EC Proposes Extending Scope of Energy Labelling Directive

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EC Proposes Extending Scope of Energy Labelling Directive

November 14, 2008 // Published as a news service by IHS

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Energy Labelling Directive

energy security

The EC proposal seeks to build on the success of this directive by extending its scope beyond household appliances and using it in coordination with additional instruments, such as public procurement and incentives, in order to achieve a dynamic shift of the market towards more energy-efficient products.

Over the last 14 years, the Energy Labelling Directive has proved to be very effective, leading to significant improvements in the energy efficiency of household appliances in the European Union (EU).

The "A-G" label displayed on appliances, such as washing machines, dishwashers, refrigerators and ovens, has permitted consumers to be informed, at the point of sale, about the energy consumption - and hence the operating costs - of a product, thereby driving demand for the best performers.

The EC would like to extend the scope of the Energy Labelling Directive to include energy-using products used in the industrial and commercial sectors, as well as to other energy-related products that have an impact on energy consumption during use, such as insulated windows.

The labelling will be used to indicate, on the one hand, energy consumption/savings and, on the other hand, other relevant and significant environmental parameters of the product during use. The precise modalities of the label will be defined on a product-by-product basis in dedicated implementation measures, after consultation with stakeholders and an impact assessment.

In addition, the EC's new proposal will establish a harmonized base for public procurement and incentives provided by the EU and its member states. The product-specific implementation measures will indicate the energy performance level (corresponding to one of the labelling classes) under which public authorities should not procure or grant incentives. These levels will be set with the aim of guaranteeing net savings for public finances while providing the industry with an EU-wide level playing field.

If fully implemented, the proposal is expected to result in energy savings corresponding to 27 million tons of oil equivalent (MTOE) annually by 2020, which translates into an annual abatement of 80 million tons of CO2 emissions, or equivalent to the annual anticipated emissions of Austria in 2020, based on savings from commercial heating and refrigeration appliances and windows alone.

The revised directive will benefit consumers (by lowering energy bills), manufacturers (by providing a clear and predicable regulatory framework throughout the internal market, with the potential for returns on investments for technology development), and the environment (by reducing CO2 emissions).