The Energy Star label was originally developed by the US environmental protection agency and adopted by the EU through an agreement sealed in 2000. Advances in product efficiency since then mean the proportion of models complying with the label's criteria now approaches 100% in many product classes.

The US-EU agreement expires in June. The commission says the scheme should be renewed for five years but on the basis of fresh, stricter criteria that would mean only 25% of the market qualifies for the label. This will encourage producers to develop further energy savings, it says.

EU trade association Eicta said it had originally opposed the move but came round to the idea after the commission agreed that the 25% condition should apply from the time work begins on the new criteria and not when the criteria are politically approved, a step expected to happen much later.

"This is a more pragmatic approach, it leaves enough flexibility for manufacturers to adapt to the new criteria and will allow us to grow above 25% by the time the criteria come into force," Jan-Willem Scheijgrond of Eicta told Environment Daily.

The Energy Star is used extensively as the standard for public procurement in the US but has been less prominent in the EU. Sources say the US has indicated it will support the EU's revision plans.

In a paper reviewing the impact of the scheme the commission admits that it has no idea how much the Energy Star has contributed to improving the office equipment sector's energy efficiency, but claims the label is the "most adequate" policy instrument to capture further savings.

Follow-up: European Commission , tel: +32 2 299 1111, plus Energy star pages, press release and new Energy Star proposals.