Is consumer protection relevant to climate change?
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Is consumer Is consumer protection protection relevant to relevant to
climate climate change?change?
Gordon RenoufGordon Renouf
CHOICECHOICE
National Consumer Congress National Consumer Congress 20082008
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OverviewOverview
1.1. Is consumer protection relevant Is consumer protection relevant ……
2.2. … … to public policy on Climate to public policy on Climate ChangeChange
3.3. … … to individual consumer choicesto individual consumer choices
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Climate change is an Climate change is an externalityexternality
“ … “ … we should worry about we should worry about costs and benefits missing costs and benefits missing from the market transaction. from the market transaction. … our marginal pricing … our marginal pricing should reflect those should reflect those externality costs accurately.externality costs accurately.
““whatever society decides whatever society decides about the seriousness of the about the seriousness of the externality, externality externality, externality charges are the most charges are the most efficient way to deal with it.”efficient way to deal with it.”
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.. Voluntary action also .. Voluntary action also essentialessential
Shaky information about costShaky information about cost Taxes and standards are negotiatedTaxes and standards are negotiated Policy responses are delayedPolicy responses are delayed Voluntary action promotes Voluntary action promotes
innovationinnovation Need integrated public and vol Need integrated public and vol
action action
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Consumers and government Consumers and government actionaction
Consumers pay the price Consumers pay the price of policyof policy … … we don’t want a lemonwe don’t want a lemon … … equity is importantequity is important
Consumer voiceConsumer voice
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Consumer actionConsumer action
Consumer’s right to chooseConsumer’s right to choose
Innovation Innovation
Participation builds constituency for Participation builds constituency for changechange
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Consumers are interested but confused
75% of US/UK consumers are concerned about climate change but don’t know what they can do to make a difference
www.consumersinternational.org/climate
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Supporting consumer Supporting consumer actionaction
ConfidenceConfidence
MotivationMotivation
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200 claims on non-food in one 200 claims on non-food in one
small supermarketsmall supermarket
61% of companies expect to 61% of companies expect to
increase profitsincrease profits
How significant is green How significant is green marketing?marketing?
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Greenwash?Greenwash?
Not so eco credit card
.The CHOICE shonky for Greenwash
Regulator probes Woolies' green claim
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Responding to Responding to GreenwashGreenwash
ACCC GuidelinesACCC Guidelines
+ accurate information about + accurate information about alternativesalternatives
+ choice restriction+ choice restriction
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Dob in a dodgy green claimDob in a dodgy green claim
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ConclusionsConclusions
Consumers need to heard in Consumers need to heard in policy developmentpolicy development
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ConclusionsConclusions
Consumers need to heard in policy development
Mandatory responses and Mandatory responses and voluntary responses should be voluntary responses should be mutually reinforcingmutually reinforcing
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ConclusionsConclusions
Consumers need to heard in policy development
Mandatory responses and voluntary responses should be mutually reinforcing
Good consumer protection is VITALGood consumer protection is VITAL to protect consumers’ rightsto protect consumers’ rights to activate competition and innovationto activate competition and innovation to ‘save the planet’to ‘save the planet’
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Thank youThank you
www.choice.com.auwww.choice.com.au
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