Action Plan for sustainable consumption, production and industry

• a proposal to expand the scope of the Ecolabel, and other energy efficiency labelling;
• new rules to favour green public procurement practices;
• a revision of the voluntary eco-management and audit scheme;
• work with retailers and consumers; and
• promoting sustainable production and consumption internationally.
• Labelling

The Commission is proposing that energy efficiency labelling of products be made mandatory for a wider product scope, including energy-using and energy-related products. The Energy Labelling Directive (92/75/EC) requires manufacturers and retailers to provide consumers with labels indicating the energy consumption of a number of household electrical products, such as washing machines and fridges. The aim is for a wider range of products to be included in these requirements, for example, by labelling the insulation capacity of windows or the environmental efficiency of water-saving taps.

One of the main tenets of the new package of actions concerns the EU ecolabelling scheme, a voluntary scheme, established in 1992, which indicates environmentally friendly products on the EU market. Products and services which are awarded the Ecolabel carry the logo allowing consumers to identify them easily. In order to obtain the Ecolabel, a product or a service must meet a number of environmental criteria which have been agreed by experts and stakeholders at an EU level. The criteria vary from product group to product group, but the aim is for only those products and services with the lowest environmental impact over their life span to qualify for the Ecolabel.

The Action Plan aims to extend the label to cover a broader range of products and services, including food and drink products. There are currently 26 product groups covered by the EU Ecolabel, from dishwashers and televisions, through to detergents and shampoos. Under the package of actions, the aim is to broaden the number of product groups to up to 50 by 2015. There will be a stronger focus on products and services that have the most significant impact on the environment or the greatest room for improvement in environmental performance.

The idea is to also make the use of the Ecolabel less bureaucratic, and therefore less costly, thus making the scheme more attractive to manufacturers. It is hoped that by obtaining the Ecolabel, businesses have an advantage with consumers who have been educated to purchase more environmentally friendly goods. Costs will also be reduced, with a small application charge to replace the annual fee paid by companies for the right to use the Ecolabel logo.

Where ecodesign implementing measures are set according to the ecodesign Directive, Ecolabel criteria will be agreed at the same time.

• Green procurement practices

As well as new environmental labelling plans, the package of actions include recommendations for public authorities to encourage the supply of more environmentally friendly goods and services. Ten priority sectors for implementing green public procurement have been selected, based on a number of criteria, including public expenditure, potential impact and economic efficiency. The priority sectors include: office machinery and computers, clothing, uniforms and other textiles and furniture and cleaning products and services.

• Revision of the voluntary eco-management and audit scheme

EMAS, the EU's voluntary Eco-Management and Audit Scheme, is to be revised in order to encourage participation and to persuade organisations even beyond the EU's borders to commit to enhancing their compliance with environmental legislation. EMAS is aimed at helping companies evaluate and optimise their production processes and to make a more effective use of resources. This scheme is to be revised under the Commission's Action Plan, with (voluntary) participation to be made less costly and with the use of the scheme to be allowed outside the EU. It is expected that a revised EMAS Regulation will be adopted in 2009 and will enter into force at the beginning of 2010.

• Work with retailers and consumers

The Commission proposes to create a Retail Forum under the package, to include stakeholders such as producers and consumer groups. The Retail Forum is intended as a discussion group which can promote the environmental performance of large retailers, encourage the purchase of environmentally friendly products and ensure that consumers are well informed.

• Promoting sustainable production and consumption internationally

The Action Plan is to consider means of promoting sustainable production within the EU and internationally. Within the EU, the Action Plan is to develop targets and means by which to promote resource efficiency and eco-innovation. An Environmental Technology Verification scheme is to be set up to aid eco-innovation through new technologies. In addition, an industrial policy is to be set out for eco-industries.

To encourage sustainable consumption and production internationally, the proposals consider methods of promoting good practice, supporting agreements of industry sectors as part of international climate negotiations and promoting international trade in environmentally friendly goods and services.

The Commission notes that industry sectors are starting to develop agreements in order to commit to specific emission reductions or energy efficiency targets. The Commission will also encourage industry sectors to develop agreements on emission reductions and energy efficiency.

Finally, the Commission states that it is to continue to work towards the elimination of tariffs for trade of low carbon technologies and environmentally friendly products and services. Hong Kong traders may recall that the European Commissioner for Trade, Peter Mandelson, was strongly advocating the introduction of zero-tariff regime for key environmentally friendly goods in 2007 (see Business Alert-EU, Issue 15/2007). He suggested that a WTO deal on such tariffs could help provide a business friendly and global solution to climate change. Indeed, on 30 November 2007, the EU and the US announced a proposal for a WTO-wide deal on the full elimination of tariffs on 43 products identified by the World Bank as environmentally-friendly.

Discussions on the introduction of a zero-tariff regime were to come under the Doha negotiations on trade liberalisation; however, following the breakdown of negotiations on 30 July 2008, this policy has certainly taken a knock. However, the elimination of tariffs on environmentally friendly goods remains an issue that the EU is keen to promote and Hong Kong traders should keep an eye out for further developments in this field.

Source: Business Alert - EU

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