We want it – but can we have it?

Balcony solar power is trending now: more than half a million balcony solar systems have already been installed in Germany – with around 220,000 plug-in PV devices added in the first half of 2024 alone. With a gross capacity of 200 megawatts (MW) – enough to meet around 50,000 people’s electricity needs – these newly installed systems are a driver of Germany’s energy transition. The message is clear: consumers have a wealth of power – if they move forward together. But what motivates us to harness this potential? Which frameworks do we need? And where can we find guidance on action that is genuinely sustainable?

The transition to sustainability needs each and every one of us. That doesn’t just mean every consumer. It means the whole of society: policy-makers to establish the right frameworks and an economy that sustainably produces the right products. “If sustainable behaviour costs more or takes more effort, it’s understandable if many consumers don’t act accordingly,” says Dirk Arne Heyen from the Oeko-Institut. “Politicians and businesses have more leverage, but without demand and pressure from consumers, it can’t be done. Simultaneous action by stakeholders is required.” If everyone moves forward together, this can have a significant effect. “That’s underlined by the example of balcony solar systems,” says Heyen, a Senior Researcher in the Environmental Law and Governance Division. “The boom in sales of these systems would not have been possible without technological improvements and the lowering of technical and bureaucratic hurdles. It is undoubtedly fuelled by the reform of tenancy law in summer 2024 as well – landlords must now approve installations unless they have compelling reasons to refuse.” In Heyen’s view, a sense of self-efficacy and the “social contagion” phenomenon also play a role. Studies show that households are more likely to install solar panels on their own rooftops if their neighbours have already done so. “We are influenced by others’ behaviour and are more likely to feel that we can make a difference if others are making an effort as well.”

Ready for sustainability?

But how willing are consumers to embrace sustainability when making everyday consumption decisions? A survey conducted as part of the project “The Consumer as an Actor in Supply Chain Regulation” shows that the interest is there, with more than half of the respondents claiming to have a “strong” or “very strong” interest in human rights abuses or environmental problems in supply chains. “Other surveys show that for most people, environmental performance in food production and the durability of products are key criteria influencing their purchasing decisions,” says Dirk Arne Heyen. What’s more, many of them are holding themselves accountable. Eighty-six per cent believe that German companies have a duty to solve existing problems in their supply chains, according to the Oeko-Institut’s survey, conducted in cooperation with infas. However, 70 per cent think that consumers have a responsibility as well. And most of them are willing, in principle, to take action themselves: the majority are already buying products with the specific aim of championing human rights and environmental aspects in supply chains (58 per cent) and many more can envisage doing so (33 per cent).

But what informs our decisions on which product to buy and which one is better left on the shelf? In the case of balcony solar power or cycling, it is obvious that these are sustainable choices. However, with many products, such as cosmetics, food or furniture, it is less clear-cut. The supply chain project shows that consumers wishing to access information about textile production practices, for example, mainly rely on Internet search engines (75 per cent) – and labels (73 per cent). “Consumers are confronted on a daily basis with an ever-increasing amount of environmental information about products and services. Green claims can take a variety of forms, such as text or eco-labels, or even graphics that merely resemble eco-labels. They often hold out the promise of eco-friendly production, packaging or fair trade. Are these green claims – such as the pledge that a product is ‘climate-neutral’ – really justified? That’s often impossible to follow up,” says Dr Florian Antony, a Senior Researcher in the Oeko-Institut’s Sustainable Products and Material Flows Division.

The issue of green claims is currently being investigated by the Oeko-Institut’s researchers together with the Hamburg-based law firm Rechtsanwälte Günther Partnerschaftsgesellschaft in an ongoing study entitled “Avoiding Greenwashing, Strengthening Ecodesign” on behalf of the German Environment Agency (UBA). Consumers find the plethora of green claims confusing, says Heyen. For example, the latest Environmental Awareness Study shows that 79 per cent of respondents are often unsure whether a product is genuinely eco-friendly. What’s more, a recent SINUS survey reveals that many people have no idea what is behind the “climate-neutral” claim. This is the case even with the legally protected terms “organic” and “biological” that apply to foods. “Consumers’ knowledge of various labels and claims is still limited,” the researcher says. And he points out that although information offerings such as siegelklarheit.de exist, it cannot be assumed that the majority of consumers will take active steps to access information.

“Of course there are trustworthy and useful labels such as energy labelling, the Blue Angel or Germany’s official Bio-Siegel label for certified organic products, which are widely recognised. But nowadays, there is also a plethora of labels, logos and slogans that hint at environmental benefits but make false, vague or incomplete claims – greenwashing, in other words,” says Dirk Arne Heyen. They do so for understandable reasons: consumers are influenced by labels and claims and prefer to buy these products. According to the Environmental Awareness Study, 39 per cent of respondents always refer to the EU Energy Label when deciding on a purchase, while a further 43 per cent do so often or very often. The Biosiegel and Fairtrade labels are often influential as well. “But claims about climate neutrality also influence purchasing decisions – and even the visuals and colours on packaging,” says the Senior Researcher.

Two directives

We don’t know enough, yet we’re easily influenced. Despite that, can we find the right pathway towards sustainable products? Our chances of doing so could certainly be improved. “Product-related green claims have an effect, so of course companies use them. One problem is that many of these claims have not been clearly substantiated or independently verified by a third party. Policy-makers must aim to exclude baseless claims and labels from the market. Ultimately, this will also benefit businesses which make well-founded green claims that consumers can rely on,” says Dr Florian Antony. An overwhelming majority of consumers also want to see tougher government regulation and independent monitoring of green claims, as the Environmental Awareness Study and other surveys show.

Two EU directives now specifically aim to improve this guidance in practice. The Directive on Empowering Consumers for the Green Transition, which has already been adopted, is intended to assist consumers to make more informed purchasing decisions. “It follows the ‘no data, no claim’ principle – which means that without corresponding baseline data, no further claims may be made about the eco-friendliness of a product. In addition, no environmental benefits may be claimed for a product as a whole if the characteristics being promoted only relate to part of it,” Dr Florian Antony explains. “There is now also a ban on displaying sustainability labels that are not established by public authorities or based on a recognised certification scheme.” In addition, the Directive sets out criteria for determining what constitutes a misleading practice for legal purposes. “It is intended not only to improve claims that are targeted at consumers, but also to ensure a level playing field for businesses.”

While the Empowering Consumers Directive has already been adopted, the Green Claims Directive is still under way. “It sets out more or less specific requirements relating to the substantiation and communication of environmental claims,” Dr Antony explains. “Both of these initiatives represent a significant push by the European Commission to address an obvious problem. I hope that their level of ambition will not be watered down in the next legislative term and that we will ultimately see genuine improvements in the guidance available to consumers.” Dirk Arne Heyen agrees that the directives are a major step towards more guidance for consumers. “Until now, consumer organisations, with their various lawsuits, have taken on the task of holding businesses accountable if they make false sustainability claims. It will make things easier for everyone if there are clearer rules in place for the EU as a whole.”

More than just labels

Of course, when it comes to sound frameworks for sustainable behaviour, adequate product labelling is only part of the story. “Appropriate infrastructures, such as good cycle paths and an attractive public transport system, are also needed. Carbon pricing is another important tool in making climate-damaging goods and services less appealing,” says Dirk Arne Heyen. At the same time, creating appropriate frameworks for sustainable behaviour also means keeping sight of what is feasible and affordable for people in diverse life situations. “This means financially empowering certain groups to invest in sustainability. For example, targeted subsidies or a special bonus for low-income households can make a contribution here.”

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What are the governance options for the transition to sustainability? And which social issues arise in connection with environmental and climate policy? These questions are addressed by Dirk Arne Heyen at the Oeko-Institut. Based in the Environmental Law and Governance Division, he looks at consumer attitudes to environmental and climate policy measures, among other things.