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ECO-LABELLING FOR SOUTH AFRICA?

Internationally, and in Europe particularly, consumer choice is becoming increasingly influenced by the impact on the environment of producing a particular product. Many countries have responded to this phenomenon by introducing eco-labelling, a vehicle that informs the consumer of the impact on the environment of producing the product.

Nedlac's Fund for Research into Industrial Development, Growth and Equity (Fridge) has agreed to undertake a study into the suitability of a national eco-label for South Africa.

The research will look into, amongst other things, the current global usage of eco-labels, including key successes and failures. It will also provide an analysis of how effective eco-labelling is as a way of improving environmental performance by industry, as well as increasing the competitiveness and "export-ability" of South African products.

The European Union has led the way in terms of an Eco-labelling system. It established a scheme in 1992 to differentiate environmentally friendly products. The scheme allows European consumers (estimated at 370 million people) to easily identify officially approved "green" products across Europe, promoting environmentally friendly consumption. It also allows manufacturers to show and communicate to their customers that their products respect the environment.

The Nedlac Fridge study will inc a detailed report assessing the European experience with instituting an eco-label, drawing on research on the EU system overall, and the harmonisation systems in Germany, the Netherlands and Denmark. One of the reasons for choosing the EU is that it represents a significant portion of South Africa's export market.

Although the details of the research brief have still to be finalised by the Fridge sub-committee, the research will assess South Africa's suitability for such a scheme in terms of issues such as institutional infrastructure, business and government capacity, consumer representation, consumer awareness of environmental issues and influence on purchasing decisions. It will also look at the best sectors to target in terms of the label.

The study is expected to be completed by the end of the year.

 

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