Explanatory Memorandum to COM(2006)581 - Conclusion of the Agreement with the Government of the USA on the coordination of energy-efficiency labelling programmes for office equipment

Please note

This page contains a limited version of this dossier in the EU Monitor.

1. This EC/US Agreement contains provisions to coordinate energy-efficiency labelling programmes for office equipment (computers, monitors, printers, copiers, faxes, etc.) with a view to fostering their energy efficiency without creating barriers to trade.

2. This new Agreement builds upon the experience gained during the first period of implementation of a common voluntary energy labelling programme for office equipment - the Energy Star programme – based on the first EC/US Agreement signed in 2000  i.

3. The detailed reasons for concluding a new Agreement continuing the Energy Star programme for a second period of five years, on the basis of the Agreement attached in the Annex, are set out in the Recommendation from the Commission to the Council to open negotiations on the second Energy Star Agreement  i and in the Communication from the Commission to the Council and the European Parliament on the first period of implementation of the Energy Star programme in the Community  i. The main points are summarised below:

· Efficient use of energy is one of the main pillars for a sustainable energy policy in the EC. The Commission’s Green Paper on energy efficiency  i identifies the following major benefits from efficient use of energy: securing the competitiveness of the European economy due to lower spending on energy, environmental protection due to a reduction of carbon dioxide emissions caused by energy use, security of energy supply due to a reduction of energy demand and, hence, reduction of dependence on energy imports.

· Office equipment takes a significant share of electricity consumption in the EC. If no measures are taken, consumption could increase as functionality is enhanced and the stock in offices and households increases. In order to meet the targets set in the Green Paper on energy efficiency, the energy performance of office equipment must be further optimised.

· The EC Energy Star programme provides a framework for coordinating the national efforts of the EC Member States to improve the energy efficiency of office equipment. A coordinated approach is necessary in order to minimise the adverse impact on industry and trade, since uncoordinated national requirements would impose additional costs on manufacturers, traders and, consequently, purchasers and users of office equipment.

· Since office equipment is traded worldwide measures to optimise its energy efficiency should be implemented together with global partners and decision- makers. A harmonised approach reduces programme implementation costs and avoids confusion for consumers. The Energy Star programme provides a framework for coordinating actions to improve the energy efficiency of office equipment with the USA, Japan and other key market players. The Energy Star programme owned by the US Environmental Protection Agency (US EPA) and managed by the European Commission for the EC and for the EEA is therefore the natural platform for measures aiming at improving the energy efficiency of office equipment through labelling.

· The voluntary Energy Star programme is widely accepted by manufacturers. Furthermore, in the U.S.A. it is important for public procurement since the technical specifications have to be observed in public procurement procedures. This provides an incentive for manufacturers to put on the market products complying with the programme’s requirements. As a consequence, the market is driven towards energy-efficient products and significant energy savings could be achieved, provided the technical specifications are demanding (e.g. cover 25% of the models) at the time the criteria are set. The Commission believes that the input of EC experts is an important contribution to developing consistent and demanding technical specifications.

· The Commission and the EC Energy Star Board consider that the Energy Star programme has contributed to improving the energy efficiency of office equipment sold in the Community. This assessment is qualitative because the amount of energy saved in the Community due to implementation of the programme during the period 2001-2006 cannot be quantified. On the other hand, significant potential to improve the energy performance of office equipment in a cost-effective manner still exists. However, the fast pace of innovation and product development cycles require highly flexible instruments, such as voluntary labelling schemes, which can be adapted more swiftly to technological progress and developments on the market.

· The programme enhances transparency on the office equipment market, particularly regarding the energy performance of office equipment. This is a prerequisite for activities aiming at motivating consumers, the tertiary sector and public procurement authorities to include energy efficiency and the total cost of ownership, including the electricity bill, in their purchasing decisions. In particular, the Energy Star database managed by the Commission may be used by national, regional and local authorities as a basis for activities to promote particularly energy-efficient office equipment.

4. As required by the negotiating directives issued by the Council to the Commission, Article I i of the new Agreement contains the requirement that the common technical specifications (the efficiency criteria to be met to qualify for the Energy Star label) must be demanding. This is a prerequisite in order to foster the energy efficiency of office equipment effectively.

5. Annex C to the new Agreement contains demanding and innovative common technical specifications for computer monitors and imaging equipment (copiers, printers, faxes etc.), covering both standby and on-mode energy consumption. Estimates suggest that the new common technical specifications for imaging equipment will save about 17 TWh in EU-25  i during the next three years. New common technical specifications for computers are being developed and are foreseen to come into force in 2007. They can be added to the Agreement by mutual agreement between the Commission and the US Environmental Protection Agency, acting as the management entities for the programme.

6. During the consultations on the rationale for renewing the Energy Star Agreement, the EC Energy Star Board (a consultative forum made up of the Member States, industry and environmental and consumer NGOs) requested that the Energy Star programme should be implemented more efficiently in the EC if the Agreement were renewed. Given that the EC Energy Star Board is consulted on all aspects of the Energy Star programme and given the voluntary nature of the scheme, the Commission considers that there is no need to consult the Council’s 133 “special committee” on issues related to amending the technical Annexes to the Agreement; it would lead to unnecessary delays in the procedure, slowing down the introduction of new technical criteria and, hence, impairing the effectiveness of the programme.

7. In line with the negotiating directives issued by the Council to the Commission, the proposal is that Annexes A (layout of the Energy Star logo) and B (guidelines for use of the logo) may be changed by the management entities pursuant to Article IX of the new Agreement in order to facilitate adaptation to marketing requirements.

8. The European Parliament was informed of the negotiations on the new Energy Star Agreement at the meeting of the Industry, Research and Energy Committee on 30 May 2006.

9. A proposal for a European Parliament and Council Regulation implementing the Energy Star Agreement within the Community is being submitted in parallel to this draft Decision.

10. This Agreement has no financial impact on the budget of the European Communities.