From bashing to praising Ecodesign The true benefits to consumers Dr Andreas H. Hermelink, Matthew Smith 15/06/2016

© ECOFYS | | Introduction 15/06/2016Dr Andreas H. Hermelink, Matthew Smith > Ecodesign and Energy Labelling have suffered from negative publicity in recent years – Criticized for interfering and infringing on consumer choice > The regulations are understood to provide significant benefits to consumers, both financial and other benefits, yet the evidence for this is limited or too abstract, e.g. considering only national or EU level savings. > Study objective: Illustrate benefits for an average individual European household: – Quantify any net economic benefits from the Ecodesign and Energy Labelling regulations – Identify other qualitative benefits to the household from the regulations

© ECOFYS | | Methodology 15/06/2016Dr Andreas H. Hermelink, Matthew Smith © Sergey Nivens-Fotolia > An average European Household: Lukas, Anna, Sofia (and Pip) > Which has appliances, including: – Gas boiler – Gas water heater – Fridge-freezer – Washing machine – Dishwasher – Desktop computer – 2 televisions – 45 lightbulbs – Coffee machine – Electric oven and hobs

© ECOFYS | | Methodology 15/06/2016Dr Andreas H. Hermelink, Matthew Smith > A comparison of 3 scenarios as of 2015: 1. Reference: a world without Ecodesign and Energy Labelling – estimated sales weighted average efficiency of appliances in this world 2. Ecodesign: Appliances (just) meet the current Ecodesign minimum requirements 3. BAT (Best Available Technology) – Energy Label: Most energy efficient (by label ranking) currently available appliances - only in the case an Energy Label exists for the appliance > Savings calculated on basis of total cost of ownership per year: = (Purchase costs + energy costs + other running costs) / lifetime of product > Savings calculated in comparison to 1. Reference scenario – the world without Ecodesign and Energy Labelling

© ECOFYS | | Story of the benefits for Anna, Lukas and Sofia > The key findings are presented as a story, of a day in the life of our average family – highlighting all benefits > Imagining two worlds, one where the regulations don’t exist, and one as reality today where they do… 15/06/2016Dr Andreas H. Hermelink, Matthew Smith VS

© ECOFYS | | Financial benefits – across scenarios €315-€476 per year 15/06/2016Dr Andreas H. Hermelink, Matthew Smith

© ECOFYS | | Energy savings compensate for higher purchase costs 15/06/2016Dr Andreas H. Hermelink, Matthew Smith

© ECOFYS | | Annual savings per product – most efficient products (BAT) 15/06/2016Dr Andreas H. Hermelink, Matthew Smith

© ECOFYS | | Conclusions and policy recommendations > Financial benefits to consumers – Ecodesign and Energy Labelling provide significant financial benefits – Yet they don’t easily reveal the cost-optimal product to consumers – Recommendations: ●Ecodesign should always be as close as possible to cost-optimality ●Online calculator tools / apps can be significantly improved to give consumers quick and simple decision support > Non-financial benefits to consumers – Noise, hassle, comfort, functionality and information have all improved – Yet, translation to consumers’ understanding can be improved – Recommendation: use more analogies to help consumers ‘translate’ abstract metrics to daily life, like “5W LED equals 40W incandescent” > Durability requirements – Increasing energy efficiency raises importance of durability – Recommendation: set up standardized evaluation to determine minimum life-time of a product in order to minimize their environmental impact 15/06/2016Dr Andreas H. Hermelink, Matthew Smith

© ECOFYS | | Thank you – any questions? > Final report to follow shortly which will present full results Dr. Andreas H. Hermelink Principal Consultant – Ecofys T: +49 (0) Matthew Smith Consultant – Ecofys T: +31 (0) /06/2016Dr Andreas H. Hermelink, Matthew Smith