“Business needs a carrot and a stick to promote green products”

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Photo by: SolStock / iStock

Until recently, the use of secondary resources was not well regulated by law. Unfortunately, all regulation has been sharpened by business development models from the last century. These are so-called linear models. In a large number of sectors — food products, medical products and so on — sanitary and epidemiological norms knowingly assume use of a vast range of disposable plastic packaging, including multisided, difficult to recycle or not recyclable at all (during the pandemic this became especially evident).

Mechanisms for “discrimination” of non-environmental, non-sustainable products in the retail trade are also not enshrined in law. No retailer in Russia can unilaterally refuse any “non-green” products, as it risks being accused of abusing its market power and restricting market access for such products, which is a violation of anti-monopoly law.

The second problem is that the cost of products produced using the most modern, green technologies and complying with environmental and social welfare requirements is often higher (by at least 60%) than similar products that meet only basic legal standards.

Are consumers prepared to pay more, or even to change their habits, which have developed over recent decades? As you can see, business also needs an adequate combination of progressive incentives, the so-called carrot and stick.

Cover photo: AleksandarNakic / iStock

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