# EUR-Lex - 52011DC0889 - EN

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# 52011DC0889

**GREEN PAPER Lighting the Future Accelerating the deployment of innovative lighting technologies /* COM/2011/0889 final */**

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GREEN PAPER

Lighting the Future
Accelerating the deployment of innovative lighting technologies

Lighting accounts for 19% of electricity
consumption worldwide and 14% in the EU[1].
As incandescent lamps are being phased out in Europe[2],
new energy efficient and eco-friendly lighting technologies start to replace
them. Solid State Lighting (SSL) is the most innovative technology emerging in
the market. It is based on light-emitting semi-conducting materials that
convert electricity into light and comprises LED and OLED lighting[3].

SSL was first introduced in traffic lights and
car lights. It is already widely used for lighting displays and TVs and is now
entering the general lighting market. In the next few years, SSL will become
the most energy-efficient and versatile technology for general lighting and
will provide high-quality light and visual performance together with new
architectural and design options for enhanced comfort and well-being[4].

The wide-scale uptake of SSL could contribute
substantially to the objectives of the Europe 2020 strategy for smart,
sustainable and inclusive growth and in particular to its energy efficiency
improvement target[5]. This will have
substantial impact on European users (both consumers and professional users)
and on the competitiveness of the European lighting industry. However, current
SSL products face a number of challenges for wider market uptake: they are
expensive; users are unfamiliar with this new technology and need to develop
trust in its use; the technology is subject to rapid innovation; and there is a
lack of standards.

Europe already has a wide range of policy
instruments in place to stimulate the uptake of energy-efficient technologies,
including lighting, which are subject to regular reviews and updates. Europe
has also acknowledged the key role that the public sector can play to
accelerate market penetration of such technologies through public procurement[6].
Therefore the question is whether new or additional measures are necessary and
feasible at the European level that could help stimulate the rapid uptake of
SSL. If so, which ones?

Europe's lighting industry has a clear role to
play in the transition to SSL. It is large and world-class, and is ready to
build upon its strengths in conventional lighting in order to capitalise on
this emerging technology. However, SSL market uptake is slow in Europe, and SSL
related research, innovation and cooperation activities are fragmented4.
In contrast, in other regions of the world, especially Asia and the USA, the
lighting industry is moving ahead quickly, with the help of significant
government support[7].

To keep pace with the rapidly developing
technology and global competition and to address the above issues, action is
needed now at European level in order to achieve two closely interlinked
key objectives:

(1)
in relation to European users (the
demand side): raise awareness and demonstrate to consumers, professional
users and public procurers that this new lighting technology is of high quality
and saves energy and money over its long lifetime, helping Europe meet its
energy efficiency targets, and propose new initiatives to prevent early market
failure

(2)
in relation to the European lighting
industry (the supply side): propose policies which foster the
competitiveness and global leadership of the lighting industry and contribute
to the creation of growth and jobs in Europe.

This Green Paper is part of the Digital Agenda
for Europe flagship initiative[8] under the Europe 2020
Strategy for smart, sustainable and inclusive growth[9].
The Green Paper sets out the key issues to be addressed in a European strategy
aiming to accelerate the deployment of high-quality SSL for general lighting.
It is designed to help Europe achieve its key energy efficiency, industrial and
innovation policy objectives of Europe 2020.

The Green Paper proposes to launch a
number of new policy initiatives and a public debate in Europe with all
interested parties for accelerating the pace of SSL deployment. It has the
ambition to pro-actively define a coherent set of strategic objectives in
the Union addressing both the demand and the supply side, as well as to lay
down the generic conditions for achieving these objectives as a basis for
future action for all involved players.

The research and business stakeholders,
governments, civil society communities and citizens are called upon to engage
in this debate.

Since the Digital
Agenda for Europe is a cross-cutting initiative, this Green Paper has important
links to several other flagship initiatives of Europe 2020. For example, it is
proposing to apply several of the general policy goals the Union has defined in
its new Innovation[10] and Industrial policy[11]
in the field of SSL. It also proposes a framework of actions related to some
more specific initiatives of the Union such as the Energy Efficiency 2011 Plan6,
the upcoming new framework for research and innovation, 'Horizon 2020'[12],
the Thematic Strategy on Prevention and Recycling of Waste[13],
the Key Enabling Technologies initiative[14] and the
Regional Policy Funds[15].

1.
SSL: a new way to look at lighting

SSL technologies for general lighting
applications comprise LED and OLED light sources, luminaires[16]
and control gear. They produce white light in different colour tones and
variations, from warm to cold white. LED lamps and luminaires integrate
high-brightness LED point light sources. OLED devices are based on organic
light sources (e.g. polymers) that emit light homogeneously from a
two-dimensional surface and can be made in arbitrary shapes and sizes,
including as transparent panels.

LEDs are now a mature technology. OLEDs are not
yet mature[17] and only high-end small
batch products are currently available on the market. Their importance will
increase in the next few years when OLED devices will enter the general
lighting market and will open the door to a range of new lighting applications.

SSL is a breakthrough
in general lighting in several key aspects:

·
Energy efficiency:
New SSL products are as energy efficient as their most advanced counterparts
(fluorescent or halogen lamps), which are close to their optimum performance
level. In the next few years, SSL will outpace any existing lighting technology
in terms of energy efficiency. It will allow significant energy savings[18]
in well designed, installed and operated smart lighting installations[19]
and result in a significant contribution to CO2 reduction at
European level[20].

·
Lighting quality and visual comfort: SSL offers high-quality lighting[21] and visual
comfort in terms of colour rendering (vivid saturated colours of illuminated
objects) and dynamic control (light spectrum, instantaneous switching and
dimming). It has long lifetimes[22]
with decreased maintenance costs and does not contain
mercury. It is easily controllable in intensity and colour, allowing adjustment
of the lighting according to the application demands or users' personal wishes.
Ongoing studies also show that the ambient lighting conditions which some LED
lamps create contribute to well-being and optimised learning and working
conditions (e.g. in schools and offices), and positively influence people's
vitality, concentration and alertness[23].

·
Design and aesthetics: SSL technology gives lighting designers and industry an almost unlimited freedom to develop new lighting concepts
and design parameters. It enables new forms of luminaires and lighting systems
including their full integration into building elements (walls, ceilings,
windows). OLEDs in particular will pave the way to
completely new lighting applications and will be a key part for developing
thin, highly efficient light panels allowing maximum design flexibility. By
combining colour and shape, LEDs and OLEDs will create new opportunities for
customising personal surroundings with light, thereby contributing to comfort
and well-being.

·
Innovation and new business opportunities: The combination and exploitation of the
wide range of SSL characteristics and benefits will create many new business
opportunities for the lighting industry and will lead
to a change in business models: from selling light
sources and luminaires to their integration into furnishing and buildings; from
selling replacement lamps to selling intelligent lighting systems and solutions
and to creating new utility-type markets for selling lighting as a service.

Intensive manufacturing and research activities
all over the world promise to further improve SSL performance (i.e. energy
efficiency and quality) and substantially reduce costs in the next few years.
For example, state-of-the-art white LEDs have already reached
30-50% efficiency[24], have luminous efficacies[25]
of 100-150 lumen/Watt (lm/W) and a colour rendering index (CRI)[26]
of 80. Target values for warm white LEDs in the next 10 years are: 50-60%
efficiency, more than 200 lm/W efficacy and a CRI of over 90. State-of-the-art OLED
products are around 50 lm/W today. While their efficacy is expected to always
stay below that of LEDs, the added value of OLED technology will come from its
size, flexibility and opportunities for new applications.

In 2010, total
market revenues of general lighting worldwide were around 52 billion euro of
which close to 30% was spent in Europe. By 2020, the world market is projected
to reach 88 billion euro with Europe's share decreasing to less than 25%[27].
Current market penetration of SSL in Europe is very low: the LED market share
(in value) reached 6.2% in 2010. Several studies predict that SSL will account
for more than 70% of Europe's general lighting market by 202027.

Europe faces the challenge of removing existing
barriers to deliver SSL's potential while helping the European lighting
industry to remain at the forefront of global competition.

2.
SSL and European Users
2.1.
A large potential for SSL deployment in Europe

Lighting is an essential service for domestic
use, in public spaces and other applications, from advertising panels,
automotive, traffic and street lights to public offices and buildings. In
Europe, professional lighting (non-residential buildings and street lighting)
accounts for 52% of the total market revenues and residential lighting for the
rest27. Office buildings use up to 50% of their total electricity
consumption for lighting, while this share is 20-30% in hospitals, 15% in
factories, 10-15% in schools and 10-12% in residential buildings[28].

While LEDs have become available on the general
lighting market as spotlights integrated in ceilings and as
"retrofit" light bulb replacements, recent LED technology advancement
has allowed their integration and use in far more demanding applications:
street lighting, high-brightness indoor and outdoor lighting, retail displays,
general merchandise lighting, etc. Shopping malls quickly followed the trend
and some achieved energy savings of 60% and payback times of about 3 years[29].
LED lighting is also appreciated in hotels where refurbishments achieve up to
90% higher efficiencies compared to previous installations[30].
The potential for LED deployment in Europe is very large, as 75% of existing
lighting installations are older than 25 years[31].

First studies on the full life cycle impacts of
LED lighting compared to other lighting technologies have already been carried
out28. The full life cycle impacts need to be further monitored as
LED technology evolves. In the future, SSL applications may be widely deployed
beyond the mere replacement of existing lighting systems, such as integration
into furniture or buildings. In the long run, this could reduce the expected
energy savings, an effect known as the rebound effect[32].

Lighting accounts
for 50% of the electricity consumption of European cities[33].
Increasingly, cities are developing sustainable urban lighting strategies
integrated with urban development policies and implemented in close cooperation
with lighting designers, architects and town planners. The potential of SSL to
become the replacement technology for more than 90 million traditional street
lights in Europe and its fast evolution are motivating many European cities[34]
to launch pilot actions to familiarise themselves with this technology, to
experience its main benefits and to understand possible drawbacks. Some Member
States are funding SSL pilots or various innovation activities[35].
In other cases, public private partnerships are being set up and take the
responsibility for public lighting over a period of 20 to 30 years[36].

2.2.
Issues and challenges for SSL uptake by European
users

A large range of SSL products tailored to the different
needs of users already exists on the market. However many challenges still
exist for SSL uptake by consumers, professional users and cities which require
the adoption of a European approach. The following main issues must be
addressed:

Issues for consumers and professional users

–
Low-quality LED products: While there are already some
good-quality LED products on the EU market, many LED products on offer are
rather poorly designed and manufactured, emitting low-quality cold white light
and are mainly serving as replacement lamps. Consumers also experience much shorter
actual life times than those claimed on the package[37].
Minimum quality requirements for LED products are considered a key factor to
guarantee consumer satisfaction in LED lighting and to grow the LED market.
Member States are responsible for monitoring the performance and safety of
products sold in the EU market holding the CE marking label (market
surveillance). An efficient market surveillance scheme is a prerequisite
for the uptake of high-quality LED products in the EU market.

–
High initial purchase cost: Rapid advances in SSL technology
components and manufacturing processes and heavy investment from various
companies lead SSL costs to drop at a rate of 30% per year. However, in the
foreseeable future LED lamps will continue to be more expensive than other
existing lighting technologies[38]. As high-quality LEDs
offer long lifetimes, they have reduced maintenance costs. Professional users
need to make their purchasing decisions on a lighting product based on
calculation of its total cost of ownership (TCO)[39].

–
Users are generally not fully aware of
advantages and capabilities of SSL technologies: They do not yet consider SSL as an
important low-carbon technology and are not able to weigh up SSL costs against
its advantages.

–
Insufficient or poor product information: When consumers decide to buy SSL
products, they have difficulty in buying the right one as they need to
understand various technical properties, which are not provided or are often
poorly explained on the product package (e.g. misleading equivalence claims
about their light output, etc.).

–
Concerns for biological safety (the
"blue light hazard"): Concerns have
been raised concerning health effects of LED light on the retina caused by the
light's blue spectral component[40]. However, the SCENIHR[41]
draft report on "Health effects of artificial light" did not identify
any evidence that blue light from artificial lighting (which includes LED lamps
for consumers) would pose a particular risk. SCENIHR's preliminary
recommendation is nevertheless to consider measures against the misuse of
artificial lighting in general.

–
Rapid technology obsolescence and missing
standards: Users
hesitate to invest in SSL in view of continuing price drops and speedy
technological improvement (LED efficacy doubles in the labs every 18-24
months). Gaps, including safety gaps, currently exist in
SSL technology standardisation.

In addition, the following challenges need to
be addressed for SSL deployment in cities and private buildings:

Specific challenges for large SSL deployment in cities

–
Cities are not aware of, hesitate or do
not have enough incentives to replace old outdoor lighting technologies by more
energy efficient SSL: Today many cities are reluctant to use
SSL widely in outdoor lighting mainly because of the
relatively high upfront investment cost, which clashes with tight annual city
budgets (even if this is generally offset by significantly lower lifetime
costs). Other reasons include lack of trust quality certification schemes and
of standards to develop proper specifications.

Specific challenges for SSL deployment in
private buildings

–
The landlord-tenant conflict: This is the mismatch of interests that
exists between the building owner, who pays the initial price of the lighting,
and the user who usually pays the running costs[42].
This inhibits the adoption and energy saving opportunities afforded by energy
efficient lighting6.

2.3.
Initiatives for the uptake of SSL by consumers
and users

EU policy and legislative
instruments applying to SSL products

A broad range of EU instruments, both voluntary and mandatory,
already exist that are relevant to SSL and will tend to support its further
deployment through minimum performance and safety requirements for SSL
products. Main instruments include: Ecodesign[43],
Energy labelling[44], Ecolabel[45],
the Low-Voltage Directive or the General Product Safety Directive[46],
the Directives on the Restriction of Hazardous Substances (RoHS) and on
Waste Electrical and Electronic Equipment (WEEE)[47],
Green Public Procurement (GPP)[48] and the New
Legislative Framework[49].

These instruments are reviewed at regular intervals to reflect
technological progress and possibly new EU policy in the fields. In particular:

–
Measures implementing the Ecodesign and Energy
Labelling directives and the Ecolabel Regulation for light sources are
currently under revision or development: The Commission intends to adopt a new
Ecodesign regulation that will cover directional light sources (reflector
lamps). It will introduce compulsory EU legislation on directional lamps with
minimum functionality requirements for all LEDs (non-directional LEDs already
have to comply with minimum energy efficiency requirements under an existing
Ecodesign regulation)[50]. In the revised Energy
labelling regulation, the Commission intends to include LEDs and all kinds of
directional and professional lamps[51].

–
The Low-Voltage Directive will be aligned with
the New Legislative Framework46.

–
By the end of 2011 the new EU Green Public
Procurement (GPP) criteria for "indoor lighting" will be adopted and
the existing criteria for "street lighting & traffic signals"
will be updated.

–
Revised Ecolabel criteria for light sources in
order to include specifically LEDs are under consideration for development in
2012.

In addition to the above:

–
GreenLight[52] is a
voluntary initiative encouraging non-residential electricity consumers (public
and private) to reduce their lighting energy use by installing energy-efficient
lighting technologies in their facilities;

–
The International Energy Agency (IEA) is
currently addressing the issue of SSL global quality by developing an SSL
quality assurance scheme[53], contributing to
harmonisation of performance testing and working to develop accreditation
infrastructures[54].

In view of the identified challenges further
action is needed to accelerate SSL deployment in Europe:

The Consumers perspective

–
The lighting stakeholders and/or consumer
associations are invited to organise awareness campaigns for increasing user
awareness of SSL products and for helping them to understand how to choose the
SSL products consumers need.

–
Member States and the lighting industry need to
ensure that SSL products sold in Europe conform to EU legislation on performance
and safety requirements.

–
The Commission will continue to monitor the
developments regarding potential effects of LED lighting technology on
consumers' health.

Questions:

(1)     How would you propose to overcome the challenges outlined
above for the wider market penetration of SSL technologies in Europe?

(2)     Which additional challenges do you see for a wider SSL
market penetration in Europe and which solutions would you propose to resolve
them?

(3)     What can Member States do to reinforce market surveillance of
product performance and safety in the area of SSL lighting products?

(4)     What could the lighting industry do to ensure the
performance of SSL products?

(5)     What can be done to raise awareness of consumers and
professional users to SSL technologies and which specific measures and
incentives would you propose for accelerating SSL uptake?

Creating SSL lead markets for cities

Green Public
Procurement (GPP) can be used by public authorities for supporting the wider
deployment of energy-efficient lighting in cities or buildings. Many Member
States have adopted their own approaches at national level for supporting green
procurement.

A number of financial instruments already exist
for cities to finance feasibility studies for investments in sustainable
energy, including lighting, at local level. An example is the ELENA technical
assistance facility[55] or the European Energy
Efficiency Fund (EEE-F)[56].

Enabling cities to deploy SSL at an early stage
would permit them to become the leading markets for SSL products in Europe.
This would, however, require a close cooperation between responsible municipal
authorities and the lighting industry. It would help cities understand the
advantages of SSL and the range of existing choices tailored to their needs,
benefit from best practice experience, and, define adequate instruments for the
fast deployment of SSL.

In order to prepare for the creation of SSL
lead markets in European cities, the Commission is considering the following
actions:

–
Invite representatives from cities, the SSL
industry and other relevant actors to set up a dedicated Task Force with the
mandate to propose a roadmap and an implementation plan for the creation of an
SSL lead market in European cities. Such a mandate may include setting up
innovative financial schemes and public private partnerships, as well as
mechanisms for the sharing of information and best practice experience.

–
Invite cities to use ELENA and EEE-F, existing
structural funds and other financing mechanisms to plan SSL large scale
deployment.

–
From 2012, organise a number of dedicated
awareness-raising events addressing European cities[57],
in close cooperation with the CIP SSL pilot actions[58]
and the Member States and Regions supporting SSL pilot actions addressing
outdoor lighting along with all other interested stakeholders.

–
Seek new mechanisms that can be used for the
implementation of large scale pilots, demonstration and deployment actions involving
smart lighting systems in European cities and regions. Such actions are
included in the investment priorities of the new Cohesion Policy (2014-2020)
and could be the basis to build up a potential European Innovation Partnership
on Smart Cities10.

Creating SSL lead markets for buildings

Concerning public buildings,
policy and legislative instruments exist or will soon enter into force that can
also support the deployment of SSL:

–
Green Public Procurement can be used by
public authorities for supporting the wider deployment of energy-efficient
lighting in public buildings[59].

–
The proposal of the Commission for a Directive
on Energy efficiency[60], which is putting into
practice key parts of the Energy Efficiency Plan, includes several elements
that could foster the uptake of SSL technology and lighting services in public
buildings. In particular, it proposes that Public Authorities shall purchase,
in general, only products including lighting products, which belong to the
highest energy efficiency class, as will soon be the case for LEDs. The uptake
of energy efficient lighting technologies in buildings will be also fostered
through the obligation for utilities to implement energy saving measures for
end-users and the obligation for the public sector to renovate publicly-owned
buildings.

–
The Energy Performance of Buildings Directive
(EPBD)[61] requires all new public
buildings to become near-zero energy buildings by 2019 and will be extended to
all new buildings by 2021. Under the Directive, Member States are responsible
for setting minimum requirements for the energy performance of buildings. A
regulation is under preparation providing a methodology for calculating
cost-optimal levels of minimum energy performance requirements for new and
existing buildings (both residential and non residential). The regulation also encourages
Member States to calculate and set cost optimal requirements at a systems
level for lighting systems for existing non-residential buildings or derive
these from the calculations done at buildings level.

Concerning residential
buildings, there is also a need to put in place financial and other
incentives for users to buy and install SSL technologies. Innovative
contracting models could also be put in place, where e.g. lighting would be
procured as a service from companies which carry the investment for the SSL
installation and whose return is based on the energy savings achieved with the
new lighting installation[62]. The proposed Directive
on Energy Efficiency promotes such energy performance contracting models.

The following actions could accelerate the
creation of SSL lead markets in public and residential buildings:

–
Public authorities are invited to promote the
wide deployment of SSL technologies when they renovate public buildings.

–
Member States are invited to provide incentives
to individual consumers to replace present lighting systems in their homes by
SSL.

Questions:

(6)     What could be done to overcome the landlord-tenant conflict?

(7)     Which additional measures could help accelerate SSL
deployment in buildings?

3.
SSL and the European Lighting industry
3.1.
The European lighting industry and challenges
for its further development

Europe's lighting industry is large and
world-class: it employs 150,000 people and has an annual turnover of 20 billion
euro. The sector is highly innovative, but highly fragmented along the value
chain4. Alongside a number of large global players it consists of
several thousand SMEs, primarily active in the luminaire sector.

In the area of SSL,
Europe is home to two of the four largest global LED manufacturers4,
although actual production takes place only to a limited extent in Europe[63].
Europe is also well positioned in the emerging OLED lighting technology, but is
struggling to turn R&D leadership into business success and put on the
market innovative products that could be mass-produced in Europe using
large-area manufacturing processes.

The wider
deployment of SSL will impact lighting as a business. For the next 3-5
years, the retrofit business[64] is expected to dominate
the SSL market underpinned by the ongoing phase-out of conventional
incandescent light bulbs. As LED lamps become dominant, a gradual shift of
business will take place from selling replacement lamps to selling
luminaires, and in particular to selling intelligent lighting systems
and lighting services. The possibility to customise lighting
characteristics to specific users' requirements will provide new business
opportunities in response to the challenge of an active and healthy ageing
population. Due to the high initial investment cost, SSL lighting systems and
services will open the way for innovative financing models such as leasing or
contracting, starting with large building installations and outdoor
applications. Intelligent and communication systems will
gradually transform the industry to lighting system and service providers.

This shift to intelligent lighting systems and
services will have a major impact on the luminaire and services market.
Increasingly, major players in the lighting industry are entering the market of
lighting services, engendering consolidation of the lighting industry. Furthermore, tailor-made solutions will become a growth opportunity
for the lighting industry, benefiting from LED technology's potential particularly
when combined with intelligent light management systems for creative lighting
design and large cost savings[65].

This change of business
models will require enhanced cooperation of European lighting and luminaire
manufacturers with many other players along the extended value chain
including: wholesale and retail, urban planners, architects and lighting
designers, electrical components/systems manufacturers and installers, facility
management and building construction industry, and lighting service companies.
Europe is leading the competition in building control systems and lighting
services and can capitalise on a large, vibrant and renowned lighting
architecture and design community. Vertical integration along the value chain
is already taking place and is expected to continue.

The next 3-5 years will be pivotal in
establishing leading SSL market players. European industry is in principle in
an excellent position to build upon existing strengths so as to capitalise on
the emerging SSL technology. However, the European lighting industry is already
under significant pressure, as new –mainly Asian– players from the LED
backlighting industry for flat panel displays and TVs enter the general LED
lighting market. All these factors will significantly transform the global
lighting industry for the next decades.

3.2.
A European strategic approach for a competitive
SSL industry in Europe

It is from this background that a European
strategic approach for a competitive SSL industry is required. In particular,
the following key issues related to the evolution and competitive development
of the European SSL industry need to be addressed.

–
The "valley of death": SSL is part of Photonics, a Key Enabling Technology (KET).
A High Level Expert Group (HLG)[66] on KETs has identified
the major difficulties Europe has in translating its ideas into marketable
products[67]. To cross this
"valley of death", it recommends a strategy comprising three pillars
focusing on: (i) technological research; (ii) product development and demonstration;
(iii) world-class, advanced manufacturing. Based on this three-pillar bridge
model, the HLG has made a series of specific policy recommendations for more
effective industrial development and deployment of KETs in Europe.

–
Strengthening the SSL value chain (from raw materials to manufacturing and final products, including
component and equipment suppliers): this is needed to overcome existing fragmentation
in the lighting industry. OLEDs will further blur the borders between
manufacturers of lighting sources and luminaires and will accelerate the
ongoing consolidation in the lighting sector.

–
Fostering the cooperation between the SSL
industry and the other involved players along the extended value chain. Enhanced cooperation is essential for the development of new
business models and for moving from lighting products to lighting systems and
services, where Europe has a lot of assets to become world market leader.

–
The future of SSL manufacturing in Europe: The European SSL industry will need to take strategic decisions on
the future of SSL manufacturing in Europe, regarding both LED and in particular
the emerging OLED lighting technology.

–
Securing the supply of scarce raw
materials and recycling of end-of-life SSL products: In the years to come, European industry will be confronted with
the challenge of securing the supply of scarce raw materials[68],
which are required for SSL production but of limited availability due to
existing quasi-monopolies and export restrictions[69].
This is mirrored by the challenge to improve the technology in order to reduce
the input of scarce resources and by the challenge to recycle them, in line
with the Raw Materials Flagship Initiative[70] and related
roadmap[71].

The further
development of the European SSL industry, its innovation capacity and global
competitiveness will also critically depend on the following issues:

–
Standardisation: A strategic development and use of standardisation and the
effective promotion of relevant standards worldwide[72]
can help to position European industry as leader in global markets.

–
IPR and innovation: Access to intellectual property rights (IPR) is a key issue for
SSL competition and innovation, for both industrial heavyweights and SMEs. SSL
world players tend to cross-license IPR at favourable conditions. An increased
cooperation between large industry and SMEs would help accelerate the
development of innovative SSL products in Europe.

–
Access to low cost routes of investment: Innovative
SMEs often lack access to low cost routes of investment, which would
enable them to grow and leverage their technology know-how. This has
significant long term consequences for Europe as many SMEs will not be able to
invest rapidly in new SSL technologies which are vital to establish a long
term, vibrant supply chain with such a disruptive technology.

–
Learning and Training: There is an increased need for the lighting sector to attract and
train new scientists and engineers in order to counter the foreseeable skills
shortage problem[73]. On the uptake side,
luminaire SMEs, electrical installers, resellers, urban lighting designers and
planners and more generally public procurers of lighting require dedicated
learning and training in SSL in order to understand how to best install or use
them.

3.3.
Initiatives for strengthening the SSL value
chain

A research and innovation perspective

EU research and innovation funding
and initiatives
in the current programming period (2007-2013)

The seventh Framework Programme[74] (FP7)
contributes more than 90 million euro to support research in SSL across the EU.
Activities cover research in LEDs and OLEDs and in their manufacturing
processes. The NMP Theme supports materials research for more efficient light
sources. The ICT Theme supports research aiming at significantly improving the
functionality, quality and performance of SSL-based lighting applications. The
ENIAC Joint Undertaking[75] funds R&D addressing
the development of affordable SSL solutions across the entire value chain.
Further R&D opportunities for SSL are provided in the respective
work-programmes of these themes for 2011-12.

The Competitiveness and Innovation Framework Programme (CIP)[76]
supports i.a. lighting-related innovation activities and provides better access
to finance. The CIP Intelligent Energy Europe (IEE)[77]
Programme finances several support measures related to SSL for raising consumer
awareness, supporting Member States in market surveillance activities or
helping them implement intelligent lighting solutions. In 2012, the CIP ICT
Policy Support Programme[78] will support several SSL
pilot actions with about seven million euro with the aim of demonstrating the
latest SSL technologies and to widely disseminate the results in Europe.

Through the Cohesion policy[79], Structural
Funds are used by several European regions to enhance their capacity to change
and innovate in SSL[80]. Their investment
focuses on R&D and innovation activities, pilot manufacturing lines and
human capital development e.g. in the emerging OLED area.

The Commission is considering the following
actions:

–
A mandate to the European Standard Organisations
(ESOs) to develop standards[81] together with industry
and relevant stakeholders, and in cooperation with international standardisation
organisations.

–
SSL pilot actions aimed at raising EU-wide
awareness in SSL technologies by demonstrating their innovative character in
public and commercial spaces. The pilots are planned to be launched in early
2012 and will work in close synergy with similar actions launched by some
Member States to maximise their impact.

–
Several initiatives of relevance to the KETs
(and SSL) industry, whose launch is envisaged during 2011-2013. Examples
include: Horizon 2020, the new framework programme for research and innovation
(see below), the new cohesion policy for the period 2014-2020 (see below), the
revision of state aid rules, the establishment of new financial instruments for
supporting KETs, or the set-up of a scheme for monitoring progress in implementing
KETs.

–
In the last two years of FP7, the NMP and ICT
themes will continue to fund R&D on new lighting sources and systems and on
novel materials for the replacement of critical raw materials such as phosphors[82]
or on full three-colour white LEDs. Particular emphasis will also be paid to
standardisation and research of end-of-life, disposal and recyclability issues
of organic lighting.

–
In the last year of the FP7 ICT Theme, a
dedicated action for SMEs could be introduced aiming at supporting innovation
activities for SMEs (including lighting SMEs) and at facilitating their access
to new knowledge and manufacturing capabilities.

–
With Horizon 2020 a step change for Europe's
research and innovation performance in photonics in general and in SSL in particular
is proposed. Under Horizon 2020, the Commission shall consider supporting the
creation of a Public Private Partnership (PPP) in Photonics. Such a PPP will
put a clear emphasis on addressing the full research and innovation chain from
materials to pilot actions. The Commission invites the SSL stakeholders to
participate in the elaboration of the PPP's main focus and strategic
objectives, its governance structure and role and responsibilities of the
participating parties and, the industrial commitment and the monitoring of its
impact through relevant indicators.

–
In the investment priorities of the new Cohesion
policy (2014-2020), the Commission has proposed to introduce KETs (including
SSL) as part of regional smart specialisation strategies[83].
This will include mechanisms that can be used by the European regions for
supporting KETs-related technological and applied research, pilot lines, early
product validation and large scale demonstration actions, and advanced
manufacturing capabilities.

Questions:

(8)     What measures, beyond the ones above, could further support
research and innovation and the reinforcement of the SSL value chain in Europe?

The lighting industry's perspective

In order to
overcome the challenges and shortcomings mentioned above, in particular the
move to a whole value chain approach, the European SSL industry will also need
to take action. In particular, industry is invited to:

–
launch its own industrial initiatives that
extend the present scope and existing business alliances; in particular, it
should strive to create win-win cooperation platforms both along the
conventional lighting value chain (including closer cooperation between large
lighting companies and SMEs) and along the extended value chain

–
match public support to a Photonics PPP under
"Horizon 2020" with a commitment to invest in Europe, including
investing in SSL manufacturing

–
work with consumers to develop new
functionalities for lighting applications which would encourage faster uptake
and influence peoples' well-being

–
work with the European Standardisation
Organisations to address the open issues related to SSL standardisation,
including on safety issues, environmental aspects and procedures and common
methodologies for measuring the performance of SSL products and systems

–
further engage in assessing the full life cycle
impact of SSL products

–
use all existing mechanisms for launching
vocational and lifelong learning and training of electrical installers and
resellers and of other professional and public users, as well as to work
towards amending university curricula in lighting technologies.

Questions:

(9)     Which other actions could be taken by industry to reinforce
sustainable SSL manufacturing capacity in Europe?

(10)   Which additional actions can reinforce cooperation along the
value chain, in particular with architects and lighting designers, electrical
installers and with the construction and building industry? What should
be the role of the Member States and the EU in making it happen?

(11)   Are there gaps in standardisation today which hamper SSL
innovation and deployment? If yes, where are such gaps and how can they be
addressed?

(12)   Which actions should Member States and industry take to
support education, vocational and lifelong learning and training on SSL and to
address the adaptation of educational curricula to include the latest lighting
technologies?

Working further together to deliver the
EU's approach to SSL

–
A closer coordination of the efforts in the
field between the Commission and representatives from the SSL lighting industry
and the extended SSL value chain would be advantageous.
The Commission therefore invites the representative SSL
stakeholders to closely interact with the Commission in order to periodically review progress achieved, and propose launching new
actions for achieving the ambitious objectives set out in this Green Paper.

4.
Public debate and further steps

The Commission believes that the initiatives,
issues and questions raised above are the key aspects to be considered in view
of the policy target of accelerating the deployment of high-quality SSL.

Member States, the
Parliament, and other countries are invited to promote the debate with their
stakeholders. To support the debate on these questions, a variety of social
media will be used, including a public consultation website: http://ec.europa.eu/information_society/digital-agenda/actions/ssl-consultation/index_en.htm

The Commission
invites all interested parties to submit their contributions by 29 February
2012. Contributions do not need to cover all of the questions raised in
this Green Paper. They can be limited to questions of particular interest to
you. Please indicate clearly the questions to which your contribution relates.

Received contributions, together with the
identity of the contributor, will be published on the Internet unless a
contributor requests otherwise. It is important to read the specific privacy
statement attached to this Green Paper or information on how your personal data
and contribution will be dealt with.

The results of the public consultation will be
published on the Internet. They will feed into the reflection on the necessity
for the Commission to take new measures in the future.

[1]               Guide on the Importance of Lighting, 2011, www.celma.org

[2]               Commission Regulation (EC) 244/2009. The phase-out
will be completed by 1 September 2012. About 8 billion bulbs in the homes of
European citizens are expected to be replaced in the next few years

[3]               LED = light emitting diode; OLED = organic LED

[4]               Second Strategic Research Agenda of the European
Technology Platform PHOTONICS21, 2010

[5]               By 2020: increase by 20% energy efficiency (compared
to 1990 levels)

[6]               COM(2011) 109 final

[7]               The USA in 2009 put in place
a long-term SSL strategy (from research to commercialisation). China is
implementing a municipal showcase programme for LED street lighting involving
more than 21 cities; it is granting significant subsidies to LED manufacturing
plants and aims to create 1 million related jobs in the next 3 years. South Korea
has defined a national LED strategy with the goal to become a top-3 world
player in the LED business by 2012

[8]               COM(2010) 245 final/2

[9]               http://ec.europa.eu/europe2020/index_en.htm

[10]             COM(2010) 546 final

[11]             COM(2010) 614

[12]             http://ec.europa.eu/research/horizon2020/index_en.cfm

[13]             COM(2011) 13 final

[14]             COM(2009) 512

[15]             COM(2011) 615 final

[16]             i.e. lighting fixtures and lamps

[17]             OLEDs are expected to become a mature technology in the
next 3-5 years

[18]             According to reference 4, SSL
sources can push potential energy savings up to 50% and combined with
intelligent light management systems up to 70% compared to today's consumption

[19]             SSL lighting combined with intelligent controls that
permit presence detection, daylight control etc. SSL lighting can be more
flexibly controlled in terms of beam angle, light colour, dimming or frequent
switching compared to other energy-saving lamps such as compact fluorescent
lamps (CFL)

[20]             In 2009 the total electricity consumption in the EU 27
amounted to 2719 TWh (Eurostat), of which 14% for lighting. Up to 266 TWh could
be saved assuming up to 70% energy savings

[21]             Lighting quality includes: colour quality (including
appearance, colour rendering, and colour consistency); illuminance levels (the
amount of light a light source provides for a task or on a surface);
photometric distribution of the light source in a luminaire; lifetime; ease of
maintenance; and cost

[22]             LED life expectancy is 25,000-50,000 hours (up to five
times that of CFLs)

[23]             See e.g. report on "Lighting, Well-being and
Performance at Work", J. Silvester and E. Konstantinou, Centre for
Performance at Work at City University London (2011)

[24]             Efficiency is the percentage of electricity, which is
converted into visible light. For incandescent light
bulbs it is 2% and for CFLs around 25%

[25]             The efficacy of a light source is the ratio of the
light output to the electric power consumed and is a measure for the energy
efficiency of a lamp or lighting system

[26]             CRI is a measure reflecting how well a light source
renders colours

[27]             E.g., "Lighting the way: Perspectives on the
global lighting market", McKinsey & Company (2011)

[28]             Annex 45 Guidebook on Energy Efficient Electric
Lighting for Buildings (2010), International Energy Agency (IEA)

[29]             "Lighting energy savings in 10 Shopping
Malls", LED project UNIBAIL RODAMCO, (2011)

[30]             "The European GreenLight Programme - Efficient
Lighting Project, Implementation Catalogue 2005-2009", JRC

[31]             http://www.celma.org/archives/temp/CELMA_ELC_LSL_Presentation_D.Zembrot_EP_25012011.pdf

[32]             "Addressing the rebound effect" – final
report (2011), European Commission study contract ENV.G.4/FRA/2008/0112

[33]             "Énergie et patrimoine communal" (2005),
ADEME

[34]             E.g. Amsterdam, Berlin, Bremen, Brussels, Budapest,
Eindhoven, Haarlem, Leipzig, Lyon, Manchester, Oslo, Rotterdam, Tallinn, Tilburg,
Toulouse and others

[35]             E.g. Germany is financing a series of pilots
"Kommunen in neuem Licht"; France is supporting Cluster Lumière that
offers a platform for innovation of LEDs

[36]             E.g., Birmingham City Council

[37]             "Consumer relevant Eco-design requirements for
domestic lighting", BEUC – ANEC position paper (2011), http://www.beuc.eu

[38]             The retail price of a 60W incandescent lamp is less
than 1 euro, while that of its CFL equivalent is around 5 euro and of its LED
equivalent more than 30 euro. Current forecasts foresee CFL and LED market
share parity only in 2015-16

[39]             TCO includes acquisition, maintenance and replacement
as well as the energy costs

[40]             "Lighting systems using light-emitting diodes:
health issues to be considered" (2010), ANSES

[41]             Scientific Committee on Emerging and Newly Identified
Health Risks; it advises the Commission on scientific issues related to
consumer safety, public health and the environment

[42]             Also known as "split incentives" conflict
between investors and energy end-users or "principle agent" conflict.
E.g., when comparing today's LEDs with fluorescent lamps, their TCO becomes
superior after 5-6 years of usage.

[43]             Ecodesign (http://ec.europa.eu/energy/efficiency/ecodesign/eco_design_en.htm)
aims at reducing the environmental impact of products, including the energy
consumption throughout their entire life cycle

[44]             Energy Labelling (http://ec.europa.eu/energy/efficiency/labelling/energy_labelling_en.htm)
sets the framework for developing product-specific energy labelling measures to
allow end-users to choose more efficient products through standard product
information on energy consumption

[45]             Ecolabel (http://ec.europa.eu/environment/ecolabel/) is
a voluntary scheme which promotes products having high-level environmental
performance

[46]             The Low Voltage Directive (http://ec.europa.eu/enterprise/sectors/electrical/lvd/)
covers the safety of electric products operating under more than 50 volts and
ensures that only safe electrical equipment is placed on the market. For
products operating below 50 volts the safety issues are covered by the General
Product Safety Directive (http://ec.europa.eu/consumers/safety/prod_legis/index_en.htm)

[47]             The Directive on the Restriction of Hazardous
Substances aims at restricting the use of hazardous substances in
electrical and electronic equipment, http://ec.europa.eu/environment/waste/rohs_eee/,
while the Directive on Waste Electrical and Electronic Equipment aims at
promoting the collection and recycling of such equipment, http://ec.europa.eu/environment/waste/weee/

[48]             Green Public Procurement (GPP) is a voluntary
scheme at EU level. It is a process whereby public authorities seek to procure
goods, services and works with a reduced environmental impact throughout their
life cycle. COM (2008) 400

[49]             Since 2010, the enforcement of performance and safety
requirements contained in most of the above instruments can rely on the New
Legislative Framework (NLF). NLF consists of two complementary instruments:
a Regulation and a Decision. Since 2010, the NLF regulation sets out a stronger
framework for market surveillance of electrical equipment and lays down powers
and duties of competent national authorities. They should carry out checks of
products, both domestic and imported, on an adequate scale and stop products
presenting a risk or otherwise not conforming to applicable requirements. The
NLF Decision contains model provisions on economic operators obligations to
which product harmonisation legislation should be aligned. See also: http://ec.europa.eu/enterprise/policies/single-market-goods/regulatory-policies-common-rules-for-products/new-legislative-framework/

[50]             http://ec.europa.eu/energy/efficiency/ecodesign/doc/meeting/ed_wd_dls_leds_hl_converter_v1.0.pdf

[51]             http://ec.europa.eu/energy/efficiency/ecodesign/doc/meeting/el_wd2_-_draft_regulation_on_a_lamp_energy_label_v1.0.pdf

[52]             More than 650 public and private organisations have signed
the GreenLight programme's commitment since its launch by the European
Commission in 2000, http://www.eu-greenlight.org

[53]             The scheme includes product categories, minimum
performance value and product declaration marks, and tested value reporting

[54]             "Implementing Agreement for a Co-operative
Programme on Efficient Electrical End-Use Equipment (4E)", IEA Annual
Report 2010, SSL Annex

[55]             ELENA (European Local ENergy Assistance)
was established by the Commission and the European Investment Bank

[56]             http://ec.europa.eu/energy/eepr/eeef/eeef_en.htm

[57]             Potential dissemination channels: The Covenant of
Mayors; Eurocities; the GreenLight programme, the LUCI association; etc.

[58]             A call for SSL pilot actions took place under the
CIP-ICT Work Programme 2011, with a budget of up to 10 million euro. As a
result of this call, a few pilot actions will be launched in early 2012

[59]             12% of all existing buildings in Europe are run by
public authorities

[60]             COM(2011) 370 final

[61]             DIR 2010/31/EU

[62]             Similar models are already deployed for non-residential
buildings and street lighting

[63]             Today, less than 10% of LED chip production is located
in Europe

[64]             LED lamps replacing
conventional incandescent, fluorescent or halogen lamps

[65]             "The European Lighting Industry’s Considerations
Regarding the need for an EU Green Paper on Solid State Lighting",
ELC/CELMA 2011, www.celma.org

[66]             http://ec.europa.eu/enterprise/sectors/ict/key_technologies/kets_high_level_group_en.htm

[67]             http://ec.europa.eu/enterprise/sectors/ict/files/kets/hlg_report_final_en.pdf

[68]             These include in particular Gallium and Indium as well
rare earth materials that are used in phosphors (Yttrium, Cerium, Europium)

[69]             China currently controls 95% of the world's supply of
rare earth materials and has taken measures to severely restrict their export

[70]             COM (2011) 21

[71]             COM (2011) 571 final

[72]             See overview report "Joint CELMA/ELC Guide on LED
related standards" (2011), www.celma.org

[73]             See also ELECTRA initiative, COM(2009) 594 final

[74]             http://ec.europa.eu/research/fp7/index_en.cfm

[75]             http://www.eniac.eu/web/index.php

[76]             http://ec.europa.eu/cip/

[77]             http://ec.europa.eu/energy/intelligent/

[78]             http://ec.europa.eu/information_society/activities/ict_psp

[79]             http://ec.europa.eu/regional_policy/themes/research/index_en.htm

[80]             E.g. Baden-Wuerttemberg and Saxony in Germany,
Rhône-Alpes in France, Oulu in Finland

[81]             E.g. addressing existing safety and interfacing gaps,
methodologies for measuring the performance and lifetime of SSL products and
systems, the communication of stand-alone SSL products and systems with each
other and with other energy systems

[82]             In line with COM(2008) 699 and COM(2011)25, http://ec.europa.eu/enterprise/policies/raw-materials/index_en.htm

[83]             COM(2011) 614 and COM(2011) 615 final