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| Carbon labels present taxing problem | Carbon labels present taxing problem |
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| VIEWPOINT Alexander Kasterine | VIEWPOINT Alexander Kasterine |
| Labels showing products' carbon footprints will not help tackle climate change, says Alex Kasterine. In this week's Green Room, he argues that carbon labelling schemes will harm exports, especially from developing nations, without making much impact on emissions. | Labels showing products' carbon footprints will not help tackle climate change, says Alex Kasterine. In this week's Green Room, he argues that carbon labelling schemes will harm exports, especially from developing nations, without making much impact on emissions. |
| Taxes, labels or bans: which is the brightest idea? | Taxes, labels or bans: which is the brightest idea? |
| Carbon labelling schemes have been developed in order to show how much carbon dioxide (CO2) has been emitted during the production, processing and transport of a product. | Carbon labelling schemes have been developed in order to show how much carbon dioxide (CO2) has been emitted during the production, processing and transport of a product. |
| Retail giant Tesco is trialling carbon labels on 20 products in its range, and other retailers in the UK, France, US and Japan have followed suit. | Retail giant Tesco is trialling carbon labels on 20 products in its range, and other retailers in the UK, France, US and Japan have followed suit. |
| The aim of these carbon labels, according to the UK government-funded Carbon Trust, is to "empower us all to make informed choices and in turn drive a market for low carbon products". | The aim of these carbon labels, according to the UK government-funded Carbon Trust, is to "empower us all to make informed choices and in turn drive a market for low carbon products". |
| The main concerns with carbon labels come down to their effectiveness in reducing our carbon footprint and their fairness towards suppliers, particularly in developing countries. | The main concerns with carbon labels come down to their effectiveness in reducing our carbon footprint and their fairness towards suppliers, particularly in developing countries. |
| Carbon labels look ineffective because the consumer can choose to ignore the information about the product's level of "embedded" carbon - just as we frequently ignore nutritional information, despite knowing that ice cream and oven chips might be bad for us. | Carbon labels look ineffective because the consumer can choose to ignore the information about the product's level of "embedded" carbon - just as we frequently ignore nutritional information, despite knowing that ice cream and oven chips might be bad for us. |
| This is not a useful tool for driving emissions reductions of 80% over the next 30 years. | This is not a useful tool for driving emissions reductions of 80% over the next 30 years. |
| In search of meaning | In search of meaning |
| As things stand, most consumers do not even understand what carbon labels mean. | As things stand, most consumers do not even understand what carbon labels mean. |
| A recent survey found that just 28% of shoppers in the UK chain Boots knew that a carbon label related to climate change. Almost half confused the label with fair trade; most thought it was important to show the amount of carbon emitted during the item's production. | A recent survey found that just 28% of shoppers in the UK chain Boots knew that a carbon label related to climate change. Almost half confused the label with fair trade; most thought it was important to show the amount of carbon emitted during the item's production. |
| The problem is that many of us don't want to be green if that means missing out on a weekend in Barcelona, heating a bigger house or running a bigger car | The problem is that many of us don't want to be green if that means missing out on a weekend in Barcelona, heating a bigger house or running a bigger car |
| It is not surprising that most of us do not understand the labels. The meaning of a label with a footprint and a figure of "75g" on a packet of crisps is not immediately obvious. | It is not surprising that most of us do not understand the labels. The meaning of a label with a footprint and a figure of "75g" on a packet of crisps is not immediately obvious. |
| If shoppers do recognise the figure as a measurement of the total CO2 emitted in the production and processing of the crisps, they still have to compute whether this figure is high or low. | If shoppers do recognise the figure as a measurement of the total CO2 emitted in the production and processing of the crisps, they still have to compute whether this figure is high or low. |
| This calculation would have to be based on knowing one's own annual CO2 emissions (how many people know this?), the proportion that comes from food consumption, and some pretty sharp maths skills in the supermarket to work through the sums to arrive at a judgment. | This calculation would have to be based on knowing one's own annual CO2 emissions (how many people know this?), the proportion that comes from food consumption, and some pretty sharp maths skills in the supermarket to work through the sums to arrive at a judgment. |
| However, the calculation is pointless unless you have another product on the same shelf to compare it with. | However, the calculation is pointless unless you have another product on the same shelf to compare it with. |
| Driving concern | Driving concern |
| Currently, retailers are using different methodologies for calculating and presenting the information in such a way that labels can not be compared. | Currently, retailers are using different methodologies for calculating and presenting the information in such a way that labels can not be compared. |
| Innocent Drinks tries to help us out of the confusion. The company states that the UK government recommends a target of 7.9 tonnes of annual consumption of CO2 in 2009, which means 21kg per person per day; drinking a smoothie means consuming 2,700g of CO2, or 8% of our daily allowance. | Innocent Drinks tries to help us out of the confusion. The company states that the UK government recommends a target of 7.9 tonnes of annual consumption of CO2 in 2009, which means 21kg per person per day; drinking a smoothie means consuming 2,700g of CO2, or 8% of our daily allowance. |
| Despite this clear explanation, there are several problems with this approach. | Despite this clear explanation, there are several problems with this approach. |
| Manufacturers and retailers present a choice of carbon labels | Manufacturers and retailers present a choice of carbon labels |
| Firstly, the information on the carbon label counts for very little unless you do your weekly shopping by bicycle or by foot. | Firstly, the information on the carbon label counts for very little unless you do your weekly shopping by bicycle or by foot. |
| Tesco and other big retailers have migrated out of town, so consumers now mostly use cars to get there. Driving to pick up a bag of low-carbon crisps for the kids' party won't stop climate change - quite the opposite. | Tesco and other big retailers have migrated out of town, so consumers now mostly use cars to get there. Driving to pick up a bag of low-carbon crisps for the kids' party won't stop climate change - quite the opposite. |
| We are all prone to self deception; maybe that is why the consumers in Boots thought carbon labels were a good thing, as it gives them the sensation they are doing something about climate change, even as they drive home in their petrol-fuelled car. | We are all prone to self deception; maybe that is why the consumers in Boots thought carbon labels were a good thing, as it gives them the sensation they are doing something about climate change, even as they drive home in their petrol-fuelled car. |
| The information also cannot point to an alternative food product that is much lower in carbon emissions. As the animal welfare movement has reminded us, producing a kilogram of beef generates many times more greenhouse gases than producing an equivalent level of protein from pulses such as lentils. | The information also cannot point to an alternative food product that is much lower in carbon emissions. As the animal welfare movement has reminded us, producing a kilogram of beef generates many times more greenhouse gases than producing an equivalent level of protein from pulses such as lentils. |
| The "green marketing" potential of carbon labels is clear. A UK survey by Populus for crisp manufacturer Walkers revealed that more than half of the 1,000 people interviewed were more likely to buy a product with a carbon label, and 69% thought the label demonstrated corporate commitment to reducing carbon emissions. | The "green marketing" potential of carbon labels is clear. A UK survey by Populus for crisp manufacturer Walkers revealed that more than half of the 1,000 people interviewed were more likely to buy a product with a carbon label, and 69% thought the label demonstrated corporate commitment to reducing carbon emissions. |
| Free choices? | Free choices? |
| More broadly, the government is only recommending an allowance for how much carbon we should use. | More broadly, the government is only recommending an allowance for how much carbon we should use. |
| Given that climate change is now threatening irreversible catastrophic changes to life on Earth, as Nasa's Jim Hansen projected recently, surely governments should set rules for economic behaviour that causes climate change, rather than guidelines. | Given that climate change is now threatening irreversible catastrophic changes to life on Earth, as Nasa's Jim Hansen projected recently, surely governments should set rules for economic behaviour that causes climate change, rather than guidelines. |
| Implicit in the concept of carbon labels is that our private choices are always in line with the public interest, namely curbing carbon emissions. | Implicit in the concept of carbon labels is that our private choices are always in line with the public interest, namely curbing carbon emissions. |
| The problem is that many of us don't want to be green if that means missing out on a weekend in Barcelona, heating a bigger house or running a bigger car; all the stuff we aspire to. | The problem is that many of us don't want to be green if that means missing out on a weekend in Barcelona, heating a bigger house or running a bigger car; all the stuff we aspire to. |
| Jim Hansen has argued that only taxes can cut emissions | Jim Hansen has argued that only taxes can cut emissions |
| The shopper can choose not to "be green", and free ride on the efforts of those who decide to cut back on consumption. | The shopper can choose not to "be green", and free ride on the efforts of those who decide to cut back on consumption. |
| There is a potential development impact too. | There is a potential development impact too. |
| Africa still relies heavily on agriculture to generate wealth for its people; and it is quite feasible that retailers implementing carbon labels schemes will require African exporters to provide information on their carbon emissions and evidence of carbon emission "reduction plans". | Africa still relies heavily on agriculture to generate wealth for its people; and it is quite feasible that retailers implementing carbon labels schemes will require African exporters to provide information on their carbon emissions and evidence of carbon emission "reduction plans". |
| African countries risk losing out financially if they do not receive a premium price for carbon labelled goods. | African countries risk losing out financially if they do not receive a premium price for carbon labelled goods. |
| Africans have a carbon footprint on average 20 times lower than Europeans, yet they potentially face increased costs to trade in the name of climate change mitigation. | Africans have a carbon footprint on average 20 times lower than Europeans, yet they potentially face increased costs to trade in the name of climate change mitigation. |
| The problem of aligning our private choices with public needs can be resolved through putting a price on carbon, for example through a tax. | The problem of aligning our private choices with public needs can be resolved through putting a price on carbon, for example through a tax. |
| This will allow consumers automatically to factor in the environmental costs (in this case CO2) when deciding what fridge to buy, how much electricity to use and so on. | This will allow consumers automatically to factor in the environmental costs (in this case CO2) when deciding what fridge to buy, how much electricity to use and so on. |
| Increasing the price of carbon relative to prices of labour and capital also sets a powerful incentive for industry to develop "low carbon technologies" like renewable energy, energy efficient building design and so on. | Increasing the price of carbon relative to prices of labour and capital also sets a powerful incentive for industry to develop "low carbon technologies" like renewable energy, energy efficient building design and so on. |
| The UK government target of reducing emissions by 80% in a little over 40 years requires a new industrial "low carbon" revolution every bit as dramatic as the first industrial "high carbon" revolution 150 years ago. That can only be achieved by taxing carbon, not by designing new labels for food. | The UK government target of reducing emissions by 80% in a little over 40 years requires a new industrial "low carbon" revolution every bit as dramatic as the first industrial "high carbon" revolution 150 years ago. That can only be achieved by taxing carbon, not by designing new labels for food. |
| Alexander Kasterine is a senior market development adviser for the International Trade Centre (ITC) in Geneva. The views expressed in this article are those of Mr Kasterine and do not necessarily reflect those of the ITC | |
| The Green Room is a series of opinion articles on environmental topics running weekly on the BBC News website | The Green Room is a series of opinion articles on environmental topics running weekly on the BBC News website |
| Do you agree with Alex Kasterine? Are carbon labels an ineffective way to tackle climate change? Should policymakers focus their efforts on carbon taxes? Or are schemes that give consumers more information about the impact of their purchases a step in the right direction? | Do you agree with Alex Kasterine? Are carbon labels an ineffective way to tackle climate change? Should policymakers focus their efforts on carbon taxes? Or are schemes that give consumers more information about the impact of their purchases a step in the right direction? |
| -its always the same thing, tax tax tax. make the working people pay. someone should tell al gore, prince charles and prince andrew flying in private jets and helicopters to play golf at the other end of the country, or flying round the world telling the world to cut down.bernie james, romford, essex. england. | |
| Mankind has very little effect on the carbon footprint. What is wrong with the world today, is big government, lack of commonsense and crooks trying to control every one and every thing. I'm sorry but it anger me to see government brain washing our children and the people of the world, just for profit and gain for the very few. Dan Dan Fair, Noryh Pole, USA | |
| I don't care whether products have carbon labels or not. Unless countries like America and China make serious efforts to reduce their emissions then believing that UK shoppers are going to influence climate change is an ignorant conceit. UK emissions are less than 5% of the world total, and China's is increasing every year.Dene Bebbington, Swindon, Wiltshire | |
| Couldn't care less about these idealistic but non realistic; goat woolen sock people. It's always them who want to decide about others people money. Here we try to save people instead of spending without concern hard earned tax money of western blue/white collar workers. These do gooders should start paying out of their own pocket. Van de Kerkhof, Bujumbura | |
| Definitely 'high carbon' taxes would be more effective than the carbon labels. But Labeling too is very important aspect as it provides the relevant information. Initially, lower rates of taxes may be adopted with labels containing carbon emission details and manifest the reasons properly that why people are being taxed. We need to build effective policies on things like cement production, functioning of oil refineries, production of rice, fossil fuels etc These are all important but secondary as we need to control the human population of the planet first. Sanjay Singh Thakur, Indore,India | |
| I think carbon labels would be a great idea if a consistent method can be found for comparing products. Perhaps carbon taxes would be more effective but that doesn't mean other initiatives are useless. Aside from that, I hope Innocent Drinks aren't saying a smoothie is 8% of the daily allowance since 2,700g is 12% of 21kg not 8%.Dave, Singapore | |
| going veg will solve more than 25% of the problem. its proven internationally and no more debate needed on this. government may help controlling the use of new wooden furniture / big cars / papers / plastic bags / 2 & 4 wheeler racings on petrol & diesel / official travelling(Video-Con). If it is difficult to commercialize solar vehicles then we may start using them in the racings. lets do our bit anyway.Vik, Hyd, India | |
| Yes I agree, the government/(world) should design laws that would be effective in shifting from High Carbon to Low Carbon. Taxing would really do it. Akec, | |
| The caption to the photo on your story reads: "Taxes, labels or bans: which is the brightest idea?". This loaded "choice" excludes the widespread point of view of those who do not believe media and politician hype about the evils of carbon dioxide. In a time when people's faith in government and establishment organs like the BBC is waning, this sort of stuff is not doing yourselves any favours. Angelico Rizzi, Kobe, Japan | |
| This assessment remains somewhat optimistic, which highlights the flaw in the carbon trading regime. It was never designed to alter life styles, but instead to create a marketable security for financial trading, the carbon credit. Unfortunately, many of the real polluters, be they large corporate or individual, are going to evade carbon responsibility just as many or most corporations presently evade or minimise their tax exposure. The whole idea is fatally flawed, it will only succeed in driving up prices to responsible small consumers. Given the present state of derivative markets, is the world's carbon emission status something so trivial that can be safely left in the hands of the next Bernie Madoff? Some kind of material change is actually necessary.Stuart Munro, Seoul Korea | |
| I think that neither carbon labels, nor taxes are the answer. The problem is that we have grown so acustomed to to the way that we are living, that it is ourselves that must change. The tactic being used now are the best way. keep people aware of the problem, and eventualy, I belive, people will finaly get the point. I just hope that people will come about before it is too late!Dieter Sweeney, Portland OR, USA | |
| Of course carbon labels will harm exports. The world's current economic structure is not set up in such a way that is conducive to green economics. They can certainly coexist, as some companies like Toyota have capitalized from environmentally friendly products (the prius), but in general the point is that there will be a restructuring of things to live more eco-friendly and unfortunately the world economy will see setbacks while this is happening. It is a small price to pay for making our world a sustainable one. Jameson Bell, Burlington, VT USA | |
| I would said that carbon label alone will not and is not an effective way to fix the climate problem. However, it is might improve the current climate if we, the consumer, can compare and read the label on the same product category.Hung Ngo, Garden Grove, CA | |
| I think carbon labels are ineffective They do not give the whole picture, How can the average consumer remember how much of there 21 kg a day have been used, Or how much of the daily allowance has been taken up with just getting to the shop in the first placeJenny, Reigate | |
| As these labels show, we are not currently prepared to make major sacrifices to reduce greenhouse gas emissions. A label is a cheap way to look like you're doing something when actually you're doing nothing. Just like offsetting, burning wood instead of oil, and having a "Vegetarians emit less gas" bumper sticker on your Range Rover. Unfortunately, major behaviour-changing "green taxes" have become politically impossible in this country due to the backlash against ten years of stealth taxes. People simply think that any tax "change" is a tax "rise" because they no longer trust politicians. Taxing it and letting people decide where to cut back is also philosophically opposed by the current Labour government which wishes to micro-manage every aspect of our lives.Ian Nartowicz, Stockport, England | |
| As with so-called 'Fair Trade' produce, this will no doubt be subverted by supermarkets. They will target low-carbon goods at a particular segment of the market - the "affluent and environmentally aware middle classes" - and charge a premium price for these products. The rest of the population will carry on as normal. It is deeply unpopular, but internalising the cost of our carbon emissions by means of a carbon tax will be far more effective - but what political party is going to advocate that?Paul A, London,UK | |
| Most sensible trade measures that seek to place additional costs on imports according to carbon emitted in production (for example, border tax adjustments) make exceptions for Least Developed Countries (LDCs) and countries with "comparable" efforts to reduce climate change. African countries are only in danger of being strapped with additional and debilitating costs related to climate change policies to the extent that developed countries' climate change policies are politically insensitive to those African nations' vulnerability. Contrary to what you might argue in response--that differentiating between LDCs and other countries is a violation of GATT/WTO rules--(and your opinion would have plenty of good company), Article XX(g) of the GATT permits countries to enact policies that violate the Most Favored Nation or National Treatment principles if they are aimed at conserving a natural resource. In sum, the concern evoked by this article is overblown. Developed nations, including Great Britain, have plenty of WTO-compatible policy tools at their disposal to reduce climate change while being sensitive to the vulnerabilities of developing nations.Andrew Deeringer, San Francisco, CA | |
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