Global Forum on Trade Trade and Climate Change

* The views expressed in this study are those of the author and do not necessarily reflect those of the OECD or of any of its Member governments. Executive Summary Concern over climate change has stimulated interest in estimating the total amount of greenhouse gasses (GHG) produced during the different stages in the ―life cycle‖ of goods and services — i.e. their production, processing, transportation, sale, use and disposal. The outcome of these calculations are often referred to as ―product carbon footprints‖ (PCFs), where ―carbon footprint‖ is the total amount of GHGs produced for a given activity and ―product‖ is any good or service that is marketed. PCFs are thus distinct from GHG assessments performed at the level of projects, corporations, supply chains, municipalities, nations or individuals. This paper discusses the rationale, context, coverage and characteristics of emerging voluntary standards and schemes that estimate and designate PCFs for internationally traded products. Product carbon footprinting is currently dominated by private standards and by certification schemes operated by small for-profit and not-for-profit consultancy companies and in a few cases by large retailers and manufacturers. Government support to PCF schemes and standards has been limited so far. The exceptions are the PAS 2050 standard, the development of which was supported by the UK Department for Environment, Food and Rural Affairs (Defra); Japan's pilot Carbon Footprint Scheme, launched in April 2009; and the assistance provided by the French Agence de l'Environnement et de la Maîtrise de l'Energie (ADEME) in the development of a scheme operated by the food retailer Casino. At the international level, PCF standards are being developed by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD-WRI), through its Greenhouse Gas Protocol; and by the International Office for Standardization. We estimate that globally there were only 15 to 20 PCF schemes as of April 2009. The study provides detailed information on 12 operational schemes, and some information on a further three. All of these schemes have been established within the last two years. Considering the sometimes high costs and technical challenges of PCF, it is therefore no surprise that only a small number of certified carbon-footprinted products so far have found their way onto retail-outlet shelves. While some schemes report strong interest in PCF from producers and retailers, and are expanding their clientele and product range, we could not identify any clear trends in these respects. The …