ECO-LABELING STANDARDS, GREEN PROCUREMENT AND THE WTO: SIGNIFICANCE FOR WORLD BANK BORROWERS

The report concludes that WTO rules generally do not prevent World Bank borrowers from using eco-labels in government procurement due to specific 'carve-outs' in major agreements. However, it highlights significant concerns from developing countries regarding the costs and technical burdens of compliance, recommending that the World Bank provide financial and capacity-building support to mitigate these barriers.

• WTO rules generally do not create significant legal barriers for World Bank borrowers to implement green procurement using eco-labels because government procurement is largely excluded from the main WTO rules for goods and services.
• The plurilateral Agreement on Government Procurement (GPA) allows members to include process and production methods (PPMs) in technical specifications, provided they do not create unnecessary obstacles to international trade.
• Developing countries express fear that eco-labeling schemes may reduce their market access and impose prohibitive costs for certification, testing, and technology acquisition.
• The most contentious issue in WTO committees regarding eco-labels is the use of non-product related process and production methods (npr PPMs), which differentiate products based on environmental impacts of production rather than final product characteristics.
• To support developing countries in transitioning to green procurement, the report recommends the World Bank expand financing for cleaner production, help defray certification costs, and sponsor workshops on standards setting.
• While many developing countries fear eco-labels, some have successfully used them to create niche markets for organic produce, natural fibers, and sustainable timber.

APA

Center for International Environmental Law (2005). ECO-LABELING STANDARDS, GREEN PROCUREMENT AND THE WTO: SIGNIFICANCE FOR WORLD BANK BORROWERS. https://www.ciel.org/wp-content/uploads/2015/03/Ecolabeling_WTO_Mar05.pdf

Chicago

Center for International Environmental Law. ECO-LABELING STANDARDS, GREEN PROCUREMENT AND THE WTO: SIGNIFICANCE FOR WORLD BANK BORROWERS. 2005. https://www.ciel.org/wp-content/uploads/2015/03/Ecolabeling_WTO_Mar05.pdf.

Wikipedia

{{cite report |author=Center for International Environmental Law |title=ECO-LABELING STANDARDS, GREEN PROCUREMENT AND THE WTO: SIGNIFICANCE FOR WORLD BANK BORROWERS |date=March 2005 |url=https://www.ciel.org/wp-content/uploads/2015/03/Ecolabeling_WTO_Mar05.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centerforinternationalenvironmentallaw2005ecolabeling, author = {{Center for International Environmental Law}}, title = {{ECO-LABELING STANDARDS, GREEN PROCUREMENT AND THE WTO: SIGNIFICANCE FOR WORLD BANK BORROWERS}}, institution = {Center for International Environmental Law}, year = {2005}, month = mar, url = {https://www.ciel.org/wp-content/uploads/2015/03/Ecolabeling_WTO_Mar05.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }