Carbon labeling is an emerging practice designed to promote environmental transparency in consumer goods. It involves placing a label on products or services that indicates the greenhouse gas emissions associated with them. This practice is gaining relevance as global attention increasingly focuses on sustainability and mitigating climate change.
What Are Carbon Labels?
Carbon labels inform consumers about a product’s environmental footprint by quantifying its total greenhouse gas emissions, often expressed in carbon dioxide equivalent (CO2e), generated throughout its lifecycle. This empowers consumers to make environmentally conscious decisions and encourages businesses to reduce their emissions.
These labels are similar to nutritional labels on food products, providing instant transparency regarding a product’s climate impact. Companies like Oatly, Allbirds, and Unilever have already begun implementing carbon labels to assist consumers in making better choices.
Calculating a Product’s Carbon Footprint
The data for carbon labels is gathered and calculated through a process known as lifecycle assessment (LCA). This assessment involves evaluating emissions from every stage of a product’s existence, from raw material extraction to manufacturing, transportation, use, and ultimately, disposal. It represents a comprehensive “cradle-to-grave” or “cradle-to-gate” analysis, depending on the scope.
A product’s carbon footprint is expressed in kilograms of CO2e per unit. This calculation requires collecting data across the product’s entire value chain and applying recognized methodologies, such as ISO 14067 or PAS 2050. The final footprint provides a transparent, science-based view of the product’s environmental impact.
Driving Sustainable Choices
Carbon labels empower consumers with clear, comparable information, enabling them to choose lower-emission products. This helps them quantify the environmental impact of their purchasing decisions, allowing greater control over their environmental footprint.
These labels also incentivize businesses to innovate and reduce their environmental impact to improve their label scores. Implementing carbon labels enables businesses to track and report their environmental impacts, identify areas for efficiency improvements, and promote comparability. This increased internal visibility helps companies pinpoint stages with high carbon emissions, fostering a shift towards more sustainable operations. By shifting demand towards eco-friendly options, carbon labels contribute to fostering a more sustainable economy.
Global Approaches to Carbon Labeling
The landscape of carbon labeling initiatives varies significantly around the world, as there is not yet a single, universally adopted standard. This leads to different labeling schemes, which can include product-specific, company-wide, or sector-specific labels. For instance, the pioneering carbon labeling system was introduced by the Carbon Trust in the UK in 2007.
Efforts are underway to harmonize these diverse approaches and create more consistent and recognizable labels globally. In Europe, carbon labeling and the Digital Product Passport (DPP) framework are part of the EU Green Deal, aiming to improve traceability and build a more circular economy. Achieving widespread adoption and comparability across different regions and product categories remains a complex, ongoing discussion.