Labels are very important, because consumers have right to know about the products they buy. When labels are transparent, controllable and straightforward, consumers can make conscious decisions about the products they choose, and producers can choose what type of product they should produce.

Eco-labels are consumer information tools providing information related to the environmental characteristics of products and thus allowing consumers to compare the environmental performance between products of the same type. Therefore, eco-labels enable consumers to choose products which have been recognized as less harmful to the environment. Eco-labels are voluntary schemes based on specific environmental criteria. They are open to all businesses and awarded in a non-discriminatory manner.

There are a lot of different labels in the world. Not all of them are important, since not all of the labelling systems are regulated strictly and different criteria of certificating are applied. The best known multi-criteria eco-labels in Europe are the Scandinavian label Nordic Swan and national labels like the German Blue Angel. These labels are voluntary and life-cycle based, and they involve certification of the product by a third party (i.e. not by the producers themselves). They meet high standards of transparency and scientific rigour in terms of setting criteria and are non-discriminatory.

The benefits of eco-labelling

• Eco-labels improve consumer awareness and behaviour regarding the environmentally optimal use of products. Eco-labelling is effective way to inform consumers about the impact of products to the environment, enable people to choose the right products and increase the consciousness of consumers. Furthermore, it decreases the use of energy, waste and product management costs.
• Eco-labelling supports economical effectiveness. It is cheaper than control and has positive impact on state and industry.
• Eco-labelling stimulates the development of market. When consumers choose eco-friendly goods, they influence supply and demand.
• Eco-labelling promotes steady development. The dynamic market of eco-friendly goods enforces to develop the environment protection. Meanwhile the consumers can constantly follow the impact of the goods on environment.
• Eco-labelling stimulates certifying. Eco-label shows that the product satisfies ecological standards.
• Eco-labelling helps constant observation. Eco-labels give opportunity to competitor and consumer to get acquainted with producer’s environmental liability and react if it becomes doubtful.