Overcoming fear of the unknown….rescaling categorical energy labels in Europe

Panel: 7. Appliances, product policy and the ICT supply chain

This is a peer-reviewed paper.

Authors:
Marie Baton, CLASP, Belgium
Jayond Li, CLASP China, China
Shane Holt, Energy Efficiency Expert, Australia
Michael Scholand, N14 Energy Limited (for CLASP), United Kingdom

Abstract

Categorical energy labels are one of the clearest and most robust policy measures used to inform consumers about product energy performance at the time of purchase. Many countries and regional economies use categorical labels to pull their markets toward better performing, more energy-efficient models. However, as technology evolves, so must the categories on the label in order for the label to retain its relevance. Europe instituted a temporary fix to its Energy Label in 2010 by creating new high-efficiency categories with “+” symbols, but it was understood this was not a long term solution and new approaches are being discussed. One option would be to retain the existing or similar Energy Label design, but shift the current market products from today's highest categories to the middle of a new scale. Some stakeholders have expressed concern over this approach, citing fear over consumer confusion and unintended market consequences. This paper discusses this issue and presents case studies on label rescaling in Australia and China, showing it is both practical and possible, and did not result in market chaos. For example, China’s Energy Label has rescaled several products since it was first implemented in 2005. Stakeholders are comfortable with the revisions, since the key issue for them is fair competition in the market and the revision helps to ensure that. This paper points to the policy maker’s transition strategies in these markets, identifying the best practice that could be applied in Europe such as the steps taken to ensure market surveillance authorities were able to differentiate between the labels and algorithms used to determine compliance. Rescaling is not something that European stakeholders should fear – rather, Australia and China have demonstrated that it offers policy makers a powerful tool to ensure the labels continue to communicate clearly with consumers and help markets to evolve and improve their energy-efficiency.