EU climate labeling policy: Analyzing consumer’s comprehension of CO2 footprint labels

Abstract

In theory, climate labeling holds the potential to guide consumers towards making more climate-friendly food choices. However, for the efficacy such labeling the ease and accuracy of an information understanding is crucial. Over recent years, numerous new climate labeling schemes have emerged in the European market. In this study, we investigate perception and objective knowledge to gain a better understanding of consumer comprehension of various existing label types. These include climate-neutral, reduction, carbon footprint, best-in-class and multi-level traffic light labels. The results reveal that a traffic light label is markedly better understood by consumers than the other label types analyzed. For instance, while more than 50 % of respondents believed they understood the climate-neutral label, it caused frequent wrongful inferences, posing a risk of misinterpretation and greenwashing. In contrast, participants demonstrated a high level of both positive perception and objective knowledge regarding the traffic light label. Therefore, traffic light labeling has the greatest potential to encourage climate-friendly dietary choices and reduce consumer confusion in the food market.