ECOLABELING: VOTING WITH OUR WALLETS
Chapter 11. Tools for Restructuring the Economy
Lester R. Brown, Eco-Economy: Building an Economy for the Earth
(W.W. Norton & Co., NY: 2001).
Labeling products that are produced with
environmentally sound practices lets consumers vote with their wallets.
Ecolabeling is now used in many sectors of the economy, including
to identify energy-efficient household appliances, forest products
from sustainably managed forests, fishery products from sustainably
managed fisheries, and "green" electricity from environmentally
friendly renewable sources.
Among the youngest of the ecolabels is that awarded by the Marine
Stewardship Council (MSC) for seafood. In March 2000, the MSC launched
its fisheries certification program when it approved the Western
Australia Rock Lobster. Also earning approval that day was the West
Thames Herring Fishery. Among the key players in the seafood processing
and retail sectors supporting the MSC initiative were Unilever,
Youngs-Bluecrest, and Sainsbury's.28
In September 2000, the Alaska salmon fishery received its certification,
the first American fishery to do so. Brendan May, chief executive
of the MSC, in referring to the Alaska salmon fishery, said, "With
its high profile and international market penetration, it is the
perfect product to carry our ecolabel, telling consumers that it
is the best environmental choice in seafood. This is a triple victory
for Alaska, for the marine environment, and for seafood consumers
everywhere."29
To be certified, a fishery must demonstrate that it is being managed
sustainably. Specifically, according to the MSC: "First, the fishery
must be conducted in a way that does not take more fish than can
be replenished naturally or kills other species through harmful
fishing practices. Secondly, the fishery must operate in a manner
that ensures the health and diversity of the marine ecosystem on
which it depends. Finally, the fishery must respect local, national,
and international laws and regulations for responsible and sustainable
fishing."30
The MSC's counterpart for forest products is the Forest Stewardship
Council (FSC), which was founded in 1993 by the World Wide Fund
for Nature (WWF) and other groups. Its role is to provide information
on forest management practices within the forest products industry.
Some of the world's forests are managed to sustain a steady harvest
in perpetuity; others are clearcut, decimated overnight in the quest
for quick profits. The FSC distinguishes between these two forms
of management in its labels for forest products, whether it be lumber
sold at a hardware store, furniture in a furniture store, or paper
in a stationery store.31
Headquartered in Oaxaca, Mexico, the FSC in effect accredits national
organizations that verify that forests are being sustainably managed.
In addition to this on-the-ground monitoring, the accredited organizations
must also be able to trace the raw product through the various stages
of processing to the consumer. The FSC sets the standards and provides
the FSC label, the stamp of approval, but the actual work is done
by national organizations.32
The FSC has established nine principles that must be satisfied if
forests are to qualify for its label. Those managing the forests
must have a written plan that describes the objectives and the means
of achieving them. The management plan must respect the rights of
indigenous peoples who live in the forests or have the responsibility
for the forested land. There are numerous other principles, but
the central one is that the forest is managed in a way that ensures
that its yield can be sustained indefinitely. This means careful
selective cutting, in effect mimicking nature's management of a
forest by removing the more mature, older trees over time. Simply
stated, the management preserves the capacity of the forest to provide
both products and services.33
WWF describes the certification system as a way of "identifying
wood and wood products that come from well managed sources anywhere
in the world backed up by a label that would be clear, unambiguous,
and easily recognized." This provides consumers with the information
they need to support good forestry through their purchases of forest
products. By identifying timber companies and retailers that are
participating in the certification program, socially minded investors
also have the information they need for responsible investing.34
In March 1996, the first certified wood products were introduced
into the United Kingdom. Since then, the certification process has
grown worldwide. As of June 2001, some 24 million hectares of forests
had been certified under the auspices of the FSC. This area included
more than 300 forests in 45 countries.35
To support this certification program, forest and trade networks
have been set up in Austria, Brazil, Canada, France, Germany, the
Nordic countries, Russia, Spain, Switzerland, the United Kingdom,
and the United States. These networks, whose combined corporate
membership may reach 1,000 by the end of 2001, are part of the vast
support group of companies that adhere to the FSC standards in their
marketing. Among the world's five largest wood buyers, the top threeHome
Base, Home Depot, and Ikeabuy
only FSC-certified wood.36
In June 2001, the Natural Resources Ministry in Moscow announced
that it was introducing national mandatory certification of wood.
Although a small portion of its timber harvest is already certified,
buyers' discrimination against the rest of the harvest costs Russia
$1 billion in export revenues. The ministry estimates that its uncertified
wood sells for 20-30 percent less than certified wood from competing
countries.37
Another commodity that is getting an environmental label is electricity.
In the United States, many state utility commissions are requiring
utilities to offer consumers a green power option. This is defined
as power from renewable sources other than hydroelectric, and it
includes wind power, solar cells, solar thermal energy, geothermal
energy, and biomass. Utilities simply enclose a return card with
the monthly bill, giving consumers the option of checking a box
if they would prefer to get green power. The offer specifies the
additional cost of the green power, which typically is from 3 to
15 percent.38
Utility officials are often surprised by how many consumers sign
up for green power. Many people are apparently prepared to pay more
for their electricity in order to help ensure a stable climate for
future generations. Local governments, including, for example, those
in Santa Monica and Oakland in California, have signed up to use
green power exclusively. This includes the power they use for municipal
buildings as well as that required to operate various municipal
services, such as street lights and traffic signals.39
Many corporations are signing up as well. Toyota's North American
marketing headquarters in California, with some 7,000 employees,
has opted for green power. Literally scores of companies in Californiasome
larger, like Kinko's and Patagonia, and many smaller onesare
subscribing. Even colleges and universities are getting in on the
act. In April 2000, as an Earth Day project, students at the University
of Colorado sponsored a referendum that committed themselves to
an increase in student fees of $1 per semester in exchange for the
university's purchase of green power. The measure was approved by
an overwhelming 85 percent of the voters. In the San Francisco Bay
area, some 30 churches are also subscribing to green power. Within
the Episcopal church, a group called Episcopal Power and Light has
launched a nationwide effort to get not only churches to buy green
power, but their members as well.40
The net effect of these growing numbers of green power proponents
is a tidal wave of demand that is forcing many utilities to scramble
in their search for an adequate supply of green electricity. One
reason wind farms are springing up in so many states is that this
is one of the fastest ways of bringing new green power online. While
green power marketing appears to be more advanced in the United
States, it will likely spread to other countries soon.
Other types of ecolabeling include the efficiency labels put on
household appliances that achieve a certain standard in the use
of electricity or other forms of energy. These have been in effect
in many countries since the energy crisis of the late 1970s. There
are also green labels provided by environmental or governmental
groups at the national level. Among the better known environmental
seal of approval programs are Germany's Blue Angel, Canada's Environmental
Choice, and the U.S. Environmental Protection Agency's Energy Star.41
ENDNOTES:
28.
Marine Stewardship Council, "World's First Sustainable Seafood Products
Launched," press release (London: 3 March 2000).
29. "Marine Stewardship Council Awards Sustainability Label to Alaska
Salmon," press release (London: 5 September 2000).
30. Ibid.
31. World Wide Fund for Nature (WWF), The Forest Industry in the
21st Century (Surrey, U.K.: 2001).
32. Ibid.
33. Ibid.
34. WWF, Certification: A Future for the World's Forests (Surrey,
U.K.: WWF Forests for Life Campaign, May 2000), p. 4.
35. Ibid.; Forest Stewardship Council, Forests Certified by FSC-Accredited
Bodies, www.fscoax.org, updated 30 June 2001.
36. WWF, op. cit. note 31.
37. "Russia Set to Begin Certification of Forests," and "Russia
Works Out System for Mandatory Wood Certification," Interfax, 5
June 2001.
38. National Renewable Energy Laboratory, Summary of Green Pricing
Programs (Golden, CO: updated 12 July 2001).
39. Global Green USA, "Santa Monica Unanimously Approves RFP Process
to Switch All City Facilities to Green Power," press release (Los
Angeles: 14 October 1998); Oakland from Peter Asmus, Reaping the
Wind (Washington, DC: Island Press, 2000).
40. Green Power Network, "Toyota Motor Sales USA Becomes Firest
Green-e Certified Company," press release (San Francisco: 8 May
1998); CU Environmental Center, "University of Colorado Students
Vote 'Yes' for Wind Power!" press release (Boulder, CO: 17 April
2000); Center for Resource Solutions, "Episcopal Church Puts Faith
into Environmental Action With Switch to Green Power," press release
(San Francisco: 11 June 1999).
41. Consumers Union, "In Time for Earth Day, Consumers Union Launches
www.eco-labels.org," press release (Yonkers, NY: 10 April 2001);
Federal Environmental Agency (Germany), "Information Sheet for Submission
of New Proposals for the 'Blue Angel' Environmental Label" (Berlin:
Federal Environmental Agency, March 2001), www.blauer-engel.de;
Canada Environmental Choice from www.environmentalchoice.com; U.S.
Energy Star program information from www.energystar.gov.
Copyright
© 2001 Earth Policy Institute
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