FUND FOR RESEARCH INTO INDUSTRIAL DEVELOPMENT, GROWTH & EQUITY

ISO Type 1 Eco-Labels

Global Review of Eco-Labels: Implications for South Africa

PHASE TWO REPORT

January 2003

Trade Implications for South Africa of Foreign Eco-Labelling Schemes: A Socio-Economic Assessment

Core Assumptions

The following core assumptions were made in undertaking this research:

• The focus of the study is on multi-issue, voluntary labels that are designed to apply to a small proportion of products in a product category, and that are subject to third-party verification (these are also known as "ISO Type I" environmental labels). Following from the above assumption, the reference throughout this text to "eco-label" is to ISO Type I environmental labels.
• In addition to the above focus, the study also specifically excludes an examination of:
• The potential for tourism-related labels within South Africa;
• The use of eco-labels in foodstuffs;
• The role of international voluntary labelling initiatives administered by NGOs
• The development and use specifically of "social labels"
• The second phase of the study is based on the assumption that the overriding objective of any eco-labelling initiative in South Africa is to facilitate access to foreign markets, rather than on developing a uniquely South African labelling initiative. With this in mind, this Phase II Report addressed the following issues that were identified in Phase I, as key considerations in facilitating access to foreign eco-labelling schemes:
• Identifying the most appropriate industry sectors and/or products that would benefit in acquiring an external label;
• Evaluating whether there is sufficient market demand for the particular label and whether the market benefits of qualifying for the label will offset any associated costs;
• Identifying the most appropriate labelling scheme within the respective export market;
• Assessing the implications for exporters of complying with the foreign scheme.
• Notwithstanding the fact that the principal focus of this report is on identifying the general implications for South Africa of facilitating compliance with existing foreign labels, the report also briefly considers the potential for using the existing Proudly South Africa campaign as a possible basis for a Type -I labelling initiative in South Africa.