Friday, January 21, 2011

Will new eco-labels increase consumer desire for renewables?

Two new eco-labels came to my attention this week and have me thinking. Could they help drive consumer demand for renewables? (an issue I recently blogged about).

The first is WindMade, the new trustmark launched by Vestas. The concept is fairly straightforward: products that are produced using at least 25 percent wind energy and 25 percent from some other renewable energy source would qualify for the trustmark. The details were laid out in an excellent article for the February issue of Fast Company Magazine.

The second is BioPreferred, a new label from the United States Department of Agriculture that aims to increase the purchase and use of renewable biobased products. As with Windmade the 50 percent threshold comes into play; to qualify as BioPreferred, a product must be at least 51 percent biobased. The label launch was assisted by the green communications pioneers at J. Ottman Consulting as outlined in a blog post.

What do you think? Will companies desire these eco-labels enough to pay extra for renewable energy and bio-based products? Will consumers push companies to use more renewable energy and material in their products?

There is certainly no shortage of eco-labels and far more have failed than succeeded. A recent one from CBS has shown some of the pitfalls that can ensnare the efforts. In some way or another, nearly all of them want to emulate the success of ENERGY STAR.

I'm wondering why WindMade chose to focus only on wind and not broader renewable energy? It seems like that could have broadened the adoption and helped them reach their goal of 1,000 companies signed up by next year. And don't get me started on the blue swirl logo. But, the key difference between WindMade and ENERGY STAR is that the latter typically saves the consumer money while the former will typically accompany something that costs the consumer more. When I shell out an extra $35 for an ENERGY STAR dishwasher (which I recently did), I can do so knowing that I will make my money back in less than two years on the energy savings. WindMade applies to the way that the product was produced, not what it will do once it's in my hands.

Depending on the product, BioPreferred could offer more tangible benefits as consumers are more frequently looking for products with ingredients that are bio-based rather than petroleum-based. However, the new label is not without its critics, who say that 51 percent bio-based doesn't go far enough.

Your thoughts would be appreciated. This the subject of a column I'm writing for O'Dwyer's this weekend so comment soon!

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