Asia-Pacific Forum on
Effective Consumer Information for Sustainable Energy Use
Korea Press Centre,
Seoul, Republic of Korea
19-21 May 1999
Background and
Objectives
Sustainable energy consumption requires informed
consumers making sound sovereign decisions. In most
industrialized and industrializing countries alike the average
consumer has hitherto remained under-informed of the various
environmental impacts of energy consumption and of existing
energy conservation potentials in modernized urban households.
Most consumers are not aware of potentials in energy savings
and their respective costs/ benefits when they buy or operate
electrical appliances or other energy consuming devices.
With the rapid economic development
in the Asia-Pacific region, production and consumption patterns
are changing, in particular in the urban metropolitan centres
of the region. Modern consumption oriented life styles
are invariably more energy intensive, require more resources
and generate more environmental impacts, including emissions
and waste.
With economic expansion, consumers
benefit from a rapidly expanding choice of products and
services. However, as the number of comparable products
to choose from expands, the consumer still lacks the technical
information or economic data, that would be required to
make an environmentally conscious consumer choice.
Information of the consumer cannot remain entirely the responsibility
of the manufacturers, who have a vested interest in marketing
their products, and may, therefore, not be unbiased in their
advertisement. The long term trends of economic expansion
and increasing prosperity in the Asia-Pacific region makes
consumer information a new and increasingly important area
for policy formulation.
National consumer groups, consumer organizations
and similar NGOs have a potentially important role to play
in the promotion of sustainable energy consumption.
The main objective of this project is therefore to enable
and guide representatives of such organizations to engage
effectively in the related advocacy work.
The Regional Symposium on Effective Consumer
Information for Sustainable Energy Use was organized with
a view to introduce participants to the policy issues involved,
and it intends to provide essential technical background
information in a manner sufficiently easy to be understood
(and possibly re-used) by non-engineers.
Organizers
This project had been prepared and was
carried out jointly by the Citizens' Alliance for Consumer
Protection of Korea (CACPK), Seoul, Republic of Korea, and
the secretariat of the United Nations Economic and Social
Commission for Asia and the Pacific (ESCAP), Bangkok, Thailand.
The NGO forum was supported by the
Government of the Republic of Korea.
The Friedrich Ebert Foundation (FES)
also supported the project through sponsorship of
distinguished guest speakers from Germany.
Sponsorship
As the main sponsor of the project, the Government
of the Republic of Korea has provided ESCAP and CACPK with
funding for a limited number of sponsorships to cover international
air travel as well as local costs for selected participants
from ESCAP member countries. Six sponsorships were available
for selected experts/resource persons from other ESCAP member
countries to take part in the Symposium. Additional
15 sponsorships were available for one selected participant
from each of the following countries to take part in both
the Symposium and the Training Workshop: Bangladesh,
Bhutan, China, India, Islamic Republic of Iran, Indonesia,
Malaysia, Mongolia, Nepal, Pakistan, Papua New Guinea, Philippines,
Uzbekistan, Thailand, Viet Nam.
As a co-sponsor, Friedrich Ebert Foundation
agreed to cover travel costs of distinguished guest speakers
from Germany.
Other organizations interested to
extend support to this event are invited to contact the
organizers at the contact addresses given below.
Conclusions and
Recommendations for Future Action by Consumer Organizations
to Promote Sustainable Development and Sustainable Energy
Use
1. The Asia-Pacific NGO Forum was organized
jointly by United Nations Economic and Social Commission for
Asia and Pacific (UN ESCAP) and Citizens' Alliance for Consumer
Protection of Korea (CACPK) with support provided by the Ministry
of Foreign Affairs and Trade (MOFAT), Ministry of Environment
(MOE), Ministry of Commerce, Industry and Energy (MOCIE),
Korea Energy Management Corporation (KEMCO) and Friedrich-Ebert-Stiftung
(Germany). The objective of the Forum was to discuss perspectives
for the future engagement of consumer organizations in the
area of promoting sustainable development and sustainable
energy use.
2. The participants noted that a Draft Resolution
concerning the Expansion of Guidelines on Consumer Protection
to Include Sustainable Development has been recommended
by the United Nations Commission on Sustainable Development
for adoption by the Economic and Social Council of the United
Nations in 1999/2000. These guidelines foresee an active
role for consumer organizations in promoting sustainable
development, including sustainable energy use. In the above
context, the Forum participants agreed on the following
overall outline of recommendations for future action by
consumer organizations:
Energy sources
3. The consumer organizations noted that
current energy systems are predominantly based on finite
fossil fuel reserves and are therefore not sustainable in
the long term. The future use and expansion of nuclear energy
may not be advisable in the long run because of the high
investment costs and disposal of nuclear wastes, and because
of environmental risk associated with the accidental release
of radiation. The greater use of renewable sources of energy
should be promoted as far as possible throughout all sectors
of the economy. Energy efficiency is recognized as a major
key to a sustainable energy future and should be advocated
as far as possible in consumer advocacy work.
Consumer education
4. The Forum confirmed the primacy of the
task of supporting and expanding consumer education and awareness
programmes in the field of sustainable consumption, especially
targeting children as future consumers. Education is considered
to be a key to influencing government and industry, and to
changing consumer behaviour so as to promote sustainable energy
use in society. Educational programmes should seek to curb
over-consumption, which is an increasing danger as income
levels rise.
5. The potential role of psychology in explaining
and predicting consumer behaviour patterns was recognized
as very significant in promoting sustainable energy use.
The use of psychology in this area should be encouraged.
Consumer protection laws
6. A comprehensive system of legislation designed
to protect consumer interests is essential. Consumers investing
in renewable energy devices and energy efficiency equipment
deserve particular protection from misleading information.
Related legislation can be justified on the following grounds:
(a) Sustainable energy policies are in
the public interest.
(b) Renewable energy devices and energy
efficient equipment involve substantial initial costs before
energy savings are realized.
(c) Renewable energy devices and energy
efficient equipment are peculiarly susceptible to consumer
fraud.
The building sector
7. The Forum recognized the desirability of
introducing new measures or amending existing measures to
promote energy conservation in the building sector. These
measures might include one or more of the following:
(a) Legislation requiring a vendor of
a new building designed for residential purposes to provide
information on the insulation installed in the building
in the contract of sale of the building.
(b) Legislation entitling all prospective
purchasers and tenants of houses and residential apartments
to receive information on the past heating and cooling costs
of a home that they are considering renting or buying.
(c) The creation of a system of energy
rating or labeling for buildings. An illustration of this
type of measure would require an owner wishing to sell their
home to first have it energy rated and then to include the
resulting rating in any advertisement for TIS sale. A software
package could be developed to make rating homes a relatively
straightforward exercise.
(d) The establishment of a system of
energy conservation option points, whereby all new dwelling
units for which a building permit is required would be obliged
to score a minimum number of points from an options list.
A specified number of points would be awarded for each energy
conservation feature included by the builder in the construction.
8. The Forum also considered it important
to have incentives and other measures to promote energy
efficiency in existing buildings.
Motor vehicles
9. The Forum noted with concern the current
heavy reliance of motor vehicles on petroleum and the current
lack of effective alternatives. For this reason emphasis must
be given to minimizing fuel consumption and emissions in all
forms of road transport. Two possible measures to achieve
this goal were considered worthy of adoption:
(a) A compulsory reference to fuel consumption
in all model-specific motor vehicle advertising. Under this
proposal all manufacturers advertising for sale specific
models of new vehicles would be obliged to include in the
advertisements a precise reference to the fuel consumption
figures applicable to the vehicle. This measure would extend
to all forms of advertisements, both in print and in the
media.
(b) A system of fuel consumption labeling,
whereby a label would be attached to all new vehicles stating
the fuel consumption of the vehicle. The figure would be
based on test results, discounted to take account of reduced
fuel consumption in city driving conditions.
Manufacturers warranties for consumer goods
10. The Forum believes that to promote consumer
confidence in renewable energy devices and energy conservation
materials it is essential that an effective system of legal
warranties exist. Warranties of a minimum specified duration
should be prescribed in legislation and must give consumers
an effective system of legal redress where the equipment fails
to perform according to manufacturers' specifications.
Consumer product standards
11. A further measure considered important
by consumer organizations to promote sustainable development
is the introduction of product standards. Product standards
are a measure of adequacy of a product and may be used to
compare value and quality. Standards promote uniformity and
thus avoid irregularities or undesirable variations in a product.
To promote maximum compliance and to increase consumer confidence,
it is important that all standards can be legally enforced.
The simplest method of achieving this would be to enact legislation
giving the appropriate government agency the power to prescribe
a standard and to enact laws to protect and enforce all prescribed
standards.
12. Minimum energy performance standards
were recognized as an effective way to assist consumers
by requiring the manufacture of products with lower energy
operating costs. Such standards should be phased in over
several years in order to give manufacturers the opportunity
to improve the efficiency of their products. Technical assistance
and financial support may be necessary in some cases, especially
for smaller manufacturers.
13. While standards are regarded as appropriate
and desirable in all cases in developed countries, consideration
must be given to the appropriateness of standards in developing
countries. In such countries, such standards should not
be set too high or they may favour imported products at
the expense of local manufacturers.
Economic and policy incentives for energy efficient appliances
14. Consumer organizations should be aware
of the likely increased expansion of certain electrical appliances
in the short to medium term and should seek to ensure that
the models offered for sale should be the most efficient.
An important example of this is refrigerators. Energy efficient
models should be supported by one or more of the following
incentives:
(a) Customer rebate programmes.
(b) Government incentives to manufacturers.
(c) Innovative procurement programmes.
(d) Voluntary and compulsory energy labeling
programmes.
(e) Minimum energy efficiency performance
standards.
Training system for installers of appliances
15. The Forum noted that the installation
of renewable energy devices and energy efficiency equipment
has given rise in the past to many consumer complaints and
has proved in some cases to be a deterrent to the growth of
the market in these products. It is believed that a lack of
training of salespeople, installers and providers of after
sales service is a deterrent to the growth of the industry
in these products. Consumer organizations should support the
establishment and development of training programmes and facilities
to train tradespeople in this area and to update the syllabus
of plumbers and builders' apprenticeship course syllabuses.
Appliance labeling systems
16. The Forum gave unanimous support to the
establishment of appliance labeling schemes for the widest
possible variety of electrical products. While a voluntary
system may be adopted initially, it is believed that a compulsory
system, based on legislation, is preferable and more effective
in the medium to long term. The Forum participants noted the
variety of different forms of labels currently in use in different
countries, and expressed the strong view that labels should
be kept as simple as possible and may include a simple categorical
rating scheme (e.g. 1-5 stars; A-G categories). Labels should
indicate estimated annual energy use in monetary terms rather
than kilowatt-hours. Any categorical system of labeling may
need to adjust or recalibrate its rating system periodically
so as to distinguish adequately between the efficient and
non-efficient products.
17. The Forum believes that it should be
a matter for each country to determine the exact content
and format of the label and that in this area globalization
is neither necessary nor desirable.
18. While consumer organizations need not
be directly involved in the implementation of labeling schemes,
they should have a role in monitoring compliance by appliance
manufacturers.
Batteries for appliances
19. Consumer organizations should be conscious
of environmental problems caused by the current high level
of usage of disposable batteries for consumer appliances,
and should advocate the greater use of rechargeable batteries.
Manufacturers are urged to better design batteries so as to
use less toxic materials. Alkaline batteries are more energy
efficient than zinc chloride batteries and should be supported
in preference.
Stand-by energy for certain products
20. The Forum noted with concern the rapidly
increasing level of energy waste caused by certain modern
electrical products when in stand-by mode. This is a particular
problem in respect of office equipment, such as computers,
fax machines and copiers. The most effective means of avoiding
such waste is to disconnect such appliances from the electricity
supply when they are not in use, although it was recognized
that this is not always practicable. Manufacturers should
be encouraged to produce products with lower stand-by losses
in order to reduce consumer energy bills. The Forum recommends
the adoption of appropriate labeling systems to remedy this
problem.
Role of product testing
21. The participants emphasized the need for
consumer organizations in the region to educate consumers
by disseminating product information on energy using appliances
through comparative product testing. The product information
needs to cover performance as well as energy efficiency. Such
information not only reinforces the credibility of labeling
schemes but also enables consumers to become conscious of
energy conservation.
Use of Electronic Media
22. Participants recognized the usefulness
and potential impact of making consumer information materials
available at no expense to users through the electronic media
and recommended that consumers organizations make increasing
use of this communication and information tool, as possible.
23. Consumers organizations of the region
may jointly explore opportunity for organizing follow up
local, national or regional training event on the subject
of promotion of sustainable energy use. Supplementary training
and capacity building activity for consumer organization
staff are considered important to strengthen the potential
role of consumer organization in promotion energy efficiency.
24. Consumer organizations should develop
a long term vision, identify and prioritize target areas,
formulate and agree on an action plan in consultation with
and involvement of all stakeholders. Implementation of plans
needs to be backed up by appropriate policy and regulatory
frameworks and supported by economic instruments. Monitoring
and feed-back are also considered necessary for adjustments
to the changing needs.
Inter-country and interagency cooperation
25. There is a need for Governments and official
agencies in charge of energy conservation to support and promote
the work of consumer organizations in the area of consumer
awareness, education and providing credible product information
to consumers. There is need for consumer groups to build a
working relationship with government agencies involved in
this area of work.
26. Consumer organizations felt the continuing
need for intercountry and interagency cooperation.
27. The Forum participants expressed their
appreciation and thanks to the co-organizers of the NGO
Forum, UN ESCAP and CACPK, for their respective efforts
in preparing for and implementing the Forum event. The Forum
participants expressed their appreciation and thanks to
the Government of the Republic of Korea for its generous
support of the NGO capacity building project. The NGO Forum
participants and the organizers acknowledged with thanks
the technical and financial support provided to this project
by the Friedrich-Ebert-Stiftung of Germany.
Further information
Citizen's Alliance for Consumer Protection of
Korea (CACPK)
Ms. Jai-Ok Kim
Executive Director
603 Pierson Building
K.P.O. Box 411
Seoul 110-062
Republic of Korea
Tel: (82-2) 739 5441
Fax: (82-2) 736 5514
E-Mail: CACPK@consumernet.or.kr
Economic and Social Commission for Asia and Pacific
(ESCAP)
Pranesh C. Saha
Chief, Energy Resources Section
Environment and Development Division
UN Building, Rajadamnoen Nok Avenue
Bangkok 10200, Thailand
Tel: (66-2) 288 1546
Fax: (66-2) 288 1059
E-mail: saha.unescap@un.org
