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Paper Code: AIJACLAV17RP2024
Category: Research Paper
Date of Submission for First Review: Nov 16, 2024
Date of Publication: December 21, 2024
Citation: Ms. Trusha G. Haribhakti & Dr. Foram A. Pandya, “Ecolabel: A Legal Framework for Sustainable Consumption", 4, AIJACLA, 175, 175-189 (2024), <https://www.aequivic.in/post/ecolabel-a-legal-framework-for-sustainable-consumption1>
Author Details: Ms. Trusha G. Haribhakti, Research Scholar, GLS University, Ahmedabad, Gujarat, India &
Dr. Foram A. Pandya, Assistant Professor, Faculty of Law, GLS University, Ahmedabad, Gujarat, India
Abstract
Ecolabels are tools used worldwide to promote sustainable consumption by providing transparent information about the environmental impact of products and services. Ecolabels plays an important role in India, where sustainable development is becoming increasingly critical due to environmental degradation and overconsumption. This paper explores the existing legal framework for ecolabels in India, evaluates its effectiveness in fostering sustainable consumption, and identifies challenges and potential reforms. By examining international best practices, the paper provides insights into how India’s eco-labeling system can be enhanced to serve its sustainability goals better.
Keywords: Ecolabels, sustainable consumption, environmental law, legal framework, certification, consumer awareness.
Introduction:
India is currently facing significant environmental challenges like deforestation, pollution, and overexploitation of natural resources. In response, there is a growing movement towards sustainable consumption and production, aligning with global sustainability trends. One mechanism aimed at promoting eco-friendly products and encouraging sustainable consumer behavior is eco-labeling. This system relies on providing consumers with clear, trustworthy information about the environmental impacts of their choices, fostering an informed market that demands environmentally sustainable goods. The world is currently facing greater environmental challenges than ever before. These include water, air, and soil pollution, climate change, deforestation, endangered species, and biodiversity loss. While environmentalists and regulators are working hard to address these issues, it's essential for all of us as responsible consumers to play our part. The growing awareness and concern about environmental problems is encouraging, but more action is needed. Being aware of environmental issues is important, but it's not enough to drive behavioral change due to personal, social, and situational factors. A thorough understanding of these issues will not only benefit marketers, regulators, and consumers but also aid in achieving a balance between economic growth and environmental sustainability.[1]
2. Overview of Ecolabels
2.1 Definition and Importance
Ecolabels are symbols or marks placed on products to show that they meet particular environmental standards. They help consumers identify products that have a reduced environmental impact throughout their life cycle. Ecolabels are essential in promoting sustainable consumption by influencing consumer preferences, encouraging industries to adopt environmentally friendly practices, and reducing the ecological footprint of consumer goods.[2]
2.2 Global Eco-Labeling Practices
Globally, eco-labels are regulated by various legal and regulatory frameworks. Some prominent examples include the EU Ecolabel, Nordic Swan, and Energy Star in the United States. These labels are usually backed by stringent environmental standards and third-party verification to ensure their credibility and gain consumer trust. At the international level, the International Organization for Standardization (ISO) has established guidelines for Eco-labeling (ISO 14020, ISO 14024), laying the groundwork for the development of voluntary and trustworthy ecolabels.[3]
2.3 Types of Ecolabels
Ecolabels can be categorized into three primary types:
1. Type I (ISO 14024): These are third-party certified labels based on multiple environmental criteria. Example: The Indian Eco mark.
2. Type II (ISO 14021): Self-declared environmental claims made by manufacturers without third-party verification.
3. Type III (ISO 14025): Environmental Product Declarations (EPDs) based on life cycle assessments.[4]
3. Problem Statement
While ecolabels offer potential benefits, the legal framework governing eco-labeling in India is fragmented, underdeveloped, and poorly enforced. This paper examines the effectiveness of India’s existing eco-labeling framework in promoting sustainable consumption and identifies areas for improvement.
4. Research Objectives
The objectives of this paper are as follows:
4.1. To analyze the current legal framework for Eco-labeling in India.
4.2. To assess the role of ecolabels in promoting sustainable consumption in the country.
4.3. To identify challenges faced by the Indian Eco-labeling system and offer recommendations for reform.
5. Research Questions
5.1. What is the current legal framework governing ecolabels in India?
5.2. How effective is this framework for promoting sustainable consumption?
5.3. What are the key challenges faced by the eco-labeling system in India?
5.4. How can the legal framework for ecolabels be improved to better support sustainability goals?
6. Literature Review
1. Eco-Labelling Certification and Management" by Corbett Grainger and Charles Kolstad examines the certification processes and management strategies associated with eco-labeling initiatives. The book offers valuable insights into the complexities of eco-labeling schemes and their implications for environmental management and marketing. The book begins by outlining the fundamental concepts of eco-labeling and its role in promoting sustainable production and consumption practices. It then delves into the certification process, discussing the standards development, auditing procedures, and certification criteria companies must adhere to obtain eco-label certification. Throughout the book, the authors explore various aspects of eco-labeling management, including the role of certification bodies, the importance of transparency and credibility, and the challenges associated with monitoring and enforcement. They also discuss the economic implications of eco-labeling for businesses, including the costs and benefits of certification and the potential for market differentiation and competitive advantage. Drawing on case studies and empirical research, the book provides practical insights into implementing eco-labeling initiatives across different industries and geographical regions. It highlights best practices, lessons learned, and emerging eco-labeling certification and management trends. Overall, "Eco-Labelling Certification and Management" is a comprehensive guide for policymakers, businesses, and other stakeholders involved in eco-labeling initiatives.[5]
2. “The Eco Label Revolution: A Global Perspective" by Michelle M. Daino Provides a comprehensive examination of the eco-labeling landscape worldwide. The Book traces the evolution of eco-labeling initiatives from their origins to their current state. The author provides a global perspective on eco-labeling, examining initiatives across various sectors and regions. The Book covers multiple industries, including food, agriculture, forestry, textiles, and tourism, highlighting the diverse approaches to eco-labeling worldwide. One of the Book's central themes is eco-labels on consumer behavior. The author discusses eco-labels' role in shaping consumer perceptions, purchasing decisions, and preferences for environmentally friendly products. She explores the factors that drive consumer trust in eco-labels and the challenges of greenwashing. The Book features numerous case studies and examples of successful eco-labeling initiatives. The Book examines companies, certification bodies, and governments' strategies to develop and promote eco-labels. The author identifies vital challenges eco-labeling initiatives face, such as standardization, certification costs, and market acceptance. She also explores opportunities for innovation and collaboration to overcome these challenges and enhance the effectiveness of eco-labeling as a tool for promoting sustainability. It examines the impact of policy interventions on eco-labeling adoption and compliance and the potential for regulatory frameworks to promote transparency and accountability in eco-labeling schemes.[6]
3. M/S Fiber Marx Papers Pvt. Ltd. Vs. State of UP (2016): She has then urged that the insistence on behalf of the petitioners about the possession of an Eco-marked paper that can only be environment friendly is a misconceived argument since Eco-marked paper is a separate category of paper with additional requirements which standard has been framed only for licensed manufacturers. She contends that this has been done to ensure that a manufacturer who desires to get the paper manufactured by it labeled as eco-marked has this option available to the manufacturer only on fulfillment of the conditions of Eco-mark that will be utilized as a label for such paper. According to her, this does not mean that only Eco-marked paper is environmentally friendly. The mark or logo a manufacturer applies is, therefore, confined to such an option that must be exercised in manufacturing. It is not necessary or compulsory to have eco-friendly or environmentally friendly paper. Eco Mark may be a particular type of standard mark. Still, the same is optional, and if a paper is to be possessed of Eco Mark only, then it has to comply with the requirements of the BIS mark with the additional requirements prescribed by the standards of BIS that have been framed in pursuance thereof. The resolution dated 20.2.1991 comprehensively discussed specific objectives to ensure the availability of an environment-friendly product. The proposal was to ensure the quality requirements of the Indian Standards, and a label known as 'Eco-Mark' may be provided as an environment-friendly product. The object was to incentivize manufacturers to reduce the adverse environmental impact of their products. It also indicated rewards being given to such companies for incentives and also to assist consumers in becoming environmentally responsible in their daily lives. It also shows that the same was done to encourage citizens to purchase products with less harmful environmental impacts, ultimately improving the quality of the environment and promoting sustainable management of resources. Consequently, regarding the award of an eco-mark, specific proposals were made that have been detailed in the resolution dated 20.2.1991 filed as Annexure no. 8 to the counter affidavit of the State Government.[7]
4. Khadi Village Industries Vs M/S Jbmr Enterprises (2021): The KHADI trademarks not only act as source identifiers but also as symbols of purity and authenticity. It is the most essential and prominent feature of the Plaintiff's trademarks. The Plaintiff uses the trademark and Label KHADI on a wide range of products and operates on several social media platforms and a mobile application by the name of 'Khadi India' and by extensive use, the trademark KHADI has become exclusively and globally associated with the Plaintiff in the eyes of consumers. The court realized that the Label created a misunderstanding about the product for the customers, so it ordered them to reconsider the Label and change it.[8]
5. Social desirability does not underpin the eco-label effects on product judgments: During direct perceptual comparison, the study explores why people prefer eco-labeled products over conventional ones. Participants were asked to judge grapes labeled "eco-friendly" and "conventional," respectively. The results showed similar effects for impression management and no-instructions conditions but more significant in moral-instructions conditions. The study suggests social motives may influence purchasing "green" products, but they are not the direct cause of the eco-label effect on product perception and judgment[9].
6. Text vs. logo: Does the eco-label format influence consumers’ visual attention and willingness to pay for fruit plants?: This study investigates the impact of eco-label format on consumer preferences, willingness to pay, and visual attention. Participants were given three eco-labels: industry-specific, non-GMO, and heirloom. Results showed that logos captured more visual attention than text eco-labels, increasing bids. The study highlights implications for industry stakeholders.[10]
7. Eco-labeling Framework in India
India’s eco-labeling initiatives are primarily centered on the Eco Mark Scheme, which was introduced in 1991 by the Ministry of Environment, Forest, and Climate Change (MoEFCC). This section outlines the legislative structure and regulations that govern Eco-labeling in India.
7.1 Eco Mark Scheme
The Eco-mark scheme was designed to promote environmentally friendly products through a voluntary labeling program. Products that meet specified environmental criteria are awarded the Eco mark, signaling to consumers that these products have minimal adverse environmental impacts.[11]
Scope and Criteria: Eco-mark covers a wide range of products, including food, textiles, cosmetics, and household goods. The certification criteria are based on the product’s life cycle, from raw material extraction to production, packaging, distribution, use, and disposal.
Governing Body: The Bureau of Indian Standards (BIS) oversees the certification process, while the MoEFCC formulates the environmental criteria for each product category.
Voluntary Nature: Participation in the Eco mark scheme is voluntary, which limits its widespread adoption among industries.[12]
7.2 Other Relevant Regulations
The Environment (Protection) Act of 1986: It provides a comprehensive legal framework for environmental protection in India, empowering the government to establish environmental standards, including those related to product labeling.[13]
Consumer Protection Act, 2019: This act mandates that consumers have the right to be informed about the quality and standard of goods and services. It can be leveraged to enforce stricter regulations on misleading environmental claims, thereby preventing greenwashing.[14]
Energy Conservation Act, 2001: This act governs India’s energy labeling system, specifically the Bureau of Energy Efficiency (BEE) star rating scheme for energy-efficient products.[15]
7.3 Ecolabels in Specific Sectors
1. Energy Efficiency Labels: The BEE Star Rating system is India’s most well-recognized ecolabel, designed to promote energy-efficient appliances. It provides consumers with information about energy consumption and efficiency, directly influencing purchasing decisions.[16]
2. Organic Certification: The National Programme for Organic Production (NPOP) provides organic certification for agricultural products, ensuring compliance with organic farming standards. The Jaivik Bharat label, launched by the Food Safety and Standards Authority of India (FSSAI), distinguishes organic products in the market.[17]
3. Green Building Certification: The Indian Green Building Council (IGBC) and Leadership in Energy and Environmental Design (LEED) provide ecolabels for buildings that meet sustainability criteria in construction, design, and energy efficiency.[18]
8. The Role of Ecolabels in Promoting Sustainable Consumption
8.1 Influence on Consumer Behavior
Ecolabels can significantly influence consumer purchasing decisions, particularly when consumers are aware of the environmental impact of their choices. Research suggests that Indian consumers, especially in urban areas, are becoming more environmentally conscious. However, the penetration of ecolabels in India is limited due to low awareness and trust issues. Ecolabels like the BEE Star Rating have been more successful due to widespread public campaigns and government backing.
8.2 Market Dynamics and Business Practices
Ecolabels have a significant impact on consumer behavior and also incentivizes businesses to embrace sustainable practices. Companies that seek ecolabel certification often experience improved market access, enhanced brand reputation, and increased consumer loyalty. However, the high cost of certification and compliance can be a hurdle for small and medium-sized enterprises (SMEs), restricting their involvement in ecolabel programs.[19]
8.3 Greenwashing Risks
The increasing use of sustainability as a marketing tactic has resulted in the emergence of greenwashing, which involves making false claims about the environmental advantages of a product. In India, where regulatory enforcement is lacking, greenwashing continues to be a major issue. It is crucial to enhance the legal system to address these practices to uphold consumer confidence in ecolabels.
9. Challenges Facing the Eco-Labeling System in India
Despite the potential benefits, the eco-labeling system in India faces several challenges:
9.1 Low Consumer Awareness
The awareness of ecolabels among Indian consumers is low. The BEE Star Rating system has gained traction due to aggressive promotion by the government, but other eco-labels like Eco mark are relatively unknown. This lack of awareness limits the effectiveness of ecolabels in promoting sustainable consumption.[20]
9.2 Fragmented Legal Framework
India’s legal framework for ecolabels is fragmented, with different sectors governed by different laws and agencies. This lack of coherence creates confusion among consumers and businesses, reducing the overall impact of eco-labeling initiatives.
9.3 High Certification Costs
For businesses, especially small and medium-sized enterprises (SMEs), obtaining and maintaining ecolabel certifications is a significant barrier. The participation rate in voluntary ecolabel schemes like Eco mark remains low due to the lack of financial incentives or subsidies.
9.4 Weak Enforcement and Regulation
India’s regulatory bodies often lack the resources and capacity to effectively enforce eco-labeling standards. This allows companies to make false or exaggerated environmental claims without facing significant repercussions, undermining the credibility of the eco-labeling system.
10. Opportunities for Improvement
To enhance the effectiveness of ecolabels in promoting sustainable consumption, several reforms to the legal framework should be considered:
10.1 Strengthening Eco mark
The Eco mark Scheme, which has been largely dormant, needs revitalization. The government should invest in public awareness campaigns, expand the scope of the scheme, and provide financial incentives for businesses to participate.
10.2 Enhancing Regulatory Oversight
Stronger regulatory oversight is crucial for maintaining the integrity of ecolabels. The government should establish a central regulatory body with the authority to monitor ecolabel claims across sectors and enforce penalties for non-compliance.
10.3 Harmonizing Eco-Labeling Standards
A harmonized approach to eco-labeling would help reduce confusion and make it easier for businesses to comply with environmental standards. India could look to international best practices and adopt a unified system that covers multiple product categories.
10.4 Promoting Public-Private Partnerships
Public-private partnerships can play a key role in promoting ecolabels. Collaboration between the government, industry, and civil society can help expand the reach of ecolabels and increase consumer trust.
11. Conclusion
Ecolabels are a powerful tool for promoting sustainable consumption in India. However, their effectiveness depends on the strength of the legal framework that governs them. While India has made progress with initiatives like the BEE Star Rating system and organic certification programs, there are significant gaps that need to be addressed. Strengthening the legal framework for ecolabels through better enforcement, increased consumer awareness, and support for businesses is crucial for achieving India’s sustainability goals. India stands at a critical juncture where sustainable consumption must be prioritized. With the right legal and regulatory reforms, ecolabels can become a vital instrument in driving the country toward a more sustainable future.[21]
In India, green production and consumption are still in the developing stage. The level of environmental deterioration and the global consumption rate are rising at an alarming rate. Consequently, there is an accumulation of waste posing serious threats to the existence of humans and the planet. The study analyzes consumers’ preferences for purchasing eco-labeled products based on different levels and factors and tests the influence of those factors. The study indicates that eco-labeling can be used as an effective marketing strategy. The concept of green consumption is still developing and it opens wide avenues for manufacturers to fulfill their corporate social responsibility concerning environmental conservation.
References:
1. Adepetu, A.A. & Eziash, I A.C., (1998), Man-Environment Relationships: Competing and Conflicting Philosophies and Paradigms. Journal of Environmental Sciences 1(2), 1998, pp 1-9, University of Jos, Nigeria.
2. Allport, G.W., (1935), Attitudes, In C. Murchison (Ed) Handbook of Social Psychology, Worcester, Mass: Clark University Press.
3. Arttachariya P., (2012), Environmentalism and Green Purchasing Behavior: A Study on Graduate Students in Bangkok, Thailand, http://www.bu.ac.th/knowledgecenter /paper/july_dec2012 /pdf/ac01.pdf [15th May 2013]
4. Carter Steve, (1986), Marketing in Less Developed Countries- Time for Dedicated Marketing Systems, not Adaptive Transfers, Public Enterprise, 6 February, pp 107-120.
5. Eco-Labelling Certification and Management" by Corbett Grainger and Charles Kolstad, 2021
6. The Eco Label Revolution: A Global Perspective by Michelle M. Daino
7. M/S Fiber Marx Papers Pvt. Ltd. Vs. State of UP, MISC 8944 of 2016
8. Khadi Village Industries Vs M/S Jbmr Enterprises, CS 130/2022
9. Sorriest, P., Langeborg, L., & Marsh, J. E. Social desirability does not underpin the eco-label effect on product judgments. 50, Food Quality and Preference, 82-87 (2016).
10. Rihn, A., Wei, X., & Khachatryan, H. Text vs. logo: Does eco-label format influence consumers’ visual attention and willingness to pay for fruit plants? 82, An experimental auction approach. Journal of Behavioral and Experimental Economics, 101452 (2019).
11. Chamorro A., Rubio S., and Miranda F. J., (2009), Characteristics of Research on Green Marketing, Business Strategy and the Environment, Bus. Strat. Env. 18, 223–239 (2009), Published online 2 April 2007 in Wiley InterScience (www.interscience.wiley.com)
12. Coddington W., (1992), Environmental Marketing, McGraw-Hill: New York.
13. Covey Stephen, (2013), http://www.nextlevelsalesconsulting.com/sales-insights/sales-library/inspirational-quotes/stephen-covey-all-things-are-created-twice/ [10th May 2013]
14. Ewing B., D. Moore S., Gold finger A., Oursler A. Reed, and M. Wackernagle, (2010), The Ecological Footprint Atlas 2010, Oakland, Global Footprint Network.
15. Fisk G., (1974), Marketing and the Ecological Crisis, Harper and Row: London.
Ministry of Environment, Forest and Climate Change (MoEFCC), India. (1991). Eco mark Scheme.
16. Bureau of Energy Efficiency (BEE), India. (2020). BEE Star Rating Scheme.
17. Bureau of Indian Standards (BIS). (2020). Eco mark Certification Process.
18. International Organization for Standardization (ISO). (2020). ISO 14020: Environmental labels and declarations — General principles.
19. Consumer Protection Act, 2019. Government of India.
20. Energy Conservation Act, 2001. Government of India.
21. National Programme for Organic Production (NPOP), India.
[1] Adepetu, A.A. & Eziash, I A.C., (1998), Man-Environment Relationships: Competing and Conflicting Philosophies and Paradigms. Journal of Environmental Sciences 1(2), 1998, pp 1-9, University of Jos, Nigeria.
[2] Allport, G.W., (1935), Attitudes, In C. Murchison (Ed) Handbook of Social Psychology, Worcester, Mass: Clark University Press
[3] Arttachariya P., (2012), Environmentalism and Green Purchasing Behavior: A Study on Graduate Students in Bangkok, Thailand, http://www.bu.ac.th/knowledgecenter /paper/july_dec2012 /pdf/ac01.pdf [15th May 2013]
[4] Carter Steve, (1986), Marketing in Less Developed Countries- Time for Dedicated Marketing Systems, not Adaptive Transfers, Public Enterprise, 6 February, pp 107-120
[5] Eco-Labelling Certification and Management" by Corbett Grainger and Charles Kolstad, 2021
[6] The Eco Label Revolution: A Global Perspective by Michelle M. Daino
[7] M/S Fiber Marx Papers Pvt.Ltd. Vs. State of UP, MISC 8944 of 2016
[8] Khadi Village Industries Vs M/S Jbmr Enterprises, CS 130/2022
[9] Sorriest, P., Langeborg, L., & Marsh, J. E. Social desirability does not underpin the eco-label effect on product judgments. 50, Food Quality and Preference, 82-87 (2016).
[10] Rihn, A., Wei, X., & Khachatryan, H. Text vs. logo: Does eco-label format influence consumers’ visual attention and willingness-to-pay for fruit plants? 82, An experimental auction approach. Journal of Behavioral and Experimental Economics, 101452 (2019).
[11] Chamorro A., Rubio S., and Miranda F. J., (2009), Characteristics of Research on Green Marketing, Business Strategy and the Environment, Bus. Strat. Env. 18, 223–239 (2009), Published online 2 April 2007 in Wiley InterScience (www.interscience.wiley.com)
[12] Coddington W., (1992), Environmental Marketing, McGraw-Hill: New York.
[13] Covey Stephen, (2013), http://www.nextlevelsalesconsulting.com/sales-insights/sales-library/inspirational-quotes/stephen-covey-all-things-are-created-twice/ [10th May 2013]
[14] Ewing B., D. Moore S., Gold finger A., Oursler A. Reed, and M. Wackernagle, (2010), The Ecological Footprint Atlas 2010, Oakland, Global Footprint Network.
[15] Fisk G., (1974), Marketing and the Ecological Crisis, Harper and Row: London.
Ministry of Environment, Forest and Climate Change (MoEFCC), India. (1991). Eco mark Scheme.
[16] Bureau of Energy Efficiency (BEE), India. (2020). BEE Star Rating Scheme.
[17] Bureau of Indian Standards (BIS). (2020). Eco mark Certification Process
[18] International Organization for Standardization (ISO). (2020). ISO 14020: Environmental labels and declarations — General principles
[19] Consumer Protection Act, 2019. Government of India.
[20] Consumer Protection Act, 2019. Government of India.
[21] National Programme for Organic Production (NPOP), India.