sale in other Member States where no such schemes were in place. Collection and recycling activities that relied on cost recovery through the sale of secondary raw materials were threatened by collapse.

For this reason, economic operators and Member States approached the Commission to introduce comprehensive legislation on packaging. In 1994, Directive 94/62/EC was adopted, which aims to harmonise national measures in order to prevent or reduce the impact of packaging and packaging waste on the environment. It contains provisions on the prevention of packaging waste, on the re-use of packaging, and on the recovery and recycling of packaging waste.

The Directive covers all packaging placed for sale in the community and all packaging waste, whether it is used or released at industrial, commercial, office, shop, service, household, or any other level, regardless of the material used. An amendment to the Directive was introduced in 2004 (Directive 2004/12/EC), which establishes criteria clarifying the definition of the term "packaging".

According to the Directive, the Member States had to introduce systems for the return and/or collection of used packaging to attain the following targets:

• By 30 June 2001, 50-65% by weight of packaging waste was to be recovered or incinerated at waste incineration plants with energy recovery; and 25-45% by weight of the totality of packaging materials contained in packaging waste was to be recycled (with a minimum of 15% by weight for each packaging material);
• By 31 December 2008, 60% as a minimum by weight of packaging waste is to be recovered or incinerated at waste incineration plants with energy recovery; 55-80% by weight of packaging waste will be recycled; recycling targets for materials contained in packaging waste must be attained (60% by weight for glass, 60% by weight for paper and board, 50% by weight for metals, 22.5 % by weight for plastics, and 15% by weight for wood).
• By 31 December 2007, the European Parliament and the Council, acting on a proposal from the Commission, was due to fix targets for 2009-2014.

Greece, Ireland and Portugal, because of the large number of small islands, the presence of rural and mountain areas, and the low level of packaging consumption, respectively, will not be bound by the targets until 2011. Directive 2005/20/EC set a later deadline for the 10 new Member States (the Czech Republic, Estonia, Cyprus, Latvia, Lithuania, Hungary, Malta, Poland, Slovenia and Slovakia) to meet the targets of the revised Packaging Directive. The extensions are until 31 December 2012.

The wider implications of this stringent European legislation have caused much concern amongst the leading packaging manufacturers in Europe, with dramatic effects on industry revenues expected. In practical terms, the legislation will force heavy governmental investment in recovery schemes and recycling plants. In terms of packaging trends, manufacturers and, to some extent, consumers will favour more easily recyclable packaging, such as re-usable plastic bottles. Many believe that whilst creating potentially damaging extra costs for the industry, the legislation will in fact do little to protect the environment.

It has been argued that the directive has placed undue financial pressure on companies within the industry and that it will continue to hinder local competition, as well as restricting the opportunities for ever more important cross-border trade. The targets are said to be costing the European economy between 5 billion Euro to 10 billion Euro a year at a time when exterior factors such as an uncertain economic climate and the rising power of the major retailers are causing enough problems.

Waste prevention in the EU

There are no global measures for waste and recycling. However, the EU's Sixth Environment Action Programme identifies waste prevention and management as one of four top priorities. Its primary objective was to separate waste generation from economic activity, so that EU growth will no longer lead to more and more rubbish, and there are signs that this is beginning to happen.

The EU aimed for a significant cut in the amount of rubbish generated, through new waste prevention initiatives, better use of resources, and encouraging a shift to more sustainable consumption patterns. The main three initiatives were:

• Waste prevention: improving manufacturing methods and influencing consumers to demand greener products and less packaging.
• Recycling and re-use: recovering as many of the materials as possible, preferably by recycling. EU directives now require Member States to introduce legislation on waste collection, re-use, recycling and disposal of waste streams (packaging waste, end-of-life vehicles, batteries, electrical and electronic waste). Several EU countries are already managing to recycle over 50% of packaging waste.
• Improving final disposal and monitoring: the EU recently approved a directive setting strict guidelines for landfill management. It bans certain types of waste, such as used tyres, and sets targets for reducing quantities of biodegradable rubbish. Another recent directive lays down tough limits on emission levels from incinerators. The EU also wants to reduce emissions of dioxins and acid gases, such as nitrogen oxides (NOx), sulphur dioxide (SO2), and hydrogen chloride (HCl), which can be harmful to human health.

WEEE

The European Waste Electrical and Electronic Equipment (WEEE) Directive came into effect in August 2004, which set collection, recycling, and recovery targets for all types of electrical products. Key points of the legislation included:

• A compulsory household collection target of 4kg by the end of 2006, with a new target to be established by the end of 2008.
• Compulsory producer responsibility for financing the management of consumer electronic and electrical waste.
• Producers able to use collective or individual financing schemes.
• Heavy metals and toxic flame retardants used in the manufacture of appliances were to be banned from July 2006.
• Member States were obliged to take measures to minimise the disposal of WEEE by consumers as unsorted municipal waste.
• Producers banned from preventing re-use or recycling of products with "clever chips", such as those seen in some printer cartridges.
• Costs of treating historical waste to be shared proportionately between producers when the costs arise.
• Up-front financial guarantees to be made by producers to guard against costs arising from orphan WEEE (ie, where the manufacturer has gone out of business).

The scope of the WEEE Directive covers all equipment dependent on electrical currents or electromagnetic fields. This includes large household appliances, small household appliances, IT and telecommunications, consumer equipment, lighting equipment, electrical and electronic tools, toys, leisure and sports equipment, medical devices, monitoring devices and vending machines.

Contact details:

Bundesministerium for Land und

Forstwirtschaft, Umwelt und Wasserwirtschaft

Stubenbastei, 5

A — 1010 Wien

e-mail: abteilung.62@lebensministerium.at

URL: www.umweltnet.at/article/archive/6932

Organic food legislation

Consumer trust in organic products is strongly dependent on effective certification programmes, which tend to vary according to a country's regulations. EU countries have developed common rules, which enable free trade within EU Member States, including EU organic certification, which encompasses production, processing, importation, inspection, labelling and marketing.

Currently, however, consumers place their trust primarily in their own nationally recognised organic certifications awarded by a number of independent bodies, such as the UK Soil Association. In order to make the standards more coherent and encourage consumers to buy organic products from other EU member states, there are plans to make the EU organic label compulsory.

The problem of GMO (Genetically manipulated organism) contamination

The use of GMOs is currently not allowed in organic products. The issue is widely commented on by the market players, as the European Commission adopted a proposal on 21 December 2005 which will allow for 0.9% accidental GMO contamination of organic products. The new legislation is to be implemented on 1 January 2009. Its aim is to simplify the rules and help drive further development. However, its many opponents feel that the use of GMOs is not in line with the organic ethos. The UK's Soil Association argues that the acceptable level of GMO contamination should be decreased to 0.1%. The decision might turn out to be detrimental for the whole sector, as GM contamination of the food supply is a very sensitive and emotive issue even for mainstream Western European consumers.

The reform of the EU's Common Agricultural Policy (CAP) is also designed to help smaller farmers and encourage sustainable farming methods and environmental improvements. New rules entered into force in January 2005 for Austria, Belgium, Denmark, Germany, Ireland, Italy, Luxembourg, Portugal, Sweden, and the UK. These change the way the EU supports its farmers by offering new "single farm payments", thereby severing the traditional link between subsidies and production. The reforms should make EU farmers more competitive and market orientated, while providing better income stability. It should also provide more money to farmers for environmental, quality or animal welfare programmes by reducing direct payments for bigger farms.

Source: Euromonitor International, The Green Consumer

Source : http://www.depthai.go.th