making appliance energy efficiency the new global standard

Nations generally classify their energy use in three broad sectors – buildings, industry, and transportation. Buildings, both residential and commercial, account for approximately one-third of both global energy consumption and energy-and-electricity related CO₂ emissions through the energy consumption of appliances, equipment, and lighting. Energy consuming appliances, equipment, and lighting include items people interact with every day, such as refrigerators, clothes washers, computers, lamps, and copiers, as well as appliances that are often out of sight, such as heating and cooling equipment.

Energy efficiency standards are procedures and regulations that prescribe the energy performance of appliances, equipment and lighting and sometimes prohibit manufacturers from selling products that are less efficient than a minimum level.

There are three types of energy-efficiency standards: minimum energy performance standards (MEPS), prescriptive standards, and class-average standards.

• Minimum energy performance standards (MEPS) prescribe minimum efficiencies (or maximum allowable energy consumption) that manufacturers must achieve in all models of every applicable product. MEPS specify the energy performance but not the technology or design details of the product.


• Prescriptive standards require that a particular feature or device be installed in all models of new products indicated.


• Class-average standards specify the average efficiency required across all models of a manufactured product, allowing manufacturers to select each model’s level of efficiency such that the overall prescribed average is achieved.

Different countries and regions use their own terminology to refer to the general regulatory methods of improving the efficiency of appliances, equipment, and lighting.

• Standards—In North America, for example, the term standards is used to refer to government-established target limits on the energy performance of a product. It’s important to note that in some countries, the term “standards” takes on a different meaning and describes well-defined protocols (or laboratory test procedures) that enable the accredited user to obtain an accurate estimate of the energy performance of an installed product.


• Normas—In Latin America, for example, the terms normas or normas de desempeño energético mínimo are used to refer to government-established target limits on the energy performance of a product.


• Norms and MEPRS—In Europe, for example, the terms norms and minimum energy performance requirements (MEPRS) are used to refer to government-established target limits on the energy performance of a product.

Energy efficiency labels are affixed to appliances, equipment and lighting to describe the energy performance of a product. By telling consumers how much energy a product uses, how efficient it is, or what energy costs to expect, these labels give consumers the data necessary to make informed purchases.

There are two main categories of labels—endorsement labels and comparative labels. Both types of labels pull the appliance, equipment and lighting market toward greater energy efficiency.
  

• Endorsement labels (as shown in India’s endorsement label) are essentially "seals of approval" awarded to product models according to specified criteria. By identifying the set of most energy efficient products for consumers, endorsement labels provide an incentive (market advantage) for manufacturers to build products that are more efficient than the specified criteria. Since there is no indication of which products among those endorsed are more energy efficient, manufacturers may not need to design products that are more efficient than their competitors’ products.


• Comparative labels (as shown in Ghana's 5-star comparative label) allow consumers to compare performance among models of similar products. By allowing consumers to compare the energy efficiency of different models while making a purchasing decision, comparative labels motivate manufacturers to build products that are more efficient than their competitors’ products. Comparative labels may use a continuous scale or discrete categories of performance with minimum criteria for each level.

In addition to presenting information that allows consumers to select efficient appliances, energy efficiency labels also provide a country or region with a common energy efficiency benchmark. This benchmarking makes it easier for utility companies and relevant government agencies to offer consumers incentives to buy energy efficient products.

The scope, reach, and effectiveness of energy efficiency S&L is heavily dependent on the mandatory or voluntary nature of the S&L initiative; the individual product or product class coverage type; and whether the standard or label is used alone or in combination with other directives or policies.

Countries, regulatory bodies and policy makers decide whether or not their energy efficiency standards and labels will be mandatory or voluntary. Endorsement labeling programs are inherently voluntary since they aim to distinguish the most highly efficient appliances within a market rather than eliminate the least efficient products from the market. Comparative labels can be either voluntary or mandatory or they can – as is currently happening in India – begin as voluntary and evolve to being mandatory over time.

Deciding whether a mandatory or voluntary program will be more effective for standards or labels depends heavily on the specific structural, economic, and cultural characteristics of each society.

Energy efficiency standards can potentially be applied to either individual products or product classes. When establishing a standard, policy makers must choose whether to assess the energy consumption of every unit of a product or to assess the average energy consumption across all units in a class of products.

Current trend: Most current energy efficiency standards for appliance and equipment – such as refrigerators, freezers, clothes washers, clothes dryers, dishwashers, air conditioners, lighting products, and other household and office products – apply to each unit of every model manufactured. Manufacturers have the discretion to use any combination of technologies to meet a particular standard. For example, one refrigerator manufacturer may rely on an especially efficient compressor to meet a new standard while another may rely on a super-insulating door. Manufacturers test each model they offer and are expected to control production quality so that every unit meets the standard within a specified tolerance.

Energy efficiency standards or labels can be used in any combination of policies. Rather than implementing a stand-alone program of one type of regulation, many countries or regions use several types of standards and labels to complement each other. Each policy type has a different set of effects on a variety of stakeholders making their coordinated use overall more effective in promoting energy efficient appliances than any policy would be on its own.