# Drivers, Barriers and Benefits of the EU Ecolabel in European Companies' Perception
## 2 EU Ecolabel Drivers, Benefits and Barriers: A Literature Review
### Barriers  
Our analysis has confirmed competitive factors and market pressure as the main drivers for applying for Ecolabels, and the EU Ecolabel specifically. Despite the proliferation of Ecolabels and their diffusion on the market because of businesses' willingness to meet customer/consumer expectations, companies, especially SMEs, are still facing difficulties when applying for Ecolabels.  
The EVER study (2006) found that the main obstacles that Licence holders faced with the EU Ecolabel were associated with aspects such as \"red tape/documentation\" and \"costs of complying with criteria\". Interestingly, factors such as \"lack of human resources and skills\" as well as \"application procedures slow and very bureaucratic\" were not indicated as major barriers by companies. When Non-Licence holders were asked about the barriers and obstacles that made them decide either to abandon or not to apply for the EU Ecolabel, they revealed that the main barriers were related to: lack of recognition and rewards by public institutions (green procurement), customers, consumers, and retailers; high costs of implementation (including consultants); high cost of the license; and lack of economic incentives (including funding). Indeed, as for the cost of certification, [PERSON] et al. (2011) argued that the survival of an Ecolabel in the long run may also depend, among other variables, on how expensive it is for a company to obtain and maintain the licence. [PERSON] et al. (2010), reporting the results of a survey on the Nordic Ecolabel, found that the main barriers faced by a company when applying for the Nordic Ecolabel are mainly related to the overall cost of implementation and to the application procedure. As for the first one, interviewed companies argued that, besides direct costs for obtaining the label, a number of indirect costs arise when implementing the Nordic Ecolabel. Interestingly, companies considered these costs as being even higher than direct costs. Although companies declared that these costs are difficult to quantify and that they did not have a complete overview of them, they were nevertheless able to indicate them as related to the application procedure, and the needs to make changes to the production process, hire consultants (including testing activities), and train employees. As for the second barrier mentioned by companies and related to the application procedure, they found it difficult and time-consuming to collect the necessary documentation. In particular, companies willing to license a product/service declared that most of the time used has to be dedicated to understanding the criteria and collecting documentation. Furthermore, they specified that in collecting documentation they had to engage in a closer communication and dialogue with suppliers and subcontractors. However, a study by Martins Geneix (2012) still reported that companies, particularly SMEs, consider that the main weaknesses of the EU Ecolabel are the cost of obtaining the EU Ecolabel, especially the costs related to testing, the lack or promotional activities by competent authorities (including incentives) and the time (too long) needed to revise the criteria.