Carbon labels can aid in the fight against climate change

Responsible consumption and production along with climate action are two of the seventeen Sustainable Development Goals (SDGs) of the United Nations for promoting individual and collective actions to combat climate change. One of the challenges of reaching these goals is to reduce global carbon dioxide (CO2) emissions and other greenhouse gasses (GHG), which continue to rise. Carbon labelling is a promising alternative intervention for reducing carbon emissions, primarily through stimulating greater demand for goods and services with low or no environmental impacts. Carbon labelling as an information disclosure summarises data on the greenhouse gases (GHGs) emitted from the production, distribution and use (carbon footprints) of a good or service in a simple indicator presented at the point of purchase. The goal is to facilitate choices that can rapidly reduce GHG emissions to meet the challenges posed by escalating human-caused climate change. Carbon labelling has advantages over many other GHG mitigation initiatives, as it does not require government actions such as regulations, taxation or financial incentives, each of which faces barriers in many political systems. Carbon labels can enhance desired behaviour change towards climate friendly consumption among retail consumers by encouraging them to choose low-carbon products. Carbon labelling can also induce retailers and other actors in the supply chain (e.g., corporate buyers, transporters and producers) to provide consumers with low-carbon products, because attention to labelling data can make these organisations more aware of GHG emissions and inefficiencies associated with their products or more concerned about naming-and-shaming or reputation campaigns.

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