In 1989 the New Zealand Government published a discussion paper Labelling of Environmentally Friendly Goods and invited public submissions on the proposal that the government establish a voluntary eco-labelling scheme. This arose from widespread interest in eco-labelling as a market-based means to use consumer interest in the environment to encourage companies to improve their products.
The eighty-four submissions received on the 1989 discussion paper expressed almost unanimous support for the proposal. This support was based largely on the need for clear guidance about the real environmental effects of products at a time when many companies were claiming to be "environmentally friendly" without any real basis.