Issues - Sustainable Products

Several actors including policy makers have to intervene

:: Governments need to

  • Create institutional structures and incentives that support innovation and competitiveness of environmentally superior products and services
  • Promote international harmonisation and cooperation
  • Reduce trade barriers
  • Prevent the flow of inferior products to developing countries and help developing countries leapfrog the high-polluting development phases

:: Businesses need to

  • Make product changes, since many environmental aspects can be prevented at the product design stage

:: Retailers need to

  • Exert pressure on suppliers
  • Create greener market offerings and market sustainable products
  • Provide easily accessible product information to consumers

:: Consumers need to

  • Take a more responsible attitude towards their purchasing decisions and lifestyles

The environmental impacts of products and services depend on how they interact with the surrounding socio-economic and technical systems, sectors and actors along their lifecycles. However, the economic rationale and market forces are often ineffective for improving environmental performance of products.

In order to compensate for market failures that lead to environmental and social externalities, several actors, including policy makers, have to intervene.

:: Improvements in product innovation

Certain improvements in product innovation can already be noted in the area of:

  1. Energy efficiency
  2. Waste reduction
  3. Dematerialization
  4. Toxics substitution
  5. Pollution prevention
  6. Eco-design.

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This paper considers policy instruments and initiatives as well as business approaches for sustainable products. Examples of best practices are provided, that can help to overcome key challenges.