Sustainable Consumption and Production Evidence Base

Sustainable Consumption and Production Evidence Base:

Product Policy and Environmental Tradeoffs

Suggested citation for this report:

Aumonier, S., Madsen, J., Garrett, P., and Wallen, E., 2006. Product Policy and Environmental Tradeoffs, A report to the Department for Environment, Food and Rural Affairs. Environmental Resources Management Ltd. Defra, London.

Contents

1 executive summary 53

1.1 Research Method 53

1.2 Status of the EuP Directive 64

1.3 Results and Findings 75

1.4 Recommendations 1211

2 glossary 1412

3 INtroduction 1816

3.1 Scope of Research 1917

3.2 Report Structure 2018

4 Research Method 2220

4.1 Research Phases 2321

4.2 Literature Review 2321

4.3 Stakeholder Consultation 2422

5 Status of the EuP Directive 2524

5.1 Scope of the EuP Directive (European Parliament, 2006) 2524

5.2 Status of the EuP Directive 2524

5.3 Adoption Timetable 2827

6 Review of Official Directive Texts 3029

6.1 Summary of Findings 3130

6.2 Key Messages 3534

7 Selection of EU Case Study Countries 3736

7.1 Environmental Profile of EuPs 3736

7.2 National Production of EuPs 3837

7.3 Selection of Case Study Countries 4140

8 Literature Review: EU CASE study Countries 43

8.1 UK 43

8.2 Key Messages 46

9 LiTerature Review: Academic Sources 49

9.1 Academic Journals 49

9.2 Conferences and Workshops 51

9.3 Research Groups and Other Initiatives 56

9.4 Key Messages 57

10 Summary of Evidence 5859

10.1 Introduction 5859

10.2 Summary of Evidence 5960

10.3 Key Messages 5960

11 Stakeholder Consultation 6364

11.1 Selection of Stakeholders 6364

11.2 Stakeholder Questionnaire 6566

11.3 Validation of Results 6567

11.4 WEEE 6667

11.5 RoHS 6869

11.6 Eco-Labelling 7071

11.7 Packaging 7072

11.8 EMAS Scheme 7173

11.9 Energy Star 7274

11.10 New Evidence 7374

11.11 Implementing Measures versus Voluntary Agreements 7375

11.12 Key Messages 7476

12 Research Conclusions and Policy Brief 7577

12.1 Issues of Relevance for the UK when negotiating EuP Implementing Measures 7779

12.2 Key Messages and Policy Brief 8183

13 Recommendations 8587

14 References 8688

Annex A Review of Official EU Directive Texts

Annex B Data used to Select EU Countries for Literature Review

Annex C Literature Review: EU Case Study Countries

Annex D Literature Review: Academic Sources

Annex E Evidence Summary and Tests for Robustness and Issue Priority

Annex F Stakeholder Selection and Questionnaire

1 executive summary

The Department for Environment, Food and Rural Affairs (Defra) commissioned Environmental Resources Management Ltd. (ERM) to conduct a project, as part of the Sustainable Consumption and Production Programme, to assess how actions brought about by the EU Framework Directive for setting eco-design requirements for energy-using products (2005/32/EC) have affected, or are perceived to affect, related product policies, including:

· Directive on Waste Electrical and Electronic Equipment (‘WEEE’; 2002/96/EC);

· Directive on the Restriction of the use of certain Hazardous Substances in electrical and electronic equipment (‘RoHS’; 2002/95/EC);

· Directives and legislation related to Eco-labelling (‘Eco-labelling’); and

· Other relevant Directives/regulations.

The objective of the study was to gather a robust evidence base that would support UK policy makers in two main areas:

1. To provide useful information in creating future regulatory impact assessments (RIAs) related to product policy; and

2. To identify issues relevant for the UK when negotiating EuP implementation measures.

Energy-using products (EuPs) account for a large proportion of our economy’s consumption of natural resources and energy. The EuP Framework Directive is the first legislative measure to tackle this area. The Directive aims to reduce adverse environmental impacts across the life-cycle of an EuP, while seeking to avoid shifting environmental burdens onto other parts of the product’s life-cycle.

The research aimed to identify and assess the synergies and conflicts that may exist between the EuP Directive and other product policies from an economic, environmental and policy perspective.

1.1 Research Method

Literature Review

Initially, we conducted a literature review to identify the unintended actions stemming from the EuP Directive with other product policy. The aim was to understand what studies and research had already taken place or was anticipated. We conducted the review in three main phases:

1. A review of the official EU Directive texts and a review of the European Parliament Procedure file on the EuP Directive.

2. A review of government documentation and publicly available data across eleven EU countries by contacting: government departments; trade associations; industry; and others.

3. A more general review of academic literature, activity by research groups and academic conferences to identify relevant issues.

Stakeholder Consultation

The results and findings of the literature review were validated through stakeholder consultation. However, due to the lack of data that was found in the literature review, the consultation was extended to elicit new information. A range of 25 representatives were invited to take part from industry, trade associations, the retail trade, environmental groups, and consumer organisations.

Stakeholders were consulted via a questionnaire that presented our initial findings and were asked to comment and to provide supporting evidence. They were also asked to identify any new or similar issues.

1.2 Status of the EuP Directive

The purpose of the EuP Directive is to establish a framework for setting eco-design requirements for EuPs, which must be fulfilled in order for EuPs to be placed on the European market and/or put into service.

The specific aims of the EuP Directive are to:

· Ensure the free movement of energy-using products within the EU;

· Improve the overall environmental performance of these products and thereby protect the environment; and

· Contribute to the security of energy supply and enhance the competitiveness of the EU economy.

The text is in principle applicable to any product using energy, with the exception of transportation, from sources including electricity, solid, liquid, or gaseous fuels. The EuP Directive became law in August 2005. Member States must transpose the Directive into national laws by August 2007.

The Directive defines a process for introducing implementing measures, which sets standards for eco-design of products or use of voluntary agreements to stimulate change through market forces.

The European Commission initially identified and tendered for 14 studies of candidate products which are likely to be significantly affected by potential implementation measures. A further five candidate products have also been identified. The future timetable for introducing measures is shown in Figure 1.1.

Figure 1.1 Timetable for Introducing Implementing Measures

Source: Brisaer (2006). The Framework Directive on Ecodesign. Presentation given at the Ecodesign Workshop, Copenhagen, Denmark, April 2006.

1.3 Results and Findings

The study identified and assessed 10 potential issues (seven synergies and three conflicts) that exist between the EuP Directive and other product policies.

We prioritised each issue based on several key parameters derived from the RIA guidance provided by the Cabinet Office.

For this study, the environmental and economic aspects cover the range of important aspects relevant for the research. Social aspects were excluded because these focus on topics such as demand for health services; safety at work; and rate of crime or crime prevention, etc. which are not directly applicable to the research scope.

Each issue was prioritised using the following four parameters:

1. Environment: will the issue significantly effect:

i. The level of environmental impact?

2. Economy: will the issue significantly effect:

ii. Certain sectors and groups?

iii. Levels of competition within the sector? and

iv. Enforcement, sanctions and monitoring?

The six issues of highest importance, selected on the basis of key parameters for RIA creation, are briefly summarised below. In general, however, there was a dearth of evidence to adequately describe these issues.

· Issue 2 - Conflict: Under the WEEE Directive, reuse and material recovery are considered the best environmental options. In EuP, greenhouse gas mitigation, through increased energy efficiency, is considered a high priority environmental goal. By focusing on different environmental aspects of the product’s life cycle, there is a potential for conflict.

i. Environmental impact: evidence shows no product specific trade-offs were identified. However, trade-offs in different phases of the life-cycle will need to be considered further on a case by case basis. The results of the 14+5 preparatory studies will support this aim.

ii. Certain sectors and groups: Operators that reuse old technology could be affected. The reuse of older products may delay the launch of higher energy efficiency products onto the market. There is a trade-off between resource conservation in the production phase and energy consumption in the use phase.