Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions on the Sustainable Consumption and Production and Sustainable Industrial Policy Action Plan {SEC(2008) 2110} {SEC(2008) 2111}
Date: 2008-06-25
Institutions: European Commission
Subjects: consumption, energy policy, environmental protection, environmental standard, industrial policy, sustainable development

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COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 16.7.2008 
COM(2008) 397 final 

COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on the Sustainable Consumption and Production and Sustainable Industrial Policy 
Action Plan 

{SEC(2008) 2110} 
{SEC(2008) 2111} 

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COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN 
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

on the Sustainable Consumption and Production and Sustainable Industrial Policy 
Action Plan 

1. 

INTRODUCTION 

The European Union has taken important steps to reach its objectives of growth and jobs. The 
Lisbon strategy has delivered significant results1. Over six million jobs have been created in 
the  last  two  years  and  unemployment  has  been  reduced  significantly.  European  industry  is 
globally  competitive,  contributing  substantially  to  growth  and  jobs.  Through  its  Industrial 
Policy,  the  Commission  has  continued  to  set  the  right  framework  conditions  for  doing 
business in Europe. 

The  challenge  is  now  to  integrate  sustainability  into  this  picture.  Sustainable  development 
aims  at  the  continuous  improvement  of  the  quality  of  life  and  well-being  for  present  and 
future generations2. It is a key objective of the European Union. Yet, increasingly rapid global 
changes,  from  the  melting  of  the  icecaps  to  growing  energy  and  resource  demand,  are 
challenging this objective. 

The  challenges  are  directly  linked  to  our  way  of  life.  The  way  we  produce  and  consume 
contributes  to  global  warming,  pollution,  material  use,  and  natural  resource  depletion3.  The 
impacts of consumption in the EU are felt globally, as the EU is dependent on the imports of 
energy and natural resources. Furthermore, an increasing proportion of products consumed in 
Europe are produced in other parts of the world.  

The need to move towards more sustainable patterns of consumption and production is more 
pressing than ever. 

Much can be done for European industry and households with net benefits. According to the 
International  Panel  on  Climate  change,  30%  of  energy  used  in  buildings  could  be  reduced 
with net economic benefits by 2030. Global pressure to increase resource efficiency, and the 
efforts  to  improve  sustainability  could  become  an  important  source  of  innovation  and  an 
important asset for industry’s competitiveness. 

This document presents the strategy of the Commission to support an integrated approach in 
the EU, and internationally, to further sustainable consumption and production and promote 
its  sustainable  industrial  policy.  This  strategy  complements  existing  policies  on  energy  use, 
notably the energy and climate package adopted by the Commission in January 2008. 

The  core  of  the  Action  Plan  is  a  dynamic  framework  to  improve  the  energy  and 
environmental  performance of products and foster their uptake by consumers. This includes 
setting  ambitious  standards  throughout  the  Internal  Market,  ensuring  that  products  are 
improved  using  a  systematic  approach  to  incentives  and  procurement,  and  reinforcing 

1 
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Proposal for a Community Lisbon Programme 2008-2010 - COM(2007) 804. 
Renewed EU Sustainable Development Strategy, Council of the EU 10917/06. 
Environmental  Impact  of  PROducts  (EIPRO),  Joint  Research  Centre  -IPTS;  National  Accounting 
Matrix  with  Environmental  Accounts  (NAMEA),  EEA.  These  studies  show  that  in  the  EU,  the 
consumption areas of eating and drinking, housing (including: heating, water, domestic appliances), and 
travelling bear between 70% to 80% of all environmental impacts. 

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information  to  consumers  through  a  more  coherent  and  simplified  labelling  framework,  so 
that  demand  can  underpin  this  policy.  The  approach  will  address  products  that  have 
significant potential for reducing environmental impacts. 

The challenge is to create a virtuous circle: improving the overall environmental performance 
of  products  throughout  their  life-cycle,  promoting  and  stimulating  the  demand  of  better 
products and production technologies and helping consumers to make better choices through a 
more coherent and simplified labelling.  

This is further supported and amplified  by  actions to achieve leaner production and address 
the international aspects.  

2. 

A  DYNAMIC  POLICY  FRAMEWORK  FOR  SMARTER  CONSUMPTION  AND  BETTER 
PRODUCTS  

A  range  of  policies  are  in  place  to  improve  the  energy  and  environmental  performance  of 
products.  The  Ecodesign  (EuP)  Directive4  establishes  a  framework  for  setting  ecodesign 
requirements  for  energy-using  products.  A  number  of  other  pieces  of  legislation  address 
specific aspects of the life-cycle of products, such as waste. The labelling schemes set by the 
Energy Labelling Directive5, the Energy Star Regulation6, the Ecolabel Regulation7 and other 
schemes  developed  by  Member  States,  retailers  and  other  economic  operators  provide 
consumers  with  information  on  the  energy  and  environmental  performance  of  products. 
Incentives and public procurement are being implemented by Member States to stimulate the 
better performance of products. The Energy Star Regulation also obliges EU institutions and 
Member  State  authorities  to  purchase  office  equipment  meeting  specific  levels  of  energy 
efficiency. 

However,  a  number  of  shortcomings  are  hampering  the  potential  of  these  policies.  Most 
product  legislation  addresses  only  specific  aspects  of  a  product’s  life-cycle.  While  the 
Ecodesign Directive takes a life-cycle perspective, the environmental impact of energy-using 
products  currently  covered  by  the  Directive  only  account  for  31-36%  of  the  environmental 
impact  of  products8.  Information  to  consumers  under  EU  policy  has  focused  on  energy 
efficiency  for  household  appliances  and  office  equipment  under  the  Energy  Labelling 
Directive  and  Energy  Star  Programme,  or  has  covered  only  a  limited  number  of  products 
(under the Ecolabel). Finally, actions at national level are not coordinated.  

Overall,  voluntary  and  regulatory  instruments  are  not  sufficiently  connected  and  potential 
synergies  between  the  different  instruments  are  not  exploited.  Implementation  is  not 
sufficiently  dynamic  and  forward-looking  to  drive  the  performance  of  products  upwards. 
Divergent  national  and  regional  approaches  send  conflicting  signals  to  producers,  and  as  a 
result the full potential of the Internal Market is not realized. 

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Directive 2005/32/EC of the European Parliament and of the Council establishing a framework for the 
setting of ecodesign requirements for energy-using products (OJ L 101, 22.7.2005, p. 29). 
Council Directive 92/75/EEC of 22 September 1992 on the indication by labelling and standard product 
information  of  the  consumption  of  energy  and  other  resources  by  household  appliances  (OJ  L  297, 
13.10.1992, p. 16). 
Regulation (EC) No 106/2008 of the European Parliament and of the Council of 15 January 2008 on a 
Community energy efficiency labelling programme for office equipment (OJ L 39, 13.2.2008, p. 1). 
Regulation  (EC)  No  1980/2000  of  the  European  Parliament  and  of  the  Council  of  17  July  2000  on  a 
revised Community ecolabel award scheme (OJ L 237, 20.9.2000, p. 1). 
See Staff Working Paper SEC(2008) 2110 Impact assessment for recast of Directive 2005/32/EC, Table 
3.  

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The  new  policy  approach  integrates  the  potential  of  the  different  policy  instruments, 
implementing them in a dynamic way. 

It comprises the following actions:  

•  The scope of the Directive on the Ecodesign of energy-using products will be extended to 
cover  all  energy-related  products.  Minimum  requirements  will  be  set  for  products  with 
significant  environmental  impacts,  focusing  on  key  environmental  aspects.  To  provide 
markets  with  information  on  best  performing  products,  advanced  benchmarks  of 
environmental  performance  will  also  be  identified.  Periodic  reviews  of  minimum 
requirements  and  advanced  benchmarks  will  take  place  to  adapt  them  to  technological 
change  and  provide  businesses  with  a  long-term  perspective  of  future  regulatory 
environment. 

•  Product  labelling  under  the  Energy  Labelling  Directive  and  Ecolabel  Regulation  will  be 
further  developed  and,  following  a  review  of  the  Ecodesign  Directive  in  2012, 
complemented  as  appropriate  by  an  Ecodesign  Labelling  Directive  to  provide  consumers 
with information about the energy and/or environmental performance of products. 

•  The energy efficiency and environmental criteria under the above schemes will be used to 
establish a harmonised base for public procurement and incentives provided by the EU 
and  its  Member  States.  This  would  overcome  the  current  fragmentation  of  stimuli  and 
incentives in the Internal Market. 

•  A  range  of  other  actions  to  arrive  at  smarter  consumption  will  also  be  undertaken.  In 
particular, action will be implemented with retailers and producers of products to “green” 
their  own  activities  and  supply  chains,  as  well  as  raising  the  awareness  of  consumers  at 
large and increasing their proactive role. 

A broad range of environmental challenges can be tackled through this policy. Applying this 
approach  for  products  with  significant  environmental  impacts  could  lead  to  substantial 
environmental  and  economic  gains.  For  example,  the  proposed  actions  would  increase  the 
current  rates  of  home  refurbishment  that  use  better  performing  windows  and  improved 
insulation,  thus  enabling  households  to  reduce  energy  consumption,  the  direct  and  indirect 
green house gas emissions and save in heating. 

The actions are described in detail below.  

2.1. 

The Ecodesign Directive  

The  Ecodesign  Directive  provides  rules  for  setting  ecodesign  requirements  for  energy-using 
products  with  the  aim  of  ensuring  the  free  movements of those products  within the Internal 
market,  taking  a  life-cycle  perspective.  While  not  directly  introducing  binding  requirements 
for  specific  products,  the  Directive  enables  the  Commission,  assisted  by  a  Committee,  to 
enact  implementing  measures  on  specific  products  and  their  environmental  aspects  (such  as 
energy consumption, waste generation, water consumption, extension of life-time) following 
impact assessment and consultation of interested parties.  

This Ecodesign Directive currently only applies to energy-using products. With the objective 
of  enlarging  the  frame  also  to  other  environmentally  significant  products,  its  product  scope 
will be extended to cover all energy-related products, maintaining the exception of means of 
transport,  which  already  is  subject  to  separate  policies  and  legislation  for  reducing 
environmental  impacts.  Energy-related  products  are  those  products  that  have  an  impact  on 
energy consumption during use. This includes energy-using products and other products such 
as window frames, whose insulation properties influence the energy required for the heating 
and cooling of buildings, and  water-using devices, whose water consumption  influences the 

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energy required for heating. This will establish a single Community framework for the setting 
of  ecodesign  requirements  for  those  products  at  Community  level  and  ensure  the  efficiency 
and consistency of legislation by using a common approach. 

Implementation will proceed as follows:  

•  Implementing  measures  will  be  developed  for  products  with  significant 
environmental  impacts,  significant  potential  for  improvement  and  significant 
volumes  of  sales  and  trade,  and  taking  into  account  existing  Community 
legislation or self-regulation. For energy-using products, as covered by the current 
Directive, the development of implementing measures will not be affected by the 
Action Plan. 

•  For  products  that  are  not  currently  covered,  a  further  Work  Programme  will  be 

developed according to the provisions of the Directive once amended.  

•  All implementing measures are subject to detailed impact assessments and public 

consultation and will be based on the principle of technology neutrality 

Implementing  measures  will  consider  key  environmental  aspects  over  the  life-cycle  of  the 
products. They will in particular take into account energy and resource use of products. Other 
issues, such as the need to reduce the use of hazardous materials and rare resources will be 
considered as appropriate. 

For  the  product  group  targeted,  the  Implementing  Measures  will,  in  accordance  with  the 
existing provisions of the Directive, set two levels of performance: 

•  minimum  requirements  that  need  to  be  attained  by  the  product  in  order  to  be 
allowed  on  the  Internal  Market.  Whenever  possible,  EU  harmonised  standards, 
ideally  based  on  global  standards,  should  be  used  to  help  manufacturers  in 
applying the measures. 

•  advanced  benchmarks  of  environmental  performance,  to  provide  markets  with 
early indication of highly performing products available on the market and of the 
possible  future  evolution  of  minimum  requirements.  The  identification  of 
benchmarks  is  already  provided  for  under  the  current  Directive  and  will  be 
pursued  systematically  in  the  future.  As  a  general  rule,  benchmarks  would 
correspond to the level achieved by the top performing products available on the 
market. Attaining such benchmarks will be voluntary for industry. 

To aim  at continuous improvement of products, implementing measures will also indicate a 
date  for  the  review  of  minimum  requirements  and  benchmarks  on  the  basis  of  the 
foreseeable  pace  of  technological  change  for  the  product  group  concerned.  This  will  ensure 
that  minimum  requirements  and  benchmarks  remain  relevant  with  time  and  will  provide 
businesses with a long-term perspective of the future regulatory environment.  

Minimum  requirements  and  advanced  benchmarks  of  environmental  performance  will  feed 
into the labelling scheme, as described below. For this purpose, Implementing Measures may 
also identify intermediate levels of performance. 

2.2. 

The Labelling of Products 

The  Energy  Labelling  Directive  will  at  this  stage  be  extended  to  cover  a  wider  range  of 
products, including energy-using and other energy-related products. 

Labelling  categories  will  be  set  according  to  the  outcome  of  the  procedure  under  the 
Ecodesign Directive, as appropriate. 

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The  implementing  measures  of  the  Labelling  Directive  will  define,  where  appropriate,  the 
precise modalities of the label.  

labelling  will  be  used  for 

The 
the  one  hand,  use  phase  energy 
indicating,  on 
consumption/savings  and,  on  the  other  hand,  other  relevant  and  significant  environmental 
parameters of the product.  

The Ecolabel will complement the information provided to consumers, as a voluntary label. 
It will act as a "label of excellence" to signal to consumers those products that perform at such 
a level when many environmental criteria are considered over the whole life-cycle. 

The Ecolabel Regulation will be revised to simplify and streamline the process of obtaining 
an ecolabel, and extend the product coverage. The Ecolabel criteria will continue to cover a 
broad range of environmental aspects. Furthermore, Ecolabel criteria may also be developed 
to cover those products for which ecodesign requirements have not yet been set. Indicatively, 
the Ecolabel criteria for a product group will be established so that 10% of products available 
on the market at that time will meet them. 

While the decision-making process under the Ecolabel Regulation will remain distinct from 
that of the Ecodesign and the Labelling Directive, the implementation of the schemes will be 
linked closely to ensure that the data and scientific knowledge are used efficiently and that the 
information given to consumers is consistent. Notably, the process of setting criteria under the 
Ecolabel  will  provide  information  to  the  analytical  work  carried  out  under  the  Ecodesign 
Directive  for  the  setting  of  minimum  requirements  and  benchmarks  of  environmental 
performance,  and  vice-versa.  When  the  same  product  groups  are  addressed,  the  assessment 
methods and review timetables will also converge. 

Incentives  

2.3. 
A number of Member States are already, in compliance with the Treaty and State Aid rules9, 
providing incentives for development and acquiring of energy and environmental performing 
products  and  “greening”  their  procurement  practice  to  foster  their  uptake.  However,  the 
criteria that these products have to meet to benefit from incentives or public procurement can 
differ substantially from one country to another. This may result in fragmenting incentives in 
the  Internal  Market  for  the  products  concerned.  Moreover,  the  potential  of  public 
procurement, equivalent to 16% of EU GDP, has only been marginally exploited. 

In  order  to  overcome  this  fragmentation  and  to  further  the  uptake  of  energy  and 
environmentally  performing  products, 
impact 
assessment,  will  establish  a  harmonised  base  for  public  procurement  and  incentives 
provided by the EU and its Member States, as explained below. 

the  Labelling  Directive,  following  an 

Concerning public procurement, the implementing measures under the Labelling Directive 
will identify one of the labelling classes as a level below which public authorities would not 
be  allowed  to  procure.  This  level  will  be  set  on  the  basis  of  the  outcome  of  impact 
assessments  for  relevant  product  groups,  for  which  setting  such  level  would  significantly 
contribute  to  tapping  economies  of  scale  and  to  inducing  innovation.  The  level  would 
correspond  to  the  performance  class  that  maximises  the  potential  of  public  procurement  to 
stimulate the market towards higher energy and environmentally performing products whilst, 
at the same time, ensuring an adequate level of competition in the market, taking into account 
product  availability,  and  guaranteeing  that  the  burden  to  public  finance  is,  in  general,  not 

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Notably the Community Guidelines on state aid for environmental protection (OJ C 82, 1.4.2008, p. 1). 

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higher  than  under  current  procurement  practices  (when  the  full  life  time  of  the  product  is 
taken into account). 

Concerning incentives, Member States will be free to choose whether, and in which form, to 
provide  incentives  to  encourage  the  uptake  of  energy  and  environmentally  performing 
products, while, when applicable, respecting the provisions of Community law, in particular 
State  Aid  rules10.  However,  the  implementing  measures  under  the  Labelling  Directive  will, 
subject to the outcome of an impact assessment, identify one of the labelling classes as a level 
below  which  Member  States  would  not  be  allowed  to  set  incentives.  This  level  will  be  set 
above  the  applicable  community  environmental  requirements.  This  will  apply  to  product 
groups  for  which  there  is  evidence  that  the  fragmentation  of  incentives  may  reduce  their 
effectiveness.  In  principle,  this  level  would  correspond  to  the  level  for  public  procurement, 
which would magnify the impact of the measures.  

As price is one of the main determinants of purchasing choices, market-based instruments can 
also help get prices right and internalise environmental costs, thereby supporting the uptake of 
energy and environmentally efficient products. In this respect, the Commission is examining 
inter alia options for revising the energy taxation framework. Furthermore, the Commission 
has  launched  studies  to  analyse  advantages  and  drawbacks  of  possible  fiscal  incentive 
mechanisms  at  EU  level.  This  will  provide  a  basis  upon  which  to  assess  the  need  for 
additional initiatives for products covered, in particular, by the Ecodesign and the Labelling 
Directive or the Ecolabel Regulation. 

These actions will be amplified and supported by: 

2.4. 

Consistent data and methods on products 

To implement this policy, consistent and reliable data and methods are required to assess the 
overall  environmental  performance  of  products,  their  market  penetration  and  to  monitor 
progress.  Data  on  products  and  related  environmental  impacts  required  and  collected  under 
different tools should be shared where useful. Such methods also need to be cost-effective and 
easy to apply, for policy makers and for industry. 

When  possible,  the  use  of  European  harmonised  standards,  ideally  based  on  International 
standards  should  be  explored,  thereby  ensuring  increased  competitiveness  for  industry  and 
good relations with third countries and their manufacturers. 

2.5. 

Promote Green Public Procurement 

Green Public Procurement (GPP) will be further strengthened by voluntary measures, which 
will  act  as  a  complement  to  the  mandatory  measures  described  above,  consistent  with  the 
rules  of  the  Internal  Market.  The  Commission  will  provide  guidance  and  tools  for  public 
authorities  to  "green"  their  procurement  practices.  This  includes  the  setting  of  indicative 
targets  based  on  the  level  of  best  performing  Member  States  and  providing  model  tender 
specifications, which are in line with Internal Market legislation. It also includes the creation 
of a process of cooperation with the Member States to identify and agree upon common GPP 
criteria  for  products  and  services  for  endorsement  in  national  action  plans  and  guidance  on 
GPP.  Monitoring  of  targets  will  be  based  on  compliance  with  these  criteria.  Voluntary 
common  GPP  criteria  will  be  set  for  services  and  for  those  products  for  which  mandatory 
levels, as foreseen under Section 2.3, will not, or have not yet, been established.  

10 

See footnote 9. 

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Common  GPP  criteria  will  be  based  on  the  benchmarks  of  environmental  performance  and 
relevant  labels.  A  separate  Communication  on  Green  Public  Procurement  details  these 
measures. 

2.6.  Work with Retailers and Consumers 

Retailers are in a strong position to influence more sustainable consumption through their own 
operations, supply chains, and consumer behaviour. Retailers and producers are increasingly 
recognising sustainability as a considerable opportunity for their businesses to grow, compete 
and innovate. However, further effort is needed to reduce the environmental footprint of the 
retail  sector  and  its  supply  chain,  promote  more  sustainable  products,  and  better  inform 
consumers.  To  achieve  this,  other  stakeholders,  such  as  producers  as  well  as  consumer  and 
other non-governmental organisations, will also be involved. 

A Retail Forum is being set up. It will serve as a platform to: 

•  identify key areas to be tackled and define the baseline of existing initiatives; 

•  share  best  practices,  extend  the  geographical  coverage  of  existing  initiatives  and  look  to 

launch new initiatives; and 

•  report on progress of their actions on an individual basis. 

The  objective  is  that  individual  large  retailers  commit  to  a  series  of  ambitious  and  concrete 
actions with clear objectives, timelines, deliverables, and monitoring indicators.  

These  commitments  respond  to  the  Commission's  call  on  business  to  step  up  its  Corporate 
Social Responsibility, as set out in the Commission’s Communication of 200611. 

The EU consumer policy can provide the market tools to empower citizens, as consumers, to 
make sustainable environmental choices. The Commission will therefore also support actions 
to increase consumers’ awareness and help them to make more informed choices. This will be 
done, for example, by developing tools to inform young people and increase their awareness12 
and on-line education modules for adults13 on sustainable consumption. 

3. 

LEANER PRODUCTION 

The regulatory framework for production processes is well established at European level. This 
includes  regulatory  settings  such  as  on  environmental  emissions  from  industries  (IPPC 
Directive)14 and the Emissions Trading Scheme for GHG15. However, there is a need to give 
further  impetus  to  resource  efficient  and  eco-innovative  production  processes,  to  reduce 
dependency on raw materials and to encourage optimal resource use and recycling. 

In  this  Action  Plan  a  set  of  integrated  actions  are  proposed  to  work  in  synergy  with  and 
complement  the  policy  for  smarter  consumption  and  better  products,  as  outlined  in  the 
previous section, by extending, amplifying and accelerating its impact. 

Action will focus on the following three areas: 

11 
12 
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15 

Making Europe a pole of excellence on corporate social responsibility - COM(2006) 136. 
Using the EUROPA Diary. 
As part of the EU web-based consumer education tool DOLCETTA. 
Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  on  industrial  emissions 
(integrated pollution prevention and control) - COM(2007) 844, 21.12.2007. 
Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a 
scheme for greenhouse gas emission allowance trading within the Community (OJ L 275, 25.10.2003, 
p. 32). 

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3.1. 

Boosting resource efficiency 

Resource efficiency contributes to the goal of creating more value while using less resources.. 
In  the  EU,  resource  productivity  (measured  by  GDP  per  resource  use,  €/kg)  has  improved 
2.2% per annum in real terms over the past 10 years. This means that the EU has been able to 
stabilise  resource  use  in  the  growing  economy,  largely  due  to  efficiency  improvements  in 
production as well as an increasing role of services in the economy. Improvements in resource 
productivity should continue at least at the same pace as this EU average.  

Further  tools  will  be  developed  to  monitor,  benchmark  and  promote  resource  efficiency, 
taking  into  account  a  life-cycle  perspective  and  including  trade.  Detailed  material-based 
analysis  and  targets  will  be  addressed  at  a  later  stage,  based  on  environmental  significance 
and on access to natural resources. 

3.2. 

Supporting eco-innovation  

Innovation  in  the  area  of  environmental  goods  and  services  is  central  to  the  successful 
implementation of this Plan, and plays a key role in innovation policy. One of the available 
indicators  to  measure  the  level  of  innovation  is  the  number  of  patents  in  a  certain  area. 
According to the OECD, the eco-innovation patents in the EU are on rise and best performing 
Member States have been granting annually 3.5 patents per billion GDP (in Euro). 

Tools will be developed to monitor, benchmark and boost eco-innovation and its uptake in the 
EU, as part of a wider EU research and innovation policy and its instruments. 

An  EU  wide  environmental  technology  verification  scheme  will  be  established  to  provide 
reliable  third-party  verification  of  the  performance  and  the  potential  impacts  on  the 
environment of new technologies. It will be a voluntary, partially self-financed scheme, based 
on a regulatory framework. It will help to provide confidence for new technologies emerging 
on the market.  

3.3. 

Enhancing the environmental potential of industry 

Revise EMAS Regulation 
The  Community  eco-management  and  audit  scheme,  EMAS16,  helps  companies  to  optimise 
their production processes, reducing environmental impacts and making more effective use of 
resources. EMAS operates as a voluntary eco-management and audit scheme. 

In order to fully tap its potential for improving  resource  efficiency  of  production  processes, 
the scheme will be significantly revised to increase the participation of companies, and reduce 
the administrative burden and costs to SMEs. 

Developing industrial policy initiatives for environmental industries 
Environmental industries17 contribute to  improving the energy efficiency and environmental 
performance of the economy. 

16 

17 

Regulation  (EC)  No  761/2001  of  the  European  Parliament  and  of  the  Council  of  19  March  2001 
allowing voluntary participation by organisations in a Community eco-management and audit scheme 
(EMAS) (OJ L 114, 24.4.2001, p. 1). 
Environmental industries are “activities which produce goods and services to  measure, prevent, limit, 
minimize, or correct environmental damage to water, air and soil, as well as problems related to waste, 
noise and eco-systems” (Eurostat/OECD (1999). This includes industries such as waste and waste water 
management,  renewable  energy  sources,  environmental  consulting,  air  pollution  and  control,  eco-
construction etc. 

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To  further  the  competitiveness  of  environmental  industries  and  favour  their  uptake  by 
traditional  industries,  initiatives  for  environmental  industries  will  be  developed.  These 
initiatives  are  part  of  the  implementation  of  the  industrial  policy  of  the  European 
Commission18. For this purpose, a comprehensive screening of regulatory barriers and market 
failures that hamper the competitiveness of environmental industries and their uptake by other 
sectors of the economy will be carried out. This will address issues such the Internal Market 
and Better Regulation, standardisation and access to finance. The potential of Information and 
Communication  Technologies  to  deliver  sustainable  solutions  will  be  explored19.  Specific 
attention will be given to priority areas identified by the Lead Market Initiative. 

Helping SMEs 

Lack  of  information,  insufficient  expertise  and  scarcity  of  financial  and  human  resources 
make  it  difficult  for  SMEs  to  fully  exploit  the  business  opportunities  offered  by  a  sound 
environmental management. 

Between 2005 and 2007, the Commission introduced a number of policy measures to support 
European  SMEs,  including  the  improvement  of  their  environmental  performance20.  Further 
measures  were  included  in  the  Communication  for  a  ‘Small  Business  Act’  for  Europe21. 
Notably,  the  Enterprise  Europe  Network  will  contribute  to  raise  awareness  and  disseminate 
know-how and expertise gained through other EU programmes and initiatives in the field of 
environment and energy. 

4. 

WORKS TOWARDS GLOBAL MARKETS FOR SUSTAINABLE PRODUCTS 

In addition to the main lines of action above, activity at a global level will be carried out. This 
will  build  on  existing  initiatives  such  as  the  Thematic  Strategy  for  the  Sustainable  Use  of 
Natural Resources; the Global Energy Efficiency and Renewable Energy Fund; and the Forest 
Law  Enforcement  Governance  and  Trade  Regulation.  In  addition  to  these  actions  the 
Commission will undertake to: 

•  Promote  sectoral  approaches  in  international  climate  negotiations  as  an  element  of  and 
complement to comprehensive international climate change agreement for the period after 
2012. Government and industries are starting to develop sectoral approaches and commit 
to specific emission or energy-efficiency benchmarks. This will allow developing countries 
to  take  action  in  specific  sectors  which  could  reduce  the  growth  of  emissions  so  that 
sectoral emission will deviate substantially from sectoral baseline. It will also help industry 
curb emissions, and potentially address concerns of carbon leakage. The Commission will 
support  the  development  of  such  approaches  in  the  context  of  future  international 
negotiation  on  climate  change.  Activities  will  include  capacity  building  in  key  emerging 
economies and determining key elements needed to build sectoral approaches into the post 
2012 UN climate framework. 

•  Promote  good  practice  internationally.  Sustainable  Consumption  and  Production  policies 
will be promoted, as part of the United Nations Sustainable Consumption and Production 

18 

19 

20 

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EN 

the  Community  Lisbon  Programme:  A  Policy  Framework 

Implementing 
Manufacturing - towards a more integrated approach for Industrial Policy - COM(2005) 474. 
Addressing the challenge of energy efficiency through Information and Communication Technologies , 
COM(2008)241 final 
Small, clean and competitive. A programme to help small and medium-sized enterprises comply with 
environmental legislation - COM(2007) 379. 
Think Small First - A “Small Business Act” for Europe – COM(2008) 394. 

to  Strengthen  EU 

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10-Year  Framework  of  Programmes  (Marrakesh  Process).  Additional  action  will 
strengthen partnerships, such as through the EU-Asia partnership (SWITCH Programme) 
and  support  international  roundtables  and  panels.  In  addition,  at  the  initiative  of  the 
European Commission G8 countries, along with China, India and South Korea on June 7, 
2008, took the decision to jointly establish the International Partnership for Cooperation on 
Energy Efficiency (“IPEEC”). 

•  Promote international trade in environmentally friendly goods and services. Liberalisation 
of  trade  in  environmental  goods  and  services  can  help  disseminate  green  technology  and 
thus  support  the  adaptation  to  a  low-carbon  economy  while  building  on  and  further 
developing  European  competitiveness  in  environmental  sectors.  The  EU  is  continuing  its 
efforts to liberalise trade in environmental goods and services in WTO negotiations under 
the  Doha  Development  Agenda,  and  in  the  context  of  bilateral  trade  negotiations.  This 
should  take  place,  wherever  possible,  on  the  basis  of  international  standards.  The 
Ecodesign  Directive  will  develop  environmental  and  energy  efficiency  standards  for  a 
number of products. This can pave the way to the adoption of international standards and 
help  create  export  markets  for  leading  European  companies.  Trade  policy  and  industrial 
dialogue should contribute to this process. 

5. 

CONCLUSIONS AND ROADMAP 

This Communication sets out an integrated package of measures to deliver more sustainable 
consumption and production, while improving the competitiveness of the European economy. 
It builds on a number of EU policies. Notably, the renewed Sustainable Development Strategy 
identified  sustainable  consumption  and  production  as  one  of  the  key  challenges  for  Europe. 
The  Community  Lisbon  Programme  for  2008-2010  includes  the  promotion  of  an  industrial 
policy  geared  towards  more  sustainable  consumption  and  production  as  one  of  its  major 
orientations. 

The following documents accompany this Action Plan:  

•  Proposal for the extension of the Ecodesign Directive 

•  Proposal for the revision of the Ecolabel Regulation 

•  Proposal for the revision of the EMAS Regulation 

•  Communication on Green Public Procurement 

This will be shortly followed by the 

•  Proposal for the revision of the Energy Labelling Directive  

•  Proposal for a Regulation for an Environmental Technology Verification scheme. 

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•  Remaining actions will follow later in 2008/2009: promoting resource efficiency; 
for 
promoting  eco-innovation;  developing 
environmental 
industries;  sectoral  approaches;  promoting  good  practice 
internationally;  promoting  international  trade  in  environmentally  friendly  goods 
and services.  

industrial  policy 

initiatives 

The Commission will review progress and report on the implementation of the Action Plan in 
2012.  At  this  occasion,  the  Commission  will  in  particular  analyze  whether  further  action  to 
improve  the  energy  and  environmental  performance  of  products  is  needed,  in  particular  by 
extending the Ecodesign and Labelling Directives to cover non energy-related products.  

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