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Current Developments in Domestic Climate Mitigation
Measures
Carbon footprinting and energy efficiency labelling schemes and relevant WTO rules and activities
Ludivine Tamiotti, CounsellorTrade and Environment Division, WTO
Outline of presentation
Carbon footprinting and energy efficiency discussions in the WTO
Relevant Activities of the WTO
Relevant WTO rules
Relevant Activities of the WTO
WTO/UNEP Report on Trade and Climate Change
Key objectives
Improve energy efficiency and reduce
GHG emissions
Key policy instruments
Emissions and energy performance standards
and labelling
Regulatory instrument
Promote development & deployment of climate-friendly technologies
Financial mechanisms: R&D, fiscal, price and investment measures
Economic incentives
Internalize environmental costs
Carbon tax, emissions trading schemes
WTO/UNEP Report on Trade and Climate Change
Key objectives
Improve energy efficiency and reduce
GHG emissions
Key policy instruments
Emissions standards, labelling on energy
performance
Key WTO Agreement
TBT Agreement
Internalize environmental costs
Carbon tax, emissions trading schemes
GATT
Promote development & deployment of climate-friendly technologies
SCM AgreementFinancial Mechanisms: R&D, fiscal, price and investment measures
Specialized committees
WTO Specialized Committees
The core functions of the WTO may have a place in the trade and climate
change debate:The administration of a set of
rules
A negotiating forum
WTO Specialized Committees
2 WTO Committees are directly relevant to issues
related to Carbon footprinting and energy
efficiency Committee on Technical Barriers to Trade (TBT Committee)
Committee on Trade and Environment (CTE)
WTO Specialized Committees
Committee on Trade and Environment
(CTE)
General discussions of the environmental benefits of removing restrictions in the energy sector, the forestry sector, the effect of energy
efficiency labelling on market access
Specialized discussions on Carbon Footprinting in 2010: exchange of national experiences, briefings by
international institutions
WTO Specialized Committees
Committee Technical Barriers to Trade (CTBT)
In recent years the TBT Committee discussed a number of product
standards and labelling requirements targeted to energy efficiency or
emission control
Examples of regulations discussed so far include:
Fuel economy standards for cars
Eco-design requirements for energy-using products
Energy efficiency programmes for consumer products
Emission limit values for diesel engines
Relevant WTO Rules
Philosophy of the TBT Agreement
Right to Take Regulatory Measures
Avoid Unnecessary Obstacles to Trade
Key principles
Agreement on Technical Barriers to Trade / GATT
Key principles include
Harmonization
Non discrimination
Avoidance of unnecessary trade barrier
Non-Discrimination
Treatment no Less Favourable toLike Products
Treatment no Less Favourable toLike Products
OriginatingOriginating
Of national originOf national origin
National Treatment
From any other countryFrom any other country
Most-Favoured Nation (MFN)
International Standards International Conformity Assessment Procedures
Stated Preference for
Philosophy of the TBT Agreement
Article 2.2
Article 5.1.2
Avoid unnecessary obstacles to trade
Legitimateobjectives
National security requirements
Protection of animal or plant life or health
Protection of the environment
Prevention of deceptive practices
…Inter alia…
Protection of human health or safety
Carbon footprinting and energy efficiency
discussions in the WTO
Global Proliferation of PCF – Key Examples of National
SchemesAll follow ISO lifecycle analysis principles and harmonizing with ISO
14067, but with specified methodologies (and labels)• UK – PAS 2050
– Carbon Trust, Carbon Reduction Label– Becoming a world standard
• used by companies in United States, China, Korea, Australia, etc• Japan – TS Q0010
– Reliance on PCR– July 2010 revision following road testing– Pilot project 2009-2011
• France – BP X30-323– Multi-criteria, Mandatory? – Road testing starting 1 July 2011– Multiple labelling formats will be tested by firms in 2011 trials
Other Emerging Government Schemes
• Korea – Korea Carbon Footprint Label• New Zealand – National GHG Strategy for
agricultural exports• Chile – wine, agricultural goods• Thailand – Carbon Reduction Label and Carbon
Footprint Label• Chinese Taipei – Carbon Label• Singapore – Singapore Carbon Label• China – carbon footprint label on sea scallops
24 October 2010
Concerns expressed in the CTE
Lack of transparency
Cost of conformity assessment
Lack of harmonization
Harmonization is underway on methodology (for government schemes), but labels and communication of claims of vary greatly
Concerns expressed in the CTE
Market access impacts of the proliferation of private standards
Non-neutrality of CFP methodologies
Confusion of consumers created by multiple labelling schemes
Key Characteristics of Emissions/ energy efficiency
standards Emissions/ energy efficiency
standards and regulations can be…
Based on design Based on performance
Best used when few options for controlling emissions
Prevalent to improve energy efficiency in appliances and buildings more flexibility
Japan’s Top Runner Program (the energy performance of the most efficient model (e.g.
household appliances) on the market is used to set a target for all manufacturers.
Emissions/ energy efficiency standards and regulations can be…
Based on design Based on performance
Defining products Defining processes
Mainly address energy efficiency & emissions related to
the use of the product
May result in direct environmental outcomes, as they improve energy efficiency or limit emissions to a certain level during production
Key Characteristics of Emissions/ energy efficiency
standards
Emissions/ energy efficiency standards and regulations can be…
Based on design Based on performance
Defining products Defining processes
Mandatory Voluntary
Minimum Energy Performance Standards (MEPS) for appliances (Australia)
ENERGY STAR (United States)
Key Characteristics of Emissions/ energy efficiency
standards
Emissions/ energy efficiency standards and regulations can be…
Based on design Based on performance
Defining products Defining processes
Mandatory Voluntary
Public Private
Minimum energy-efficiency performance standards for major
domestic appliances (Canada)
Leadership in Energy and Environmental Design (LEED) in the building sector (United States)
Key Characteristics of Emissions/ energy efficiency
standards
Key compliance tools: Labelling
Most OECD countries (energy-efficiency labelling)
Many non OECD countries, e.g. South Africa, Argentina, Sri Lanka and Tunisia
Also examples of voluntary energy labelling programmes for household appliances (E.g. Thailand, Hong Kong, China, India, Brazil)
Scope
Key compliance tools: Labelling
ScopeMost OECD countries (energy-efficiency labelling)
Many non OECD countries, e.g. South Africa, Argentina, Sri Lanka and Tunisia
Information covered
Product’s energy performance/emissions levels while in operation
Product’s entire life-cycle, including its energy efficiency
e.g. EU, Australia, Canada and US require energy-efficiency labels for several household appliances
e.g. Nordic Swan, German Blue Angel and the EU’s eco-label Flower
The issue of food miles
Key compliance tools: Labelling
Comparative labels compare performance among similar models
Endorsement labels Seals of approval assuring consumers that a
product meets certain criteria
Type of instrument
e.g. for household appliances in Australia, EU, Canada, US, Brazil, Tunisia, China, Thailand and Korea
e.g. Energy Star label (US), Brazil, Thailand and China (Certificate for Energy Conservation Product)
Key compliance tools: Conformity assessment
to determine whether the requirements in standards & regulations are fulfilled
Objectivesgive consumers confidence in the
integrity of products
add value to manufacturers’ marketing claims
Key compliance tools: Conformity assessment
Testing
Inspection
Type of instrument
Certification
Accreditation
Metrology
Ex post efficiency testing on labelled appliances (Electricity Generating Authority of Thailand)
In the building sector, the Leadership in Energy and Environmental Design (LEED) (US)
Mark that energy performance of regulated energy-using products has been verified (Canada)
Environmental effectiveness
Increase in energy efficiency of products, e.g. electrical equipment
Measurement tools
Behavioural changes of consumers and manufacturers
In California, the energy use of refrigerators in 2000 was more than two-thirds lower than in 1974 (energy-efficiency standards are in place and regularly updated since the late
1970s)
In the United States, recognition of the Energy Guide label was found to be quite good; however understanding was
limited, with respondents unable to determine which appliance was more energy-efficient, based on the labels
Current Developments in Domestic Climate Mitigation
Measures
Carbon footprinting and energy efficiency labelling schemes and relevant WTO rules and activities
Ludivine Tamiotti, CounsellorTrade and Environment Division, WTO
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