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Viewing cable 09PARIS1543, French Carbon Footprint Eco-Labeling -- a Potential

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Reference ID Created Released Classification Origin
09PARIS1543 2009-11-19 17:49 2011-08-24 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Paris
VZCZCXRO3031
RR RUEHIK
DE RUEHFR #1543/01 3231749
ZNR UUUUU ZZH
R 191749Z NOV 09
FM AMEMBASSY PARIS
TO RUEHC/SECSTATE WASHDC 7564
INFO RUCPDOC/USDOC WASHDC
RUEHRC/USDA FAS WASHDC
RUCPDOC/USDOC WASHDC
RUEHZN/ENVIRONMENT SCIENCE AND TECHNOLOGY COLLECTIVE
RUCNMEM/EU MEMBER STATES COLLECTIVE
RUEHGV/USMISSION GENEVA 3056
UNCLAS SECTION 01 OF 02 PARIS 001543 
 
SIPDIS 
SENSITIVE 
 
State pass USEPA for International/Anna Phillips 
State pass USTR 
USDOC/ITA FOR Ann Ngo 
GENEVA AND BRUSSELS FOR USTR 
 
E.O. 12958: N/A 
TAGS: ETRD SENV EAGR KIPR KGHG ISO FR
SUBJECT: French Carbon Footprint Eco-Labeling -- a Potential 
Standards Trade Barrier 
 
PARIS 00001543  001.2 OF 002 
 
 
1. (U) SUMMARY:  French Government environment and consumer 
protection officials told Embassy that they are developing a 
mandatory carbon footprint label for consumer products, with 
implementation to begin January 1, 2011.  The Trade Minister's 
office was unaware of the proposed carbon labeling effort.  Intended 
by the Environment Ministry to send a "strong signal" to the 
consumer to consider carbon, consumption, and environmental impact, 
the measure could pose significant barriers to trade for U.S. 
exporters to France, especially small and medium enterprises.  Some 
French industries, e.g. Champagne producers are already assessing 
their carbon footprint, and looking to use it for commercial 
advantage.  END SUMMARY 
 
 
Carbon Labeling in "Grenelle 2" 
------------------------------ 
2. (SBU) Increasing consumers' awareness of their carbon footprints 
is an element of the French environmental legislation currently 
before the Parliament, known as "Grenelle of the Environment 2," 
which proposes a variety of measures to address climate change.  The 
proposed carbon label ISO 14064 would make carbon labels mandatory 
on all French products, with publication of sectoral regulations 
starting in January, 2011.  "Grenelle 1" legislation, developed with 
much fanfare and public input, contained mostly hortatory 
principles, but if passed by the French Parliament the "Grenelle 2" 
bill would codify binding regulations with real impacts on business 
and consumers.  Trade officials said some environmental measures 
were already included in the Finance Law because of a fear that 
Grenelle 2 would never be passed. However, trade contacts also told 
Embassy that the Office of President Sarkozy and Environment 
Minister Borloo are exerting significant political pressure to push 
the bill through the Parliament, and the law is moving quickly and 
quietly, with very little public discussion or engagement. 
 
Lack of Interagency, EU, or Industry Coordination 
--------------------------------------------- ---- 
3. (U) During a recent trip, U.S. Department of Commerce officials, 
accompanied by Embassy, met with French environmental and trade 
counterparts and highlighted the potential unintended consequences 
of quickly enforcing a policy that required small and medium-sized 
companies to carbon label products by 2011.  The French trade 
officials were surprised to hear of the measures, indicating that 
there has been no collaboration on them between French environmental 
and trade agencies. Coordination with the EU, other member states 
with carbon labeling programs (e.g. Sweden and the UK), or 
multilateral initiatives is sporadic and opaque, they said. Industry 
trade groups, such as the food industry association with includes 
Coca-Cola as a member, have been involved to some degree in various 
working groups, but no formal mechanism exists for foreign companies 
to provide input or seek clarification. 
 
4. (U) At ADEME (Agency for Environment and Energy Management,) a 
technical organization associated with the Ministry of Ecology, 
Energy, Sustainable Development and Oceans (MEEDDM), officials told 
us that they are working with the Ministry of Economy's consumer 
protection staff and private consultants who are experts in carbon 
lifecycle analysis.  ADEME collaborates with the International 
Organization for Standardization (ISO) and the French Association of 
Standardization (AFNOR).  AFNOR, an ISO member, is partially 
responsible for setting standards and acts as a bridge between the 
public and private sectors.  In addition, ADEME collaborates with 
the French International Center of Environment and Development 
(CIRED), the agency responsible for the oversight of research in 
sustainable development.  According to ADEME, ISO is forming a 
working group to create a methodology to determine a product's 
carbon footprint, the necessary predicate to a uniform labeling 
standard.  ADEME admitted that smaller French companies may find it 
difficult to comply with the carbon label initiative, and the food 
industry lobby would prefer no labeling at all.  They also expect 
delayed implementation of the sectoral decrees and possible 
confusion with the proliferation of labeling standards and 
methodologies. 
 
Champagne Industry expects Demand For "Green" Champagne 
--------------------------------------------- ---------- 
5. (U) Champagne producers are far ahead in assessing their carbon 
footprint, part of their general strategy of keeping champagne a 
high-value product through strict enforcement of its famous name, 
production area, environmental quality, ethics, and global 
responsibility.  Officials from Champagne CIVC, an organization of 
 
PARIS 00001543  002.2 OF 002 
 
 
Champagne producers and traders, told USDOC representatives that 
they independently began assessing their carbon footprint in 2002 
using ADEME's first-generation software and began a carbon reduction 
plan in 2003.  Champagne CIVC is working with wine producers in 
Bordeaux and Burgundy to undertake a similar analysis.  Currently, 
the Champagne producers are not labeling their products as "green," 
but anxiously await the "Grenelle 2" legislation and the final 
carbon label regulations.  They are also hoping to reduce their 
carbon footprint before France implements a carbon tax, now being 
debated in Parliament. 
 
 
A Uniform Methodology:  The Devil's In the Details 
--------------------------------------------- ----- 
6. (U) Comment: A scientifically-based, uniform carbon assessment 
methodology is crucial to any effort to develop a label that gives 
consumers real choices. Defining the outer limits of the carbon 
footprint is especially challenging.  Aside from the obvious carbon 
impact of long-distance transportation, U.S. companies may find 
themselves disadvantaged by any unilateral French system.  While 
AFNOR, ADEME, and the U.S. Environmental Protection Agency are 
reportedly all working on a common methodology, trade considerations 
are not currently part of the mix.  Carbon labeling, whatever its 
merits, could present significant trade challenges to U.S. producers 
and EU single market goals. 
 
RIVKIN