Suparna Karmakar Research Adviser, CUTS International E-mail: citee@cuts

1. Study Of Environmental Standards And Their Trade Impacts – The Case Of IndiaProject Overview20 May, 2011 Suparna Karmakar Research Adviser, CUTS International E-mail: citee@cuts.org

2. CUTS CITEE CUTS Centre for International Trade, Economics & Environment (CITEE) is a programme centre of CUTS International, dealing with issues of trade, regulation and governance. CITEE is accredited to UNCTAD, UNESCAP, UNDP, UNEP, etc. • CUTS Achievements: • Working closely with the governments in Asia and Africa • Advisory Committee on International Trade, Department of Commerce, Government of India • Member of the Indian official delegation to the Hong Kong Ministerial Conference of the WTO Members • Served at the WTO DG’s Informal NGO Advisory Body • Organises technical sessions at the WTO Public Forum

3. CUTS work on environmental issues • Ecofrig Campaign • Lead Acid Battery Project • Advertising and Sustainable Consumption • Concept Testing of Green Consumption • Green Advertisements: Are they telling the Truth? • Trade in Environmental Services: An Indian Perspective • Ecolabelling: Is It a Visible Instrument for Trade Promotion? • Stocktaking of Progress towards Sustainability: A pilot study of Indian legislative initiatives • Why was India’s Ecomark Scheme Unsuccessful? • Enabling developing countries to seize eco-label opportunities

4. SESTI Background • Project supported by the Ministry of Foreign Affairs, Government of Norway (through the Royal Norwegian Embassy, New Delhi) • Implemented by CUTS International in partnership with Norwegian Institute for Consumer Research (SIFO) FOCUS SECTOR • Indian Textile and Clothing Sector

5. Project Beneficiaries Direct beneficiaries include: • Indian textile industries • Retailers and importers of textiles in Norway, Germany, Sweden and France • Consumers and households in Norway, Germany, Sweden and France GOAL Promote appropriate and optimal use of eco-labels as a means for enhancing environmental sustainability, especially with regard to climate change and consumer welfare in the North and producer profitability in the South

6. Project terms of reference • Review emergence of environmental labels as an outcome of increasing focus on green consumption and evolution of governance tools • Determine the degree to which such labels function as a communication tool in the EU consumer market, and their future potential • Identify costs and benefits of labelling in the value chain of textile production and consumption in India and Europe, and assess net benefits/welfare gains • Record the perceptions of different stakeholder groups in India and Europe as to whether such labels are trade barriers or facilitators • Provide recommendations on necessary changes in the standardisation and labelling regimes

7. Research Methodology • Desk research on consumer attitudes and efficiency of environmental standards; discourse on green consumption; and the evolution of standards as non-tariff market access governance systems • Identify the list of existing environmental standards faced by Indian T&C products in EU, and particularly Norway, Germany, Sweden and France • Three surveys - • Survey of Indian producers and exporters • Survey of European retailers and importers in T&C • Survey (online) of consumer organisations and households in selected Northern markets • Primary Survey info and secondary data analysis • Conclusions and recommendations for policy makers

8. Project Outcomes • Promote understanding of how standards and quality attributes related to environmental concerns including carbon credits in textile and clothing are defined, developed and managed both in the Northern and Southern hemispheres • Understand stakeholder perceptions about carbon credits and green labels – are these are trade barriers or facilitators • Evaluate the potential of environmental and social labels for textile products as a communication tool • Recommend changes in the standardisation and labelling regimes for overcoming these technical, economic and cultural barriers

9. Project Outputs • Operational Strategy Note • 1 Literature Survey/Desk Analysis report • 2 Field Survey reports (India and select European countries) on stakeholder perception • 4 Briefing papers • Final project report • Popular media - Newspaper articles and other publicity • Dissemination seminar event reports

10. EVENTS • Project Launch Meeting • Stakeholder meetings and Capacity Building Workshops • Final Project Meeting • Dissemination Seminars PROJECT MANAGEMENT • Project Partner • Project Advisory Committee • Project Director • Project Coordinators

11. Beyond Project SESTI • Separate session “WHAT NEXT” would be included at the Final Project Meeting • Would lay down specific plan of future action • Proposed future activities • Stock of other initiatives on textiles and standards in country/region for establishing linkages • Funding sources and names of contact persons • Establishing contact with other ‘influential figures’ • Bottom-up approach of multi-stakeholder involvement