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EU ponders greener products and consumer habits

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Published 21 February 2008

The Commission has repeatedly delayed publication of its sustainable consumption and production strategy, an indication of the difficulties the EU executive faces in defining its approach to a highly complicated issue that affects a wide range of consumer groups and industry sectors.

  • Weighing up the options

Originally scheduled for publication in December 2007, the Commission's SCP and SIP strategies may now be published in the middle of April, although no definite date has been set, according to a Commission spokersperson. 

Previous ideas floated by the Commission encountered heavy criticism from stakeholders, suggesting Brussels may have gone back to the drawing board at least once.

One proposal by EU Environment Commissioner Stavros Dimas for a 'carbon label' indicating the amount of CO2 emitted during the manufacture of a given product, for example, was strongly criticised by the food industry and consumer groups. 

Separate plans to adopt a Japanese-style system whereby producers in various sectors are presented with a specific deadline to match the energy perfomance of a best-performing manufacturer were also criticised as being unsuitable for the European context by Orgalime, the European Engineering Industries Association.  

  • More of the same?

Stakeholder sources close to the dossier indicate that the Commission is unlikely to propose any entirely new measures in its action plans.

Rather, the Commission may propose an extension of existing 'eco design' requirements for energy-consuming appliances (see our LinksDossier) to other products that do not use energy, such as windows. 

The EU's eco-label scheme may also be extended to other products, but stakeholders disagree on the best criteria and methodology to apply to further labelling schemes. 

EU consumer organisation BEUC says the onus should be on simplicity as eco labels containing too much information will confuse consumers. Jim Murray, the organisation's former director, argues that designing a workable SCP strategy will require "a more realistic understanding of consumers as they actually are, and not as we would wish they were."

  • Finding the right incentives

In order for any policy to be successful, most experts agree that proper incentives must be in place so that cleaner yet more expensive goods can get a foothold on the market.  

Tax incentives are commonly used to stimulate the development goods such as energy efficient appliances, cleaner cars, or renewable energies. But coordinating national tax policies at European level is difficult. 

A recent joint proposal by the UK and France in favour of reduced (and harmonised) VAT rates for green goods and services, for example, did not receive broad support from other member states, which must agree on such measures unanimously (EurActiv 13/11/07). 

Thus emerges a panoply of different tax incentive structures from one member state to the next, a situation that creates uncertainty for businesses and consumers alike, leaving the Commission with the challenge of finding instruments that stimulate demand for green goods without the use of tax breaks.

The issue of incentivising cleaner consumption habits will be the focus of a 22 February session at the European Business Summit (EBS).

Next steps: 
  • 22 Feb.: European Business Summit (EBS) session on Sustainable Consumption and Production (SCP).
  • Mid-April 2008: Tentative date for publication of Commission's SCP strategy.
Background: 

'Greening' the way products are produced and consumed is a challenge the Commission sought to address in its 2003 Integrated Product Policy (IPP) proposal.

But the IPP has been criticised both by NGOs, who argue the policy lacks teeth since it contains no legislative provisions, and businesses, who say its focus on the environment is too narrow and that it should be up to business rather than public regulators to ensure the sustainability of products. 

Partly in response these criticisms, the Commission consulted stakeholders and has begun formulating action plans on sustainable consumption and production (SCP), prepared by DG Environment, and on a sustainable industrial policy (SIP), prepared by DG Enterprise. 

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