Commission aims to be efficient

The European Commission’s energy efficiency action plan launched last week could set standards across the EU for appliances, buildings, transport and energy generation. These would be applied not just to products produced within the EU but would affect industry worldwide selling goods to Europe. The plan would set requirements for the energy performance of 14 product groups including boilers, water heaters, consumer electronics, copying machines, televisions and lighting.

Limits might also be imposed on carbon emissions from cars.

As many of these products are currently imported into the EU, the plan could greatly affect the EU’s main trading partners such as China.

Conservation groups say the EU has an opportunity with the action plan to set down stringent rules which would help stop energy waste around the planet. "It is absolutely crucial to get the right set of sticks and carrots," says Eivind Hoff, trade and investment adviser in WWF. "The EU needs to create rules which would be better than just fluffy goals that no one really knows where they are going."

Hoff argues that since the EU had already imposed standards on food imports, raising standards on energy efficiency for imports should also be possible. "Given that China is producing energy- efficient products already it doesn’t mean there will be a north-south divide on this issue," he adds.

But such rules may impose severe costs on industry in developing countries and may infringe World Trade Organization rules on barriers to trade. "The EU, as WTO members, should think about the rules. They have a right to impose higher technical standards but these technical standards shouldn’t be regarded as a trade barrier," says one Chinese diplomat.

The EU should also communicate to its trading partners what these standards are and listen to feed-back on how they might be implemented, the diplomat says. Standards could also result in increased costs for consumers, he added.

WTO rules state that standards can be put in place to meet safety or environmental requirements.

But those standards must not discriminate between domestic producers and importers. Rules often have to be phased in rather than imposed immediately.

The European Commission’s energy efficiency action plan launched last week could set standards across the EU for appliances, buildings, transport and energy generation. These would be applied not just to products produced within the EU but would affect industry worldwide selling goods to Europe. The plan would set requirements for the energy performance of 14 product groups including boilers, water heaters, consumer electronics, copying machines, televisions and lighting.

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