What is a carbon footprint label?

 A carbon footprint label is a certificate (see Figure 1-1. Carbon Footprint Label) that shows the total amount of greenhouse gases generated by a product or service from raw material procurement, production, transportation, use to final disposal. This label aims to provide transparent information on carbon emissions, allowing consumers to consider the environmental impact of products when making purchasing decisions. Carbon footprint labeling not only helps consumers make greener choices but also promotes companies to implement more effective carbon reduction measures in their supply chains. 

Product carbon footprint labels refer to labels that quantify and label the total greenhouse gas emissions generated by a product at its lifecycle stages, from raw material procurement, manufacturing, transportation, use, to disposal. This labeling helps consumers understand the environmental impact of purchasing and using products, leading to more environmentally friendly choices. 

Get the benefits of carbon footprint labeling for your business's products 

1.Enhanced Brand Image: In the growing environmental awareness, demonstrating a company's commitment to environmental responsibility can significantly enhance brand image and market competitiveness.

2. Increased Market Opportunities: Many governments and businesses prioritize products with carbon footprint labels when purchasing, which provides opportunities for products to tap into new markets and sales channels. 

3.Foster Product Innovation: To reduce their carbon footprint and secure labeling, businesses may need to find new sources of raw materials, improve production processes, or adopt more efficient logistics options to inspire innovation.

4. Improved Operational Efficiency: The process of analyzing and reducing the carbon footprint of products can help businesses identify and implement cost-saving measures, such as energy efficiency improvements and waste reduction. 

5.Enhanced Consumer Trust: Providing accurate carbon footprint information can enhance consumer trust in brands, especially for those seeking sustainable and eco-friendly products. 

6.Compliance with Regulatory Requirements: As global actions against climate change intensify, more and more regions are requiring products to provide carbon emission information. Products with carbon footprint labels will be more likely to comply with these new regulations. 

What is the application process for carbon footprint labels? 

The application process for carbon footprint labels involves multiple stages, from initial carbon footprint calculation to final label acquisition, each step is to ensure accurate and transparent carbon emission information for products. The following is the general process for applying for a carbon footprint label, review criteria, time required, and maintenance after obtaining the label, with a special mention of the importance of Product Category Rules (PCR). 

1.Application process preparation stage:

• Account registration: Register an account on the carbon footprint label information network and create an inventory form, basic data sheet, etc.

•  Determine Product Scope: Clearly define the product range for which carbon footprint assessment will be conducted. 

• Understanding Product Category Rules (PCRs) :PCRs is a standardized document that guides how to calculate the carbon footprint of a specific product category. The PCR of each product category may be different, and it is necessary to select or develop the applicable PCR according to the product characteristics and obtain the applicable PCR through application (please refer to the follow-up). 

2.Calculate Carbon Footprint: 

• Based on the selected PCR, collect data on relevant stages of the product's life cycle, including raw material procurement, manufacturing, transportation, use, and disposal.

3. Report preparation: 

• Compile carbon footprint calculation results into an inventory report for carbon footprint labeling, quantify carbon data, and ensure that the report complies with relevant product rule PCR standards. 

4.Third-Party Verification: 

• Submit carbon footprint reports to certified third-party organizations to verify quantitative carbon emission data to verify the accuracy of calculations and report completeness. 

5.Obtain Carbon Footprint Labels: 

• After completing the third-party audit, submit a carbon footprint label application to the relevant environmental protection or standardization agency (Carbon Footprint Label Information Network Registration). 

• Once the report passes review, the product receives a carbon footprint label that can showcase its carbon footprint performance in the market. 

6.Review Criteria: 

• The review process is primarily based on product PCR and international standards (such as ISO 14067), ensuring transparency in carbon footprint calculation methodologies, data quality, and reporting. 

The time or duration of acquisition ranges 

1.from the start of preparation to obtaining carbon footprint labels, depending on product complexity, data collection, and review processes. Generally, this process can take anywhere from a few months to a year. 

• Maintenance Matters After Obtaining the Label Validity Period: 

• Carbon footprint labels usually have an expiration date, such as three or five years, and need to be renewed regularly. After the expiration of the period, it needs to be re-evaluated and applied.

•  Continuous Improvement: Businesses should continuously look for opportunities to reduce their product carbon footprint and update their carbon footprint information when necessary.

•  Monitoring and Reporting: Regularly monitor and report changes in the product's carbon footprint based on PCR and labeling requirements.

 Product Category Rules (PCR)

•  PCR is at the heart of carbon footprint assessment, providing a methodological framework for ensuring consistency and comparability in carbon footprint calculations across different products. Selecting or developing a suitable PCR is a critical step in the process of applying for a carbon footprint label. 

What is the process of formulating product category rules (PCR)? 

Key Steps in the Product Category Rule (PCR) Development Process:

 Product Category Rule (PCR) Development Process: 

1.Initial Phase: 

• Confirm the applicability of existing Product Category Rule documents. 

• Formulate the scope of application of the product and fill in the basic information form of the product category rule document, and submit a case application to the product carbon footprint information website. 

• The working group will confirm whether a new PCR is required, and if so, the Ministry of Environment will give a document registration number. 

2.Preparation stage:

•  Draft product category rule document (1) version. 

• After the basic information sheet is reviewed and approved by the Ministry of Environment, upload the draft (first version) to the system.

•  It is announced on the Internet for more than 14 days for review by interested parties. 

3.Consultation stage: 

• According to the content of the draft (1) version, relevant groups, targets, and experts and scholars of more than three people are invited to hold a research meeting.

•  After considering the opinions of all parties, the draft (2) version will be developed, and the online notice will be made before the working group meeting (at least one week).

4. Completion stage: 

• Submit to the working group for review and attend the meeting as an observer.

•  The document is reviewed and approved by the Ministry of Environment and announced on the online platform. 

This process ensures that the PCR development process is transparent and takes into account the input of all stakeholders, thus providing a standardized guide for determining the carbon footprint calculation methodology for specific product categories. 

What is a carbon reduction label (carbon footprint reduction label)? What are the benefits for enterprises to compete in the market? 

• Reduction labels 

Reduction labels are labels that indicate the successful reduction of carbon emissions by a product or organization within a specific period of time (see Figure 2-1. Carbon Footprint Reduction Label Label). These labels are often used to showcase specific achievements in a company's commitment to sustainable development and carbon reduction, which has a significant effect on enhancing corporate image and consumer trust.

 Benchmarks for comparing product carbon footprint reduction labels 

1.Comparator: Product carbon footprint reduction labels are evaluated based on the comparison of the carbon footprint values of the same product from the same company at different points in time. This means that the focus of the evaluation is on the changes in the product's carbon emissions before and after the implementation of specific carbon reduction measures. 

2.Importance of Self-Comparison: By comparing the current carbon footprint of a product to that of the baseline year, businesses can quantify the effectiveness of their carbon reduction efforts. This self-comparison helps ensure that the implementation of carbon reduction measures is based on reliable data and specific effectiveness evaluations. 

Meeting the Low-Carbon Reduction Transformation Strategy 

1.Product Carbon Footprint Reduction Label is an important environmental certification that not only encourages companies to take substantial carbon reduction actions but also ensures that these actions can have a positive impact on the environment through specific carbon reduction performance requirements. 

2.For companies with reduction plans or strategies, a deep understanding of these requirements and standards is crucial for product design and implementation of effective carbon reduction strategies. 

Take high-speed rail as an example: 

In order to extend the validity period of the carbon footprint label, in 2017, it re-applied for carbon footprint inventory and verification operations, and the carbon footprint content was 34gCO2e equivalent per person/kilometer. 

The carbon reduction label involves two comparative scenarios: "baseline application" and "commitment achievement" 

The process of applying for a carbon label involves two main stages: the "Baseline Application" and the "Commitment Achievement" application. This process aims to encourage and certify the efforts of businesses or organizations in reducing carbon emissions. Here are the detailed steps of the carbon reduction label application process: 

I. Baseline Application Stage 

1.Determine the baseline year: 

Select a specific year as a reference point for carbon reduction efforts. 

2.Calculate Baseline Carbon Footprint: 

Calculate the carbon footprint of an organization or product based on the data from the baseline year. 

3.Submit Baseline Application: 

Submit a baseline carbon footprint report and other necessary documents to the relevant agency.

4. Baseline Application Review: 

A baseline carbon footprint report submitted by a third party or certification body. 

5.Baseline Certification: 

Once the Baseline application is reviewed, it will receive Baseline Certification, which is a prerequisite for proceeding to the next stage of application. 

II.Commit to achieving the carbon reduction targets 

1.set at the application stage: 

 Set specific carbon reduction targets and plans based on the baseline carbon footprint. 

2.Implement carbon reduction measures: 

Implement corresponding carbon reduction measures according to the carbon reduction plan. 

3.Calculate Carbon Reduction Results: 

After reaching the predetermined target year, calculate and confirm the carbon reduction results.

4. Submit an application for commitment achievement: 

Submit carbon reduction achievement reports and other supporting documents to relevant organizations.

5. Commitment to Achieve Audit: 

Carbon reduction results submitted by a third party or certification body reviewed. 

6.Obtain a carbon reduction label:

 Once the commitment is met and the application is approved, it will receive a carbon reduction label as a certification of carbon reduction achievements. 

This process not only requires organizations to have clear carbon reduction goals and plans but also needs to achieve these goals through practical actions and demonstrate their carbon reduction results through third-party audits. The acquisition of the Carbon Reduction Label is a recognition of the organization's efforts in sustainability and environmental protection.

What are the benefits of reduction labels? 

A carbon footprint reduction label is an environmental identification used to demonstrate that a specific product, service, or activity has successfully achieved a substantial reduction in greenhouse gas emissions over a certain period. This label not only reflects the company's commitment to sustainable development and environmental protection but is also part of the ESG Sustainability Report (ESG) strategy. Carbon footprint reduction labels have a multifaceted positive impact on improving corporate market competitiveness: 

1. Enhancing Brand Image and Credibility

 In today's society, consumers and investors are increasingly concerned about the environmental impact of companies. Businesses with carbon footprint reduction labels can demonstrate their active participation in carbon reduction and sustainability efforts to the market, thereby enhancing their brand image and credibility. This positive image enhancement helps attract consumers and investors who value environmental protection, thereby expanding market share and attracting more capital investment. 

2. Enhancing Consumer Trust 

Carbon footprint reduction labels provide a quantitative way to showcase a company's carbon reduction efforts, and this transparency helps build consumer trust. When consumers believe that a business is actively reducing its environmental impact, they are more likely to purchase the company's products or services, which directly contributes to sales growth. 

3. Improved Market Competitiveness

 With the increasing global focus on sustainable development and environmental protection, carbon footprint reduction labels have become an important factor for businesses to stand out in the market. This label not only helps companies establish environmental leadership in their industry, but also provides an advantage in bidding and supply chain management, as more and more large enterprises and government agencies consider their environmental performance when selecting suppliers. 

4. Promote internal management improvements 

To obtain carbon footprint reduction labels, companies need to monitor and manage their carbon emissions in detail. This process not only helps identify carbon reduction opportunities but also promotes efficient use of energy and resources, thereby reducing operational costs. In the long run, this improvement in internal management will bring economic benefits to the business as well as environmental benefits. 

5. Meeting Regulatory Requirements and Market Trends 

As global responses to climate change become increasingly stringent, carbon footprint reduction labels help companies adapt to these changes in advance, reducing potential legal and financial risks in the future. Additionally, this labeling enables businesses to align with market trends, keeping their products and services relevant and engaging. 

• Chart analysis method of reduction labels (recommended analysis and expression) 

Figure 1: Analysis of the impact of carbon footprint reduction labels on enterprises 

• X-axis: time (years) Y-axis: degree of impact (high/medium/low) 

• curve 1: brand image and reputation improvement 

• curve 2: consumer trust increase 

• curve 3: market competitiveness improvement 

• curve 4: internal management improvement 

• curve 5: regulatory adaptation and market trend compliance 

Carbon Footprint Label & Carbon Reduction Label Differentiation Notes 

Carbon Footprint Label 

• Definition: Shows the total greenhouse gas emissions generated by a product over its life cycle, from raw material collection, production, transportation, use, to final disposal. 

• Purpose: To help consumers understand the environmental impact of purchasing and using specific products, leading to more environmentally friendly choices.

 Reduction label 

• definition: Demonstrates that the product or service has successfully achieved carbon emission reduction within a certain period. 

• Purpose: Showcase the company's efforts and achievements in reducing carbon emissions, enhancing brand image and market competitiveness. 

What are the steps in the application process for carbon footprint reduction labels? 

• Overview of the Carbon Footprint Reduction Label Application Process 

The application process for carbon footprint reduction labels is a complex process involving multiple stages, designed to ensure that a company's carbon reduction efforts are properly evaluated and meet specific criteria. Here are the main steps in the process: 

1. Initial Assessment 

• Purpose: Determine the company's baseline carbon footprint and understand its primary sources of carbon emissions. 

• Activities: Gather preliminary data, including energy use, raw material procurement, product manufacturing, transportation, etc. 

2. Carbon Footprint Calculation 

• Purpose: Accurately calculate the company's current carbon footprint.

•  Activity: Detailed calculations using internationally recognized carbon footprint calculation tools and methodologies. 

3. Carbon Reduction Targeting:

• Purpose: Set specific and quantifiable carbon reduction targets.

•  Activities: Set short-term and long-term carbon reduction targets based on preliminary assessments and carbon footprint calculations. 

4. Planning and implementation and carbon reduction measures: 

• Purpose: Plan and implement effective carbon reduction measures to achieve carbon reduction goals. 

• Activities: Develop carbon reduction plans, including energy efficiency improvement, renewable energy use, transportation optimization, etc. 

5. Monitoring and Reporting 

• Purpose: Monitor the implementation effect of carbon reduction measures and report on them.

•  Activities: Regularly collect carbon emission data, evaluate carbon reduction effectiveness, and prepare carbon reduction reports. 

6. Third-Party Verification 

• Purposes: Ensuring the accuracy and reliability of carbon footprint reduction reports. 

• Activity: Select an accredited third-party organization for independent verification of carbon footprint reduction. 

7. Application and Obtaining Label 

• Purpose: Officially apply for carbon footprint reduction labels and obtain certification. 

• Activity: Submit all necessary documents, including carbon reduction reports and third-party verification results, awaiting review and approval. 

• Charts and Analysis Suggestions 

1. The Gantt chart represents

•  the X-axis: the timeline, showing the time planning of the entire application process.

•  Y-axis: Lists the main activities for each of the above steps. 

• Bar: The start and end times of each activity, showing the time allocation and overlap of the entire process. 

2. KPI setting table

•  indicators: Set key performance indicators (KPIs) for each stage, such as the accuracy of carbon footprint calculations, the implementation progress of carbon reduction measures, and the success rate of third-party verification. 

• Target value: Set specific target values for each KPI. 

• Actual Values: Records the actual achievement of each KPI during the implementation process.

 3. Flowchart 

• Graphical Representation: Use flowchart form to show the logical sequence and interrelationships of the above steps, including decision points, activity stages, and possible loops. 

• These charts and tables can help businesses and stakeholders better understand the complexity and timeline of carbon footprint reduction label applications, while providing a clear visual reference to support the development and implementation of plans. 

Clarification of the concept of carbon label & carbon reduction (quantity) label 

Carbon Labeling FAQs 

1.What is a carbon label? 

• A carbon label is a label that shows the total greenhouse gas emissions generated by a product over its life cycle, including raw material procurement, production, transportation, use, and disposal. The aim is to allow consumers to consider their environmental impact when purchasing products.

2. How is carbon label calculated? 

• The calculation of carbon labels is typically based on life cycle assessment (LCA) methods, which involve assessing the greenhouse gas emissions generated by products throughout the entire process, from raw material collection, production, transportation, use, to disposal. 

3.How to get carbon label certification? 

• Obtaining carbon label certification typically requires evaluation and verification by third-party organizations. This includes submitting a life cycle assessment report for the product and demonstrating compliance with relevant standards and requirements. 

Reduction Labeling FAQs 

1.What is a reduction label? 

• Reduction labels refer to labels that demonstrate that a product, service, or organization has successfully achieved carbon emission reductions within a certain period. These labels are designed to recognize and encourage carbon reduction efforts. 

2.How do you calculate reduced carbon emissions? 

• The carbon emissions reduced are usually calculated by comparing the carbon emissions in the baseline year to the carbon emissions in the target year. This requires reliable data collection and ensuring consistency in calculation methods. 

3.What are the benefits of reduction labels?

•  Obtaining reduction labels can help businesses enhance their brand image, increase market competitiveness, and attract more consumers who are concerned about environmental sustainability. Additionally, it helps businesses identify and implement more effective carbon reduction measures.