Environmental policy : from regulation to economic instruments: international legal aspects of eco-labels

It has widely been realised in recent years that regulatory measures for the protection of the environment need to be complemented by economic instruments designed to induce market forces to adopt more environmentally-friendly practices and environmental labelling or eco-labelling is of such instruments. Eco-labelling a market-based instrument - is receiving increased attention as an exciting and innovative environmental protection instrument in national environmental policy in many mainly developed and certain developing countries around the globe.
This rise of eco-labelling has created some concern, especially among developing countries, that eco-labelling may become yet another device for imposing the environmental standards of the developed world on the developing countries and pose a danger to the export of certain goods from developing countries to the developed countries. Although voluntary eco-labelling programmes are not presently likely to pose any serious trade implications, mandatory ones may have serious implications for international trade, based on the GATT system. Therefore, there is a need for an international agreement to harmonise the eco-labelling programmes of different countries and to effectively use this instrument for the protection of the environment.