Europaudvalget 2019-20
EUU Alm.del Bilag 929
Offentligt
Response by the Danish government to the initiative “Empowering the
consumer for the green transition”
European consumers will be a driving force in EU's green transition. The
Danish government thus welcomes the Commission's initiatives to em-
power consumers for the green transition. It is important that new initiatives
go hand in hand with an ongoing focus on ensuring effective consumer
protection during the transition.
We support
the Commission’s continued focus on enhancing active con-
sumer behaviour and encourage the Commission to build new consumer
initiatives in order to support this development. We specifically encourage
the Commission to focus on behavioural knowledge and evidence when it
comes to EU's marketing law.
The following remarks encompass the Danish position on the inception im-
pact assessment:
1. Consumers often lack reliable information at the point of sale
Providing information about products’ sustainability
can be an effective
way to make it easier for consumers to make more “green” consumption
decisions. It is, however, important that there are specific requirements for
the provided information in order for the information not only to be accu-
rate and relevant, but easy for consumers to understand and act upon, i.e.
by enabling comparisons between products. Information, which does not
fulfil these criteria, might add to consumer confusion and mistrust in green
marketing and dampen their interest in purchasing sustainable products.
Including information on lifetime energy costs
An example of information that is relevant and easy to act upon for con-
sumers is lifetime cost on energy consuming products.
A yet to be published study by the Danish Competition and Consumer Au-
thority shows that if consumers have to buy heavy energy consuming ma-
chines, such as dryers, they would choose more energy efficient machines,
if informed about the total cost of ownership including lifetime energy
costs. This means that even though all the machines were marked with the
European energy label, adding lifetime energy costs motivated a more sus-
tainable consumer behavior. The study stresses that consumers in general
do not automatically consider future expenses in a purchase situation. How-
ever, the study also shows that the challenge of encouraging consumers to
consider future expenses can be overcome in cases of heavy energy con-
suming machines by presenting the information on lifetime energy con-
1. September 2020
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suming cost in the purchase situation. It could thus be considered to exam-
ine further the benefits of including requirements of such information in
potential new regulation.
A Green European Market based on PEF/OEF and type I ecolabels
The format, in which the information is presented, can also influence the
effect the information has on consumer understanding. Different presenta-
tion formats for the Product Environmental Footprint (PEF)
1
are currently
being tested by the Commission and we find that the findings should also
feed into the impact assessment.
We find that the PEF should be included in the Commission's impact as-
sessment as the basis for companies' green claims. Also, type I ecolabels
such as the EU's own ecolabel and the Nordic Ecolabel could contribute to
companies' green claims in relation to the properties of the specific prod-
ucts and services.
We encourage the Commission to prepare the necessary Product Environ-
mental Footprint Category Rules (PEFCRs)
2
if PEF and OEF (Organization
Environmental Footprint) are to play the intended role in the green transi-
tion. PEF and OEF are mentioned in several Commission proposals but
there are currently not many category rules (PEFCR) developed, as these
are necessary to introduce PEF and OEF. The PEFCR calculations could
eventually allow the European Commission, public authorities and the pri-
vate sector to benchmark and communicate a so called PEF profile to con-
sumers.
Period of liability
The Commission's Action Plan on Circular Economy, including the ex-
pected revision of the Sale of Goods Directive, are relevant in terms of an
increased focus on product lifespans. It could be examined whether a longer
period of liability for the seller could be introduced, including for products
with a longer life expectancy (in addition to the minimum of two years as
prescribed by the Sale of Goods Directive). The examination should also
include cases where the seller markets the product as having a long life
expectancy. The Danish Government notes that the Sale of Goods Directive
is currently being transposed into national law by all of the member states.
Moreover, the impact assessment should examine the connection between
the length of the period of liability for the seller, the length of the so-called
presumption rule/reversed burden of proof and the proportion/number of
repairs. As proposed amendments to the existing rules should be based on
1
2
https://ec.europa.eu/environment/eussd/smgp/communication/product_information.htm
Product Environmental Footprint Category Rules aim at identifying the most relevant environmen-
tal impact categories and activities along the life cycle for a respective product category.
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empirical research, we encourage the Commission to examine whether and
to what extent a "right to repair" could have a green impact and a waste
reducing effect and thus contribute to a circular economy.
In line with our position on DG ENER's Sustainable Products Policy Initi-
ative (revision of the ecodesign directive), we find that it
depending on
the results of the empirical study - might be useful to have a general and
proportionate requirement for upgradeability and reparability for products
placed on the EU market.
Chemicals
The transition to a more circular economy requires a coherent approach to
product regulation with common principles which are generally based on
the PEF in combination with zero tolerance regulation for certain types of
chemicals. In order to protect consumers and increase their ability to make
informed choices, a future consumer policy should therefore include the
possibility to declare or label problematic chemicals in relevant products.
Market Surveillance
Effective EU-wide market surveillance in accordance with the Market Sur-
veillance Regulation can - by removing bad products from the market and
thereby incentivize companies to produce better products - support product
durability, reusability, upgradeability and reparability for the benefit of
consumers and companies.
Today, there are product categories that only a few countries have the
budget to control, or products that are often order-produced or only pro-
duced in small numbers. This complicates the market monitoring process,
which in some cases leads to several product categories avoiding testing
unless the Commission bears the cost of the test. An example of this prob-
lem is power transformers.
2. Consumers have to contend with commercial practices that cause
confusion and misinformation, or breed mistrust and dampen
their interest in purchasing sustainable products
The increasing consumer demand on green and sustainable products incen-
tivize businesses to innovate more sustainable goods. However, this devel-
opment also creates challenges, when an increasing number of traders mar-
ket their products as green and sustainable. Some traders might even mar-
ket their products more environmentally friendly than they really are
(greenwashing). This results in an uneven level playing field for companies
with real green claims and a decrease in consumer welfare.
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In order to facilitate a green transition it is necessary to make it easier for
traders to navigate within the area of green marketing. Furthermore, con-
sumers should be able to trust information by traders in order to make sus-
tainable choices.
International behavioural studies (e.g. Chen & Chang, 2013
3
) have shown
that misleading sustainable marketing weakens the overall consumers trust
in green marketing. In this regard, it is important to note that objectively
correct and reliable information could also mislead consumers, if it
does
not provide relevant or useful information
for the consumers. Conse-
quently, it might misrepresent the products’ environmental performance
4
.
Guidelines on what can be seen as relevant and useful information within
green marketing
would make it easier for traders to
navigate within the
area,
improve effective enforcement on greenwashing, and thereby im-
prove consumer trust in green marketing.
Labeling of green products
We welcome the Commission's intention to develop a framework for sus-
tainability labels so that they are more equitable and uniform across the
internal market. Consumers who want to make climate and environmen-
tally friendly choices should have this option. However, it is important that
a standard is created that is useful to both consumers and producers to en-
sure that the labeling schemes are in fact fair and informative for the con-
sumer, and to prevent producers from having to live up to disparate climate
requirements from different labeling schemes.
We support the initiatives for the promotion of green products inspired by
the European Energy Label and the European Ecolabel. The energy label
is mandatory for a number of energy-related products that are placed on the
market, while the EU Ecolabel is a voluntary scheme.
However, it should
be noted that it will be a financial burden to require documentation for a
mandatory sustainability label and a possible PEF label, as it will require
an LCA (life cycle assessment), or similarly, which can be costly.
In addition to EU and national ecolabels, labelling of chemicals of concern
in relevant products are an important tool for the protection of consumers
and for strengthening the basis for their informed choices.
Chen, Y. S., & Chang, C. H. (2013). Greenwash and green trust: The mediation effects
of green consumer confusion and green perceived risk.
Journal of Business Ethics,
114(3),
489-500.
4
3
For instance, if accurate and documented reductions in the carbon footprint of the packaging of a
product, which accounts for an insignificant share of the products total carbon footprint, is used to
market the product “green”, consumers might be misled into thinking that the product is “greener”
then it actually is.
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3. Effective enforcement of existing consumer protection rules in
these areas is difficult
Even though the Unfair Commercial Practices Directive (UCPD), includ-
ing the blacklist, already apply to green claims, effective enforcement is
challenged as enforcement authorities are overloaded with highly compli-
cated documentation when they take up cases.
When combatting misleading green marketing, the Commission should not
propose a ban on green claims in the UCPD blacklist. There are already
certain provisions in the existing blacklist applicable to green claims;
i.e.
provisions establishing
the unfairness in displaying trust marks, quality
marks or equivalent without having obtained the necessary authorisation.
Instead, the Commission should focus on updating the guidelines to the
UCPD on green claims. Updated guidelines will improve effective enforce-
ment on greenwashing and make it easier for traders to navigate.
Further, a proposal on companies substantiating green claims against a
standard methodology, as proposed in the Green Deal, is a promising idea
worth looking further into. Here, the PEF methodology and life cycled
based Type I ecolabels as the EU Ecolabel and the Nordic Ecolabel can be
relevant to include. The Danish Consumer Ombudsman has created guide-
lines to prevent misleading claims.
Objectives and policy options
Both consumers and traders must contribute to reaching the climate targets
set out by the EU. It is important to encourage traders to provide goods and
services that actually are more beneficial to consumers, and regulatory ef-
forts must not have a discouraging effect on consumers. Traders competing
to deliver sustainable solutions for consumers is an important driver in the
green transition.
Traders should in different ways, be encouraged to take actions for sustain-
ability and they should always be able to truthfully inform consumers about
their investments and achievements in this area. Consumers can on the
other hand contribute to reach climate and green targets by strengthening
the demand on green products and services and in
turn support the trader’s
green transition.
The Danish Government find that the Commission's impact assessment is
an important first step to encourage this development. It is important that
new initiatives go hand in hand with an ongoing focus on ensuring effective
consumer protection during the transition. Therefore, we support the Com-
mission’s continued focus on enhancing active consumer behaviour and
encourage the Commission to build new consumer initiatives in order to
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support this development. Such initiatives should always be based on em-
pirical research to ensure their green impact.