Standards, Labelling and Certification
Summary
The paper analyzes two types of standards used to mitigate climate change: product-based energy performance standards and labels, and standards based on processes and production methods (PPMs). It argues that energy performance standards are highly cost-effective and should be supported by trade regimes, while PPM-based measures, though more controversial in trade law, can be justified under GATT general exceptions if applied fairly and transparently. The authors emphasize the need for international harmonization of testing procedures and increased technical and financial assistance for developing country exporters to meet these standards.
Key insights
- Energy performance standards and labels are highly effective tools for reducing greenhouse gas emissions and energy use, often providing negative overall costs from a life-cycle perspective. For example, the transition to compact fluorescent lighting in several countries is projected to reduce more GHG emissions than all current Clean Development Mechanism (CDM) projects combined.
- Within OECD countries, energy performance standards and labels are credited with reducing total energy bills in broad end-user sectors, such as the residential sector, by 10 to 20 per cent. In specific cases, such as refrigerators in the United States, savings have reached up to 70 per cent.
- There is a significant opportunity to facilitate trade by harmonizing international measurement, testing, certification, and accreditation procedures for energy efficiency, particularly for products with climate-invariant energy usage like televisions and personal computers.
- PPM-based standards are increasingly used to address carbon leakage and competitiveness concerns, but they are controversial because they are often imposed by Northern importers on Southern exports and may be used as 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, including transparency, procedural fairness, and evidence of cooperative efforts rather than 'rigid and unbending' requirements.
- Developing country exporters face significant barriers due to a lack of comprehensive information on applicable standards and the financial/technical costs of adapting production. The authors argue that WTO notification processes are currently unsatisfactory and that developed countries should provide assistance as per WTO and UNFCCC obligations.
Cite the original document
- APA
- Waide, P., & Bernasconi-Osterwalder, N. (2008). Standards, Labelling and Certification. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/cph_trade_climate_standards.pdf
- Chicago
- Waide, Paul, and Nathalie Bernasconi-Osterwalder. Standards, Labelling and Certification. International Institute for Sustainable Development, 2008. https://www.iisd.org/system/files/publications/cph_trade_climate_standards.pdf.
- Wikipedia
- {{cite report |last1=Waide |first1=Paul |last2=Bernasconi-Osterwalder |first2=Nathalie |title=Standards, Labelling and Certification |publisher=International Institute for Sustainable Development |date=August 2008 |url=https://www.iisd.org/system/files/publications/cph_trade_climate_standards.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 = {International Institute for Sustainable Development}, year = {2008}, month = aug, url = {https://www.iisd.org/system/files/publications/cph_trade_climate_standards.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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