1. Limiting console emissions
The Problem:
15% of all residential electricity use comes from Consumer Electronics and Information and Communication Technology sectors.
By improving energy efficiency of technology in these areas, energy efficiency in general will be improved and less electricity will be used, so less electricity has to be generated.
Due to the vast improvements made to gaming technology in the last 40 years, game consoles need to use a lot more electricity to run properly.
Estimates for yearly energy usage by high-definition consoles vary from 64kWh to 146kWh.
Solutions?
Power consumption can be reduced by:
Rewriting software codes to be more efficient
Adding Auto Power Down features
Including low power settings that are active by default
Improving hardware
Limiting console emissions
Current regulations
Console energy consumption has already been addressed in part by, among others, the US EnergyStar program and the EU Ecodesign Directive.
Current proposed measures include "power caps for specific operational modes and introduction of new Auto Power Down (APD) requirements."
However, it is difficult to regulate console power consumption because of how varied their performance and extra features are when compared to other electronics like toasters and coffee makers (or TVs, which are a bit closer to consoles in terms of what they are capable of).
Arguments against policy:
Gaming innovation could be stifled by emission policies - a toaster only needs to toast bread, but a game console should be able to do what game programmers want their games to be able to do.
Console energy efficiency is already improving with each new generation of devices, and companies already have incentive to make their consoles as efficient as possible, so why add regulations on top of it all?
Arguments for policy:
Global warming is bad
Gaming isn't a necessity in life, so why should consoles use more energy than, say, medical technology or even a household heating system?
Companies are already making their consoles more energy efficient, so they might as well be encouraged to continue to do so.
Energy efficiency is not necessarily a limiting factor in gaming innovation - if anything, it's an interesting challenge for developers to face.

2. Sources
h_definition_games_consoles