Types of Labels

Low-Carbon Seal: A seal of approval awarded to those who are the most carbon efficient within a product category. Eco-seals are easy to understand, but will not allow consumers to distinguish between sealed products. Is that candy bar more carbon efficient than this bag of chips?

Carbon Score: All labeled goods would have a score that is easily comparable across products and brands. However, carbon scores may be better suited for a measurement methodology that relies more heavily on actual company data than national averages.

Carbon Rating: A tiered approach much like the energy label in Europe. For example, a low-carbon product would score 5 stars whereas a high-carbon product would only rate 1 star. Allows comparisons between brands, but need to know what is an average product's score.

Examples of Seals:

  • EnergyStar is a voluntary labeling scheme run by the Environmental Protection Agency (EPA) and the Department of Energy (DOE). Begun in 1992, Energy Star is a seal of approval label that products can carry when a manufacturer meets the criteria set by the EPA and DOE. Currently, there are 50 product categories that can qualify for a label. Evaluations based on consumer familiarity and product purchases are generally favorable. A Consortium for Energy Efficiency report in 2006 found that 78% of consumers recognized the label in high publicity areas, while there was 69% recognition in low publicity areas. They also found that 31% of consumers knowingly purchased an Energy Star product and that understanding of the label was high. The EPA estimates that 300 million products were purchased in 2006 for a program total of 2 billion products over 14 years.
  • Founded in 1989, Green Seal is a classic ISO Type I environmental label. Using a life-cycle approach, they evaluate products from material extraction to recycling and disposal. Rigorous testing and evaluation, including site visits, are necessary to obtain certification. Green Seal’s market power is derived more from partnerships with large institutional purchasers - including government agencies, universities, and the architectural building and lodging industries - than from contact with the every day consumer.

Examples of Scores:

  • The Carbon Trust’s carbon label is at the forefront of consumer-based carbon management. Released on three products in early 2007, the label relied on an intensive product-based assessment methodology that addressed the entire life cycle of products. Currently, the Carbon Trust is working on cementing an international standard through a consultative process. Nine additional pilot partners have joined in and the results of these efforts will likely be unveiled in 2008.
  • Nutrition information on products was voluntary until 1994, when almost all foods were required to carry information. Overseen by the Food and Drug Administration, the nutrition label allows consumers to understand just how many calories or what vitamins are in their food products. The addition of trans-fat to the nutrition label is also illustrative of the power of labeling. The FDA did not ban food manufacturers from using trans fat in packaged foods, but did require that food manufacturers, processors, and distributors label the amount on the Nutrition Facts panel. As a result, Americans have seen a marked decline in trans fat content.

Examples of Tiered Labels:

  • In 1990, Congress passed the Organic Foods Production Act, which required the USDA to develop national standards for organic agricultural products. After 10 years of development, three types of organic labels began being issued: 100 percent organic, organic, and made with organic ingredients. Products meeting the requirements for 100 percent organic and organic could display the USDA Organic seal. A 2005 Consumers Union survey found that 46% of consumers buy organic food products, the highest number ever.
  • The European Union’s Energy Label has had demonstrated success in reducing the use of energy inefficient appliances, especially when compared the United States’ EnergyGuide. The European Union Energy Label is designed to tell consumers the exact energy consumption of an appliance, but it is the rating system which allows customers to easily compare different products. The label must be shown on all fridges, freezers, washing machines, tumble dryers, dishwashers, electric ovens and lightbulb packaging.
  • Since 1998, California Air Resources Board (CARB) has mandated that a smog index label be published on all new passenger cars and light-duty trucks in order to inform consumers about emission levels. In 2005, a new law revamped the label. Confusing and underused, the label has been changed in both appearance and substance. Under the new system, there is one score for smog-forming emissions and one for carbon-dioxide. Both will be have a simple score system from 1 to 10, with 10 being the cleanest. The new Smog Scores will correspond to California emissions classifications. For instance, a ULEV vehicle will receive a 5, PZEVs will be 9, and ZEVs will get a 10.