Importance of Energy Star program in the light of EUP

1. Importance of Energy Star program in the light of EUP T. Schoenmakers EICTA EUP issue manager

2. EUP is short for: Proposal for a DIRECTIVE OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL On establishing a framework for the setting of Eco-design requirements for Energy-Using Products and amending Council Directive 92/42/EEC

3. EUP – the basics of the proposal • Article 95 legal base for 1 internal market and free movement of goods. • “New Approach” framework directive: • Conformity assessment based on “module A”: manufacturer self-declaration • Harmonised standards give the methods • Priority to voluntary measures in view of speed and adaptability. • Focus on ecodesign, not just a single environmental aspect. • Flexibility of using internal design control or environmental management system.

4. Observations on the EUP framework & recent development • EUP is a wide-ranging framework directive proposal that aims to regulate manufacturers’ core competence of product design. • Subject to a number of essential conditions, EUP could prove to be a valuable framework for industry to work in. • Recent developments cast doubt on whether these conditions will materialise in the final legal text. • The European Parliament voted last Tuesday in its first reading.

5. EUP should be a “New Approach” directive • A single legal base of Article 95 of the EU Treaty is essential • Product design cannot differ on a national basis without unacceptable barriers to trade, and very high costs • Conformity assessment for CE marking must be based on manufacturer self-declaration • Module A approach has proven to be valid even for product safety approaches. • Eco-design concerns do not warrant third-party involvement via Module B and associated further modules. • Pre-market third-party verification would unnecessarily delay product introduction into a competitive marketplace.

6. Further conditions for successful application of EUP to Ecodesign • Proper comitology approach is the basis for effective implementing measures • If implementing measures would be prepared: • With proper industry involvement • Setting targets that are workable • Using harmonised standards as a basis • Market surveillance after product release is essential • Free-riders must be tackled, enforcement must be rigid

7. EUP: give priority to voluntary measures to stimulate innovation • Legislative measures tend to level the playing field instead of encouraging innovation. • Voluntary approaches have proven to be effective in achieving environmental benefits. Examples include: • TV, VCR standby agreement • External power supplies code of conduct • Energy Star initiatives, e.g. computer monitors • Leaving room for market forces to deliver eco-design improvements is quicker and more flexible than a legislative approach.

8. How Energy Star fits with EUP voluntary measures requirements • “Energy Star is ‘de facto’ the largest voluntary agreement in the world.” • Energy Star has proven to deliver results. • Energy Star includes a major part of the sector’s manufacturers. • Thus energy improvements are demonstrable, important and driven by market mechanisms. • How would Energy Star as a voluntary measure change under the European Parliament’s involvement? • Acquiring an active stakeholder/call-back role. • Adopted Annex VIIa with many criteria.

9. Issues with Energy Star related to EUP • Energy Star has been an successful inclusive label. • But the Parliament adopted “front-runner” concept. • Such concept is not proven for all product types and is prone to deliver benefits late towards the deadline. • Energy Star is much more likely to deliver results early. • But: Energy Star addresses energy only, EUP should be about improving ecodesign… • As technology improves, energy consumption tends to become less important, resource consumption more important: the framework’s focus on energy is excessive. • EUP should look towards all ecodesign aspects; Energy Star could be useful when evaluating the energy aspect.

10. Energy Star fits with industry’s main priorities • Offers a global framework that reduces trade barriers. • But note the tendency of regional differences! • Self-declaration enhances application speed and reduces bureaucracy. • But why different databases? • Rewards companies by making compliant products visible to customers.

11. Stakeholder consultation & target setting within EU Energy Star • Flexibility & speed are major benefits of voluntary measures in a fast-moving sector. • Target setting for a voluntary measure should • Be based on technical criteria (e.g. feasibility, cost/performance ratio) provided by industry experts. • Warrant a high inclusion rate in order to “move most of the field”. • Question: If Energy Star would become an “exclusive” label like EU-Ecolabel, would it give “presumption of conformity” under EUP? • Be executed rapidly and able to be modified rapidly. • Current EU mechanisms fall short of these aims.

12. Conclusions • EUP must give priority to market forces such as voluntary measures to achieve speedy, flexible and eco-efficient ecodesign improvements. • Main challenges for Energy Star are target setting/decision procedure/stakeholder consultation, and risk of regional fragmentation. • Energy Star has many characteristics to make it the “voluntary measure” of choice for energy efficiency. • Other voluntary measures should be created to address EUP’s other relevant ecodesign parameters.