Proposal for a Council Regulation (EC) on a revised Community eco-label award scheme (97/C 114/09) (Text with EEA relevance) COM(96) 603 final - 96/0312(SYN)

(Submitted by the Commission on 19 March 1997)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 130s (1) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the Economic and Social Committee,

Acting in accordance with the procedure laid down in Article 189c of the Treaty in cooperation with the European Parliament,

1. Whereas the aims of Council Regulation (EEC) No 880/92 of 23 March 1992 on a Community eco-label award scheme (1) were to establish a voluntary Community eco-label scheme intended to promote products with a reduced environmental impact during their entire life cycle and to provide consumers with accurate, non-deceptive and scientifically based information on the environmental impact of products;

2. Whereas Article 18 of Regulation (EEC) No 880/92 provides that within five years from its entry into force the Commission should review the scheme in the light of the experience gained during its operation and should propose any appropriate amendments to the Regulation;

3. Whereas the experience gained during the implementation of the Regulation has shown the need to amend the scheme in order to increase its effectiveness and streamline its operation;

4. Whereas the basic aims for a voluntary and selective Community eco-label award scheme are still valid; whereas in particular such an award scheme should provide guidance to consumers on products with a potential for reducing environmental impact when viewed through is entire life-cycle, and should provide information on the environmental characteristics of labelled products;

5. Whereas it is necessary to explain that the eco-label points out to consumers those products which have the potential to reduce certain environmental impacts, as compared with other products in the same product group, without prejudice to regulatory requirements applicable to products at a Community or a national level;

6. Whereas the scope of the scheme should include products and environmental factors which are of supreme Community interest from the point of view both of the internal market and of the environment;

7. Whereas the procedural and methodological approach for setting eco-label criteria should be updated in the light of scientific and technical progress and of the experience gained in this area, to ensure consistency with relevant internationally recognized standards which are evolving in this area;

8. Whereas the principles for establishing the selectivity level of the eco-label should be clarified, in order to facilitate consistent and effective implementation of the scheme;

9. Whereas the eco-label should include simple, accurate, non-deceptive and scientifically based information on the key environmental aspects which are considered in the award of the label, in order to enable consumers to make informed choices;

10. Whereas it is necessary to introduce a grading in the eco-label in order to stimulate and recognize further environmental improvements, over and above the hurdles set for the award of the label;

11. Whereas it is necessary to assign the task of setting eco-label criteria and assessment and verification requirements to an appropriate independent body, in order to achieve an efficient and neutral implementation of the scheme;

12. Whereas such a body should be composed of the competent bodies already designated by the Member States pursuant to Article 9 of Regulation (EEC) No 880/92, in order to make full use of the expertise, structures and resources of those bodies and to prevent duplication and waste of resources;

13. Whereas the establishment of such a body in the form of an association of the competent bodies will take some time, and the full application of this Regulation should be subject to such a body being operational;

14. Whereas it is necessary to ensure that the Community eco-label award scheme is consistent and coordinated with other Community labelling or quality-certification schemes such as those established by Council Directive 92/75/EEC of 22 September 1992 on the indication by labelling and standard product information of the consumption of energy and other resources by household appliances (2) and by Council Regulation (EEC) No 2092/91 of 24 June 1991 on organic production of agricultural products and indications referring thereto on agricultural products and foodstuffs (3).

15. Whereas provision should be made to ensure consistency and complementarity between the Community eco-label and other eco-label schemes in the Community, in order to avoid confusing consumers and creating potential market and trade distortions, and in order to increase the attractiveness of the eco-label to potential applicants;

16. Whereas it is necessary to guarantee transparency in the implementation of the scheme and to ensure consistency with relevant international standards in order to facilitate access to, and participation in, the scheme by manufacturers and exporters of countries outside the Community;

17. Whereas Regulation (EEC) No 880/92 should be replaced by this Regulation in order to introduce in the most effective way the necessary revised provisions for the reasons mentioned above, while appropriate transitional provisions ensure continuity and smooth transition between the two Regulations,

HAS ADOPTED THIS REGULATION:

Article 1

Objectives and principles

1. The objective of the Community eco-label award scheme (hereinafter 'the Scheme`) is to provide guidance and accurate, non-deceptive and scientifically based information to consumers on products which have the potential to contribute to the reduction of certain specific environmental impacts as compared with those of other products in the same product group, therefore contributing to the efficient use of resources and better protection of the environment.

2. The environmental impacts are identified on the basis of examination of the interactions with the environment, including use of energy and natural resources, during the entire life cycle of a product.

3. Participation in the scheme shall be without prejudice to environmental or other regulatory requirements of Community or national law applicable to the various life stages of a product.

4. The implementation of the Scheme shall be consistent and coordinated with other relevant Community labelling or quality certification schemes such as, in particular, the Community Energy Labelling Scheme and the Organic Agriculture Scheme.

Article 2

Environmental requirements

1. The eco-label may be awarded to a product possessing characteristics which enable it to contribute significantly to improvements in relation to key environmental aspects identified in the light of the indicative assessment matrix in Annex I.

The pre-production stage of the life cycle includes extraction or the production and processing of raw materials and energy production. Those aspects shall be taken into account, in accordance with the methodological requirements stated in Annex II, as far as is technically feasible.

2. In evaluating the comparative improvements, consideration shall be given to the net environmental balance between the environmental benefits and burdens associated with the adaptations in the various life stages of the products considered.

The evaluation shall also take into account the eventual environmental benefits related to the utilization of the products considered.

3. The key aspects shall be determined by identifying the categories of impact in which the product under examination provides the most significant contribution within the life-cycle perspective, and among them the ones for which a significant potential for improvement exists.

The methodological requirements in Annex II shall apply.

Article 3

Eco-label criteria and assessment and verification requirements

1. Specific eco-label criteria shall be established according to product groups. These criteria will set out the requirements for each of the key environmental aspects mentioned in Article 2, which a product must fulfil in order to be considered for the award of an eco-label.

2. The criteria shall seek to ensure a selectivity basis on the following principles:

(a) the product's prospects of market penetration in the Community shall, during the currency of the criteria, be sufficient to effect environmental improvements through consumer choice;

(b) the selectivity of a criterion shall take into account the technical and economic feasibility of adaptations needed to comply with it within a reasonable period of time;

(c) the selectivity of the criteria shall be determined with a view to achieving the maximum potential for overall environmental improvement.

These principles shall not prevent the promotion of innovative products through appropriate eco-label criteria where such products have significant prospects of market penetration.

3. The criteria and their selectivity level shall be determined in accordance with the eco-label rating set out in Annex III.

4. Requirements for assessing compliance of specific products with the eco-label criteria and for verifying the conditions for the use of the eco-label referred to in Article 8 (1), shall be established by product groups together with the eco-label criteria.

5. The period of validity of the criteria, and the assessment and verification requirements, shall be specified within each set of eco-label criteria for each product group.

Article 4

Scope

1. The Community eco-label may be awarded to products manufactured in the Community or imported into it which comply with the essential environmental requirements provided for in Article 2 and the eco-label criteria. The eco-label criteria shall be set out by product group.

In order to be included in this scheme, a product group must fulfil the following conditions:

2. In order to be included in this scheme, a product group must fulfil the following conditions:

(a) it shall represent a significant overall volume of sales and trade in the internal market;

(b) it shall involve, at one or more stages of product life, significant environmental impact on a global or regional scale and/or of a general nature; and

(c) it shall present a significant potential for effecting environmental improvements through consumer choice as well as an incentive to manufacturers to seek a competitive advantage by offering products which qualify for the eco-label;

(d) a significant part of its sales volume shall be sold to the final consumer.

Priority shall be granted to product groups on the basis of the scientific and practical feasibility of clear and verifiable eco-label criteria.

3. A product group shall include all products which serve the same purpose and which are equivalent in terms of use and consumer perception. A product group may be subdivided into sub-groups, with a corresponding adaptation of eco-label criteria, when this is required by the characteristics of the products and with a view to ensuring the optimal potential of the eco-label for effecting environmental improvements.

The definition of product groups and sub-groups shall include fitness-for-use requirements.

The eco-label criteria related to the various sub-groups of a single product group shall become applicable at the same time.

4. The eco-label may not be awarded to products which are substances or preparations classified as very toxic, toxic, dangerous to the environment, carcinogenic, toxic for reproduction, or mutagenic, according to Council Directive 67/548/EEC (4) or 88/379/EEC (5).

5. This Regulation shall not apply to food, drink or pharmaceuticals.

Article 5

Procedures for the establishment of eco-label criteria and assessment and verification requirements

1. The Commission shall encourage the creation of an association of the competent bodies referred to in Article 9, having legal personality, under the title of European Eco-label Organization, hereinafter referred to as 'the EEO`.

2. The Commission, acting according to the procedure provided for in Article 13, shall give mandates to the EEO to establish and to review periodically, at intervals of no longer than three years, the eco-label criteria as well as the assessment and compliance verification requirements related to those criteria, for the product groups within the scope of this Regulation.

The Commission shall act its own initiative or at the request of the EEO. Interested parties may submit to the Commission or the EEO suggestions concerning the product groups to be considered.

Before selecting a product group and giving the corresponding mandate to the EEO, the Commission shall undertake to open consultations of all the interested parties in accordance with the principles of Annex IV, paragraphs (a) and (b).

Such a mandate will specify the procedure for the establishment of eco-label criteria in accordance with the principles of Annex IV. The procedure shall in particular ensure transparency and access to consultation for all interested parties as provided for in Annex IV.

3. The Commission will publish the references to those criteria and requirements and their updatings in the Official Journal of the European Communities, C Series, when it is satisfied that the terms of the relevant mandate have been complied with.

Article 6

Awarding the eco-label

1. Applications for the eco-label may be submitted by manufacturers, importers and retailers. The last-named may submit applications only for products put on the market under their own brand name.

2. The application may refer to a product put on the market under one or more brand names. No new application will be required for modifications in the characteristics of products which do not affect compliance with the criteria.

3. The application shall be presented to the competent body of the Member State in which the product is manufactured or imported. Manufacturers established in third countries and importers may apply to a competent body in any of the Member States in which they have put, or intend to put, on the market the product concerned. In the case of products manufactured in several Member States, the application shall be presented to the competent body in any of the Member States where the product is manufactured.

4. The eco-label may be awarded to products which comply with the eco-label criteria established by the EEO, the references to which have been published pursuant to Article 5 (3). The decision to award the label shall be taken by the competent body receiving the application, after verifying that the application is in conformity with the assessment and compliance verification requirements established by the EEO. To this end, the competent bodies shall recognize tests and verifications performed by bodies which are accredited under the standards of EN 45000 series or equivalent international standards.

5. The competent bodies shall collaborate in order to ensure the effective and consistent implementation of the assessment and verification procedures.

Article 7

The eco-label

The eco-label shall consist of the logo and information set out in Annex III. Specifications concerning the information to be included and its presentation shall be part of the criteria established by the EEO. The Commission shall consult national consumer associations represented in the Consumer Committee established by Commission Decision 95/260/EC (6), within five years of the date referred to in the second subparagraph of Article 16 (2) of this Regulation, in order to assess how effectively the graded eco-label meets the information needs of consumers. On the basis of this assessment, the Commission shall introduce any appropriate modifications as to the information to be included in the eco-label, according to the procedure set out in Article 13.

Article 8

Use of the eco-label, costs and fees

1. The competent body shall conclude a contract with the applicant, covering the terms of use of the label. The terms of use shall include provisions for withdrawing the authorization to use the label. The authorization shall be reconsidered and the contract revised or terminated, as appropriate, following any revision of the eco-label criteria applicable to a given product.

2. The eco-label may not be used, and references to the eco-label in advertising may not be made, until a label has been awarded and then only in relation to the specific product for which it was awarded.

Any false or misleading advertising or the use of any label or logo which may lead to confusion with the Community eco-label as introduced by this Regulation is prohibited.

3. Every application for the award of a label shall be subject to payment of the costs of processing the application.

Use of the label shall entail payment of a fee by the applicant. The level of fees is set out in Annex V.

Article 9

Competent bodies

1. Each Member State shall ensure that the body or bodies, hereinafter referred to as the 'competent body (bodies)`, responsible for carrying out the tasks provided for in this Regulation, is/are designated and operational. Where more than one competent body is designated, the Member State shall set those bodies' respective powers and the coordination requirements applicable to them.

2. Member States shall ensure that:

(a) the composition of the competent bodies is such as to guarantee their independence and neutrality;

(b) the rules of procedure of the competent bodies ensure, at national level, the involvement of all interested parties and an appropriate level of transparency;

(c) the competent bodies shall apply correctly the provisions of this Regulation.

Article 10

Promotion of the eco-label

Member States and the EEO shall accompany the development of the scheme by promoting awareness raising actions and information campaigns for consumers, producers, retailers and the general public, specifically aimed at promoting the use of the Community eco-label.

Article 11

Other eco-label schemes in the Member States

1. Within five years of the date referred to in the second subparagraph of Article 16 (2), existing and new public and private eco-label schemes in the Member States shall be organized in such a way as to apply to product groups for which no specific Community eco-label criteria are established, ensuring complementarity between such schemes and the Community eco-label.

2. The Commission shall encourage collaboration between the Community scheme and schemes in the Member States in order to ensure the necessary coordination.

Article 12

Adaptation to technical progress

The Annexes to this Regulation may be adapted to technical progress including progress in the relevant international standardization activities, according to the procedure provided for pursuant to Article 13.

Article 13

Committee

The Commission shall be assisted by a committee of an advisory nature composed of the representatives of the Member States and chaired by the representative of the Commission.

The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft, within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote.

The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes.

The Commission shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account.

Article 14

Transitional provisions

Regulation (EEC) No 880/92 is hereby repealed.

It shall continue to apply to contracts concluded pursuant to Article 12 (1) thereof.

Article 15

Revision

1. Within five years of the date referred to in the second subparagraph of Article 16 (2), the Commission shall review the scheme in the light of the experience gained during its operation.

2. The Commission shall propose any appropriate amendments to this Regulation.

Article 16

Final provisions

1. This Regulation shall enter into force on the third day following its publication in the Official Journal of the European Communities.

2. Apart from Article 5 (1), the provisions of this Regulation shall apply as from the day following that on which the Commission decides that the EEO is in a position to perform its tasks.

That date shall be published in the Official Journal of the European Communities.

(1) OJ No L 99, 11. 4. 1992, p. 1.

(2) OJ No L 297, 13. 10. 1992, p. 16.

(3) OJ No L 198, 22. 7. 1991, p. 1. Regulation as last amended by Regulation (EC) No 418/96 (OJ No L 59, 8. 3. 1996, p. 10).

(4) OJ No L 196, 16. 8. 1967, p. 1. Directive as last amended by Directive 96/56/EC of the European Parliament and the Council (OJ No L 236, 18. 9. 1996, p. 35).

(5) OJ No L 187, 16. 7. 1988, p. 14. Directive as last amended by Commission Directive 96/65/EC (OJ No L 265, 18. 10. 1996, p. 15).

(6) OJ No L 162, 13. 7. 1995, p. 37.

ANNEX I

INDICATIVE ASSESSMENT MATRIX

>TABLE>

ANNEX II

METHODOLOGICAL REQUIREMENTS FOR SELECTING KEY ENVIRONMENTAL ASPECTS

Introduction

The process for identifying and selecting the key environmental aspects will include the following steps:

- market study,

- life-cycle analysis,

- technical, economic and market analysis of the potential for environmental improvements corresponding to the various options available.

Market study

The market study will consider the various types of products belonging to the product group studied on the Community market, the quantities produced, imported and sold, the structure of the market in the Member States. Internal and external trade will also be considered.

Consumer perceptions, functional differences between types of products and the need for identifying subgroups will be assessed.

A sample of reference products representative of the product group for the Community market will be provided via the market study.

Life-cycle analysis (LCA)

The life-cycle analysis shall be performed in accordance with internationally recognized methods and standards. It shall include the following steps:

(a) Goal definition and scope, which includes establishing:

(i) the functional unit;

(ii) the definition of the product system boundary;

(iii) the level of detail of LCA for the definition of eco-labelling criteria;

(iv) the procedure to be followed in order to ensure the quality of the study.

(b) The inventory analysis which identifies and where possible quantifies the inputs and outputs between the product system under investigation and the environment. This leads to an inventory table.

(c) The impact assessment which identifies, characterizes and assesses the effects on the environment of the interactions identified in the inventory analysis. It includes, in particular, the following steps:

(i) classification of the impacts;

(ii) characterization of the impacts;

(iii) valuation of the impacts;

(iv) improvement assessment;

(v) validation procedure.

Classification and characterization of the impacts will be made with reference to the impact categories identified in the Society of Environmental Toxicology and Chemistry (Setac) Code of Practice (1993).

For the purpose of this Regulation the approach to be adopted will be determined with a view to identifying the categories of impact for which the product under examination will in a life cycle perspective, be able to provide most significant contribution and with a view to providing quantified information on the ranges of such impacts corresponding to the various types of products in the product group under examination.

The LCA study will be applied to the representative sample provided by the market study.

Improvement analysis

The improvement analysis will take into account in particular the following aspects:

- the theoretical potential for environmental improvement in conjunction with possible changes induced in the market structures. This will be based on the improvement assessment from the LCA,

- the technical, industrial and economic feasibility of production and market modifications, under the various hypotheses,

- consumer attitudes, perceptions and preferences, which may influence the effectiveness of the eco-label.

ANNEX III

DESCRIPTION OF THE ECO-LABEL

Shape of the eco-label

The eco-label is awarded to products which comply with at least the minimum level of the criteria, for all the selected key environmental aspects. It includes information for consumers according to the following scheme:

>START OF GRAPHIC>

This label guarantees a reduced

environmental impact

EUROPEAN UNION

ECO-LABEL

Key environmental

aspects

Environmental score (¹)

X

Y

Z

(¹) This is an example. One, two or three 'flowers` may be attributed, for each key aspect.>END OF GRAPHIC>

Contents

The label will include those aspects for which there are quantified eco-label criteria. These aspects will be described in non-technical and unambiguous terms.

The label will also include generic information on qualitative criteria.

ANNEX IV

PROCEDURAL PRINCIPLES FOR ESTABLISHING ECO-LABEL CRITERIA

For the development of eco-label criteria, the following procedural requirements shall apply:

Interested parties' involvement

(a) The involvement of the parties directly or indirectly concerned by the mandate and a balanced participation of all the relevant interest groups, such as industry, including SMEs and hand crafts through their business organizations, trade unions, retailers, importers, environmental protection groups, consumer organizations, shall be actively pursued.

(b) Interested parties inside or outside the Community shall be treated on an equal footing.

(c) A specific ad hoc working group involving the interested parties mentioned above shall be established for the development of eco-label criteria for each product group.

(d) A specific work programme and a corresponding timetable shall be established including, in particular, the following phases:

(i) market study;

(ii) life-cycle analysis (which includes the following steps: goal and scope definition, inventory analysis and impact assessment) and improvement analysis;

(iii) proposal of the criteria.

Each phase and step shall be concluded by at least a meeting of the ad hoc working group in order to consider the results and indicate further orientations.

All reasonable efforts shall be made to achieve a consensus throughout the process, while aiming at high levels of environmental protection. However, the EEO shall apply decision-making procedures in conformity with practice of European standardization bodies.

A working paper summarizing the main findings of each phase shall be issued and distributed in due time to the participants before the meetings of the ad hoc working group.

Open consultation and transparency

(e) A final report containing the main results shall be issued and published. Interim documents reflecting the results of the different stages of work shall be made available to those interested and comments on them shall be considered.

(f) A draft version of the report including also the draft eco-label criteria shall be published. An open consultation on the content of this draft report shall be carried out. A period of at least 60 days for the submission of comments on the draft criteria will be allowed before adoption of the criteria. Any observations shall be considered. On request, information on the follow up to the comments will be provided.

(g) The report shall include an executive summary and annexes with detailed inventory computations.

Confidentiality

(h) The protection of confidential information provided by individuals, public organizations, private companies, interest groups, interested parties or other sources shall be ensured.

Planning

(i) A deadline for completion of work shall be provided in the mandate. An indicative planning of work and its up-datings will be published every six months by EEO.

ANNEX V

FEES

1. An application for the award of an eco-label shall be subject to payment of the costs of processing the application.

The application fee shall be ECU 500, in general, and ECU 250 for SMEs (1) and manufacturers of developing countries.

2. Each applicant who has been awarded an eco-label shall pay an annual fee for the use of the label to the competent body which has awarded the label.

3. The annual fee shall cover a period of 12 months, beginning with the date of the award of the eco-label to the applicant.

4. The annual fee shall be calculated as a percentage of the annual volume of sales within the European Union of the product awarded the eco-label.

5. The percentage figure of the annual volume of sales shall be 0,15 % with a ceiling of ECU 40 000.

6. The minimum figure shall be ECU 500.

7. In the case of SMEs and manufacturers of developing countries, the percentage figure of the annual volume of sales shall be 0,10 %.

8. On the request of the EEO, 50 % of the annual fees collected shall be made available to it for financing EEO activities related to the Community eco-label scheme including information campaigns.

ADDITIONAL PROVISIONS

(i) Figures for the annual volume of product sales should be based on ex-factory prices.

(ii) Neither the application fee nor the annual fee shall include any cost towards testing and verification which may be necessary for products which are the subject of applications. Applicants will meet the cost of such testing and verification themselves.

Testing requirements shall be established taking also into account the objective to minimize their costs, in particular in view of facilitating participation of SMEs and manufacturers of developing countries in the scheme.

(iii) Community review of the fee structure for the eco-label award scheme may lead to a revision of the figures. This should not alter the fees payable in respect of any application which resulted in the award of a label prior to the date of the Community decision to revise the figures, until the end of the period of validity of the criteria relating to the label concerned.

(1) SMEs as defined in Commission recommendation 96/280/EC of 3 April 1996 (OJ No L 107, 30. 4. 1996, p. 4).