Standards, Labelling and Certification

This research paper examines the role of product energy performance standards and processes and production methods (PPMs) in mitigating climate change and their interaction with international trade law. It argues that while energy efficiency standards are highly cost-effective and should be supported by trade regimes, PPM-based measures are more legally complex and controversial, particularly regarding their impact on developing country exporters and their consistency with WTO rules.

• Energy performance standards and labels are highly effective tools for reducing energy use and greenhouse gas emissions. In OECD countries, these schemes are credited with reducing total energy bills in broad end-user sectors, such as the residential sector, by between 10 and 20 per cent. For specific products, the savings can be even higher, reaching up to 70 per cent for refrigerators in the United States.
• The transition to energy-efficient lighting represents a massive potential for GHG abatement. Attaining a lowest life-cycle cost (LLCC) scenario for global lighting from 2008 to 2030 could avoid 16.6 billion tonnes of carbon dioxide emissions and save end-users US$1.6 trillion. The projected savings from phasing out inefficient incandescent lighting alone are comparable to all savings in the Clean Development Mechanism (CDM) pipeline to 2012.
• Product energy standards and labels are the primary cause of national notifications to the WTO under the Agreement on Technical Barriers to Trade (TBT Agreement). The authors argue that trade regimes should not treat these as unnecessary non-tariff barriers because the value of the energy savings they foster generally exceeds the costs imposed on industry and trade.
• PPM-based standards, which regulate how a product is made rather than its final characteristics, are used to address carbon leakage and competitiveness. These measures are controversial because they are often imposed by Northern importers on Southern exports, potentially creating financial burdens for smaller producers in developing countries and raising concerns about disguised protectionism.
• WTO case law, specifically the U.S.–Shrimp/Turtle dispute, indicates that PPM-based measures are not prohibited per se but must meet specific conditions to be legal. These include avoiding 'rigid and unbending' standards, engaging in cooperative efforts and flexibility, and ensuring a transparent and predictable certification process.
• There are significant legal uncertainties under the GATT regarding whether products can be considered 'unlike' based on their production method (e.g., high-GHG steel versus low-GHG steel). While the EC–Asbestos case suggested that health risks may be pertinent in examining 'likeness,' it did not explicitly affirm that PPMs are relevant to the definition of like products.
• Developing country exporters face significant obstacles due to a lack of comprehensive information on applicable standards and insufficient WTO notification processes. The authors recommend that developed countries provide financial and technical assistance to help these exporters comply with climate-related standards, as per obligations under the WTO and UNFCCC.

APA

Waide, P., & Bernasconi-Osterwalder, N. (2008). Standards, Labelling and Certification. Center for International Environmental Law. https://www.ciel.org/wp-content/uploads/2015/03/cph_trade_climate_standards_Aug08.pdf

Chicago

Waide, Paul, and Nathalie Bernasconi-Osterwalder. Standards, Labelling and Certification. Center for International Environmental Law, 2008. https://www.ciel.org/wp-content/uploads/2015/03/cph_trade_climate_standards_Aug08.pdf.

Wikipedia

{{cite report |last1=Waide |first1=Paul |last2=Bernasconi-Osterwalder |first2=Nathalie |title=Standards, Labelling and Certification |publisher=Center for International Environmental Law |date=August 2008 |url=https://www.ciel.org/wp-content/uploads/2015/03/cph_trade_climate_standards_Aug08.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{waide2008standards, author = {Waide, Paul and Bernasconi-Osterwalder, Nathalie}, title = {{Standards, Labelling and Certification}}, institution = {Center for International Environmental Law}, year = {2008}, month = aug, url = {https://www.ciel.org/wp-content/uploads/2015/03/cph_trade_climate_standards_Aug08.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }