Product-oriented Environmental Policy is focused on the formulation and implementation of policy instruments that reduces the impacts of products and services in a life-cycle perspective. The EU is initiating a common European frame on Integrated Product Policies (IPP), Environmental Technology Action Plans, and some countries have implemented environmental product policies that target sustainable production and consumption.
Sustainable production and consumption are closely related. Sustainable production is related to the supply side of the product chain whereas sustainable consumption is about the demand side. The IPP toolbox aims at incorporating both supply-side and demand-side measures as well as in some cases stakeholder participation and self-regulation. A mix of different instruments is applied dependent on different products, markets, and national context. This regulatory mix in IPP is illustrated in the figure below.
A new role for environmental authorities is emerging. The task in IPP is to set up objectives and provide stakeholders with the means and incentives to achieve these objectives. The policy instruments are mainly focussed on facilitation and stimulation of markets for cleaner products. All stakeholders, especially in product chains from producers and retailers to consumers and waste managers, are prompted to include environmental concerns in decision-making regarding products and services. Based on a governance approach, experiments have been made with stakeholder participation in the environmental field such as: product panels, eco-labelling boards, standardisation organisations etc.