The European Union's (EU) Energy Using Products (EuP) Directive

Summary

The first fourteen targets of the European Union's (EU) Energy Using Products (EuP) Directive are decided and consultants have been selected to look at these initial "implementing measures". American companies are encouraged to contact the consultants doing the studies during the exploratory phase in order to get their input considered in the final report. There is nothing to prohibit U.S. firms from fully participating in the studies and thus having a voice in crafting the legislation that will eventually affect their products and their exports to the European Union.

About the Directive

The European Union's (EU) Energy Using Products (EuP) Directive is a far-reaching and possibly problematic piece of EU "framework" legislation that will impact the design, production and marketing of a number of key industry sectors representing some $33 billion worth of annual exports to Europe. Industry is concerned about adverse impacts on design flexibility, new product development and introduction, and the cost of increased administrative burdens, not to mention concerns over intellectual property. As has happened with other EU environmental-based legislation, the Directive has the potential to be adopted by other U.S. trading partners.

The EU framework directive promoting eco-design for energy-using products became law in 2005 and member states have until August 11, 2007 to transpose it into national law. Through this directive, the EU means to regulate the integration of environmental considerations at the design phase of a product with the objective of cutting energy use. Once in place for a product or a product feature, design requirements will become legally binding for all products put on the EU market, regardless of where they are designed or produced.

The EuP is the EU’s approach to force considerations for energy conservation factors into the design phase of a product, where they estimate over 80% of all product-related environmental impacts are determined. The ultimate purpose of the directive is to reduce energy dependency, and to improve the environment, but the drafters of the legislation believe it may also improve other areas too, such as water consumption, waste generation and extension of product lifetime. EU energy using products are targeted for a number of reasons, including a Commission belief that home appliances and office equipment account for over 25% of electricity use, and yet show a poor environmental performance “although they could perform better at little or no cost”. It is also their notion that “regulation is a motor for eco-design activities, in particular amongst small and medium sized enterprises". As with all its environmental legislation, the Commission is convinced that the EuP legislation will ultimately lead to innovation, better products for customers and savings to manufacturers in reduced materials and energy costs.

The EuP legislation committed the European Commission to draw up a working plan of "implementing measures" and to identify products by July 2007, including setting out CE marking requirements, for the items covered by these implementing measures. As the implementing measures go through the legislative process for final adoption, work will be done concurrently on EuP standards by the EU standards bodies, as a result of the Commission mandate to develop standards.

Electrical products are most affected immediately, but the Commission is expected to pen future directives imposing environmental requirements and standards on other sectors and on other kinds of power.

Implementing Measures: the first 14 and next 5 targets

So far, the Commission has identified and has studies underway in the following 14 areas, representing the first targets for implementing measures. Specific draft implementation proposals are expected to follow a few months after the conclusion of each preparatory study, although the required impact study prior to adoption will delay the final implementation of the new requirements:

1. Battery chargers and external power supplies is finished, see final document at http://www.ecocharger.org/finalised_documents.php
2. Public street lighting (due Spring 2007)
3. Personal Computers (desktops & laptops) and computer monitors (due Spring 2007)
4. Consumer electronics: televisions (due Spring 2007)
5. Office lighting (due Spring 2007)
6. Standby and off-mode losses of EuPs (due Spring 2007)
7. Boilers and combi-boilers (gas/oil/electric) (due Fall 2007)
8. Water heaters (gas/oil/electric) (due Fall 2007)
9. Imaging equipment: copiers, faxes, printers, scanners, multifunctional devices (due Fall 2007)
10. Standby and off-mode losses (due Spring 2007)
11. Residential room conditioning appliances (air conditioning and ventilation) (due Fall 2007)
12. Electric motors 1-150 kW, water pumps (commercial buildings, drinking water, food, agriculture), circulators in buildings, ventilation fans (nonresidential) (due Fall 2007)
13. Commercial refrigerators and freezers, including chillers, display cabinets and vending machines (due late Spring 2007)
14. Domestic dishwashers and washing machines (due late Spring 2007)

In addition, the following studies will be launched in 2007:

1. Solid fuel small combustion installations
2. Laundry driers
3. Vacuum cleaners
4. Set-top boxes
5. Domestic lighting

Links to all the studies can be found through this EU Commission Directorate General for Energy and Transportation website http://ec.europa.eu/energy/demand/legislation/eco_design_en.htm#consultation_forum.

Companies wanting to look in to the future to see if their products might be targeted by implementing measures will be interested to read the Commission's methodology study that will be used in determining which other products will be selected for implementing measures. The Commission has stated all along that they do not intend to produce a large number of implementing measures, and that the criteria for selection will be that the product represent an important volume of sales in the EU market, have an important environmental impact at the European level and that the implementing measures should not entail excessive costs.

The Commission intends to establish future implementing measures through a committee of experts known as the “Consultation Forum”. This Forum will be composed of maximum 50 members, including one representative from each Member State and will be open for observers from candidate and EFTA countries. The Commission is still in the process of reviewing the applications for the committee membership. The task of this group of experts will be to contribute to the definition and review of the implementing measures, to monitoring the efficiency of market surveillance and to the assessment of voluntary agreements and other self-regulatory measures taken in the context of the Directive.

In addition to the Consultation Forum, a Regulatory Committee will be created which will assist the Commission in the legislative process.

The Commission has posted many of its actions in regards to EuP on its website http://ec.europa.eu/enterprise/eco_design/index_en.htm and American companies are urged to consult it often for updates.

For More Information

For further information please contact: The U.S. Commercial Service at the U.S. Mission to the European Union at Gwen.Lyle@N0SPAM.mail.doc.gov , Phone: +32 2 508-2746; Fax: +32 2 513-1228 or visit our website: http://www.buyusa.gov/europeanunion.

Disclaimer: The information provided in this report is intended to be of assistance to U.S. exporters. While we make every effort to ensure its accuracy, neither the United States government nor any of its employees make any representation as to the accuracy or completeness of information in this or any other United States government document. Readers are advised to independently verify any information prior to reliance thereon. The information provided in this report does not constitute legal advice.