Is consumer protection relevant to climate change? Gordon Renouf CHOICE National Consumer Congress 2008

Overview Is consumer protection relevant … … to public policy on Climate Change … to individual consumer choices

Is consumer protection relevant …

… to public policy on Climate Change

… to individual consumer choices

Climate change is an externality “ … we should worry about costs and benefits missing from the market transaction. … our marginal pricing should reflect those externality costs accurately. “ whatever society decides about the seriousness of the externality, externality charges are the most efficient way to deal with it.”

“ … we should worry about costs and benefits missing from the market transaction. … our marginal pricing should reflect those externality costs accurately.

“ whatever society decides about the seriousness of the externality, externality charges are the most efficient way to deal with it.”

.. Voluntary action also essential Shaky information about cost Taxes and standards are negotiated Policy responses are delayed Voluntary action promotes innovation Need integrated public and vol action

Shaky information about cost

Taxes and standards are negotiated

Policy responses are delayed

Voluntary action promotes innovation

Need integrated public and vol action

Consumers and government action Consumers pay the price of policy … we don’t want a lemon … equity is important Consumer voice

Consumers pay the price of policy

… we don’t want a lemon

… equity is important

Consumer voice

Consumer action Consumer’s right to choose Innovation Participation builds constituency for change

Consumer’s right to choose

Innovation

Participation builds constituency for change

Consumers are interested but confused 75% of US/UK consumers are concerned about climate change but don’t know what they can do to make a difference www.consumersinternational.org/climate

75% of US/UK consumers are concerned about climate change but don’t know what they can do to make a difference

Supporting consumer action Confidence Motivation

Confidence

Motivation

200 claims on non-food in one small supermarket 61% of companies expect to increase profits How significant is green marketing?

200 claims on non-food in one small supermarket

61% of companies expect to increase profits

Greenwash? Not so eco credit card .The CHOICE shonky for Greenwash Regulator probes Woolies' green claim

Responding to Greenwash ACCC Guidelines + accurate information about alternatives + choice restriction

ACCC Guidelines

+ accurate information about alternatives

+ choice restriction

Dob in a dodgy green claim

Conclusions Consumers need to heard in policy development

Consumers need to heard in policy development

Conclusions Consumers need to heard in policy development Mandatory responses and voluntary responses should be mutually reinforcing

Consumers need to heard in policy development

Mandatory responses and voluntary responses should be mutually reinforcing

Conclusions Consumers need to heard in policy development Mandatory responses and voluntary responses should be mutually reinforcing Good consumer protection is VITAL to protect consumers’ rights to activate competition and innovation to ‘save the planet’

Consumers need to heard in policy development

Mandatory responses and voluntary responses should be mutually reinforcing

Good consumer protection is VITAL

to protect consumers’ rights

to activate competition and innovation

to ‘save the planet’

Thank you www.choice.com.au Going carbon neutral? Price comparison: Green Power Greywater systems Getting around on a bike Carbon offsets for flights Fairtrade: Why it makes a difference Recent Choice Stories