Supplementary memorandum by Department
for Environment, Food and Rural Affairs
On 3rd November, the Select Committee on Science
and Technology asked officials:
Q48 (Lord Lewis of Newnham)
—We understand that efficiency standards within the EU for
a range of appliances are below those that are required in countries
such as Japan, Canada or the United States. Similarly, the standards
for new buildings are lower than those in, for instance, Scandinavia.
What steps is the Government taking to address these problems?
Q50 Baroness Sharp of Guildford:
—Can I come in on both these issues, on the climate and
then on Buildings. Are we not perhaps being too complacent? As
I understand it, there is in Europe an A+ and A++ level grade.
We congratulate ourselves on having fridges with the A grade but
in fact there are two grades above that which we just do not advertise
in this country and we do not measure so people do not know about
it. If you want a really good fridge you want an A++ fridge but
as a consumer I do not know whether a fridge I buy is A, A+ or
A++.
There was no time for an answer to Q50; Defra
officials were invited to provide a note to the Committee. I would
also like to take the opportunity to elaborate on my brief answer
to Q48.
Q48 ANSWER (EU STANDARDS)
As I indicated in my oral answer, you are right
to observe that, in general, EU standards are lower than in other
countries, in the sense that, at present, the EU has few legal
restrictions on trade in inefficient products.
So called "standards and labelling"
activity is a growing and potentially powerful feature of environmental
policy and is an area where co-operation at EU and International
levels is both helpful in driving the innovation process and is
necessary to ensure free trade in energy efficient products.
For comparison, information received indicates
that:
54 countries internationally already have product
Minimum Efficiency Performance Standards (MEPS) programmes; 17
more programmes are under development, covering 80 per cent of
the world's population.
MEPS activity is closely associated with product
labelling programmes and with industry voluntary agreements or
equivalent negotiations. Such agreements may involve major manufacturers
phasing out poorer performing products or targets for improving
industry-wide "fleet" averages, which allows niche markets
to continue to be provided for but commits to overall improvements
in the range, over time. The following summary indicates the level
of MEPS activity around the world.
Canada 31 (mandatory).
USA 19 (mandatory), one voluntary.
Both USA and Canada include non-domestic products
eg motors and HVAC.
North America has an Energy Efficiency Act of
1992 (EPAct) which is a piece of legislation for establishing
minimum efficiency levels for electric motors manufactured or
imported after October 1997. In some instances, the European Eff1
(Highest efficiency band) motor to EU tested using EU test standards
would not meet, or would only just meet, the minimum standard
criteria required by the American EPAct legislation and would
also require testing to the more stringent NEMA test standard.
Japan 18 mandatory (has highest MEPS
for air conditioners).
In terms of coverage Japan has efficiency standards
for 18 different equipment types including cars, freight vehicles,
transformers, office equipment, space heaters, air conditioners,
TVs, water heaters, vending machines. Japan currently has labelling
for 10 different products but also has labelling of retailers
based on the fleet average efficiency of their sales.
China 8 mandatory plus endorsement labelling
23 products.
Korea, China, Taiwan, Philippines, and Mexico
all have MEPS for air conditioning equipment.
Australia and New Zealand currently have MEPS
for eight products but are developing them for many more; the
Australian Greenhouse Gas Office has a general policy to adopt
the highest available worldwide MEPS.
EU 3 mandatory standards (boilers, household
refrigerators and lighting ballasts), five voluntary industry
agreements (eg TVs and vcrs, electric motors, cold appliances,
wet appliances, power supplies, digital TV equipment) plus mandatory
labelling of eight household products (refrigeration, washing
machines, tumble dryers, dishwashers, washer-dryers, ovens, light
sources, air-conditioning).
It would be a reasonable to say that current
EU mandatory standards are not particularly ambitious, neither
in the numbers of standards set, nor in the performance levels
they demand. The proposed framework directive on the Eco-Design
of Energy Using Products (EUP) may eventually speed up delivery
of standards and stimulate industry self-commitments to improve
their products—but progress is slow. EUP may not now be
adopted before late 2005, which means there are unlikely to be
any new or updated mandatory EU energy efficiency standards before
2007 at the earliest.
Similarly, on labelling, while this policy has
undoubtedly been successful in driving innovation and competition,
progress at EU level has stagnated—hence the A+ and A++
stop-gap solution for refrigeration. The Energy Labelling Framework
Directive 92/75EEC is in urgent need of updating to extend its
coverage to a wider range of products, including non-domestic
equipment, and to adapt to changing markets (eg Internet sales).
But it now seems unlikely that the Commission will bring forward
a revised directive before mid 2005 at the earliest.
WHAT THE
GOVERNMENT IS
DOING
— Negotiating strongly to deliver effective
EU policy measures—principally, the Energy Labelling framework
directive, the proposed Eco-Design (EUP) framework directive and
industry voluntary agreements.
— Supporting delivery of EU standards
in the UK eg by gearing up market surveillance.
— Maintaining a strong, evidence-based
position on product policy priorities and issues, and communicating
that to EU Member States, industry and to other international
standards-setting bodies.
— Developing and implementing UK standards
by other means, for example, by embedding standards in other policy
measures such as Building Regs, Endorsement, Procurement, EEC,
ECAs etc.
— Working at international level to
influence standards development and to identify and raise benchmarks.
— Supporting practical standards work
to ensure the timely delivery of reliable product information,
test methodologies and technical criteria.
There is a more encouraging story for EU-wide
industry voluntary agreements. Industry may propose or update
these at any time and some industries are clearly keen to do so.
In particular, the EU Code of Conduct for Digital TV Services
is an exemplar of what such initiatives, and what UK Government
proactive support, can achieve. The resulting EU Code of Conduct
on Digital TV Services establishes ambitious energy efficiency
standards for set-top boxes and other related digital TV receiver
equipment. We are similarly engaged in developing agreements for
other consumer electronics products, TVs and power supplies and,
via the Energy Star Regulation, in negotiating international standards
for IT equipment.
In these areas, the EU, Government and UK Industry
experts, in particular, can claim to be in the lead, worldwide.
Through these activities, we are actively building working relationships
with countries such as the USA, China and Australia which aim
to set and raise global standards for these products.
Q50 ANSWER (A+, A++
LABELS)
On product labelling, there are, indeed, now
A+ and A++ appliances in Europe and these are also available to
UK consumers. The UK Statutory Instrument which requires A+ and
A++ products to be labelled came into force in July 2004 and contains
equivalent labelling provisions to those in other EU Member States,
so there should be no reason why consumers cannot find the most
efficient available appliances.
Some manufacturers use their own advertising
to draw attention to the A+ rating and the most efficient products
are also promoted by the Energy Saving Trust's "Energy Efficiency
Recommended" certification scheme. Both the Energy Saving
Trust and MTP are exploring the extent to which searchable product
data bases could be constructed and which would make it easier
for consumers to find the best products. But these tools would
benefit from more promotion and support by manufacturers, by ensuring
the product information is up-to-date. We are exploring with the
Commission if the provision of such information by manufacturers
should be made mandatory.
Energy labelling is a highly successful policy,
but there are some issues with ensuring the effectiveness of labels
which we are addressing. In our own surveys, only about 80 per
cent of labels in shops and catalogues are fully compliant with
the requirements of the directive—usually because labels
are missing, on the wrong appliance or incomplete. The amount
of consumer information on energy efficiency that is provided
in advertising, especially via the Internet, is highly variable.
Another problem is that it is difficult to challenge the accuracy
of the technical information provided on the label, including
the A-G rating, due to the inherent difficulties of physical performance
testing of products and the expense of doing the tests.
The European Parliament and, indeed, some manufacturers
are calling for policing to be improved to ensure fair competition.
We are discussing via the EU labelling regulatory how best to
co-ordinate policing at EU level and how the regulator and technical
testing regimes could be improved in this respect. In the meantime,
we plan to gear-up market surveillance activity and continue our
dialogue with suppliers, dealers and with the enforcement agencies
to improve compliance levels.
Overall, the current level of innovation and
competition in the market, and the resulting improvements in the
energy efficiency of appliances, is compelling evidence of the
success and effectiveness of this product policy approach and,
in particular, of EU A-G labelling and standards policy. Since
1990, this policy, which has been consistently and positively
supported by Government, has radically transformed the market
for consumer goods, consumer behaviour and the business culture
of the whole supply chain to the point where energy efficiency
is a central goal for product designers.
TO SUMMARISE
Far from being complacent, the Government is
putting increasing resources into standards and labelling policy.
This is identified as a cross-cutting issue for the Energy Efficiency
Implementation Plan and is one of the central themes of Defra's
Sustainable Consumption and Production policy framework "Changing
Patterns". The evidence is that this is a powerful and effective
driver for energy efficiency. The challenge now is to extend this
approach to more products, to address broader non-energy environmental
issues and to be more pro-active at EU and International levels.
The proposed Eco-Design for Energy Using Products
Directive should help gear up EU standards activity. This is to
establish a flexible framework for more general product standards
policy for all energy-using products, and links with mandatory
labelling regimes, but progress is slow. Ultimately, progress
will depend on the resources that the Commission and Member States
are prepared to put in to the development of and negotiation of
specific measures.
Whilst we can continue to strongly support development
of formal EU policy measures, there is scope, in parallel, for
the Government to progress this policy via G8 and other high-level
international channels and by engaging in practical co-operative
projects to develop the technical standards. Where there are no
effective EU measures, the Government may be able to deliver a
similar outcome by embedding rising standards within UK policy
measures such as Government procurement standards, Building Regulations
and economic measures.
26 November 2004
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