Explanatory Memorandum to COM(2008)778 - Indication by labelling and standard product information of the consumption of energy and other resources by energy-related products - Main contents
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| dossier | COM(2008)778 - Indication by labelling and standard product information of the consumption of energy and other resources by energy-related ... |
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| source | COM(2008)778  |
| date | 13-11-2008 |
1. Context of the Proposal
• Objective
The aim of the recast of Council Directive 92/75/EEC of 22 September 1992 on the indication by labelling and standard product information of the consumption of energy and other resources by household appliances and repealing Directive 79/530/EEC, hereafter referred to as the 'Energy Labelling Directive' or 'ELD', is to extend its scope, currently restricted to household appliances, to allow for the labelling of all energy-related products including the household, commercial and industrial sectors and some non-energy using products such as windows which have a significant potential to save energy once in use or installed (means of transport are excluded).. In doing so, it follows the overall objective to ensure the free movement of products and improve their energy efficiency performance, thereby contributing to the Community objectives of strengthening the internal market, innovation, EU's competitiveness, protecting the environment and combating climate change. This would complement existing environmental policy, such as, with regard to energy use, the energy and climate package adopted by the Commission in January 20081.
The resulting framework Directive on labelling which also includes provisions relating to public procurement and incentives will be an essential building block for an integrated sustainable environmental product policy, promoting and stimulating the demand for better products and helping consumers to make better choices.
The recast of the Energy Labelling Directive was announced as a priority of the Energy Efficiency Action Plan2 and of the Sustainable Consumption and Production and Sustainable Industrial Policy (SCP/SIP) Action Plan3. The SCP/SIP concluded that the Energy Labelling Directive should be amended to indicate, on the one hand, use phase energy consumption/savings and, on the other hand, other relevant and significant environmental parameters of the product.
General context
The SCP/SIP has shown that the limited scope of the Energy Labelling Directive ("ELD") restricts its potential to further mitigate climate change and contribute to the EU-wide target of 20% energy efficiency gains by 2020 and achieve the goals of sustainable production and consumption.
The current ELD is a framework that mandates the Commission (assisted by a Regulatory Committee) to adopt labelling implementing measures for specific household appliances4. The ELD requires retailers to display a comparative label showing the level of consumption of household products to consumers at the point of sales.
Contents
- COM(2008) 30 final. COM(2006)545 final of 19.10.2006 COM(2008) …
- OJ L 39, 13.2.2008 OJ L 237, 21.9.2000
- 3. Amend the ELD, including coverage of all energy-related products, and
- This proposal extends the scope of the framework ELD from household appliances to cover all energy-related products, leaving it to the implementing measures, after consultation of
- OJ L 134, 30.4.2004
Refrigerators, freezers and their combinations, washing machines, driers and their combinations, dishwashers, ovens, water heaters and hot-water storage appliances, lighting sources and airconditioning appliances.
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The labelling scheme set by the ELD provides consumers with useful and comparable information on the use of energy (and other resources such as water) of household appliances. It allows consumers to consider investing in better performing appliances which have reduced running costs and allow realising savings which more than outweigh the difference in price. The ELD also helps manufacturers to position their products on the market and reap the benefits on their investments for introducing better and more innovative products.
The impact assessment study shows that the ELD could deliver more savings in energy and reduction of environmental impacts if extended to all energy-related product groups (i.e. those products that have an impact on energy consumption during use). Some other changes can further increase the effectiveness of the ELD, such as the possibility to implement the framework through regulations or decisions instead of directives, and the possibility to set classes of efficiency under which Member States should not provide incentives or procure.
Provisions on market surveillance as already introduced under the Eco-design Directive have been added.
Existing Community provisions
The Community regulatory framework concerning labelling of energy-related products is set in the ELD, which introduces the requirements for the labelling of particular household appliances in its implementing measures. The measures (so-called 'daughter directives') are adopted under the regulatory comitology process (a proposal is currently tabled for introducing the reinforced scrutiny of the Parliament). Under the ELD, the Commission has already adopted implementing Directives for 8 household appliances (refrigerators, freezers, washing machines, dishwashers, dryers, lamps, air conditioners, electric ovens).
The ELD is complementary to existing Community instruments, such as the Ecodesign Directive (setting minimum environmental standards), the Energy Star Regulation5 (voluntary energy labelling of office equipment) and the Eco-label Regulation6 (voluntary label for environmental excellence covering all environmental aspects of products throughout their life cycle).
Consistency with other policies and rules
The proposal is fully consistent with the objectives and aims of the Commission's Sustainable Consumption and Production / Sustainable Industrial Policy Communication and Action Plan, the European Union Sustainable Development Strategy, the Lisbon Strategy, the Community Sixth Environmental Action Programme7, the Integrated Product Policy8 and Natural Resource Strategy. The proposal also contributes to other policies such as informing and empowering consumers. The proposal is also in line with the Commission's rolling simplification programme Better Regulation: Simplification Strategy9 and the Inter-institutional Agreement on Better Law-Making.
2. CONSULTATIONS WITH THE INTERESTED PARTIES AND IMPACT ASSESSMENT
• Consultations
The consultation of stakeholders on the review of the ELD was made in a workshop on 8 February 2008 and a public consultation was launched on the impact assessment website of the Commission and on the relevant EUROPA websites between 20 December 2007 and 22 February 2008.
The results of the consultations were fed into the impact assessments on the extension of the ELD.
• Collection and use of expertise
External expertise of Europe Economics, Fraunhofer-ISI with BSR Sustainability and FfE was used for supporting the impact assessment.
• Impact assessment
The extension of the scope of the ELD is part of the Energy Efficiency Action Plan and of the SCP/SIP Communication and Action Plan. The revision looked into different options regarding the labelling of an extended range of products. The impact assessment showed that the ELD, in combination with the Ecodesign Directive, could achieve further energy savings and reduction of environmental impacts if extended to all energy-related products. Such extension could further reduce the effects of climate change and significantly contribute to the EU-wide energy efficiency targets.
The impact assessment report therefore analyses whether and how the scope of the ELD can be extended, for which products labelling appears to be a relevant policy instrument and what impacts that could have. The objective of the report is therefore to determine the optimal scope of such an extension. Considering that the ELD is a framework directive with no direct impact on products, the environmental, economic and social impacts can only be quantified for implementing measures adopted for specific products pursuant to the ELD.
The impact assessment considered the following options:
Sixth Community Environment Action Programme, laid down by Decision No 1600/2002/EC of the European Parliament and of the Council of 22 July 2002 (OJ L 242, 10.9.2002, p. 1.). Communication from the Commission to the Council and the European Parliament - Integrated Product Policy - Building on Environmental Life-Cycle Thinking, (IPP) (COM (2003) 302 final). COMM (2005) 535 final of 25.10.2005
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1. No extension of the scope and fully implement the present ELD,
2. Non-regulatory action,
4. Repeal the ELD and implement energy labelling within the Ecodesign Directive, including coverage of all energy-related products.
According to the impact assessment, the first policy option to fully implement the current framework, based on the considered priority household appliances, could lead to savings of some 22 Mtoe10 by 2020, corresponding to emission savings of about 65 Mt of CO2. The second policy option (voluntary agreements/self commitments) would have the advantages of adding little administrative burden to the business and administrations but would fully rely on the willingness of the industry which rejected this option and giving preference to a regulatory approach under Article 95 of the Treaty which ensures a level playing field. The third option to fully exploit the current framework and extend the scope to all energy-related products involves some administrative burden for the recast but would save some €4 million in transposition costs per every upgraded or newly developed implementing measure (if regulations/decisions be used instead of directives) and could lead to, based alone on the impact of the three priority product groups considered as examples, additional savings of about 5 Mtoe, corresponding to total savings of 27 Mtoe by 2020, corresponding to some 78 Mt of CO2 reduction. The fourth policy option, repeal the ELD and implement energy labelling within the Ecodesign Directive, could lead to equivalent savings as the previous policy option, however, due to their differences in nature the merging of these two Directives into one single legal instrument would lead to complications instead of simplification of the legal framework. Further savings would come from other product not yet considered in this impact assessment (subject to product specific impact assessments) and from the use of the energy label as a basis for harmonised public procurement and incentives.
An extended scope will allow introducing implementing measures for those non energy-using product categories that have the highest potential for improvement of environmental performance and energy efficiency whilst also leading to the highest savings during the use phase. This would not be possible under the current Directive which is restricted to energy-using household appliances. Detailed analyses will be conducted for the impact assessments that need to be prepared for each implementing measure.
The result of the impact assessment is that either full implementation of the current framework or 'a fortiori' an extension from household appliances to all energy-related products through recast would be the preferred options.
3. Legal elements of the Proposal
• Summary of the proposed action
This proposal extends the scope of the framework ELD from household appliances to cover all energy-related products, leaving it to the implementing measures, after consultation of
Mtoe is mega tonne oil equivalent. The tonne of oil equivalent (toe) is a unit of energy, the amount of energy released by burning one tonne of crude oil, approximately 42 GJ.
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stakeholders and impact assessment, to define the exact type of products to be labelled in implementing measures. Other changes relate to the possibility to implement the framework through regulations or decisions instead of directives, to the legal protection of the Community label against potential abuse, and the possibility to set classes of efficiency under which Member States should not provide incentives or procure.
• Legal basis
The legal basis of this proposal for a recast of Council Directive 92/75/EEC is provided by Article 95 of the EC Treaty, which sets out the principles for the establishment of the internal market. The ELD ensures the completion of a well-functioning internal market with a level playing field excluding technical barriers to trade, the free movement of products falling within its scope that satisfies the labelling requirements laid down in the implementing measures adopted under the Directive.
• Subsidiarity principle
The subsidiarity principle applies insofar as the proposal does not fall under the exclusive competence of the Community.
The objectives of the proposal cannot be sufficiently achieved by the Member States for the following reasons.
National mandatory labelling schemes would create barriers to intra Community trade, generate undue costs for industry and constitute obstacles to the free movement of goods within the Community.
Member States are assigned appropriate responsibilities with regard to the implementation of Community legislation related to energy efficiency of products and market surveillance. This includes the Regulatory Comitology process in which Member States are represented.
Community action will better achieve the objectives of the proposal for the following reasons.
Acting at the Community level is the only way to achieve the objective of the proposal while ensuring that the requirements for products placed on the market are equal in all Member States, thereby ensuring the free movement of goods in the Community.
• Proportionality principle
The proposal complies with the proportionality principle for the following reasons.
This proposal does not go beyond what is necessary in order to achieve the objective, and is therefore in accordance with the principle of proportionality, as set out in Article 5 of the Treaty.
Administrative and financial burden falling upon the Community and national authorities is minimized by including the labelling requirements for all energy-related products in the Directive as proposed.
The possible increase in average production costs which may be incurred by the affected manufacturers can be transferred to users via increased prices of products, such increase is outweighed by the benefits to be gained from reduction of adverse effects on the environment
and monetary savings made by users due to increased efficiency of products during the use phase and reduced running costs.
• Choice of instruments
Proposed instruments: recast of directive.
The proposed instrument is in line with the Inter-institutional Agreement on Better Law-Making and consistent with the option of including the new provisions in the framework of existing Community legislation.
4. Budgetary implication
There is no impact on the Community budget. Administrative expenditure will be covered by the usual annual budgetary allocation.
5. Additional information
• National provisions
Member States shall communicate to the Commission the text of the main provisions of national law which they adopt in the field covered by this Directive and its implementing measures.
• European Economic Area
The proposed act concerns an EEA matter and should therefore extend to the European Economic Area.
• Detailed explanation
Since a number of substantial amendments, relating to the extension of the product scope to include all energy-related products are to be made, the ELD should be recast11 in the interests of clarity. The Commission stresses the importance of not disrupting the ongoing implementation of the present ELD by limiting the proposal to changes that do not affect implementing measures under preparation.
Amendments are introduced into the recitals and provisions of the ELD to reflect the extension of the scope to cover all energy-related products and aim at increasing the effectiveness of the Directive.
In Article 1, the scope for household appliances is replaced by energy-related products and a list is of exemptions is provided for which the Directive is not applicable.
In Article 2, the definition of energy-related product and fiche are introduced and the wording mirrors the definition used in the draft proposal extending the Eco-design Directive.
The relevant rules on recasting of Community legislation apply, namely the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts, Official Journal C 077, 28/03/2002 p.1, and Rules 80 A of the European Parliament Rules of procedure.
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In Article 3, the responsibilities of Member States are set and new provisions are introduced for compliance checking. Enforcement is strengthened and co-operation and exchange of information between Member States are included (as set out in the Eco-design Directive). Member States are required to submit a report every two years to the Commission on their enforcement activities and the level of compliance.
In Article 4, it is made clear that the information requirements also apply to built-in and installed products.
In Article 5, respective responsibilities for suppliers to properly display labels and provide fiches with products are clarified and a new provision is added under which the technical documentation shall be available electronically if requested by market surveillance authorities of the Member States.
In Article 6, the responsibilities for dealers to properly display labels and make fiche and other accompanying literature available are clarified.
In Article 7 labelling requirements are extended to cover distance selling.
In Article 8 provisions are introduced on free movement of products complying with the applicable implementing measure.
In Article 9, provisions on public procurement in line with Directive 2004/18/EC12 and incentives related to the uptake of energy performing products are introduced.
In Article 10 the wording has been amended to reflect the comitology procedure under Decision 1999/468/EC.
In Article 11, the content of implementing measures is extended to set common criteria for having implementing measures to include where appropriate minimum labelling classes and other relevant performance level(s) for public procurement and incentives, and set the duration of label classification(s) and the elements of the label content for advertising by means of distance selling.
In Article 12 a clause is inserted on penalties applicable to infringements of the provisions of the Directive by the Member States, in line with similar provisions already applicable under the Ecodesign Directive.
Article 13 sets the provisions for implementation of the recast Directive by Member States and defines its date of application.
Article 14 repeals Council Directive 92/75/EEC.
Annex I Part A lists the repealed Directive and its successive amendment and Part B lists the time-limits for transposition into national law.
An Annex II contains the correlation table.
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* 92/75/EEC (adapted)
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