Generally, voluntary environmental labelling schemes are potentially efficient economic instruments to inform consumers about environmentally friendly products. Moreover, they tend to be less trade restrictive than other instruments. The labels intend to inform consumers about the environmental characteristics of the products or the methods used in their production, helping them identify products that have harmed or helped the environment during production. Environmental labelling schemes tend to be based on life-cycle assessment(LCA). LCA considers the environmental impact along the continuum of a product's life from raw materials acquisition to production, use and disposal. Because of such LCA based environmental labelling schemes go beyond product itself and concerns more with the process and production methods(PPMs), there could be potential conflicts with the WTO.
This thesis focus on the compatibility of Environmental-Labelling under the WTO and aims at highlighting the scope of requirements of Environmental-Labelling under the WTO rules.