Standards, Labelling and Certification

This research paper examines the role of product standards, energy labelling, and processes and production methods (PPMs) in addressing climate change and their interactions with international trade law and the World Trade Organization (WTO).

• Product energy performance standards and labels are effective tools for correcting market failures, such as principal agent problems and information gaps, which prevent consumers from choosing energy-efficient products. These instruments have significant potential for GHG reduction; for example, the mandatory transition to compact fluorescent lighting in several countries is projected to reduce more GHG emissions than all current Clean Development Mechanism (CDM) projects combined.
• Energy efficiency standards and labels within OECD countries are estimated to have reduced total energy bills in broad end-user sectors, such as the residential sector, by 10 to 20 per cent. These measures are often highly cost-effective, with life-cycle costs for products falling and GHG abatement costs frequently being negative for society and consumers.
• There is a significant opportunity to facilitate trade and environmental goals by harmonizing international procedures for measurement, testing, certification, and accreditation. While some products (like refrigerators) require climate-specific testing, others (like televisions) have little technical justification for national differences in test procedures.
• Standards based on processes and production methods (PPMs) are increasingly used to address climate change and carbon leakage, as the carbon footprint of a product depends on how it is produced. These measures are often controversial in the WTO because they are typically applied by Northern importers against Southern exports and may be viewed 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 justified under GATT's general exceptions. These conditions include transparency, procedural fairness, and evidence of cooperative efforts and flexibility rather than the imposition of a 'rigid and unbending' standard.
• Developing country exporters face significant obstacles in complying with climate-related standards due to a lack of comprehensive information and insufficient WTO notification processes. The authors argue that developed countries should provide the necessary financial and technical assistance to these exporters as required under the WTO and UNFCCC.

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} }