CONSUMER PROTECTION AND SUSTAINABLE CONSUMPTION: NEW GUIDELINES FOR THE GLOBAL CONSUMER Division for Sustainable Development Department of Economic and Social Affairs Background paper for the United Nations Inter-Regional Expert Group Meeting on Consumer Protection and Sustainable Consumption: New Guidelines for the Global Consumer Sao Paulo, Brazil 28-30 January 1998 ----- CONSUMER PROTECTION AND SUSTAINABLE CONSUMPTION: NEW GUIDELINES FOR THE GLOBAL CONSUMER Contents 1 Introduction and Background 1 1.1 Origin of the Guidelines 2 1.2 Extension of the Guidelines to include Sustainable Consumption 2 2 Consumer Protection and Sustainable Consumption 3 2.1 Regional Cooperation in Consumer Protection 4 2.2 Sustainable Consumption 6 2.3 Why Review the UN Guidelines ? 8 3 Extension of the Guidelines: Key Issues 9 3.1 Consumer Empowerment 10 3.2 Sound Industrial Products and Practices 11 3.3 Cross-Cutting Issues 14 3.4 International Co-operation 19 Notes 21 I. INTRODUCTION AND BACKGROUND In 1972, in a statement to the United Nations Conference on the Human Environment, the International Organization of Consumers Unions recognized why consumer organizations should be concerned with environmental issues : The problems of the environment are essentially the problems of ordinary individuals. Whether in the sphere of human settlements, natural resources or pollution, it is the well-being or even survival of ordinary individuals that is at stake. And where the environment is being damaged, the damage is being done by individuals. Sometimes they are consumers acting irresponsibly. More often they are consumers forced to use unsuitable products, or industrial or other organizations acting or claiming to act in the consumer■s interest. So, collective action to protect the environment can only be achieved when there is wide spread individual awareness of the environmental consequences of consumption...1/ The issues addressed in the discussions of consumer protection and sustainable consumption are varied and complex. To propose an integration of the two provides an even greater challenge. Though the concept of integrating sustainable consumption within consumer protection policy may be familiar to some people, it may be entirely new to others. The objective of this background paper is to provide a theoretical orientation and practical grounding in the issues and debates related to the extension of the United Nations Guidelines for Consumer Protection to include sustainable consumption. The paper provides an overview of regional initiatives in the area of consumer protection and sustainable consumption and outlines some of the ideas that have been raised in the discussion of this issue, in order to provide a framework for consideration during the Inter-Regional Expert Group Meeting on Consumer Protection and Sustainable Consumption: New Guidelines for the Global Consumer, to be held in Sao Paulo, Brazil, January 28-30, 1998. The existing provisions of the United Nations Guidelines for Consumer Protection are not to be re-negotiated, but rather revisited in light of sustainable development issues in general, and sustainable consumption in particular. The outcome of the meeting will be ideas, suggestions and proposed text to be submitted to the meetings of the Ad-Hoc Inter- Sessional Working Group of the Commission on Sustainable Development (CSD), in February 1998; the 6th Session of the CSD in April 1998; and the Substantive Session of the Economic and Social Council (ECOSOC) in July 1998. The Department for Economic and Social Affairs would like to express its appreciation to the Environment Secretariat of the State Government of S■o Paulo for generously offering to host the Expert Group Meeting, in co-operation with the Latin American Parliament and the Ministry of Environment, Water Resources and the Amazon. In addition, we would like to thank Consumers International (CI) for their long-term and critical role in promoting the extension of the United Nations Guidelines, and for undertaking a consultation process to call international attention to this important issue. 1.1 ORIGIN OF THE UN GUIDELINES In 1985, the United Nations General Assembly adopted, by consensus, the United Nations Guidelines for Consumer Protection in its resolution 39/85. The Guidelines constitute a comprehensive policy framework outlining what governments need to do to promote consumer protection in the following eight areas: basic needs, safety, information, choice, representation, redress, consumer education and healthy environment. While not legally binding, the Guidelines provide an internationally recognized set of basic objectives. The Guidelines are particularly designed for governments of developing and newly independent countries to use in structuring and strengthening consumer protection policies and legislation. The Guidelines were adopted "recognizing that consumers often face imbalances in economic terms, education levels, and bargaining power, and bearing in mind that consumers should have the right of access to non-hazardous products, as well as the importance of promoting just, equitable, and sustainable economic and social development." 2/ In this respect, consumer protection was to address not only issues of product safety and economic efficiency, but also to promote social justice and economic development. The consumer protection movement, which began in Europe and North America in the 1960s, reached the international stage in the 1970s when the Economic and Social Council requested the Secretary-General to formulate a "survey of national institutions and legislation in the area of consumer protection" 3/, which was later followed by a comprehensive report containing proposals for consumer policy and legislation to be considered by Member States. By the early 1980s, it was apparent that an international policy framework was needed to provide general guidance and specific objectives, addressing the particular needs of developing countries. It was in this context that ECOSOC requested the Secretary- General to continue consultations with Member States and international organizations. In 1983, draft guidelines for consumer protection were submitted to ECOSOC. In 1985, following extensive discussions and negotiations among Governments on the objectives, specific content and scope of the Guidelines, the Guidelines were adopted by consensus. 4/ 1.2 EXTENSION OF THE GUIDELINES TO INCLUDE SUSTAINABLE CONSUMPTION Since 1985, increased attention has been given to linkages between environmental concerns and economic and social development, involving discussions in new areas such as that of sustainable consumption. A chapter devoted specifically to the relationship between consumption and production patterns and sustainable development was included in Agenda 21, which was adopted at the 1992 Earth Summit in Rio. Work in this area has continued within the United Nations system through the establishment of the Commission on Sustainable Development and its International Work Programme on Changing Consumption and Production Patterns. In 1995, a recommendation was adopted by the Commission on Sustainable Development to expand the Guidelines for Consumer Protection to cover sustainable consumption. According to ECOSOC Resolution 1995/53, the Council "Requests the Secretary-General, in cooperation with the development funds and programmes of the United Nations, the regional commissions and other relevant bodies and agencies of the United Nations system, to continue to provide assistance to governments, at their request, in implementing the guidelines for consumer protection, to elaborate guidelines in the area of sustainable consumption patterns, taking into account the work undertaken in other intergovernmental forums, and to examine the possible extension of those guidelines into other areas." 5/ ECOSOC later requested, in resolution 1997/53, that the Secretary-General continue efforts to implement the Guidelines for Consumer Protection and to continue work on the elaboration of the Guidelines to encompass sustainable consumption patterns and other areas. In addition, ECOSOC requested that the extension of the Guidelines be undertaken through an inter-regional expert group meeting, in collaboration with interested Governments, Consumers International and other concerned entities in this field. This meeting has been organized to elaborate specific recommendations for the extension of the Guidelines in the area of sustainable consumption for submission to the 1998 session of ECOSOC, through the six session of the Commission on Sustainable Development. 6/ Consumers International (CI) has played an integral role in the preparatory work for the extension of the UN Guidelines for Consumer Protection, promoting an understanding of the issues. In ECOSOC resolution 1997/53, which was sponsored by Brazil and Chile and co- sponsored by 15 Member States, 7/ Consumers International was requested to prepare draft inputs for the new guidelines, incorporating elements of sustainable consumption. Proposed texts prepared by Consumers International on the basis of extensive consultations among its members in many countries are integrated into this report, along with background information prepared by the United Nations Secretariat. Further proposals, or revisions to the CI proposals, may be submitted, and will be considered during the Inter-Regional Expert Group Meeting. II. CONSUMER PROTECTION AND SUSTAINABLE CONSUMPTION The establishment of standards and guidelines to protect consumers is not new to the United Nations system. The Commission on Transnational Corporations, established in 1974, prepared a draft code of conduct for multinational corporations, although no such code was adopted. WHO and FAO prepared the "Codex Alimentarius" Commission to develop guidelines in the areas of food safety and standards, including the formulation of international standards and codes of practice on a wide range of food commodities, the encouragement to consumers to participate in decision- making on all matters related to food quality and safety, labelling and advertising, and the integration of food safety into health education programmes. 8/ Other activities in the area of consumer protection include the Consolidated List of Products Whose Consumption and/or Sale Have been Banned, Withdrawn, Severely Restricted or Not Approved by Governments, which provides information on products harmful to health and the environment 9/, the International Programme on Chemical Safety, and the London Guidelines for the Exchange of Information on Chemicals in International Trade. The Economic and Social Council has adopted a number of resolutions which mandate the United Nations to promote the implementation of the Guidelines for Consumer Protection. Pursuant to these mandates, a number of activities in the area of consumer protection have taken place, including initiatives in partnership with international consumer organizations such as Consumers International, donors, and host Governments to convene regional conferences on consumer protection. A seminar on Consumer Protection in Latin American and the Caribbean was held in Montevideo, Uruguay, in 1987, and a seminar on Consumer Protection for Asia and the Pacific was held in Bangkok, Thailand, in 1990. The objective of the seminars was to assist Governments to enact and enforce consumer protection policies and legislation. During the last decade, there has been increased awareness amongst consumers that their purchasing choices impact on the environment. Through various media campaigns sponsored by governments and NGOs, consumers are urged to consider not only the quality of goods, but also the conditions under which goods are made, and to distinguish needs from desires. The inclusion of sustainable consumption objectives in the Guidelines for Consumer Protection would reinforce recognition of the crucial role that consumers can play in protecting the global environment. While the United Nations Guidelines for Consumer Protection remain relevant for all countries, in countries where governmental interest in consumer protection is relatively recent, the Guidelines define essential issues to be dealt with, such as in the areas of health and safety, access to goods and services, and measures for redress. ECOSOC in resolution 1995/52, recognized : "that the need for assistance in the area of consumer protection, particularly in developing countries and countries with economies in transition, remains great." Many countries have not yet developed or enacted policies or measures to protect consumers. In many countries, governments have only recently become sensitized to the issues related to consumer protection, or become aware of the ideas and experiences of other countries in this area. The United Nations Guidelines for Consumer Protection can assist in the identification of priorities, particularly in light of emerging trends in a globalized and liberalized world economy. The Guidelines have also provided a useful policy framework for developed countries. In Finland, the Guidelines were used in formulating national consumer policy and drafting a consumer policy programme in 1991. 10/ 2. 1 REGIONAL CO-OPERATION IN CONSUMER PROTECTION The majority of OECD countries have created institutional and regulatory frameworks in the field of consumer policy that generally cover all of the elements of the Guidelines for Consumer Protection. However, the growth of the consumer movement was somewhat different between the United States and European countries. The growth of -consumerism■ in the United States and Canada preceded that in other OECD countries, and the consumer movement was galvanized by concern over automobile safety issues and undertaken by independent consumer organizations. The growth of the consumer movement in Europe evolved at a slower pace, although consumer interest groups were faced with similar issues as their North American counterparts. In some European countries, the consumer movement was undertaken by public or semi-public interest groups, such as trade unions. 11/ A framework on consumer protection is just beginning to emerge in many developing countries. A number of regional seminars and conferences on consumer protection have been organized to bring together people from the public and private sectors concerned with issues of consumer protection for the exchange of ideas and experiences, information dissemination, and to establish a framework for legislative and institutional development in the various regions. The Africa Conference on Consumer Protection, held in 1996 in Harare, Zimbabwe, launched the Model Law for Africa, designed to serve as a guide for African Governments in their efforts to develop appropriate policies, legislation and enforcement mechanisms to protect the African consumer. The Conference brought together African government officials, consumer leaders and experts, and members of the international community concerned with consumer protection in Africa. The Conference also stressed the need for countries of the region to enact and enforce consumer protection policies and legislation, since at the time there were still 16 countries in the region that did not have consumer organizations or bodies concerned with issues of consumer protection. The Africa meeting identified a number of areas that require special attention, including health, safety, access to goods and services, and measures for redress. It also examined areas requiring future action, such as sustainable consumption patterns, financial services and consumer representation. Issues related to the equitable distribution of services to consumers, including basic services (health, water, electricity, gas), strategies for protecting consumers■ needs and interests, and the promotion of education and public awareness to enable individuals to become critical consumers, were also discussed. 12/ In Africa, at the time of the adoption of the Guidelines in 1985, six consumer organizations in four countries had been established. Today, more than 40 African countries are host to more than 80 consumer organizations. 13/ This remarkable growth in institution building reflects the influence of the Guidelines, democratic reforms, and the increasing activity of civil society. However, while a number of Governments have recently implemented measures in this area, consumer protection legislation is still very weak in the majority of African countries and further efforts are needed to develop it. The 1997 Asia and Pacific Conference on the theme "Consumers in the Global Age" sought to give new impetus to the progress that had been achieved in promoting consumer protection since the first regional seminar on consumer protection, which was held in Bangkok in 1990. A number of resolutions were adopted by the conference, including calls for the establishment of a group to draft proposals for amending the Guidelines for Consumer Protection and for the elaboration of a model law on consumer protection for the countries of Asia and the Pacific. At the conference, an Asia and Pacific consumer protection network of government officials was established, which a number of countries have already joined. A meeting was held in 1987 in Montevideo, Uruguay, on the protection of consumers in Latin America and the Caribbean. That seminar led to a number of tangible results, including the establishment of an informal communications network among the organizations of the region dedicated to consumer protection, and the development of national and international data banks. The Government of Uruguay is performing the role of Secretariat for the communications network and is publishing a bulletin containing information on consumer affairs within the region. Furthermore, the seminar, by bringing together Government participants in the region, had a strong catalytic impact on consumer policy at the national level. Several governments approved legislation based on the Guidelines and/or established institutional structures to deal specifically with consumer issues. Today, consumer rights are legally recognized in thirteen Latin American and Caribbean nations, and within seven of these countries, they are also included in the Constitution. Central American countries generally do not have extensive laws for protecting the rights of the consumer. Nevertheless, during the last two years, four countries have created or strengthened legal norms in this area: Nicaragua, Costa Rica, El Salvador and Panama. New consumer organizations galvanized by the participation of civil society have also been established in the region, and have carried out activities such as consumer education, consumer information and guidance, research on problems affecting the consumer, and lobbying. In South America, the governments of Bolivia and Paraguay are presently negotiating legislation to protect consumer rights. Although Brazil has the region's most comprehensive legislation, one hundred proposed amendments are viewed by consumers organizations as attempts to weaken the country's consumer policy. The User and Consumer Advocacy Commission and the Latin American Parliament approved the Referential Framework Code for Consumer and User Advocacy at a meeting in Guayaquil, Ecuador in June 1997. 16/ This code provides guidelines for advancing consumer advocacy and rights in the region, including, promotion of sustainable consumption based on respect for the environment. 2.2 SUSTAINABLE CONSUMPTION During the five years that have passed since Rio, much attention has been focused on trying to understand the implications of changing consumption and production patterns for the environment and economy. The concept of sustainable consumption and production provides a framework for recognizing that economic policy can potentially contribute to, or alleviate, environmental stress. Sustainable consumption and production are inextricably linked. The emphasis on sustainable production is on the supply side of the equation, focusing on improving environmental performance in key economic sectors, such as agriculture, energy, and transport. Sustainable consumption addresses the demand side, looking at how goods and services required to meet basic needs and improve the quality of life - such as food, shelter, clothing, mobility and leisure - can be selected in ways that reduce the burden on the Earth's carrying capacity. 17/ Since the Earth Summit, work on sustainable consumption has been carried out by governments, international institutions, business groups, citizens organizations and research institutions. The greatest progress has been made on advancing the conceptual framework and promoting discussion of the issue among a wider group of stakeholders. The need for substantial improvements in resource efficiency and further efforts to reduce pollution and change in lifestyles over the coming decades is now accepted by many European governments. The issue will be the major theme of the 1998 UNDP Human Development Report. In addition, many business organizations, in particular the World Business Council for Sustainable Development, the International Chamber of Commerce Environment Committee and the US Council for International Business, have given a high priority to the issue of sustainable consumption in their work agendas. Much of the political momentum behind the sustainable production and consumption agenda at the United Nations since Rio has been generated by a few committed governments, notably Brazil, the Netherlands, Norway and The Republic of Korea. Norway, for example, has brought together researchers, practitioners and politicians at two international meetings (Oslo Symposium, 1994 and Oslo Roundtable, 1995), which resulted in a broad policy "menu" of actions for sustainable production and consumption. 18/ The Republic of Korea, Brazil and Norway also collaborated in an encounter between "North" and "South" to spell out a "common agenda" in the Brasilia Workshop in 1996. OECD governments have been carrying out a range of actions at the operational level, for instance "greening" the tax system, introducing extended producer responsibility for goods and services, improving consumer information, reforming public procurement and providing development assistance for efforts in emerging economies. 19/ A number of OECD governments, including Australia, the United Kingdom and the United States, have hosted international workshops to gain a deeper understanding of policy options. A key challenge for the future is to strengthen the links between global and local levels. International organizations such as the OECD, business organizations such as the WBCSD, and NGOs, including the International Institute for Environment and Development and Friends of the Earth, have developed work programmes on sustainable production and consumption patterns. UNEP has developed a Cleaner Production Programme, established prior to the Earth Summit, which complements the sustainable consumption action plan outlined in Agenda 21. It is apparent that without strong efforts by governments, business and civil society, the environmental degradation caused by current patterns of consumption will worsen in the years ahead. However, there is also considerable inertia against effective change within politics, markets and society, for the conventional economic growth model and its vision of prosperity has played a central role in the economic, political and psycho-social foundation of western society, and has become a basis for political consensus and stability. During the 1950s, the growth of demand for consumer products, known as the "revolution of rising expectations" 20/ was considered a benchmark of development and was cultivated and encouraged in the developing world. It is currently understood that the emulation of environmentally-damaging consumption practices of the industrialised world in the rapidly growing emerging economies can make a major contribution to future environmental stress. The International Institute for Sustainable Development in Canada, in co- operation with the Division for Sustainable Development, has developed a website which highlights a number of recent and innovative instruments being implemented in various countries to promote sustainable production and consumption. 21/ At the present time, the implementation of such instruments is mostly voluntary, with governments setting policy priorities and targets and business and industry complying with those targets within the constraints of their financial and institutional capacity. 2.3 WHY REVIEW THE UN GUIDELINES ? The United Nations Guidelines for Consumer Protection address the interests and needs of consumers world-wide and recognize two principal concerns, the imbalances that consumers face in economic terms, education levels and bargaining power, and the importance of promoting just, equitable and sustainable economic and social development. The objectives that the Guidelines seek to promote are quite wide- ranging: (i) to assist countries in achieving adequate protection for their population as consumers; (ii) to promote production and distribution patterns responsive to the needs and desires of consumers; (iii) to encourage high levels of ethical conduct by those engaged in the production and distribution of goods and services to consumers; (iv) to assist countries in curbing abusive business practices by all enterprises at the national and international levels that adversely affect consumers; (v) to facilitate the development of independent consumer groups; (vi) to further international co-operation in the field of consumer protection; and (vii) to encourage the development of market conditions that provide consumers with greater choice at lower prices. Since the Guidelines were adopted in 1985, there have been some major changes in national economies and the international situation that might be taken into account in the extension of the Guidelines. On the national level, the privatization of public enterprises and the introduction of competition into new service areas are requiring consumers to make new choices that require new information. On the international level, the increase in global trade is presenting consumers with an expanding variety of products from unfamiliar producers, making it more difficult to make informed choices. The United Nations Guidelines were not intended to be a static document. They need to be revisited in the light of changes in social, political and economic systems. Extending the United Nations Guidelines to include sustainable consumption patterns would be an important step in this direction. --------------------------------------------------------------------------- EXAMPLE: REGIONAL INTEGRATION IN LATIN AMERICA Regional economic integration in the Southern Common Market, or MERCOSUR, affects 200 million consumers within a free-trade zone encompassing Brazil, Argentina, Paraguay and Uruguay, with Chile and Bolivia as associate members. Trade among MERCOSUR countries has grown at an average of 27 percent annually, and one-fifth of the four countries■ foreign trade is now conducted with other MERCOSUR members. Consumer protection has not been an issue in the trade negotiations. Consumer groups in MERCOSUR countries are concerned about the downgrading of consumer protection standards to the lowest common denominator. The defence of standards and regulations in the member countries is one of the biggest challenges facing consumer organizations. Argentina and Brazil have established consumer protection laws, whereas Uruguay and Paraguay lack national legislation. Of the MERCOSUR associate members, Chile enacted legislation in 1997, while the drafting process in Bolivia is just beginning. (Consumers International, World Consumer, No.226) ---------------------------------------------------------------------------- III. EXTENSION OF THE GUIDELINES: KEY ISSUES Since a decade has now passed since the adoption of the Guidelines, it is now time to take stock. There can be no doubt as to the moral force and normative impact the Guidelines have had, and continue to have, around the globe in improving the quality of life of consumers in an increasingly interdependent world. It may then, now be timely for the international community to consider the need for the revision and refinement of the Guidelines, and also to use this as an opportunity to provide a stimulus for increased international cooperation in the area of consumer protection. 22/ The proposed texts included below have been submitted by Consumers International (CI) at the request of ECOSOC, and are based on extensive consultations with CI members. Experts are invited to consider the CI proposals in terms of their effectiveness in addressing the key issues and their appropriateness for incorporation into the UN Guidelines for Consumer Protection and national consumer protection policy. These proposals are meant to serve as a catalyst for reflection, debate and discussion, and to facilitate discussion in working groups during the Inter-Regional Expert Group Meeting. The proposals are not intended to be comprehensive, and additional proposals from experts can be considered. 3.1 CONSUMER EMPOWERMENT Consumers should be aware of the potential effects of the products they purchase. They must also be informed in order to become familiar with the types of products available in the marketplace. Consumer empowerment, includes not only informed choice, but remedial mechanisms as well, such as remedy and redress in case of fraud. - Consumer Education Consumer education, an on-going process, should provide consumers with information and reinforce their capacity to think critically about product choices. In recent years, there has been an increase in awareness of the link between consumption and the environment. However, that awareness can only be translated into action if consumers are given the necessary information to make informed choices relating to environmentally sound consumption patterns and lifestyles. Education and public awareness in this area should be a priority and must be placed high on the political agenda to promote sustainable development and sound consumer policy. Consumer education with respect to environmental concerns is a new field that needs to be further developed. Consumers International Proposal: Governments should educate, or support the education, of consumers on the environmental impacts of lifestyles; the options for improvement - including extending the useful life of products, even if they are out of fashion; and the benefits of more sustainable consumption. Special attention should be paid to incorporating environmental curricula at every level of the formal education system. Citizens■ organizations should be involved in these educational efforts. - Consumer Representation There is increased awareness of the importance of integrating civil society in policy-making, including consumer policy. It is important to ensure that the views of all social groups are taken into account in decisions related to consumer standards and codes, including through consultative or judicial mechanisms for public intervention. Consumers International Proposal: Promoting sustainable consumption requires governments to act in partnership with all citizens. Women have a particularly powerful role in sustainable consumption because of their central role in providing for family needs. Governments should also actively involve, and support, consumer and other citizens■ organizations engaged in the promotion of sustainable production and consumption. - Access to redress mechanisms Consumer protection policy should provide for effective public access to judicial and administrative proceedings in the case of non-compliance with laws and regulations. The existing Guidelines do not mention compensation to consumers injured by defective products explicitly, although they do address measures to enhance product safety. Information on redress mechanisms should be made available to consumers, and such mechanisms should be expeditious, fair, inexpensive and accessible. Consumers International Proposal: In order to ensure compliance with laws and regulations relating to sustainable consumption, governments should provide effective access to judicial and administrative proceedings, including redress and remedy. 3.2 SOUND INDUSTRIAL PRODUCTS AND PRACTICES The promotion of products and production processes that reduce impacts on the environment and non-renewable resources is an integral component of consumer protection. Sustainable industrial practices require that businesses -produce more from less■ and links the goals of product quality with environmental protection. - Testing Testing and public dissemination of test results, whether by government, consumer, environmental or other organizations, can help consumers choose safe, durable and environmentally sound products. They thereby encourage industry to improve products. Testing and evaluation of products can include analysis of the full life- cycle environmental impact of the product, thus allowing consumers to contribute to sustainable consumption through informed choice of products. Expanding international trade suggests that international co- operation in the testing and evaluation of products and dissemination of information can increase the benefits of such activities while reducing costs. Consumers International Proposal: Governments should encourage, develop and support environmental testing of products as well as international collaboration on joint testing, training and the development of common testing procedures. - Advertising Global spending on advertising has increased from $39 billion in 1950 to $256 billion in 1990, representing $48 per person. Advertising in developing countries, although it remains small scale by western standards, is growing fast. In Latin American countries such as Mexico and Brazil, spending on advertising is approximately $25 per capita. 23/ The role of advertising and the media is critical in sustainable consumption and consumers require greater protection from false or exaggerated claims, including environmental claims. Consumers International Proposal: Governments should take specific measures against misleading information to consumers such as the development of advertising codes and standards and the regulation and verification of environmental claims, backed by legal sanctions. - Eco-labelling To assist consumers faced with the proliferation of -green■ products, the use of labels with a logo that identifies environmentally sound products has been implemented in various countries. In the context of increasing international trade, it may be useful to implement a standardised system, international or regional in scope, for the environmental labelling of products. Approximately 30 eco-labelling schemes exist worldwide, mostly in developed countries, but also in some newly industrialised countries, including Brazil, India, Indonesia and Malaysia. The information on green labels is often based on life-cycle analyses, which track the environmental impacts of products through production, distribution, consumption and disposal. Independent certification or verification of manufacturers environmental claims is generally required for eco- labelling. It is important that non-discriminatory eco-labelling as well as non- discriminatory certification and verification schemes be developed, taking into account the institutional capacity for testing and verification. It may be unavoidable that national product standards with specific environmental requirements will be considered as barriers to trade by other countries whose products do not meet the standards. Consumers International Proposal: Governments should promote the provision of truthful information about the environmental profile and/or impact of products and services through means such as eco-labelling schemes, product information hotlines, product profiles, environmental reports by industry and information centres for consumers. They should also promote accords on internationally-recognized symbols for environmental labelling. Information to consumers on the environmental and health impact of the production and consumption of a given product should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade. Governments should cooperate on the development, promotion and independent certification of national and international voluntary standards for environmental management and auditing and for products and services, with due regard to the specific environmental, social and economic conditions in the producing countries, and to their impact on market access and the competitiveness of those products and services. - Reuse, repair, recycling and waste reduction Governments can promote reuse, repair and recycling of products, thereby reducing consumption of materials and energy. Voluntary and mandatory recycling programmes exist in many cities in developing countries and are steadily expanding. Current consumption and marketing patterns not only consume unnecessary material and energy, but also generate large quantities of waste due to disposable or short-lived products and large amounts of packaging. Landfill sites for burying this waste are becoming more difficult to find and more costly, and they may result in contamination of groundwater and soil. Incineration can result in air pollution and more concentrated toxic waste. Efforts are therefore needed to reduce the volume of waste generated and to change the nature of the waste to reduce environmental impacts. Consumers International Proposal: Governments should promote the development, and the demand, for products that have a high performance, durable, recyclable, repairable and reusable and are neither toxic or unsafe. Governments should introduce waste prevention programmes and encourage the provision of facilities for the repair and recycling of used products. - Extended product responsibility The OECD has estimated that -if present trends continue, 50% of the products that will be in use in 15 years do not yet exist.■ There is therefore an opportunity to influence the new markets that will grow around these new products and services to ensure that these products are not only new but also sustainable. Extended product responsibility is an emerging concept that uses the life-cycle approach to identify strategic opportunities for cleaner production and eco-efficiency. All those involved in the production and consumption of products, including manufacturers, distributors and users, have a role to play in minimising the negative environmental effects of products. Sharing responsibility for environmental effects can yield a more efficient use of resources, cleaner products and technologies, improved relations between companies and communities, and responsible consumer choices. - Environmentally harmful materials Products that are particularly harmful to the environment and that are not economically or socially essential can be banned or severely restricted. The United Nations, in cooperation with WHO and UNEP, publishes a "Consolidated list of products whose consumption and/or sale have been banned, withdrawn, severely restricted or not approved by governments", the fifth issue of which (ST/ESA/239) was published in 1994. It covers pharmaceutical, agricultural, industrial and consumer products considered harmful to health and the environment and identifies the countries which restrict each product and the reasons for the restriction. This publication may be useful to countries in deciding which products to ban or restrict. The 1990 Montreal Protocol to the 1985 Vienna Convention on the Protection of the Ozone Layer bans the production of chlorofluorocarbons and other ozone-depleting substances.The ban is legally binding in the developed countries from 1996, with an exception for exports to developing countries, and is expected to become effective in developing countries about 2010.Currently production is increasing in developing countries, and it appears that significant amounts are being smuggled into developed countries. Other ozone-destroying chemicals are not yet banned. Consumers International Proposal: Governments should ban or severely restrict the production and use of environmentally harmful products and substances like heavy metals and pesticides. At the same time, they should encourage the development of less damaging alternatives for such materials, including through positive incentives and financing. They should also fulfil their obligations under the Montreal Protocol for eliminating production and emissions of ozone-depleting gases. - Research and Development Governments can promote the development of environmentally sound technologies both through support for research and development in general combined with environmental protection measures, and through support for research and development specifically aimed at environmentally sound technologies. Much of the public funding for research and development related to sustainable production and consumption has been in the energy sector, but that has been declining in recent years. 3.3 CROSS-CUTTING ISSUES The issues addressed in this section are important in themselves and also serve to support the other issues considered above. - Promoting Sustainable Consumption Consumers International Proposal: Sustainable consumption means the fulfilment of basic human needs without undermining the capacity of the environment to fulfil the needs of present and future generations. Towards this end, governments should adopt, or encourage the adoption of, policies that meet the needs of all citizens, while minimising pollution and the use of resources such as fossil fuels, minerals, land and freshwater. This can be done through a mix of policies including regulations, economic and social instruments, sectoral policies such as land use, transport and housing, and the removal of subsidies that promote unsustainable patterns of consumption and production. - Indicators for sustainable consumption The development and strengthening of consumer protection guidelines for sustainable consumption require continuing efforts to monitor the sustainability of consumption and production patterns and to project future trends. To do that, governments, research institutes and other organizations must have data on consumption and production and on their environmental impacts. The United Nations, at the request of the Commission for Sustainable Development, has been developing a comprehensive set of indicators of sustainable development, including indicators of sustainable production and consumption, in cooperation with other international and national organizations. These sets of indicators are intended for use by governments in developing national efforts to monitor changing production and consumption patterns and evaluate the effectiveness of policies to promote sustainable consumption. Consumers International Proposal: Governments should introduce natural resource accounting as a way of providing a more accurate feedback on the impact of consumption and production patterns and of the policies aimed at reducing the pressures on the environment. They should also develop comparable indicators and methodologies for measuring progress towards sustainable consumption, including the efficiency, effectiveness and impacts of the measures taken. - Appropriate pricing and Economic Instruments Pricing which better reflects the environmental cost of products and services can encourage sustainable consumption. An important measure for promoting appropriate pricing is the elimination of subsidies that encourage unsustainable production and consumption . Economic instruments are already being implemented to a significant extent in developed countries. The OECD has catalogued over 200 such measures, classified as charges on emissions, charges on products, deposit refunds, tradeable permits and enforcement incentives. It is expected that economic instruments for sustainable consumption will be further extended in the future. Among developing countries, there has been little use of economic instruments with the exception of some countries in East Asia. Thailand has been studying the introduction of pollution taxes, Korea has a fairly extensive deposit refund system, Indonesia has instituted a forestry deposit fund, and Singapore is uses auctionable permits for ozone depleting substances. Pollution control agreements are in use in Indonesia to clean up 20 heavily polluted rivers. Malaysia uses tax incentives to discourage the use of unleaded fuel, encourage the use of catalytic converters, encourage the treatment and disposal of toxic and other hazardous waste and encourage the importation and use of pollution control equipment. 24/ Consumers International Proposal: Pricing products and services in a way that takes full account of their environmental cost would redirect consumption in a more sustainable direction. National authorities should endeavour to promote the internalisation of environmental costs and the use of economic instruments, taking into account that the -polluter pays■ principle and the full cost for resources principle (also known as the "user pays" principle). - Increased emphasis on services The service sector accounts for an increasing proportion of GDP in many countries, and that share is expected to increase. A shift from consumption of products to consumption of services which provide the same function may be more sustainable. Examples might include the use of public transport instead of private vehicles, or on-line information services instead of printed texts. This could have the effect of generating a more efficient use of energy and materials, and reducing the flow of materials through the production cycle, leading to lower levels of pollution and waste. Consumers International Proposal: In order to change consumption patterns, consumers require the provision of services and social infrastructure that achieve the same ends by less environmentally damaging means. The switch from paper to electronic mail, from cars to public transport or from buying goods to hiring them are prime examples. Governments should examine the potential for transforming consumption patterns through meeting needs in new ways, for example by using services instead of products, and take appropriate action. - Improving Energy Efficiency Worldwide, fossil fuels contribute about 85 per cent of world commercial energy supplies and 97 per cent of fuel used in transportation, contributing to local air pollution and global warming. Government subsidies for energy prices worldwide are approximately $200 billion per year. Most of the energy consumption today takes place in the developed countries, but most future growth is projected to occur in the developing countries. Moving towards a more sustainable world energy and transportation economy will require major changes in policies, which will yield results only over several decades because of the size and importance of the transportation sector. Currently, Governments in developed countries spend over 50 per cent of their $8 billion-a-year energy research budgets on nuclear programmes, while renewable energy sources get less than 10 per cent. The third Conference of Parties to the United Nations Framework Convention on Climate Change (UNFCC), in Kyoto, Japan, in December 1997, agreed that the developed countries would reduce CO2 and other greenhouse gas emissions by about 5% with respect to 1990 levels by 2012. Non- legally-binding targets for developed countries were set in the 1992 UNFCC, but of those countries are not expected to meet the targets. Developing countries are not required to reduce emissions, but are expected to monitor them. Reducing the threat of global warming in the long-term will require a combination of increased energy efficiency of current consumer goods and production processes, shifting to more energy efficient ways of meeting consumer needs, and shifting to non-fossil-fuel sources of energy. Consumers International Proposals: Governments should promote the conservation and efficient use of energy as well as the transition to non-fossil energy sources. They should also fulfil their commitments under the Climate Convention. Special attention must be given to restraining transportation demand through policies that, among other things, reduce the need for the displacement of people and goods, discourage the use of cars in favour of public transport and result in cleaner and more energy efficient vehicles. Measures for reducing air pollution, including from vehicles emissions, are also called for, Governments, at least from OECD countries, should cooperate in areas such as the development of agreed standards for air quality, motor vehicle emissions and fuel economy. Governments should intensify efforts to reduce the energy and material intensities of production and consumption, pollution and waste through promoting energy conservation and efficiency; the environmentally sound and sustainable use of renewable resources; increased waste recovery; the reuse, recycling of products and materials and technological dissemination, innovation and transfer... - Sustainable Agriculture Agricultural chemicals, if not carefully used, pose a variety of threats to health and the environment. Most pesticides and herbicides are toxic to humans and other species in addition to the target species. Agricultural workers are particularly threatened by such toxic materials, but the general public is also threatened by residues in food and by contamination of water supplies. A variety of techniques, such as integrated pest management, are available or under development to reduce dependence on toxic chemical pesticides and herbicides without reducing production. Continuing expansion of agricultural land into forest areas and the reliance of commercial agriculture on a small range of plant varieties are reducing biological diversity. There is a growing range of genetic engineering technologies that can make crops and livestock more productive, resistant to disease and with characteristics more attractive to consumers. There is concern, however, that these technologies pose dangers, which may not be understood, to humans and animals. Consumers International Proposal: Governments should promote sustainable agricultural practices, including the conservation of biodiversity, and introduce controls for ensuring that genetically engineered foods are safe for people and the environment and are labelled taking consumer concerns into account. - Government Procurement Governments, including local governments, can promote the development and production of environmentally sound products by establishing environmental standards for the goods they purchase. Governments can also establish recycling programmes and energy and resource saving measures in their facilities. A number of municipal governments, for example, have specified low-emission vehicles for their large public transportation fleets. Consumers International Proposal Governments and international agencies should take the lead in adopting more sustainable practices, including in their procurement policies. They should also undertake and promote research and analysis on consumer behaviour and environmental damage with the purpose of identifying ways of reducing the environmental impact of consumption and meeting basic human needs around the world. - Levels of consumption Agenda 21 recognizes the problem of "the unsustainable pattern of consumption and production, particularly in industrialized countries", and "the excessive demands and unsustainable lifestyles among the richer segments" of humanity. A shift to sustainable patterns of consumption and production will require some combination of changes in production processes, in particular through increasing material and energy efficiency, and changes in consumption patterns. The Special Session of the General Assembly in June 1997 noted that "there has been progress in material and energy efficiency, particularly with reference to non-renewable resources", but that "overall trends remain unsustainable". There is a widespread, though not universal, belief that increasing material and energy efficiency in production processes can contribute to sustainability but will not be sufficient as it is likely to be offset by increasing volumes of consumption. Changes in consumption as well as changes in production will therefore be necessary. Debates in the United Nations have generally been based on the belief that some consumption patterns are sustainable while others are not. The focus of the debate has therefore been on how to promote a shift from unsustainable to sustainable patterns, and the United Nations has not called for a reduction in consumption levels in general. There have been proposals for government measures to reduce the consumption of certain materials, for example through carbon taxes to reduce consumption of fossil fuels, but generally with the idea that production and consumption of other items, such as energy from renewable sources, would be encouraged and increased. Consumers International Proposal Measures that reduce the environmental impact of consumption will not be enough to compensate for the increase in consumption required in developing countries. Governments, especially from developed countries, should therefore introduce measures aimed at reducing consumption levels. Governments should work together on changing consumption patterns at the global level. In doing so, they must be guided by the principle of the equitable sharing among the world population of environmental resources and the environment■s capacity to absorb waste. 3.4 INTERNATIONAL CO-OPERATION Through the development, transfer and dissemination of innovative technologies and practices that permit the efficient use of resources, it may be possible to mitigate some of the harmful effects of human activity on the environment. International co-operation is essential so that all countries develop in an economically, socially and ecologically sustainable manner, and to ensure that countries do not perpetually lag behind in the adoption of innovations. There is a need to adopt specific measures for international co- operation, including exchange of information on national consumer policies and measures, joint use of testing facilities and procedures, cooperative education and training, and sharing information on harmful products. International co-operation is also necessary to ensure that consumer protection measures do not constitute undue barriers to trade. National measures to change production and consumption patterns and promote sustainability, such as environmental taxes and regulations, may affect international competitiveness and trade. International co- operation is essential to prevent countries from competing for investment and trade on the basis of weak environmental protection standards. Voluntary standards are also likely to be more effective if they are developed through consultations at the international level. Lack of development is a significant cause of environmental damage, especially on the local level, and economic differences among countries are an obstacle to international cooperation in environmental protection. International co-operation, including development assistance, technical cooperation, international agreements, and trade and investment, is an essential element in global environmental protection. A wide variety of United Nations agencies and other international and regional organizations are working on various aspects of international co- operation for sustainable development, including poverty eradication. Consumers International Proposals: Governments should cooperate in the vital task of eradicating poverty as an indispensable requirement of sustainable consumption. Developed nations should support the shift to sustainable patterns of consumption and production in the developing countries through financial assistance, "green" technologies and better access to markets. - Transfer of technology The 1992 Rio Earth Summit agreed that governments and international organizations should promote the transfer to developing countries of environmentally sound technologies. The 1997 General Assembly review of the implementation of Agenda 21 concluded, however, that "technology transfer and technology-related investment from public and private sources, which are particularly important to developing countries, have not been realized as outlined in Agenda 21". The General Assembly therefore called on the international community to promote, facilitate and finance access to and transfer of environmentally sound technologies and the corresponding know-how, to developing countries, on favorable terms, including concessional and preferential terms, taking into account the need to protect intellectual property rights. Consumers International Proposal: Developed country governments should promote the transfer of environmental technologies to developing countries. To avoid the establishment of a new technological dependence, developed countries should also support local research and development into technologies that are appropriate to the cultural and economic condition of each country. Notes 1/ "Sustainable Consumption: Changing Lifestyles", Address to the IOCU World Congress, Joke Waller-Hunter, 1994. 2/ ECOSOC, Consumer Protection, Report of the Secretary General, E/1995/70. 3/ United Nations, Guidelines for Consumer Protection, New York, 1986. 4/ United Nations, Guidelines for Consumer Protection, New York, 1986. 5/ ECOSOC, Resolution 1995/53, Consumer Protection. 6/ ECOSOC, Consumer Protection, Report of the Secretary-General, E/1997/61. 7/ These Member States include: Norway, Colombia, Ecuador, the Phillippines, Australia, the Netherlands, India, Malaysia, Japan, Germany, South Africa, United Kingdom, Costa Rica and Canada. 8/ ECOSOC, Consumer Protection, Report of the Secretary-General, E/1997/61. 9/ United Nations, Consolidated List of Products Whose Consumption and/or Sale Have Been Banned or Withdrawn, Severely Restricted or Not Approved by Governments, 1994. 10/ Africa Conference on Consumer Protection, Harare, Zimbabwe, 28 April-2 May 1996, Draft Report. 11/ OECD, "Consumer Policy During the Past Ten Years; Main Developments and Prospects: Report by the Committee on Consumer Policy, 1983. 12/ Africa Conference on Consumer Protection, Harare, Zimbabwe, 28 April-2 May 1996, Draft Report. 13/ Africa Conference on Consumer Protection, Harare, Zimbabwe, 28 April-2 May 1996, Draft Report. 14/ Consumers International, "Central America: Legal and Organizational Progress", Consumidores y Desarrollo, No. 5, 1997. 15/ Consumers International, "Legislation and Education" Consumidores y Desarrollo, No. 5 1997. 16/ Consumers International, Consumidores y Desarrollo, No. 5 1997. 17/ Nick Robins and Sarah Roberts, Unlocking Trade Opportunities: Case Studies of Export Success from Developing Countries, IIED, 1997. 18/ ECOSOC, Consumer Protection, Report of the Secretary-General, E/1997/61. 19/ "Sustainable Consumption: Changing Lifestyles", Address to the IOCU World Congress, Joke Waller-Hunter, 1994. 20/ Daniel Lerner, The Passing of Traditional Society, 1958. 21/ The website may be found at http://iisd.ca/susprod. 22/ Draft Report of the Africa Conference on Consumer Protection, Harare, Zimbabwe, 1996. 23/ Consumer Unity and Trust Society, "Sustained Advertising Promoting Unsustainable Consumption", No.2, 1996. 24/ "Sustainable Consumption: Changing Lifestyles", Address to the IOCU World Congress, Joke Waller-Hunter, 1994.
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Date last posted: 8 December 1999 15:15:30