labels assess the performance of the product on a range, for example grading its energy or water efficiency. Ecolabeling innovation cycle There is a close relationship between the ecolabeling process and the eco-innovation because it promotes the emergence of new green products and it improves the organizations environmental management strategy. Moreover, ecolabeling process is a "cyclical eco-innovation process in which consumers, firms, governments and institutions interact. Its final purpose is to contribute to the development of sustainable and ecological ways of production and consumption. In this process, consumers’ environmental expectations are met; firms increase their created and captured value and enhance their sustainability, and governments and institutions foster cleaner production and consumption. Finally, this process is tangible in the products through the awarding of ecolabels, which are visibly displayed on goods and services". Environmental governance Consumer desires for sustainable consumption is driving the global marketplace with desire to regulate product production. The globalization of economies is shifting control of sustainability away from traditional command and control measures imposed by governments towards market governance which is a self-regulatory new environmental policy instrument, ecolabelling. Eco-labeling standardization is a new form of regulation which is voluntary in nature but impose upon large companies market forces in order to harmonize production of goods and services with stronger ecological practices. Recently, it has turned into a new form of non-state authority at both national and international levels. This idea of entrepreneurial democracy based on the success of the ISO 14000 standards on the management of environmental quality and the ISO 9000 standards on quality production control. Once an industry sector decides to get this certification, it has to provide evidence of documented proof of compliance required. In terms of ISO 14042 standard, it is obligatorily for all applicants to respect environmental legislation and related legislation; breaching of any laws may result in licensing suspension. International Trade The increasing use of ecolabels by governments, industry and non-governmental organizations has led to international trade issues over ecolabels acting as non-tariff trade barriers. In particular developed countries and industries have expressed concern regarding the variety of diverse national or regional labelling requirements. In order to qualify for an ecolabel exporters have to adjust to the production standards of different markets abroad which may entail significant cost, information and technical expertise. Labelling programs also tend to be based on domestic environmental priorities and technologies of the importing country, often