Implications of EU-U.S. free trade agreement on MEPS-policies

Panel: 2. Energy efficiency policies – how do we get it right?

This is a peer-reviewed paper.

Authors:
Teemu Hartikainen, Lawrence Berkeley National Laboratory, USA
Alan Meier, University of California, USA
Ilkka Ruostetsaari, University of Tampere, Finland

Abstract

The Transatlantic Trade and Investment Partnership (TTIP) will create the world’s largest marketplace and is estimated to increase the trade between the EU and the U.S. by 50 %. The parties involved in the negotiations must still resolve many barriers, including differing regulations and standards for energy-related products. The procedures for policy development necessary to deal with these barriers must also be addressed in the negotiations, or shortly after the agreement comes into force. Minimum energy-efficiency performance standards (MEPS) for energy-related products are among the most important energy-saving policies, yet national strategies and premises strongly differ. The TTIP would require entirely new procedures for regulating product energy use, but as the negotiations are secret, there is considerable uncertainty if the outcome will have any impact on existing institutions and regulations. Enforcement authorities would need to harmonize their policies in order to ensure an even marketplace for economic operators. The establishment of a common product database for regulators and consumers would be a valuable first step. Policymakers should remain vigilant and ensure that the MEPS process remains transparent and higher levels of efficiency are pursued. The overall product energy efficiency gains can be significant and the amount of emissions avoided considerable, but only if the parties agree to harmonize at the more ambitious performance levels.