Eco Labelling : Overview and Implications for Developing Countries

"This policy brief aims to provide a brief introduction to eco-labelling and some of the implications that the presence of eco-labels may have on developing countries. Eco-labelling by implication links environmental with trade and market access issues. Eco- labels (or environmental labels) are a guide for consumers to choose products and services that are deemed to be less harmful to the environment than other products within the same category. Eco-labels are designed to encourage industries to produce more environmentally-friendly products through consumers’ purchasing power - which translates into a “bottom-up” solution. Although the distribution of eco-labels is largely concentrated in the highly industrialised countries (mainly the European Union (EU)), they may nonetheless have increasingly significant future consequences for developing countries, especially in terms of their trade with developed countries."