MARKETING - 15.12.2016

Ecolabel comes unstuck

The European Commission (EC) is considering whether to scrap its much-vaunted green Ecolabel scheme. Why might it be planning to do this and is it likely to happen?

Two decades old

The Ecolabel has been running since 1996, with more than 38,700 products and services carrying the small flower logo at the last count (September 2016). The scheme denotes compliance with strict environmental requirements including energy efficiency and the use of chemicals. A few sectors dominate, namely: flooring, paper, cleaning products and tissue paper. However, it can also be found on everything from washing powder, make-up and paints and in the service sector, such as hotels.

Strong support

A consultation in 2014 showed 95% of respondents supported the scheme. The label is useful for businesses too, giving a quick reference point to greener products and services. But no sooner had the Ecolabel celebrated its 20th birthday than reports emerged that the European Commission (EC) was thinking of scrapping it. The scheme has already been revised twice - in 2000 and 2009 - and has been going through a fitness check since 2014. Documents leaked in October 2016 suggested that this check could end in the Ecolabel being binned if it’s not proving effective.

Tissue paper

An alternative to scrapping the scheme could be the removal of certain products. Tissue paper is reportedly a candidate, even though there are 7,000 products now carrying the logo across Europe. However, it’s not yet clear which products are on the removal list or why.

In the UK around 1,400 products carry the symbol and our government seems keen to keep it going (at least for now). Italy, Austria, France and a number of other EU countries have all questioned why the EC would want the label wound up, especially as it’s working much better than previously.

Business benefit

The streamlining of the application during the review processes has made it much easier to have products and services accredited - especially for smaller firms. There are still tests that need to be done and paperwork to go through but the increased number of products with the logo show that it’s becoming much less arduous. The costs (for applying and then the annual licence) aren’t too prohibitive, and there are decent discounts available for small businesses.

Stick or twist?

The results of the fitness check have been delayed (initial findings had been expected in February 2015). Brexit has also put a spanner in the works, given that the media supporting the leave campaign were prone to picking on new environmental laws.

Tip 1. For those already involved in the scheme it’s worth sticking with it, especially if you have used the logo to attract customers or included it in marketing material. What’s more, it’s unlikely to be scrapped overnight and there will be a phasing out if the EC does decide to discontinue it.

Tip 2. If you were considering joining the Ecolabel scheme, it’s probably worth holding off for now given the review and Brexit negotiations.

The Ecolabel has become a popular environmental certification scheme and won’t disappear overnight - or without a fight. The EC has been reviewing the scheme since 2014 but can’t reach a conclusion on its future. If you’re already involved then stick with it. If not, hang fire until the review is over.

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