Latin America launches regional eco-labeling program to promote sustainable trade

26 Jul 2024 --- Regulatory, standardization and accreditation institutions from Latin America and the Caribbean have legally formed the Environmental Alliance of America to develop a new regional eco-labeling program. The Alliance targets more consistent eco-labelling standards among different nations. 

The initiative — backed by the UN Environment Programme (UNEP) through funding from Germany — seeks to drive sustainable trade and promote better-informed consumer choices in a market that represents over 450 million people.

“Seventy two percent of consumers want more information about companies’ efforts to improve their products environmentally. On the other hand, in the Americas, there are 209 voluntary eco-labeling standards, which confuses consumers,” a UNEP spokesperson tells Food Ingredients First.

“This initiative is to ensure that the environmental performance of a product is transparent and verified by third parties along the lifecycle of the product, with ambitious criteria for climate, biodiversity and pollution.”

The legal constitution follows a 2023 ministerial decision from the Forum of Ministers of Environment of Latin America and the Caribbean that emphasized the region’s commitment to developing “a regional sustainable market and promoting sustainable consumption and production patterns,” which positions regional initiatives like the Environmental Alliance of America more prominently.

Sheila Aggarwal-Khan, director of the Industry and Economy Division at UNEP, says: “This initiative is crucial for connecting with producers and consumers about the environmental impact of the products they buy through clear and reliable information. Our collective effort to tackle the triple planetary crisis of climate change, biodiversity loss and pollution heavily depends on changing production practices and consumer behaviors.”

“The Alliance addresses a crucial gap, empowering consumers, businesses, and public procurement actors to make better-informed decisions across high-impact product categories, ranging from food to air conditioners and plastic products.”

The eco-label practice will enable consumers to make well-informed purchasing decisions.Impact on consumers and businesses
The Alliance includes current founding members from Costa Rica, Ecuador and Mexico, as well as interested institutions from Colombia, Brazil, Paraguay, Panama, Uruguay, the Dominican Republic, El Salvador and Honduras.

Government representatives from Colombia, Ecuador and Costa Rica highlight that under the Alliance, each product must meet specific standards to be eligible for an eco-label. This will ensure that buyers receive credible information about how the product was manufactured.

The UNEP spokesperson tells Food Ingredients First that while the Alliance’s formation is important, its ecolabeling program is not yet operational.

“The Alliance will be working in the coming year to define criteria for products, and working groups within the initiative will develop these and include public consultation and industry engagement.”

The eco-label practice will enable consumers to make well-informed purchasing decisions, which could bring changes in the production process and the quality of products.

For F&B businesses, this could reduce long-term operational costs and commercial risks while contributing to the stabilization of local economies and the creation of jobs.

A “harmonized” approach to labeling
Juan Bello, UNEP’s Regional Director and Representative for Latin America and the Caribbean, says: “By providing a harmonized approach to eco-labeling, countries within the region are creating a powerful tool to align actions across borders, facilitating the trade of sustainable products and promoting the region’s economic integration.”

Germany has provided funding to the program through the EcoAdvance project.

Dr. Ulf D. Jaeckel, head of division at the German federal ministry and co-lead of the Consumer Information Programme of the 10YFP, says: “We hope that the regional eco-label will be recognized for its credibility among consumers and its ability to set ambitious standards for products and services.”

By Anvisha Manral