Proposal for a Council Regulation (EC) on a revised Community eco-label award scheme
Date: 1996-12-11
Institutions: European Commission
Subjects: consumer information, eco-label, environmental protection, international standard, labelling

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels,  11.12.1996 
COM(96) 603 final 

96/0312 (SYN) 

Proposal  for a 
COUNCIL REGULATION (EC) 
on a revised Community eco-label  award scheme 

(presented by the Commission) 

EXPLANATORY  MEMORANDUM 

I. 

Introduction 

1.  The Council adopted on 23 March  1992 Regulation (EEC) No 880/921 establishing 

a Community  eco-label  award  scheme. 

The objectives  of the scheme are: 

-  to promote the  design,  production,  marketing  and use of  products which  have a 

reduced  environmental  impact  during their entire life  cycle; and 

-  to  provide  consumers  with  better  information  on  the  environmental  impact 

of products. 

The  Community  eco-label  scheme  is  one  element  of  a  wide  strategy  aimed  at 
promoting  sustainable  production  and  consumption.  The  objective  of  sustainable 
consumption is to reduce or contain impact of consumption on the environment. To 
that  end  the  strategy  consists  in  promoting  environmentally  aware  behaviour 
patterns, in particular by identifying  and promoting "green" products. Better product 
management  is  also  required  in  order  to  promote  environmental  efficiency  of 
products through  the identification  and integration  of the environmental  efficiency 
characteristics  of products. 

Promotion of "green" products and encouragement of better product management are 
fundamental  aims of the Community  eco-label  scheme. Moreover,  the Community 
scheme is based on a life cycle approach and includes criteria related  to production 
processes and re-use, recycling, disposal  of waste. Therefore,  it can also contribute 
to promoting  sustainable production  and improved  waste  management. 

2.  The  operation  of  the  Community  eco-label  scheme  has  recently  made  substantial 
progress. Eco-label criteria have now been published for ten product groups and the 
eco-label  has been  awarded  to 45 products. Moreover,  the fundamental  objectives 
of  the  scheme  appear  to  be  still  valid  and  well  in  line  with  the  most  recent 
principles, goals and priorities of the environmental policy, in particular those of the 
Fifth  Community  Environmental  Action Programme  and its Review,  as well  as of 
the Agenda 21. 

However,  certain  difficulties  have been  encountered  in  the implementation  of the 
Regulation  and  there  is  a  need  for  improving  and  streamlining  the  approach, 
methodologies  and  working  procedures  of  the  scheme,  in  order  to  increase  its 
effectiveness,  efficiency  and  transparency.  It  is  therefore  proposed  to  amend  the 
Regulation, in accordance with its Article  18 which provides for the revision of the 
Community  eco-label  scheme within  five  years of its entry  into force. 

OJ No L 99,  11.4.1992, p. 1. 

II.  The Community  eco-label  scheme 

3.  The  present  Community  scheme  for  the  award  of  the  eco-label  consists  of 
three phases: the establishment of criteria, the award of the label to products and the 
revision  of  the  criteria.  Whereas  responsibility  for  establishing  and  revising  the 
criteria  lies  mainly  with  the  Commission,  the  award  of  the  label  to  products  is a 
matter  for  the  competent  national  bodies.  These  competent  bodies,  which  are 
independent and neutral, have been designated by the Member  States to implement 
the Community  eco-label  scheme at national  level. 

The initiative  of  selecting  a group  of products is taken  either by the  Commission, 
or by the competent bodies. In the initial  stage of the operation of the Community 
scheme, priority was given to the latter possibility.  More recently, the Commission 
has assumed sole responsibility for selecting groups of products. This is in line with 
the wishes of the Member  States and the interest  groups for  greater consistency  in 
the  application  of  the  scheme.  The  interest  groups,  i.e.  industry,  commerce, 
consumer organizations, environmental protection organizations and trade unions are 
consulted  on the choice of product groups. 

4.  A feasibility  study is carried out to collate data on the following  aspects: the market 
structure, the interests of the parties concerned, the relevance and potential  benefits 
of the label for the environment, the risks of distortion between the various national 
segments  of  the  internal  market  and  finally  international  aspects.  An  ad  hoc 
workshop  composed  of experts from  the Member  States and  representatives  of all 
the parties concerned  evaluates the feasibility  study.  On the basis of these results, 
a complete analysis of the life  cycle of the group  of products is made.  This study 
comprises an inventory and evaluation of the environmental  impact of the group of 
products, a market  study  and a proposal  for  criteria. 

The proposal for  ecological criteria is officially  presented to a Forum provided  for 
in the Regulation for consultations with interest groups.  The proposal  is discussed 
and voted upon in a Regulatory Committee.  A formal  decision by the Commission 
concludes the adoption  procedure. 

Given the nature of the eco-label, which involves a range of responsibilities, and the 
internal  procedural  rules  of  the  Commission's  departments,  those  departments 
collaborate closely  in the various  stages of the process of  drawing up the criteria. 
In particular the draft  decision to be presented to the Regulatory Committee is the 
subject  of prior interdepartmental  consultation. 

5.  Under the Regulation, the competent bodies are responsible for awarding the label. 
A  summary of  each application is circulated to all the competent bodies, whereas 
the complete dossier on the evaluation of the product is sent only on request. 

in.  The implementation  of Council  Regulation  (EEC) No 880/92 

6.  Council  Regulation  (EEC)  No  880/92  entered  into  force  in  March  1992. 
Member  States  were  requested  to  designate  the  Competent  Bodies  for  the 
implementation  of  the  Regulation  within  six  months  of  its  entry  into  force. 
The Community  eco-label  scheme  thus  became  fully  applicable  in  principle  in 
October  1992. 

However, the Regulation just  sets a framework  for the Community  eco-label.  The 
scheme  can  only  be  applied  to  products  for  which  ecological  criteria  have  been 
established by the Commission in accordance with the principles and procedures of 
the Regulation.  The entry into force of the Regulation was therefore only a starting 
point for  the preparatory  work for  the actual  launch  of the scheme. 

7.  The period  since the entry into force  of the Regulation has mostly been devoted to 

establishing product  groups and the corresponding  ecological  criteria. 

The  following  Commission  decisions  establishing  ecological  criteria  have  so  far 
been  adopted  and  published: 

-  Washing machines 
-  Dishwashers 
-  Soil  Improvers 
-  Toilet paper 
-  Paper kitchen  rolls 
-  Laundry  detergents 
-  Single-ended  light bulbs 
-  Paints and varnishes 
-  Bed-linen  and T-shirts 
-  Double-ended  light bulbs 
-  Washing machines (revision) 
-  Copying paper 

OJ No L  198 of 7 August  1993 
OJ No L  198 of 7 August  1993 
OJ No L 364 of 31 December  1994 
OJ No L  364 of 31 December  1994 
OJ No L  364 of 31 December  1994 
OJ No L 217 of  13 September  1995 
OJ No L 302 of  15 December  1995 
OJ No L 4 of 6 January  1996 
OJ No L  116 of  11 May  1996 
OJ No L  128 of 29 May  1996 
OJ No L  191 of  1 August  1996 
OJ No L  192 of 2 August  1996 

In  order  to  ensure  consistency,  effectiveness  and  sufficient  quality  of  the  criteria 
setting  process,  it  has  been  necessary  to  define  procedural  and  methodological 
guidelines  which  have  been  agreed  between  the  Commission  services  and  the 
competent  bodies  of  the  Member  States.  It  has  also  been  necessary  to  draft  an 
operational handbook in order to ensure consistency in the practical operation of the 
scheme by the competent bodies. 

Finally,  a  "Groupe  des  Sages" has been  appointed  by the Commission  in  order to 
define  guidelines on the use of life  cycle analysis for  the Community  eco-label. 

8.  The  Community  eco-label  has  been  awarded  so  far 

to  45  products  of 
six manufacturers,  in four  product  categories.  The list of awards is given below. 

ECO-LABEL AWARDS 

PRODUCT  GROUP 

MANUFACTURER 

PRODUCT/MODEL 

Washing machines 

Hoover Limited 

Washing machines 

Hoover Limited 

Washing  machines 

Hoover Limited 

Washing  machines 

Hoover Limited 

Washing  machines 

Hoover Limited 

i 

Washing  machines 

Hoover Limited 

Washing machines 

Hoover Limited 

NewWave  1100 
Electronic, models 
AC170 and AC172 

New Wave  1200 
Electronic, models 
AC174 and AC176 

New Wave  1300 
Electronic, models 
AC178 and AC180 

New Wave WA 1200 
Electronic,  model  A2848 

New Wave WA 1300 
Electronic,  model A28S0 

New Wave  WA  1400 
Electronic,  model A28S2 

New Wave  1500 Plus 
Electronic,  models AC 
182 and  AC 184 and 
New Wave  WA  1600 
Electronic, models A28S4 
and AB022 

DATE  OF 
AWARD 

EXPIRY 
DATE 

25.11.93 

06.96 

25.11.93 

06/96 

25.11.93 

06/96 

09.05.94 

06/96 

09.05.94 

06/% 

09.05.94 

06/96 

09.05.94 

06/% 

Kitchen towels 

Fort Sterling Limited 

Nouvelle  Kitchen Towel 

10.12.95 

Kitchen towels 

Fort Sterling Limited 

Toilet paper 

Fort Sterling Limited 

Co-op 70 sheet kitchen 
towel 

Co-op 280 sheet toilet 
tissue 

Toilet paper 

Fort Sterling Limited 

Nouvelle toilet tissue 

Kitchen towels 

Dalle Hygiène 

Toilet  paper 

Dalle Hygiène 

Monoprix Vert 3 rolls, 
plain and  decorated 

Monoprix Vert rolls and 
packets (sheets) 

10.12.95 

11/97 

11/97 

10.12.95 

11/97 

10.12.95 

26.02.96 

11/97 

11/97 

26.02.96 

11/97 

Indoor paints and 
varnishes 

Indoor paints and 
varnishes 

HP Flûger 

Nordsjô AB (AKZO 
Nobel) 

Innetak 2 and Takfarg 2 
indoor paint 

12.04.% 

12/98 

FlOgger Tagftrg 3; 
Polytex M3; 
FlOgger Vâggfarg 7; 
Polytex M7; 
FlOgger Vaggftrg 20; 
Polytex M20 

Bell I Tack; Bell 
Sidenmatt; Elegant 
Takfarg: Elegant 
Vâggfarg  matt; Milttex 
2; Milftex 2 Plus; Milttex 
7  Plus; Milttex 20 Plus; 
Scotte 3; Scotte 7; Scotte 
20; Crème Decor Brillant 
Neige; Scotte Tak 

Dulux Quick Drying 
Gloss 

29.04.96 

12/98 

06.05.96 

12/98 

19.07.96 

12/98 

Indoor paints and 
varnishes 

Alcro-Beckers AB 

Indoor paints and 
varnishes 

ICI Paints 

9. 

From  the  examination  of the factual  situation  described  above,  it  appears that the 
criteria setting process and the awarding of the eco-label  have significantly  speeded 
up  during  the  last  two  years.  The  initial  period  was  devoted  to  overcoming 
procedural  and methodological  difficulties  and to  acquire  practical  experience  on 
how  to  operate  such  a complex  scheme  at Community  level. 

The  experience  gained  in  that  "pilot"  stage  and  the  guidelines  and  working 
arrangements  set  out  should now  be  incorporated  into the Regulation. 

It  is  interesting  to  note  that  other  eco-label  schemes  have  undergone  similar 
developments  in their early  stages  of  life  as shown  in the figures  below. 

Number  of  product  groups  published 
(ecological  criteria) 

70 

j 

60  -

50 

40  -

30  -

20  -

10  -

0 

4000 j 

3500 -

3000 -

2500 -

2000 

1500 

1000 -

500 -

1—I—I—h 
T 

<X> 

OO 

CD 

H  1  r-
CXI 

Years  after  start-up 

Number  of  products  labelled 

. * » -• 

Q  EU-scheme 

-e  Blue  angel 

-•— -Nordic  Swann 

-.— -Milieukeur 

£1  EU-scheme 

• 

- B l ue  angel 

- • — N o r d ic  Swann 

-Milieukeur 

o a  <&*&*** 

__! 

, 
to 

«ar 

1  1  1 

| 

1 

CD 

a 

H 

OJ 

H  1 

Years  after  start-up 

Whereas the  setting  of  eco-labelling  criteria  is  speeding  up,  the  visibility  of  the 
eco-label on the European market is still low.  The operation of the scheme should 
now be done on a more routine and efficient  basis and efforts  should  concentrate 
on promoting the eco-label vis-à-vis consumers, retailers and  manufacturers. 

IV.  Other eco-label  schemes 

10.  A number of eco-label schemes have been established in the Member States.  Some 

of them  are now highly  developed. 

The  "Nordic  Swan",  the  Scandinavian  eco-label, was  created  in  1989.  It  covers 
Norway,  Sweden,  Iceland  and  Finland.  With  the  Community  eco-label,  it  is the 
only  multinational  scheme.  A body  coordinates the four  national  councils of the 
Nordic  Swan.  By  April  1996  this  scheme  covered  40  groups  of  products, 
287 licences had been awarded and more than  1 000 products were labelled.  Most 
of the licences concern  detergents and paper products. 

The German eco-label, the Blue Angel, was created in  1977.  Three institutions are 
involved  in  operating  the  scheme:  the  Federal  environment  authorities,  the 
German  Institute for  Quality  Assurance  and Labelling  and the jury  for  the label. 
Today,  the  German  scheme  covers  around  80 groups  of  products.  More  than 
1 000 companies use this label for 4 350 products.  Over  15% of these companies 
are non-German.  They  represent  16% of labelled products. 

The  French  "NF-Environnement"  mark  was  created  in  1992. 
Its  operation 
involves AFNÔR  (French  Standardization  Association),  a  decision-making 
committee  (the  Comité  de  la  Marque  NF-environnement)  and  an  advisory 
body  (the  Scientific Council).  The criteria are established on the basis of complete 
life  cycle analyses, funded  jointly  by industry  and the authorities. 

The  "Stichting  Milieukeur"  -  the  Dutch  eco-label -  was  set  up  in  1992  at  the 
initiative of the Environment and Economics Ministries.  The ecological criteria are 
determined  on the basis of a study  carried  out by a specialized  research  institute. 
This scheme takes only limited account of the "life cycle" aspects of the products. 
Thirty-two  products from  26 companies  are labelled.  Most  of  these labels have 
been awarded  to paper products. 

The  Austrian  eco-label  ("Umweltzeichen-Bàume")  was  created  in  1991  by  the 
Ministry  for  the  Environment,  Youth  and  the  Family.  The  criteria  cover  the 
products  and  manufacturing  processes.  The  labelling  contracts  are  valid  for 
one year.  Thirty-four  products from  23 companies bear the label. 

The  Spanish  "AENOR - Medio  Ambiente"  eco-label  was created  in  1993 by  the 
Asociacion Espafiola de Normalizacion y certificacion  (AENOR).  The ecological 
criteria are established  on the basis of a complete analysis of the life  cycle of the 
product.  AENOR  has  stated  that  future  groups  of  products  considered  by  the 
AENOR Medio Ambiente should be separate from  groups of products covered by 
the Community  eco-label. 

11.  Eco-label  schemes have also been  set up in  some non-member  countries,  such as 

the United  States, Canada and Japan. 

The  "US  Green  Seal  Programme"  is  a  private  labelling  scheme,  but  one  which 
cooperates very closely with almost  100 "environmental partners", including many 
public  administrations  or  agencies.  This  scheme  is  sometimes  used  for  public 
invitations to tender.  It was set up in  1989.  It covers 50 groups of products and 
234 products bear the  "Green  Seal" mark. 

"Canada Environmental  Choice" was set up in  1988.  Initially, it was administered 
It  is  gradually  being  privatized.  The 
by  the  Canadian  Environment  Ministry. 
Canadian  and  European  schemes  are  very  similar 
in  operation.  The 
"Canada  Environmental  Choice"  covers 46 product  groups  and  has awarded  the 
label to more than  750 products. 

The  "Japanese  Eco  Mark"  has  been  administered  since  1989  by 
the 
Nippon Environment Association, under the aegis of the Environment Agency.  In 
1992, this system  covered  49 groups of products and more than 2 300 labels had 
been  awarded. 

V.  Assessment  of the Community  eco-label  scheme 

12.  The assessment  of the Community  eco-label  scheme presented here is established 
in  the  light  of  the  objectives  of  the  Regulation,  the  experience  with  its 
implementation and the results achieved so far.  It is aimed at identifying the needs 
and possibilities for  improvement.  It takes into account certain  comments which 
have been presented  by interested parties. 

Certain of the issues mentioned here are of general relevance for eco-label schemes 
while others specifically  apply to the Community  scheme. 

13.  The  objective  of the  Community  eco-label  is to  influence  the market by  guiding 

consumers toward  products with  a reduced  environmental  impact. 

It is premature to assess the market  effects  of the Community  scheme, given that 
the Community eco-label has not yet gained sufficient  visibility in the market place 
because of its still  relatively  early  stage of  development. 

The potential  of eco-labels for market influence has already been demonstrated by 
national  and  other  schemes.  However,  the  Community  scheme  has  encountered 
particular obstacles to the full  development  of its market potential. 

Position of Industry 

14.  Overall, European industry  has in general  taken a very reserved position vis-à-vis 
the development of the Community scheme.  The only element of the Community 
eco-label which has been fully  supported by  industry  is its potential  for  replacing 
national  schemes in the longer term. 

industry 

federations 

such  as  the  European  Association  of 

Certain 
the 
Textile  Industry and the European Confederation of Paint Manufacturers have fully 
supported  the  implementation  of  the  Community  eco-label  in  their  sector.  For 
other  product  categories  considered,  the  relevant  industry  associations  have 
participated in the preparatory work at some stages alongside other interest groups, 
but a sufficient  consensus has not been reached on solutions meeting their support. 

15.  The  key  difficulty  of  European  industrial  associations  vis-à-vis  the  Community 
eco-label is related to its selective nature.  Eco-label  criteria are established in such 
a way that only  a number of products on the market can qualify  for the label.  This 
approach  introduces  competition  between  manufacturers  on  the  ground  of  the 
environment.  Individual  companies  seeking  competitive  advantage  may  well  be 
interested  in  the  eco-label.  However,  many  associations  which  are  bound  to 
represent the interests of the whole or at least the majority  of their members do not 
favour  this approach. 

16.  It should be noted that commerce,  environmental  and consumer organizations  also 

represent  "average" positions  under the present  consultation  structure. 

Consumer  response 

17.  The  market  effectiveness  of  an  eco-label  is  dependent  on  its  visibility  to  and 

credibility  with  consumers. 

The  market  structure  in  the EU  for  many  product  groups  often  differs  from  one 
Member State to another, as do environmental practices and consumer expectations. 

Moreover,  the EU  scheme  is  open  also to manufacturers  of  non EU  countries.  In 
some  cases  foreign  producers  are  operating  under  environmental,  regulatory  and 
economic/industrial  conditions  significantly  different from those prevailing within 
the EU. 

18.  Under  these  conditions,  it  is  often  difficult  to  set  uniform  Community-wide 
eco-label  criteria  which  must  also  be  applicable  to  foreign  producers  without 
introducing  undue  discrimination  and be  able to  achieve  a  sufficient  visibility  of 
eco-labelled  products  in all  Member  States while  preserving the credibility  of  the 
Community  eco-label  to  consumers  also  in  the  most  environmentally  advanced 
Community  countries. 

For  this  purpose,  it  would  help  to  introduce  a  graded  label  allowing  for  greater 
flexibility  in  setting  the  criteria  and  providing  information  to  consumers  on  the 
level  of  "environmental  performance"  of  each  labelled  product. 

Community and national eco-label schemes 

19.  When  the  Community  scheme  was  established  by  the  Council  in  1992,  only 
one national  scheme, the German Blue Angel, was operating in the Community. 

As  a  consequence  of  the  accession  of  Sweden,  Finland  and  Austria  and  the 
development  of  new  schemes  in  the  other  Member  States,  the  Community 
eco-label  co-exists  with  eight  major  schemes  (the  German  Blue  Angel,  the 
Nordic White  Swan, 
the 
Dutch Milieukeur, the French NF-Environment, the Spanish Medio Ambiente, the 
Catalan  Medi  Ambient,  the  Austrian  UmweltZeichen)  operating  in  seven 
the  Netherlands,  France, 
Member States 
Spain, Austria). 

the  Swedish  Good  Environmental  Choice, 

(Germany,  Sweden,  Finland, 

20.  Regulation  (EEC) No  880/92  states in its  preamble that while  existing  or future 
independent award schemes can continue to exist, the aim of the Regulation is to 
create  the  conditions  for  ultimately  establishing  an  effective  single  label  in 
the Community. 

The  present  stage  of  development  of  the  Community  scheme  does  not  make it 
possible  to  assert  that  the  Community  scheme  might  automatically  supersede 
national  schemes in the long run.  The developments in the last few years seem to 
support  the  contrary  view.  In  the  absence  of  positive  action  to  stop  it,  the 
proliferation of schemes and corresponding eco-label  criteria is likely to continue. 

21.  Certain  national  schemes  have  been  successful  and  have  contributed  to 
environmental improvements. However, co-existence with national schemes limits 
the market value of the Community eco-label and introduces further complications 
into its operation. Moreover, the proliferation  of uncoordinated national  schemes 
involve considerable risks of distortion of the internal market and of competition. 

The bodies  in  charge  of the  national  schemes  are also  competent  bodies  for the 
Community  eco-label.  Therefore,  they would have to promote two labels,  often 
competing  in the  same areas.  Moreover,  criteria  set out within  national  schemes 
often  correspond  to purely  national  views  and priorities.  The competent bodies 
concerned  tend  to  influence  the  development  of  Community  criteria toward the 
same  views  and  priorities  in  order  not  to  contradict  decisions  already  taken at 
national  level  for a given product group. 

National pressure groups play a more important role within a national scheme than 
at  Community  level  and  tend  sometimes  to  present  the  Community  label  as a 
"second  choice"  because  it  does  not  necessarily  correspond  to  their  views  and 
because they fail  to recognize the potential  of a Community-wide approach. 

Finally,  the  co-existence  of  several  labels  for  the  same  product  reduces  its 
credibility  and  limits its market  effectiveness. 

10 

Feasibility 

22.  Several  concepts  and requirements  in  this Regulation  have  appeared  difficult  to 
interpret and implement in the absence of sufficient  operational  indications. 

The concept of  "reduced environmental impact" during the entire life cycle of 
a product. No methodology exists to determine the total environmental impact 
of a product.  Strictly interpreted, this concept cannot be implemented. 

The  exclusion  of  products  classified  as  dangerous  in  accordance  with 
Directives 67/548/EEC and 88/379/EEC.  This provision, if  applied in a rigid 
way,  leads to the exclusion  of entire categories of products such as compact 
detergents (classified  as irritant) and solvent based paints (flammable). 

-  Mandatory  consideration  of  all  the  life  stages  of  a  product  Without 
qualifications, this requirement might imply the development of criteria for all 
the  raw  materials  used  in  manufacturing  a  given  product.  In  most  cases 
such  an  extensive  application  of  the  "cradle-to-grave"  approach  is  not 
practically  feasible. 

Implementation procedures 

23.  The criteria-setting  procedure foreseen  in the Regulation involves a considerable 
administrative  burden  and  creates  confusion  as  to  the  responsibilities  of  the 
various actors. 

The process is initiated by the Commission  on its own initiative or at the request 
of  a competent  body.  The  competent  body  must  hold  consultations  of  interest 
groups, but it is not  specified  whether at purely national  or at broader level.  No 
procedure is indicated in the Regulation for the selection of product groups.  It is 
unclear  what  is  the  status  of  a  formal  request  by  a  competent  body  to  the 
Commission to start the criteria setting process for a product group.  No provisions 
are foreseen for the technical preparatory work.  The burden for it falls in practice 
on  the  Commission  which  has  needed  the  support  and  collaboration  of  the 
competent bodies.  The Commission has to consult interest groups which meet in 
a  consultation  forum.  The  final  decision  on  the  criteria  must  be  taken  by  the 
Commission.  The  Commission  must  obtain  support  by  a qualified  majority  of 
Member  States  in  a Regulatory  Committee  on  the  proposed  criteria.  The  final 
Commission decision is subject to the internal procedural rules of the Commission. 

In practice,  it  has  appeared  very  difficult  to  coordinate  the  involvement  of  the 
competent  bodies,  the  consultation  of 
interest  groups  at  national  and 
European level,  the search for  a qualified  majority  in the Regulatory  Committee 
and the internal procedures of the Commission. 

11 

International compatibility 

24.  Voluntary eco-label  schemes are presently under scrutiny in international  fora for 
their  potential  trade  effects.  This  issue  has  only  arisen  recently  and  was  not 
considered  to  be  relevant  in  1992.  Discussions  are  in  progress  within  the 
Committee on Trade and the Environment of the World Trade Organization (WTO) 
on the discipline applicable to such schemes. 

The applicability of the Technical Barriers to Trade (TBT) Code of Practice is in 
particular  under  scrutiny.  The development  of  an ad  hoc  Code  of  Practice  for 
eco-label  schemes is also being considered as a possible approach.  The objective 
is  to  ensure  transparency  and  non-discrimination  in  the  implementation  of 
such schemes. 

25.  Moreover, work is in progress within ISO to develop standards, within the series 
ISO  14000,  for  eco-labelling  and  Life  Cycle  Analysis.  The  following  relevant 
international  standards are being prepared: 

- 

ISO  14020 Environmental  Labels and Declarations - General Principles 

ISO 14021 Environmental Labels and Declarations - Environmental Labelling -
Self Declaration Environmental  Claims - Terms and Definitions 

ISO 14022 Environmental Labels and Declarations - Environmental  Claims -
Self Declarations - Symbols 

ISO  14023  Environmental  Labelling  -  Self  Declarations  -  Environmental 
Claims - Testing and Verification  Methodologies 

ISO 14024 Environmental Labels and Declarations - Environmental Labelling 
Type I - Guiding Principles and Procedures 

ISO  14025 Environmental  Labels and Declarations - Environmental  labelling 
Type III - Guiding Principles and Procedures 

ISO  14040 Life Cycle Assessment - Principles and Guidelines 

ISO 14041 Life Cycle Assessment - Life Cycle Inventory  Analysis 

- 

- 

- 

ISO  14042 Life Cycle Assessment - Impact Assessment 

- 

ISO  14043 Life Cycle Assessment - Interpretation 

ISO  14020 -14024 -  14040 -  14041 -  14042 -  14043 will  be particularly relevant 
for this Regulation. 

ISO 14020, 14024, 14040 and 14041 are expected to be adopted in 1997. The other 
standards could be adopted in  1998-1999. 

12 

Those standards will represent, when finalized and adopted, an important reference 
for  ensuring  consistency  and  non-discrimination  in  the  implementation  of 
eco-labelling  schemes.  The Community  scheme will  fully  take  into  account the 
developments in the international  standardization in this area. 

26.  Steps have already been taken in the operation of the Community scheme in order 

to ensure full  access, non-discrimination  and transparency for foreign producers. 

However, in the absence of an internationally agreed view on the position of and 
eventually  the discipline  applicable to voluntary  eco-labels  some criticisms have 
been  expressed  notably  by certain third countries regarding the  operation  of the 
Community scheme. 

VI.  Objectives  and  main features  of the proposed  revision 

Clarifying  the  approach  and  introducing  a  more  flexible  structure  of  the 
eco-label 

27.  The  Community  eco-label  has  been  conceived  as  a  selective,  independently 
certified,  life cycle based sign of environmental  quality.  The revised Regulation 
should  clarify  the  nature  of  the  scheme  by  stating  that  it  is  intended  to  guide 
consumers  towards  products  which  represent  more  environment  friendly 
alternatives compared to other products in the  same product group.  The concept 
of "product with a reduced environmental  impact during its entire life cycle" also 
needs  to  be  clarified,  in  particular  by  stating  the  methodological  principles  for 
establishing  the  awarding  criteria.  It  should  be  clear  that  the  methodological 
approach includes a life cycle analysis applied to the product group concerned, on 
the basis of which a limited number of key environmental aspects are selected and 
the improvement and substitution options are identified.  The criteria should refer 
to  these  aspects  and  also  take  into  account  the  practical  possibilities  for 
improvement of the product in a life cycle perspective.  It should also be clear that 
the  eco-label  is  an  indication  of  the  potential  for  reducing  certain  impacts. 
Eco-label  criteria are in fact based  on a generic assessment  of  such impacts, not 
on  a study  of  the  actual  environmental  effects  related  to the  life  cycle  of  each 
specific product. 

28.  The objective of providing consumers with better information on the environmental 
impact of products is already stated in Regulation (EEC) No 880/92 and should be 
maintained in the revision.  However, the shape of the label itself should correctly 
reflect this objective by including information  on the key aspects which motivate 
the awarding of a label  to a given product. 

The  present  approach  is  based  on  a  "pass-fail"  system.  In  the  case  of  the 
EU scheme,  which  is  multi-criteria  based  and  applies  to  a  wide  variety  of 
conditions through the Community  and internationally,  this approach has proven 
to be insufficiently  flexible and to involve substantial difficulties in setting suitable 

13 

hurdles  for  the  parameters  under  consideration.  Therefore,  it  is  proposed  to 
introduce  a  rating  for  each  of  the  quantitative  criteria  considered.  The  hurdles 
corresponding to the first level  (one  "flower")  would  represent the base-line  for a 
product  in  order to  be  awarded  an  eco-label. 

Further improvements  on  one  or more  of  the parameters would  be  recognized  by 
attributing  two  or  three  "flowers".  This  would  provide  an  incentive  to  and 
recognition  of  producers  for  such  further  improvements,  and  information  to 
consumers  on the  specific  characteristics  of  each product  labelled. 

Defining  the  scope  of  the  Community  eco-label  scheme 

29.  At present, the eco-label  Regulation  does not include criteria for selecting  product 
groups  for  the  Community  scheme.  Only  food,  drinks  and  pharmaceuticals  are 
excluded  a  priori. 

It  should  be  clarified  that  the  Community  scheme  should  not  apply  to  products 
which are of minor interest at Community leve| in terms of the internal market and 
the environmental  policy.  The lack  of  criteria for the selection  of  product groups 
together  with  the  opportunity  which  is  presently  offered  to  a  competent  body  to 
require the opening of the procedure for setting eco-label  criteria, involve a risk of 
dispersion  and waste  of  resources  in the  operation  of the  Community  scheme. 

The selection  criteria should also take account of the suitability  of the eco-label  as 
a  policy  tool  for the promotion  of  improving  a specific  product  sector. 

Coordination with  other initiatives,  in  particular in the field  of  energy  saving and 
energy  efficiency  should  be  ensured  in  order to  define  the  scope  of  the  eco-label 
scheme  in  an  optimum  way  and  to  avoid  duplications.  The  initiatives  under  the 
SAVE  programme,  the  cooperation  on  the  energy  label  "Energy  Star" for  office 
equipment,  should  be  taken  into  account  when  examining  the  suitability  of  an 
eco-label  for  the  product  groups  concerned  by  those  initiatives. 

In  general,  when  the  major  environmental 
impacts  are  related  to  energy 
consumption,  the  justification  of  an  eco-label  in  addition  to  other  existing 
initiatives  in  the area  of  energy  should  be  carefully  examined. 

Defining  generic  criteria for  the  selectivity  of  the  eco-label 

30.  No  guidance  is  given  at  present  in  the  Regulation  on  how  to  establish  the 
selectivity level  of eco-label  criteria.  This has led to great difficulties,  in particular 
when  trying  to reconcile  divergent  points  of  view  between  Member  States  where 
product  technology  and  market  structures  are  substantially  different.  Certain 
competent  bodies  tend  to  interpret the  eco-label  as  a  sign  of  excellence,  whereas 
others  are  more  interested  in  broader  participation  in  the  scheme  and its  overall 
potential  for  promoting  improvements. 

14 

Setting  the  selectivity  level  of  the  eco-label  will  be  easier  under  the  proposed 
graded  approach  which  introduces  more  flexibility  for  adaptation  to  the  specific 
circumstances of the various Member  States. However,  it is important to introduce 
certain  generic  criteria to guide  the  setting  of  such  selectivity  levels. 

These  criteria  should  ensure that: 

there is  sufficient  visibility  for eco-labelled products through the EU market; 

a  real  possibility  exists  for  adapting  a  significant  share  of  products  and 
production  processes  to  the  criteria,  therefore  achieving  the  environmental 
improvements  which  are the  "raison  d'être"  of  the  eco-label  scheme; 

the  potential  for  overall  environmental  improvement  is  privileged  instead  of 
the  development  of  niches  of  environmental  excellence. 

Streamlining  the  criteria-setting  procedures 

31.  At  present,  the  procedures  applied  to  the  eco-label  criteria  setting  are  those 
established  for  setting EU  legislation  under the implementation  powers  attributed 
to the  Commission.  In addition,  a Consultation  Forum is involved  in the  process 
and  the  competent  bodies  are  associated  by  attributing  to  them  the  faculty  of 
initiating the criteria setting procedure.  The Regulation does not specify  by whom 
and how  the technical  preparatory  work  should  be  carried  out. 

So  far  experience  has  shown  that  this  procedure  is  complex,  implies  the 
involvement  and  responsibility  of  the  Commission  in  routine  highly  specialized 
technical  work  and  overall  does  not  represent  a  suitable  basis  for  the  long-term 
development  of  the eco-label  scheme. 

32. 

It is therefore proposed to set up a European Eco-label  Organization  (EEO) which 
should establish and update the eco-label  criteria and the corresponding  assessment 
and  verification  requirements  as  well  as  coordinate  the  activities  of  the 
competent  bodies.  The  EEO  would  be  a  private  international  association  of  the 
eco-label  Competent  Bodies.  The  Commission  would  promote  the  establishment 
of  the  EEO.  The  EEO  would  act  on  a  mandate  by  the  Commission.  The 
Commission  would  have  to  verify  that  the  tasks  of  the  EEO  are  executed  in 
conformity  with  the  mandates  and  the  Regulation.  The  criteria  and  other 
requirements  set out by  the EEO would  take effect  only  once their references  are 
published by the Commission in the Official  Journal of the European Communities. 

The EEO would  act as a coordinating  network between the Competent Bodies and 
would  not require the creation  of  costly  new  complex  structures. 

33.  The  approach  proposed  is  therefore  parallel  to  the  "new  approach"  for  the 
European technical  standardization  and the  role  of  EEO  would  be  similar to that 
of  the European  Standardization  Committee  (CEN). 

15 

The  option  to  attribute  the  task  of  setting  the  eco-label  criteria  to  the 
European  Environmental Agency has been considered.  This possibility is explicitly 
foreseen in Article 20 of Regulation (EEC) No 1210/90 of 7 May  1990 establishing 
the  Agency.  However,  that  option  does  not  appear  to  be  the  most  appropriate 
solution  for  a number  of reasons. 

34.  The Council  adopted  the Regulation  establishing the Agency  in  1990.  However, 
when setting the eco-label  scheme in  1992 it was clear that, due to the well known 
difficulties  in  choosing  its seat,  the Agency would  only become operational  after 
a  long  delay.  Therefore,  the  Council  decided  in  1992 to  organize  the  eco-label 
scheme  on  a  different  basis  and  eliminated  every  reference  to  the  involvement 
of  the Agency, which had  originally  been foreseen  in the Commission Proposal. 
The  Council  has  also  introduced  an  higher  degree  of  decentralization  of  the 
operation  of  the  scheme,  by  involving  national  competent  bodies  at  all  the 
implementation  stages. 

As a consequence, national  Competent Bodies have been established  and are now 
operational  in most Member  States.  These Bodies have been closely  involved in 
the technical work of preparing eco-label criteria. By now, they collectively possess 
the technical  structures  and expertise for  operating the Community  scheme. 

35.  The  Agency  does  not  have  any  such  structure  or  experience.  Moreover,  the 
decision-making  procedures  of  the  Agency  do  not  appear  to  be  appropriate  for 
adopting  eco-label  criteria.  Finally,  the  possibility  open  by  Regulation  (EEC) 
No  1210/90 for  the Council  to decide on further  tasks for  the  Agency,  including 
setting  eco-label  criteria,  not  later  than  two  years  after  entry  into  force  of  the 
Regulation,  has  not  been  used  given  the  delay  in  the  development  of  the  main 
international  activities of the EEA. 

Establishing  procedural  and  methodological  requirements  for 
eco-label criteria 

setting 

36.  The assignment  of important  tasks to the EEO requires the  detailed  specification 
of  the  methodological  and  procedural  requirements  to  be  complied  with  in  the 
execution  of the tasks  foreseen. 

Therefore,  requirements  should be set out on the following  subjects: 

the objectives  of the eco-label  criteria  and  how to  select key  environmental 
aspects to be considered; 

principles and methods of life  cycle analysis; 

consultation  of  stakeholders; 

transparency  and  non-discrimination; 

independency  and neutrality  of the process. 

16 

Simplifying and clarifying the awarding procedures 

37.  Under  the  revised  Regulation,  the  awarding  criteria  together  with  requirements 
applicable to assessment of applications and verification  of compliance would be 
set  out by the  Competent  Bodies  acting  collectively  within  the EEO.  The EEO 
would also provide a forum for ensuring consistency in the implementation of the 
scheme.  Under  these  conditions,  it  is  possible  to  delegate  the  awarding  of  the 
eco-label  to  the  Competent  Body  receiving  the  application.  However,  it  is 
necessary to clarify  to which Competent Body  an application has to be presented 
in the different cases. 

Eliminating unjustified rigidity 

38.  Certain provisions of this Regulation have proved to be too inflexible. In particular, 
the provision which imposes a fixed three-year validity period of eco-label criteria 
in all cases should be replaced by a case-by-case decision to be taken by the EEO 
in view of the specific  characteristics of each product group. 

Moreover,  there  is  no  real  need  for  a  legally  imposed  standard  contract  as 
presently  foreseen 
in  Article  12  of  the  Regulation.  The  coordination 
between  competent  bodies  could  also  ensure  consistency  of  the  contractual 
conditions applied. 

Adapting the regime applicable to fees 

39.  The present regime applicable to fees should be adapted in relation to three aspects. 

First,  a  ceiling  should  be  introduced  for  the  annual  fees.  This  is  relevant  for 
products  sold  in  large  quantities  in  the  EU,  for  which  the  fixed  percentage  of 
0.15% could imply transfer of excessive amounts of money from producers to the 
competent bodies. In fact, fees are justified by the need to finance the functioning 
of the scheme. It is essential to avoid penalizing by excessive costs manufacturers 
marketing products with a reduced environmental impact. 

Secondly,  reduced  rates should  apply  to  SMEs and manufacturers  of  developing 
countries in order to promote their participation in the scheme. 

Thirdly,  part  of  the  finance  collected  through  such  fees  should  be  devoted  to 
financing the activities of EEO. 

Finally,  no  fee  variation  between  Member  States  in  the level  of  fees  should be 
allowed since such variations may involve unequal treatment of applicants which 
would not be justified  within the framework  of a Community scheme. 

Ensuring compatibility with international commitments 

40.  The Community  scheme  is  applicable to imported  as well  as products produced 
in the EU. It is important to ensure that the approach and operation of the scheme 
is  compatible  with  the  principles  of  the  international  trade  agreements.  These 
principles should therefore be reflected  into the provisions of the Regulation. 

17 

Procedural  principles  aimed  at  guaranteeing  access,  transparency  and  non 
discrimination  should be an integral  part of the Regulation. 

Finally, consistency with internationally recognized standards for eco-labelling and 
life  cycle analysis should be ensured. 

Widening the access to the eco-label 

41.  The possibility  for  retailers to apply for  the eco-label in the case of products sold 
under their own brand name should be foreseen.  This possibility  greatly  increases 
the potential of the eco-label given the present trends in retailing and the power of 
retailers to influence  suppliers. 

Ensuring coordination between the EU and national eco-label schemes 

National schemes have in some cases achieved good results. However, coordination 
between  the  Community  and  national  or other  eco-label  schemes  is necessary  in 
order  to  prevent  the  potential  negative  effects  related  to  a  proliferation  of 
uncoordinated  schemes. 

The  expectation  that  the  establishment  of  the  Community  scheme  would  have 
gradually  reduced  the  number  and  scope  of  national  schemes  and  in  the  longer 
term  supersede  them,  has  failed  to  materialize.  Therefore,  it  is  proposed  to  set 
provisions  in  order  to  ensure  that  the  Community  and  national  schemes 
become  complementary. 

VII.  Conclusions 

42.  In  view  of the  contribution  which  the  Community  eco-label  scheme  can give  to 
sustainable  consumption  in  the  European  Union  and  taking  into  account  the 
difficulties  which  have  been  encountered  in  its  implementation,  it  is  now 
essential  to  revise  the  scheme.  This  revision  will  have  to  seek  to  achieve  the 
following  objectives: 

to clarify  the nature of the scheme, the principles on which it is based and its 
methodological  approach; 

to  introduce  a  grading  of  the  eco-label  and  define  what  information  for 
consumers has to be included  in the label; 

to  set  out  procedural  principles  for  the  operation  of  the  scheme,  aimed  in 
particular at ensuring the efficiency  and transparency of the eco-label  criteria 
setting process; 

to  attribute  the  task  of  establishing  eco-label  criteria  to  an  appropriate 
independent organization, the European Eco-label Organization (EEO),  which 
would  act on mandate by the Commission; 

18 

to ensure  complementarity  between  the Community  scheme  and other major 
eco-label  schemes  in the EU; 

to  introduce  a  ceiling  for  the  annual  fee  to  be  charged  for  the  use  of  the 
label  and  a  reduced  rate  of  fee  for  SMEs  and  manufacturers  of 
developing  countries; 

to  streamline  other  aspects  of  the  operation  of  the  Community  scheme; 

to ensure by  appropriate  substantive  provisions continued  compatibility  with 
the general  principles  of international  trade agreements  and consistency  with 
relevant  internationally  recognized  standards; 

to  ensure 
environmental  impact. 

that 

the  eco-label 

is  a  sign  of  guarantee  of  reduced 

Description  of  the  measures  proposed 

Article  1:  Objectives  and  principles 

This  Article  defines  the  objectives  and  principles  of  the  Community  eco-label 
award  scheme. 

The  scheme  is  selective  and  it is  intended  to  providing  guidance  and  information 
to  consumers.  The  eco-label  may  be  awarded  only  to  products  which  have  the 
potential  to contribute to reduce certain environmental  impacts,  compared to other 
products  serving  the  same  function. 

The eco-label  indicates that a product has the potential  to reduce certain  specified 
environmental  impacts. 

The  environmental  impacts  considered  are identified  on the basis of the life  cycle 
environmental  analysis  of  the products  concerned. 

Article  1 clarifies  that  the  Community  eco-label  is  not  related  to  any  regulatory 
requirements  applicable  to products. 

Finally, Article  1 requires that consistency is ensured between the eco-label  scheme 
and  other  Community  labelling  schemes  such  as  the  energy  labelling  and  the 
organic  agriculture  certification  scheme  and duplications  are avoided. 

Article  2:  Environmental  requirements 

This Article defines the essential  environmental  requirements which a product must 
satisfy  in  order to be  awarded  an  eco-label. 

The  product  must  contribute to comparative  improvements  on  key  environmental 
aspects  which  are  identified  by  applying  life  cycle  analysis  to  the  product 
group  considered. 

19 

The  balance  between  the  environmental  benefits  and  burdens  related  to  the 
adaptations  considered  will  have to be evaluated  and taken  into account. 

Article 2 introduces an indicative assessment matrix which  completes and revises 
that in Annex I of Regulation  (EEC) No 880/92, and the essential  methodological 
requirements for  selecting key environmental  aspects (see also Annexes I and II). 

Article 3: Eco-label criteria and assessment and verification  requirements 

t 

Article 3 states that the detailed requirements which a product must satisfy  in order 
to  qualify  for  the  eco-label  shall  be  set  in  the  form  of  criteria  for  each  product 
group.  The criteria  should  be related  to the  key  environmental  aspects  identified 
in accordance to the approach  defined  in Article 2. They  should be selective and 
their  selectivity  will  be set on the basis of  consideration  of: 

the  possibility 
consumer choice; 

to 

influence 

environmental 

improvements 

through 

the technical  and economic feasibility  of adaptations; and 

aim 

to 
the 
environmental  improvement. 

achieve 

the  maximum 

potential 

for 

overall 

The criteria should define the thresholds related to the rating foreseen  for each key 
environmental  aspect in the graded eco-label  described  in Annex III. 

Requirements for the assessment of specific products against the eco-label  criteria 
and verification  of compliance with the conditions for the use of the eco-label have 
to be established  by product groups. 

Finally, the criteria and the assessment and verification  requirements have a limited 
period  of validity, which will be specified  case by case for  each product group. 

Article  4: Scope 

Article  4  introduces  the  concept  of  product  group  and  the  criteria  for  selecting 
product groups to be included  in the Community  scheme. 

Eco-label  criteria  shall  be  established  by  product  groups.  A  same product  group 
will  include all  products equivalent  in terms of use and consumer  perception. 

However,  subgroups may  be introduced  when there are significant  differences  in 
the functional  characteristics  of products serving the same main function  and the 
adaptation  of  the  criteria  to  the  various  subgroups  can  ensure  a  greater  overall 
improvement potential  for  the eco-label. 

Criteria  are set out for  the selection  of product groups. 

20 

Article 5: Procedures for  the establishment of eco-label criteria and assessment 
and verification  requirements 

Article  5  gives  a mandate  to  the  Commission  from  the  entry  into  force  of  the 
Regulation; to encourage the establishment of the European Eco-label Organization 
(EEO) in the form of an Association among competent bodies. The Regulation will 
enter  into  force  on  the  date  of  its  publication  in  the  Official  Journal  of  the 
European Communities, but will  be applicable in its entirety only when the EEO 
will be able to perform its tasks. The Commission is required to take a decision to 
that end, and to publish in the Official  Journal of the European Communities the 
date of applicability  of the Regulation. 

Moreover,  Article  5  defines  the  procedure  for  setting  the  criteria  and  the 
corresponding assessment and compliance verification  requirements. 

Article 6: Awarding the eco-label 

Article 6 defines the procedure for awarding the eco-label.  It extends the right to 
apply for the label to retailers only  in the case  of products marketed under their 
own brand  name.  It  clarifies  the  possible  scope  of  an application  and to which 
Competent Body it has to be submitted. 

Article  7: The eco-label 

This article introduces a modified  lay out for the eco-label, which includes a logo 
and information on the product, in particular concerning its rating related to the key 
environmental  aspects  considered  for  the  eco-label  criteria.  The  shape  of  the 
eco-label is described in Annex III. 

Article 8:  Use of the eco-label,  costs and fees 

The provisions of Regulation (EEC) No 880/92 concerning the terms of use of the 
label are confirmed but no standard contract is foreseen here and a revised regime 
applicable to the annual fees is set out. 

Article 9: Competent bodies 

Article  9  repeats  the  corresponding  provisions  of  Regulation  (EEC) No  880/92 
concerning the designation of the competent bodies with three amendments: 

the  Member  States  shall  ensure  not  only  that  the  Competent  Bodies  are 
designated but also that they are operational; 

in  the  case  where  more  than  one  Competent  Body  is  designated,  the 
Member State concerned must establish the respective competencies and the 
relevant coordination requirements; 

21 

the  procedures  and  working  arrangements  of  each  Competent  Body  must 
allow  for  sufficient  transparency  and  involvement  of  all  stakeholders  at 
national level. 

Article 10: Promotion of the eco-label 

Article  10  introduces  provisions  aimed  at  enhancing  the  effectiveness  of  the 
Community  eco-label.  Member States and the EEO are required to promote the 
Community  eco-label  by information  and awareness-raising campaigns. 

Article 11: Other eco-label schemes in the Member States 

The provisions of this Article are aimed at ensuring complementarity between the 
Community  and  national  eco-label  schemes.  In  particular,  the  objective  is  to 
prevent duplication or contradiction between the Community and national schemes. 

Article 12: Adaptation to technical progress 

Article  12 provides for the adaptation to the technical  progress of the Annexes. 

Article 13:  Committee 

This Article establishes an Advisory Committee to assist the Commission in setting 
out the mandates to EEO and adapting the Annexes to technical progress. 

Article 14: Transitional provisions 

This  Article  repeals  Regulation  (EEC)  No  880/92  and  defines  transitional 
arrangements to ensure continuity between the old and new eco-label Regulations. 

Article 15: Revision 

Article  15 provides for the review and eventual revision of the Regulation within 
five years of the date of its full  applicability. 

Article 16: Final provisions 

The  Regulation  will  enter  into  force  on  the  day  of  its  publication  in  the 
Official  Journal  of the European Communities and will  be fully  applicable when 
the EEO is established and the Commission has verified  that it is able to perform 
its tasks. 

22 

Proposal  for  a 
COUNCIL  REGULATION (ECS 
on  a revised  Community  eco-label  award  scheme 

THE COUNCIL  OF  THE EUROPEAN  UNION, 

Having  regard  to  the  Treaty  establishing  the  European  Community  and  in  particular 
Article  130s(l)  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  scheme2  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 its  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; 

OJNoL99,  11.4.1992, p. 1. 

23 

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 under 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  duplications  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 appliances3 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  foodstuffs4. 

OJ No L 297,  13.10.1992, p. 16. 
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). 

24 

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 

of 

objective 

eco-label 

the  Community 

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. 

award 

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. 

25 

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  requirments  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) 

(b) 

the product's prospects of market penetration in the Community  shall, during 
the  currency  of 
to  effect  environmental 
improvements through  consumer choice; 

the  criteria,  be  sufficient 

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. 

26 

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. 

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) 

(c) 

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 

for  effecting  environmental 
it  shall  present  a  significant  potential 
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. 

27 

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/EEC5  or 
Directive 88/379/EEC6. 

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  on  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. 

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). 
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). 

28 

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  under 
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/EC7,  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. 

OJNoL  162,  13.7.1995, p. 37. 

29 

Article  8 

Use of the eco-label, costs and  fees 

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. 

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. 

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 

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 
is/are  designated  and  operational.  Where  more  than 
in  this  Regulation, 
one competent  body  is  designated,  the  Member  State  shall  set  those  bodies' 
respective powers and the coordination  requirements  applicable to them. 

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. 

30 

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  under 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. 

31 

Article 14 

Transitional  provisions 

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

It shall  continue to apply to contracts concluded  under 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  that  of  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. 

This  Regulation  shall  be  binding  in  its  entirety  and  directly  applicable  in  all 
Member States. 

Done at Brussels, 

For the Council 
The President 

32 

ANNEX I 

INDICATIVE ASSESSMENT MATRIX 

Environmental  aspects 

Product  life-cycle 

Pre-production 

Production 

Distribution 
(including 
packaging) 

Use 

Re-use/ 
Recycling/ 
Disposal 

Air  quality 

Water  quality 

Soil  protection 

Waste  reduction 

Energy  savings 

Natural  resource  management 

Global  warming  prevention 

Ozone  layer  protection 

Environmental  safety 

Noise 

Eco-system  protection 

> 

33 

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 to internationally  recognized 
methods  and standards.  It shall  include the following  steps: 

(a)  Goal  definition  and  scoping  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. 

34 

(b)  The inventory  analvsis 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. 

35 

ANNEX  III 

Description of the eco-label 

Shape of the  eco-label 

The eco-label  is awarded to products which  complies  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: 

This label guarantees a reduced 
- * - — ' *— 

K ey 
eovinmme»*! 

Envinmm»*!  W> 

.£•*  ^ 

*f  * 

^ 

EUROPEAN UNION 
ECO-LABEL 

aspects 

x 

; 

z 

f

it 

f 

® 
T 

& 
T 

(1)  This is an example. One, two or three "flowers" may be attributed, for each key aspect 

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. 

36 

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  time-table  shall  be  established 

including,  in  particular,  the  following  phases: 

(i)  market  study; 

(ii) 

life-cycle  analysis 
scope  definition, 
Improvement  Analysis; 

(which 
inventory 

(iii)  proposal  of  the  criteria. 

includes 

the 

analysis  and 

following 

steps:  goal  and 
impact  assessment)  and 

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. 

37 

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. 

38 

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  SMEs8 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. 

SMEs  as  defined  in  Commission Recommendation 96/280/EC  of  3  April  1996  (OJ  No  L  107, 
30.4.1996, p. 4). 

39 

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. 

40 

FINANCIAL  STATEMENT 

1.  Title of operation 

Revised  Regulation  on  a Community  eco-label  award  scheme  (Regulation  (EEC) 
No  880/92) 

2.  Budget  heading  involved 

B4-3040 

3.  Legal  basis 

Article  130s 
Regulation  (EEC) No 880/92, as amended. 

4.  Description  of operation 

4.1.  General  Objective: 

The general  objective of this initiative is to improve the effectiveness  of the 
Community  eco-label  award  scheme with  a view  to promoting  sustainable 
consumption  patterns in the EC. 

For  this  aim  it  is  proposed  to  revise  the  eco-label  scheme  established 
by Regulation  (EEC) No  880/92, in  particular by transferring  its operation 
to  an 
to  establish  a 
European  Eco-label  Organization. 

independent  body  within 

framework, 

that 

This demarche corresponds to the principle of action at the most appropriate 
level.  National  competent  Bodies  collaborating  within  the  framework  of  a 
European  association  are  in  the  best  position  to  set  eco-label  criteria 
corresponding  to  expectations  and  perceptions  of  consumers  in  the 
Member  States. 

Moreover,  the national  competent  bodies possess  collectively  the  expertise 
and  competence  necessary  for  operating  the  eco-label  scheme  in  the  most 
effective  way. Finally,  they  are in the best  position  to  ensure  participation 
of 
the  scheme  and 
ensure transparency. 

the  operation  of 

interested  parties 

the 

in 

4.2.  Period  covered  and  arrangements  for  renewal: 

Four years, from  the entry  into force  of the revised  Regulation. 

41 

5.  Classification  of expenditure or  revenue 

5.1.  Non-compulsory  expenditure 

5.2.  Differentiated  appropriations 

5.3.  Type of revenue involved 

Not applicable. 

6.  Type of expenditure or revenue 

-  Subsidy for joint financing with other sources in the public sector 

-  Should the operation prove an economic success, is there provision for  all part 

of the Community contribution to be reimbursed ? 

No.  The  objective  of  the  operation  is  to  promote  the  establishment  of  a 
no-profit  organization. 

7.  Financial  impact 

7.1.  Method  of  calculating  total  cost  of  operation  (relation  between 

individual  and total  costs) 

The operation consists in establishing the European Eco-label  Organization, 
as foreseen  in the revised  eco-label  Regulation,  and launching its activities. 

This  organization  would  be  an  international  association  of  the  national 
eco-label  competent  bodies  set  out  by  Member  States  under  Article  9  of 
Regulation  (EEC) No 880/92. 

The costs of this operation would be financed  on the Community budget  at the 
following  rates: 

70% for  the first year ( 1998) 
70% for  the second year  (1999) 
50% for  the third year  (2000) 
30% for  the fourth  year (2001). 

The  complementary 
competent bodies. 

financing  will  be  provided  by 

the  eco-label 

No further  Community  financing  is foreseen  after  the fourth  year of operation. 

42 

The  EEO  is  expected  to  become  in  the  longer  term  self-financing  on  the  fees 
resulting from  the eco-label  awards.  Execution  of the mandates which  will be 
given by the Commission  and the general  costs of the EEO should be  financed 
by the  50% of eco-label  award  annual  fees which the EEO is entitled  to obtain 
from  the competent bodies. 

The competent bodies should ensure any external need for further  complementary 
finance after  the fourth  year. 

The calculation  is based  on the following  assumptions.  The EEO will  move to 
coordinate the activities of setting eco-label criteria and testing requirements by 
establishing and managing ad hoc working groups for the various product groups 
considered and organizing and promoting life cycle studies. Moreover, in the  first 
period  the  EEO  will  have  to  set  its  methodological  and  procedural  rules. 
Coordination will have to take place in Brussels where the EEO should establish 
its seat and  secretariat. 

7.2. 

Itemized  breakdown  of cost 

Breakdown 

Year  1 
1998 

Year  2 
1999 

Year  3 
2000 

Year  4 
2001 

TOTAL 

Establishment  and operation  costs 
of the EEO 

Life  cycle analysis and 
assessment/testing  requirements  activities 

1.800.000 

1.500.000 

1.500.000 

1.500.000 

6.300.000 

800.000 

800.000 

500.000 

500.000 

2.600.000 

TOTAL 

2.600.000 

2.300.000 

2.000.000 

2.000.000 

8.900.000 

Community  contribution 

1.820.000 
(70%) 

1.610.000 
(70%) 

1.000.000 
(50%) 

600.000 
(30%) 

5.030.000 
(56.5%) 

Expressed  in current  constant  ecus (1996). 

43 

7.3.  Schedule of commitment  and  payment  appropriations 

Commitment  appropriations 

1.820.000 

1.610.000 

1.000.000 

600.000 

5.030.000 

1998 

1999 

2000 

2001 

TOTAL 

Payment  appropriations 

1998 

1999 

2000 

2001 

2002 

2003 

1.290.00 

1.510.00 

1.215.00 

790.00 

190.00 

35.00 

TOTAL 

5.030.00 

, 

- 

. 

,. 

, 

k 

Current  constant  ecus (1996). 

8.  Fraud  prevention  measures 

Specific control measures envisaged 

The financing  of the EEO considered,  shall be subject to all the verification  requirements 
and other contractual  conditions  applied to Community  financial  contributions. 

In addition, the following  specific  measures will  be applied: 

all  study,  service,  consultant  and  purchasing  contracts  of  the  EEO  exceeding 
ECU  10 000 will  be subject to call  for  tender; 

- 

- 

open  calls  for 
European  Communities, for  contracts above ECU  50 000; 

tender  to  be  published 

in  the  Official  Journal  of  the 

restricted  calls  for  tender  based  on  lists  resulting  from  "appel  à  manifestation 
d'intérêt",  in the other cases; 

reimbursements  for  attendance  to  meetings  should  only  be  accepted  on  presentation 
of  appropriate  documentation.  This  documentation  will  be  kept  at  the  disposal  of 
the Commission; 

44 

an annual detailed financial  report shall be submitted by the EEO to the Commission. 
The  Commission  will  make  systematic  checks  on  the  basis  of  this  report  at  the 
premises of the EEO. Approval  of the report by the Commission  will be a condition 
for  payments. 

9.  Elements of cost-effectiveness  analysis 

9.1.  Specific  and quantifiable  objectives; target  population 

Specific objectives 

The objective is to ensure the proper functioning  of the EC eco-label award scheme. 

The final objective is the improvement of the environment.  The eco-label  is based 
on  a  market  approach.  Results  will  depend  on  market  response  to  the  increased 
visibility  of the eco-label. 

As reference  for evaluating this action, the numbering of product groups for which 
criteria are established  or revised, can be used. The following targets are  therefore 
set out: 

Year 

Number  of  product  groups  for  which  eco-label  criteria 

are  set  out  or  revised  (per  year) 

1998 

1999 

2000 

• 2001 

5 

10 

15 

15 

sMsagasgasgasaesssacBgasssssasssB 

i 

'  i  SBSBSTBSS 

I  II II 

• ====a=s=sg=XBxagacsgsarssa===z  i 

11 

i  ,  i 

s a a a a a a a a a a as 

The  indicative  number  of  five  product  groups  per  year  represents  an  average 
figure mainly based on the general result so far developed within the EC eco-label 
award scheme.  In fact, within the last three years of functioning (1993-96) eleven 
new product groups were established  and one was renewed  for  the  second time. 
To this critical  mass of product  groups already  in place one should  add  possible 
new product  groups derived  by the eleven technical  studies currently  carried  on 
by the Commission  and the competent bodies.  Moreover,  all the product groups 
will be subject to periodical revisions according to the different validity of criteria. 

45 

-  Target population 

The  direct  targets  of  this  action  are  the  eco-label  competent  bodies.  These  are 
neutral and independent bodies through Which interest groups have access through 
the Community scheme. Consumer and environmental NGOs, industry associations, 
retailers and trade unions will benefit from the establishment of the EEO by being 
able to contribute through it to define the patterns of  sustainable consumption. 

The  end-beneficiaries  will  be  EC  citizens  at  large,  through  better  quality  of 
their environment. 

9.2.  Grounds for  the operation 

-  Need for  Community financial aid 

The  Community  eco-label  scheme  is  one  element  of  a  wide  strategy  aimed  at 
promoting  sustainable  production  and consumption.  The  objective  of  sustainable 
consumption is to reduce or contain impact of consumption on the environment. To 
that  aim  the  strategy  consists  in  promoting  environmentally  aware  behaviour 
patterns, in particular by identifying  and promoting  "green" products. 

The operation  of  the Community  eco-label  scheme  has recently  made substantial 
progress. Eco-label criteria have now been published for 11 product groups and the 
eco-label  has been awarded to 45 products. 

However,  certain difficulties  have been  encountered  in the implementation  of the 
Regulation  and  there  is  a  need  for  improving  and  streamlining  the  approach, 
methodologies  and  working  procedures  of  the  scheme,  in  order  to  increase  its 
effectiveness  and  efficiency. 

Whereas  the  setting  of  eco-labelling  criteria  is  speeding  up,  the  visibility  of the 
eco-label  on the European market is still low.  The operation of the scheme should 
now be done on a more routine and efficient  basis and efforts  should concentrate 
on promoting the eco-label vis-à-vis consumers, retailers and manufacturers. 

It is premature to assess the market effect of the Community scheme, given that the 
Community  eco-label  has not yet  gained  sufficient  visibility  in  the market place 
because of its still  relatively  early  stage of development. 

At  present,  the  procedures  applied  to  the  eco-label  criteria  setting  are  those 
established  for  setting EU legislation  under the implementation  powers attributed 
to the Commission.  In addition, a Consultation Forum is involved in the process 
and  the  competent  bodies  are  associated  by  attributing  to  them  the  faculty  of 
initiating the criteria setting procedure. 

So far experience has shown that this procedure is complex, implies the involvement 
and responsibility of  the Commission in routine highly specialized technical work 
and overall does not represent a suitable basis for the long-term development of the 
eco-label  scheme. 

46 

Under the revised eco-label  Regulation, the responsibility  for establishing  eco-label 
criteria  would  be  transferred  from  the  Commission  to  an  independent  body, 
the EEO.  The  EEO  would  take  the  form  of  an  international  association  of  the 
competent  bodies.  The  launch  of  the EEO  depends  on  the  initiative  of  the  bodies 
which  should  be  members  of  that  association. 

The  financing  of  the  establishment  and  first  years  of  operation  of  the  EEO  is  a 
stumbling block for its launch. It is anticipated that in its initial period of existence, 
the EEO  could  not get  a significant  income from fees  related to  eco-label  awards. 
The  Community  relevance  of  the  EEO  in  order  to  set  out  a  revised  eco-label 
scheme  justifies  an  EC  co-financing  for  the  first  four  years  of  operation.  The 
competent  bodies  would  have to  ensure the  complementary  financing. 

-  Choice  of ways  and  means 

It  is  therefore  proposed  to  set  up  a  European  Eco-label  Organization  (EEO) 
which  should  establish  and  update  the  eco-label  criteria  and  the  corresponding 
assessment  and verification  requirements  as well  as coordinate the activities  of the 
competent  bodies.  The  EEO  would  be  a  private  international  association  of  the 
eco-label  Competent Bodies.  The Commission would promote the establishment  of 
the EEO.  The EEO would  act  on  mandate by  the  Commission. 

The EEO  would  act  as  a coordinating  network  between  the  competent  bodies and 
would  not  require the  creation  of  costly  new  complex  structures. 

The  approach  proposed  is  therefore  parallel  to  the  "new  approach"  for  the 
European  technical  standardization and the role of the EEO would be similar to that 
of the European  Standardization  Committee  (CEN). 

The  specific  technical  tasks  attributed  to  the  EEO  will  regard  mainly  the 
management  and  coordination  of  the  studies  in  order  to  develop  or to  renew  the 
ecological  criteria  for  the  different  product groups.  The  studies  will  be  carried  on 
following  a  mandate  from  the  Commission  and  with  the  assistance  of 
technical  consultants. 

A  specific  ad  hoc  working  group  will  be  established  for  the  development  of 
eco-label  criteria for each product group.  The EEO will actively involve at different 
stages  of  the  studies  the  different  stakeholders  (parties  directly  or  indirectly 
concerned  by  the  mandate)  ensuring  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 and consumers. 

47 

A  specific  work  programme  and  a corresponding  time-table  shall  be  established 
inlcluding,  in particular, the following phases: 

(a)  market study; 

(b) 

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

inventory  analysis  and 

(c) 

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

The present  experience  of  running the eco-label  scheme  clearly  indicates that the 
timing for  the  development  of  one  full  life  cycle  assessment  study  is  twelve  to 
fourteen months. For each study, it is necessary to foresee at least four meetings of 
the ad hoc working group, followed by two plenary sessions of the EEO to discuss 
and eventually approve the ecological  criteria.  As a term of reference  for the cost 
of performing  a full  LCA study, we can assume an average of ECU  100 000. 

The operative costs of running the system should take into account the fact that the 
EEO should meet at least four times per year in plenary sessions.  The organization 
should  be  assisted  by  a  permanent  secretariat  constituted  at  least  by  a director, 
an assistant,  a communication  officer  and a secretary. 

Given the institutional  and practical  constraints, no alternative can be identified in 
order to achieve the aims of the revision of Regulation (EEC) No 880/92. 

The  option  to  attribute  the  task  of  setting  the  eco-label  criteria  to  the 
European Environmental Agency has been considered.  This possibility is explicitly 
foreseen in Article 20 of Regulation (EEC) No  1210/90 of 7 May  1990 establishing 
the  Agency.  However,  that  option  does  not  appear  to  be  the  most  appropriate 
solution for a number of reasons. 

The Council  adopted the Regulation  establishing  the Agency  in  1990.  However, 
when setting the eco-label  scheme in 1992 it was clear that, due to the well known 
difficulties  in choosing its seat, the Agency would only become operational  after a 
long  delay.  Therefore,  the  Council  decided  in  1992  to  organize  the  eco-label 
scheme on a different  basis and eliminated every  reference to the involvement  of 
the Agency,  which  had  originally  been  foreseen  in  the Commission  Proposal. 
The  Council  has  also  introduced  an  higher  degree  of  decentralization  of  the 
operation  of  the  scheme,  by  involving  national  competent  bodies  at  all  the 
implementation stages. 

48 

As  a consequence,  national  competent  bodies  have been  established  and  are now 
operational in most Member States.  These bodies have been closely involved in the 
technical work of preparing eco-label criteria.  By now they collectively possess the 
technical  structures  and  expertise for  operating the Community  scheme. 

The  Agency  does  not  have  any  such  structure  or  experience.  Moreover,  the 
decision-making  procedures  of  the  Agency  do  not  appear  to  be  appropriate  for 
adopting  eco-label  criteria.  Finally,  the  possibility  open  by  Regulation  (EEC) 
No  1210/90  for  the  Council  to  decide  on  further  tasks  for  the  Agency,  including 
setting  eco-label  criteria,  not  later  than  two  years  after  entry  into  force  of  the 
Regulation,  has  not  been  used  given  the  delay  in  the  development  of  the  main 
international  activities of the EEA. 

Finally,  no other  suitable body  is available for  operating this Community  scheme. 
The nature  of the  eco-label  scheme  does not  allow  for  solutions based  on  simple 
mutual recognition (the criteria would in fact have to be identical in the  15 Member 
States in order not to mislead consumers) or complete privatization (the label would 
not prevent  a proliferation  of  similar national  and/or private schemes). 

-  Main  factors  of  uncertainty  which  could  affect  the  specific  results  of 

the operation 

The uncertainty is related to the success of the EC eco-label and the amount of fees 
perceived. However, the EEO members should be associated to managing the risks 
of the operation by contributing financially. In fact,  they have a major  role to play 
for the success of the operation by establishing eco-label criteria and promoting the 
EC eco-label with the stakeholders (consumers, retailers, industry,  etc.) 

9.3.  Monitoring and evaluation  of the operation 

Given  the nature  of the  operation,  monitoring  will  take the form  of  a  supervision 
by  the  Commission  on  the  functioning  of the  EEO  and  its  ability  to  perform  the 
tasks  defined  in  the  Regulation.  The  Commission  will  examine  and  evaluate, 
together with the EEO, the success of the operation within three years of the entry 
into force  of the Regulation. 

In  particular  the  monitoring  of  the  operation  will  have 
important  quantitative 
aspects.  In fact,  the  success of the  new  system  will  be judged  on the basis of the 
growing  number  of  product  groups  established  by  the EEO.  Another  element  to 
assess the efficiency  of the  system  will  be the visibility  of the eco-label  products 
available  to  the  public  on  the  market.  The  growing  involvement  of  retailers  and 
distributors within the system will  be another indicator of the overall  success. 

The evaluation  of the qualitative aspects will refer  to the impact assessment  of the 
operation.  The  main  elements  that  will  be  taken  into  consideration  will  be  the 
European "consumer behaviour change" and the  European "manufacturer behaviour 
the  consumer  awareness  and  understanding  of  the  EU 
change".  In  particular, 
eco-label  programme will be investigated.  The manufacturers'  potentiality  in terms 
of change due to the growing acceptance of the system will  be further  analysed. 

49 

10.  Administrative  expenditure  (Section  III, Part A of the Budget) 

10.1.  Effect  on the number of posts 

No increase  is  expected  in  the  number  of Commission  Staff  necessary  for  the 
eco-label activity. On the contrary, a redeployment toward awareness-raising and 
other promotion activities, which have not been conducted  so far  due to lack of 
human  resources,  will  be  possible.  In  fact,  the  present  situation  in  terms  of 
resources (five  A officials  full time, one A official  part time, one A auxiliaire, 
one B  and two C officials)  will  no  longer be necessary  under  the new  system 
for  the direct tasks related  to the implementation  of the Regulation. 

Therefore,  after  a transitional  period,  part of the staff  presently  working on the 
operation of the eco-label  system could be redeployed towards activities related 
to  the  promotion  and  extension  of  the  scheme,  as  well  as  monitoring  the 
activities of the new organization, the EEO.  Two A officials  and one C  official 
will be required  in order to follow  the revised EU eco-label Regulation. 

Type of post 

Staff  to be assigned  to 
managing the operation 

Permanent 
posts 

Temporary 
posts 

Source 

Duration 

Existing  resouces 
in the DG or 
department 
concerned 

Additional 
resouces 

Officals  or 
temporary 
staff 

A 
B 
C 

Other  resources 

Total 

2 

1 

3 

6+  1 
1 
2 

9+  1 

12 
months 

10.2  Overall  financial  impact of  additional  human  resources 

and 

10.3 

Increase  in other administrative  expenditure  as a result  of the operation 

No financial impact related to additional human resources or other administrative 
expenditure is expected. 

50 

IMPACT ASSESSMENT FORM 

THE IMPACT OF THE PROPOSAL ON BUSINESS 
WITH  SPECIAL REFERENCE TO 
SMALL AND MEDIUM-SIZED ENTERPRISES  (SMEs) 

Title of proposal 

Revision  of the Council  Regulation  concerning a Community  eco-label  award  scheme. 

Reference  number 

(Not yet  allocated) 

The proposal 

/. 

Taking  account of  the principle  of  subsidiarity, why  is  Community  legislation 
necessary in this area and what are its main aims? 

The  purpose  of  this  proposal  is  to  improve  a  Regulation  already  in  force.  The 
objective  is to revise and consolidate the Community  eco-label  scheme. 

The reasons for  such  a scheme at Community  level  are as follows: 

•  The need to restrict and in the longer term eliminate the proliferation  of national 

schemes which  may  distort the internal  market. 

•  The  potential  of  a  Community  scheme  to  steer  consumers  towards  more 
ecological products through market forces and consequently the positive impact 
on the design, production  and marketing  of such products. 

The impact on business 

2.  Who will be affected by the proposal? 

All firms manufacturing products covered by the Regulation may be affected by the 
proposal.  However, the scheme is voluntary and does not therefore place any direct 
and rigid constraints on firms. 

There are no areas which  are particularly  affected. 

3.  What will business have to do to comply with the proposal? 

The  measures  will  depend  on  specific  criteria  to  be  drawn  up  for  each 
product group. 

51 

4.  What economic effects is the proposal likely to have? 

The  eco-label  is  intended  to  promote  and  harness  the  efforts  made  by  firms  to 
market  products  which  have  less  impact  on  the  environment.  Accordingly,  the 
eco-label  could  facilitate  the  development  of new technological  niches and  allow 
the  costs of  developing  and producing  more environmentally  friendly  products to 
be recovered  more easily. 

5.  Does  the proposal  contain measures to  take account of  the specific situation of 

small and medium-sized enterprises  (reduced or different requirements,  etc.)? 

Specific  measures will  encourage  SMEs to take part in this voluntary  scheme: 

•  reduced charges; 

•  consultation  procedures open to SMEs; 

• 

testing and verification  requirements adapted to SMEs'  capabilities. 

Consultation 

6. 

List  the organizations which have been consulted about the proposal and outline 
their main views. 

As regards industry at European level, UNICE and UEAPME have been consulted 
about the guidelines for  the revision  of Regulation  (EEC) No 880/92. 

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ISSN 0254-1475 

COM(96) 603 final 

DOCUMENTS 

EN 

14  10  08 

Catalogue number  :  CB-CO-96-719-EN-C 

ISBN 92-78-13914-9 

Office for Official  Publications of the European Communities 

L-2985 Luxembourg 

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