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8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation for SMEs regarding energy using/related products Shailendra Mudgal, Executive Director BIO Intelligence Service

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

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Page 1: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Approaches to eco-innovation for SMEs regarding energy using/related products

Shailendra Mudgal, Executive DirectorBIO Intelligence Service

Page 2: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

2

CONSUMPTIONSustainable Behaviours

PRODUCTION Efficient

Processes

SCP – SIP Action Plan

PRODUCTS Improved

Performance

Life-cycle approachIntegrated Product Policy (IPP)

Eliminate worst productsRevised Eco-design Directive

Raise EU ambition levelsRevised Eco-label Regulation

Save energy Revised Energy Label Directive

Cleaner ProductionRevised EMAS

Resource Efficiency and Eco-innovation -ETAP

Env. Impacts of New TechnologiesEnvironmental Technology Verification

Simplified Procedures for SMEsSME Programme

Incentives for market transformationLink to environmental performance

Influencing the supply-chainGreen retailers

Providing information to consumersEnvironmental product labels

Smart consumptionGreen Public Procurement (GPP)

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Sustainable Consumption and Production (SCP) – Sustainable Industrial Policy (SIP)

Page 3: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Sustainable product – key instruments

[Defra (2008) Progress Report on Sustainable Products and Materials, www.defra.gov.uk]

Page 4: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Eco-design• ‘Eco-design’ means the integration of environmental aspects into

product design with the aim of improving the environmental performance of the [product] throughout its whole life cycle

[Eco-design Directive]

• The majority of environmental and cost impacts of a product are determined during the design phase.

Design phase

Raw materials Production Transport End-of-

lifeUse

Design determines impacts throughout the life cycle of a product

Page 5: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Eco-design Directive

Former version:Directive 2005/32/EC of 6 July 2005 establishing a framework for the setting of eco-design requirements for energy-using products (EuP)

Current version:Directive 2009/125/EC of 21 October 2009 establishing a framework for the setting of eco-design requirements for energy related products (ErP)

Page 6: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Eco-design Directive (2009/125/EC )• Common initiative from DG ENTR, DG ENER, DG ENV• Framework Directive which sets eco-design requirements (or

implementing measures/legislation) for Energy related Products. • Objectives:

• To improve the overall environmental performance of these products using an eco-design approach

• To ensure that disparities among national regulations do not become obstacles to intra EU trade)

• To contribute to the security of energy supply and enhance the competitiveness of the EU economy

• To preserve the interests of industry, consumers and other stakeholders

• Compliance through CE marking, i.e. products not fulfilling requirements will not be able to carry the ‘CE’ label

Page 7: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Implementing measures• Could be proposed for product categories which:

• Represent a significant volume of products placed on the EU market (indicatively > 200.000 units/year)

• Involve a significant environmental impact• Present a significant potential for improvement

• Are to be based on• Environmental assessments / relevant product characteristics

and functionality• Products and technologies available on the market should be

taken as reference

• IM should preserve the interests of industry, consumers and other stakeholders, but do add an administrative and testing burden on SMEs

Page 8: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Eco-design processEuropean Commission

Eco-design Preparatory Study

Stakeholder Consultation

Consultation Forum Impact assessment

Regulatory Committee

Working Plan1

2

3

4

EU Parliament5

Working Document

Draft Implementing

Measure

Adoption

Consultants

Page 9: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Working plan and preparatory studies 1/22006: 14 lots (product groups) DG ENERlot 1 boilers and combi-boilerslot 2 water heaterslot 3 personal computerslot 4 imaging equipmentlot 5 consumer electronics (TV)lot 6 standby and off-mode losseslot 7 battery chargers & external power supplieslot 8 office lightinglot 9 (public) street lightinglot 10 residential room conditioning applianceslot 11 electric motors, pumps, circulators, fanslot 12 commercial refrigerators and freezerslot 13 domestic refrigerators and freezerslot 14 domestic dishwashers and washing machines

2007: 5+1 lots DG ENERlot 15 solid fuel small combustion installationslot 16 laundry dryers lot 17 vacuum cleaners lot 18 complex set-top boxeslot 19 domestic lighting + simple set-top boxes

*

* Implementing Measures already in place

*

*

*

*

*

*

*

Page 10: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

2008: 7 lots DG ENERlot 20 individual room heatinglot 21 central heating (hot air)lot 22 ovenslot 23 hobs and grillslot 24 professional washing machines, etc. lot 25 coffee machines lot 26 network standby2008: 3 lots DG ENTRlot1 commercial refrigerators and freezerslot 2 transformers (power and distribution)lot 3 DVD players, video projectors, etc.

2009: 3 lots DG ENTRlot 4 industrial furnaces and ovenslot 5 machine toolslot 6 air-con and ventilation systems

Working plan and preparatory studies 2/2

Page 11: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Preparatory studyUniform approach to all preparatory studiesMethodology for Eco-design of Energy-using Products (MEEuP)• Task 1: Definition (Product/Standards)• Task 2: Market Analysis• Task 3: Consumer Behaviour and Local Infrastructure• Task 4: Technical Analysis of Existing Products• Task 5: Base-Cases• Task 6: Technical analysis of BAT• Task 7: Improvement Potential• Task 8: Final Analysis (Policy, Scenarios, Sensitivity)

Present situation

Improvement potential

Page 12: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

SMEs and eco-design• Awareness about eco-design

• Limited or no knowledge (depends on the product sector)• Misconception about the possible impacts (especially economic)• Resource constraints• Rewards and penalties

• Push towards eco-design• Policy driven (EuP/ErP, eco-labels, energy labels, GPP, etc.)• Market driven (Purchasers specifications, consumer demand,

etc.)• Technology driven (upstream/downstream integration)

Page 13: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

SMEs and eco-design Directive• Addresses mass produced products, not one-off products• SMEs can be affected directly by Eco-design as manufacturers (e.g.

Small heating products), but otherwise indirectly as suppliers of components and sub-assemblies or installers

• Getting involved in process:• register as stakeholders and engage in the preparatory studies

by providing information and feedback and participating in stakeholder consultations

• prepares you for future regulation, but does involve significant time, e.g. answering questionnaires, reviewing technical documents in English, travelling to stakeholder meetings, etc.

• use industry and trade associations to keep updated on what is relevant and make sure they voice your concerns

• Ensuring compliance

Page 14: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Eco-design – An opportunity for SMEs• Systematic approach to understanding environmental impacts during

a product’s lifetime can lead to competitive advantage:• Market demands• Often related to cost savings • Prepared for future regulation• New opportunities

• Implementing eco-design in SMEs• Simple eco-design tools and methodologies do exist, e.g.

Ecodesign Guide (www.kp.man.dtu.dk/English/Research/areas/Ecodesign/guide.aspx)

• Local and regional working groups can support, e.g. www.lecreer.eu

• A variety of conferences, workshops, training materials, publications, mentoring programmes and consultants can also assist , e.g. www.ecodesignarc.info, www.ecosmes.net, ecodesign-info.eu

Page 15: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Outlook• ErP - A preparatory study has been launched for water-using

products by JRC

• New eco-design working plan to be prepared by October 2011

• BIO has made a first contribution for a eco-design working plan

• Additional studies will be launched in relation to the preparation of the working plan

• Energy consumption and energy efficiency has been the main focus of all product categories so far

• A broader range of environmental impacts is expected to be considered in the future

Page 16: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Questions?• For more information on eco-design:

• DG ENERGY – Energy Efficiency ec.europa.eu/energy/efficiency/ecodesign/eco_design_en.htm

• DG ENTERPRISE AND INDUSTRY – Sustainable Policyec.europa.eu/enterprise/policies/sustainable-business/sustainable-product-policy/ecodesign/index_en.htm

• DG ENVIRONMENT - Environmental Compliance Assistance Programme for SMEs (ECAP)ec.europa.eu/environment/sme/index_en.htm

• BIO Intelligence Service – Eco-design Portalecodesign-info.eu

Page 17: 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Approaches to eco-innovation

8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010Making Eco-Innovation happen in Small and Medium-Sized Enterprises

Shailendra Mudgal

BIO Intelligence Service (FRANCE)

Contact Shailendra MudgalBIO Intelligence Service S.A.S.20-22 villa Deshayes75014 Paris, FranceTel: +33 (0)1 53 90 11 80

e-mail: [email protected]

en.biois.com