The Impact of the Energy Using Products (EuP) Directive on Electronics Manufacturers

By Vic Clements, Environmental Specialist, Radio Frequency Investigation Ltd

The Proposed Energy Using Products (EuP) Directive

This is the one of the most significant environmental directives in terms of its impact to be proposed by the Commission. Until recently environmental legislation in the EU (for example the IPPC regulations in the UK), has been concerned with controlling manufacturing processes in order to reduce detrimental impacts due to pollution. A change of emphasis was heralded with the introduction of the WEEE directive that addresses equipment end of life issues and the RoHS directive prohibiting certain substances in products. Now for the first time, with the advent of the EuP directive, manufacturers of electrical and electronic equipment will have to consider mandatory requirements for the environmental performance of their products across their whole life cycle.

The main drivers behind this proposed legislation are the commitment of the EU to the Kyoto targets for greenhouse gas reduction and the European drive for a sustainable society as enshrined in the Sixth Action Programme and the Integrated Product Policy. The processes of production, distribution, use and disposal of products are major contributors to energy use, use of material resources and pollution and this directive by consolidating legislative approaches on energy efficiency and environmental impacts of electrical and heating products with emphasis on life-cycle thinking, represents a major move towards addressing these issues.

It is at this point in time only a proposal, but the Commission have agreed on a timetable for its introduction. Member States will have to adopt and publish the laws, regulations and administrative provisions necessary to comply with this Directive by 31 December 2005 at the latest. These provisions will apply with effect from 1 July 2006. This would indicate that the directive will come into force towards the end of 2004.The DTI have already initiated stakeholder consultation meetings with a view to forming UK opinions on the various articles and in preparation for drafting the regulations during 2004.

The full title of the proposed directive is:

“Proposal for a Directive of the European Parliament and of the Council on establishing a framework directive for the setting of Eco-design requirements for Energy-Using Products and amending Council Directive 92/42/EEC (Energy efficiency requirements for new hot water boilers (OJ L 167, 22.6.1992,p17 )”.

Its objectives are to create a comprehensive and coherent legislative framework for addressing eco-design requirements of energy using products with the aim of:

·       Ensuring the free movement of energy-using products within the EU

·       Improving the overall environmental performance of these products and thereby protecting the environment

·       Contributing to the security of energy supply and enhancing the competitiveness of the EU economy

The scope of the directive covers “Energy-using Products (EuP)”. This means products which are dependent on energy input (electricity, fossil and renewable fuels) to work as intended and also products for the generation, transfer and measurement of such energy, (excluding means of transport), including parts which are intended to be incorporated into EuP which are placed on the market as individual parts for end-users, the environmental performance of which can be assessed independently. This would certainly embrace all electrical and electronic products.

As a framework directive, It sets the context, scope and legal framework to achieve the objective but, in itself, does not impose obligations or requirements directly on manufacturers - only on Member States. Importantly, rather than setting requirements itself, it defines methodologies and criteria for the setting of general and specific obligations and requirements in separate implementing measures to be introduced by the Commission, assisted by a regulatory committee and which will be binding on manufacturers when they come into force. It will be these implementing measures that will establish eco-design requirements for particular aspects and products. These measures will be binding on Member States in accordance with 1999/468/EC.

The implementing measures will be enacted after the introduction of the directive and while there is no official priority list for which products should be legislated for first, it is highly likely that electrical products and heaters will feature early on.  Typically, implementing measures will contain:

·            Exact definition of type or types of EuP covered

·            Eco – design requirements including the parameters addressed and, when required, specific limits or levels

·            Implementation dates, staged or transitional measures

·            Installation requirements that impact on environmental performance

·            Standards and measurement methods to be used

·            Details of Conformity assessment modules

·            Data and information requirements for monitoring

·            Transitional period for phasing out old products

Generic eco-design requirements are defined on the basis of an environmental impact assessment and Eco-profiling of the product, based on parameters such as emissions to air, soil, water and other forms of pollution and waste generation across the life-cycle of the product. Specific eco-design requirements will be introduced for selected environmental aspects that have a significant environmental impact and these will be in the form of limits on measurable aspects such as water usage in production or energy efficiency during use. The objective will be to reduce adverse environmental impacts and/or meet specific limits on certain parameters. Design measures in accordance with best available practice will have to be taken to reduce adverse impacts and the design solutions adopted must be explained and justified.

Of course the real sting in the tail is that this is a CE Marking directive and will require an EC Declaration of Conformity and affixing of the CE Marking. Of course all the products will already be carrying the CE marking showing compliance with the EMC and LV directives or perhaps the R&TTE directive or Machinery Safety. Manufacturers will now have to sign off that they have properly complied with all the environmental requirements and have evidence to prove it. In this way Eco–design requirements will take their place alongside EMC and Safety.

Like all New Approach directives the EuP requires that compliance is demonstrated through prescribed conformity assessment procedures. In this case there is a choice of two. The Internal Design Control procedure requires the setting up of a technical file containing the evidence of compliance in the form of the assessment, profile design solutions and measurements specified in the requirements. Alternatively, those companies having an Environmental Management System based on ISO14001 or registered under the EMAS and covering product design, can follow Annex V, the EMS procedure. The process is one of self-certification with products subject to post-market surveillance as for other CE Marking directives but the door has been left open for the Commission to to prescribe third party intervention in the implementing measures, when thought justified and proportionate to the risk.

As a proposal the document is open to change and the Member States will certainly be subjected to much lobbying during the drafting stages. At the first UK stakeholders consultation, concern was expressed that the directive did not leave enough room for industry sector voluntary agreements. The UK’s current view is that there should be scope for such agreements where they can deliver the policy objectives earlier or at lower cost than mandatory measures but that it is entirely the responsibility of industry to construct them and demonstrate their suitability. Other issues were the need to ensure that there is a credible surveillance and enforcement regime in all Member States to ensure a level playing field and to discourage free riders and also to recognise the obligation not to set requirements compliance with which will be difficult or controversial to demonstrate and that complex and expensive testing to prove compliance should be avoided.

In summary, the impact of this directive on industry will be profound. In design terms a complete rethink of choices of materials and construction may be required. State of the art solutions to improve environmental performance must be sought and adopted and this must be carried out without detrimental effects on functionality or safety. Product designs will need to be assessed from an environmental viewpoint across their whole life cycle as well as for safety, EMC, function, aesthetics, value engineering and marketing. Design processes will need to adapt. Manufacturing processes will need to address the issues of waste and energy use, while reducing pollution to a minimum. Managers will need to address the procedures and practices required for managing the collection and treatment of their waste products and how they will control the supply chain issues.

Finally, manufacturers will need to think through the question of what resources may be required. New knowledge areas and skills will be needed and training and education on a large scale will be essential. No longer will manufacturers only be responsible for their products’ environmental impact while the products are in production, but over their whole life. Cradle to grave corporate social responsibility is upon us.

Vic Clements can be contacted on tel: +44 (0)1256 851193 or +44 (0)1793 784414 and by email: vic.clements@rfi-wireless.com.

Vic will also be speaking at the EMCUK2004 Conference.