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 for SMEs regarding energy using/related products Shailendra Mudgal, Executive Director BIO Intelligence Service

2. 2 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Sustainable Consumption and Production (SCP) – Sustainable Industrial Policy (SIP)

3. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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]

4. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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 ProductionTransport End-of- life Use Design determines impacts throughout the life cycle of a product

5. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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)

6. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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

7. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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

8. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Shailendra Mudgal BIO Intelligence Service (FRANCE) Eco-design process European Commission Eco-design Preparatory Study Stakeholder Consultation Consultation Forum Impact assessment Regulatory Committee Working Plan 1 2 3 4 EU Parliament 5 Working Document Draft Implementing Measure Adoption Consultants

9. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Shailendra Mudgal BIO Intelligence Service (FRANCE) Working plan and preparatory studies 1/2 2006: 14 lots (product groups) DG ENER lot 1boilers and combi-boilers lot 2water heaters lot 3 personal computers lot 4imaging equipment lot 5consumer electronics (TV) lot 6standby and off-mode losses lot 7battery chargers & external power supplies lot 8office lighting lot 9(public) street lighting lot 10residential room conditioning appliances lot 11electric motors, pumps, circulators, fans lot 12 commercial refrigerators and freezers lot 13 domestic refrigerators and freezers lot 14domestic dishwashers and washing machines 2007: 5+1 lots DG ENER lot 15solid fuel small combustion installations lot 16laundry dryers lot 17 vacuum cleaners lot 18complex set-top boxes lot 19domestic lighting + simple set-top boxes * * Implementing Measures already in place * * * * * * *

10. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Shailendra Mudgal BIO Intelligence Service (FRANCE) 2008: 7 lots DG ENER lot 20individual room heating lot 21central heating (hot air) lot 22 ovens lot 23hobs and grills lot 24professional washing machines, etc. lot 25coffee machines lot 26network standby 2008: 3 lots DG ENTR lot1commercial refrigerators and freezers lot 2transformers (power and distribution) lot 3 DVD players, video projectors, etc. 2009: 3 lots DG ENTR lot 4industrial furnaces and ovens lot 5machine tools lot 6air-con and ventilation systems Working plan and preparatory studies 2/2

11. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Shailendra Mudgal BIO Intelligence Service (FRANCE) Preparatory study Uniform approach to all preparatory studies Methodology 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

12. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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)

13. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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

14. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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 products 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)www.kp.man.dtu.dk/English/Research/areas/Ecodesign/guide.aspx Local and regional working groups can support, e.g. www.lecreer.eu 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 www.ecodesignarc.infowww.ecosmes.netecodesign-info.eu

15. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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

16. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making 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 ec.europa.eu/energy/efficiency/ecodesign/eco_design_en.htm DG ENTERPRISE AND INDUSTRY – Sustainable Policy ec.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 Portal ecodesign-info.eu

17. 8th European Forum on Eco-Innovation, Bilbao, Spain 20-21 April 2010 Making Eco-Innovation happen in Small and Medium-Sized Enterprises Shailendra Mudgal BIO Intelligence Service (FRANCE) Contact Shailendra Mudgal BIO Intelligence Service S.A.S. 20-22 villa Deshayes 75014 Paris, France Tel: +33 (0)1 53 90 11 80 e-mail: sm@biois.comsm@biois.com en.biois.com