Asia-Pacific NGO Forum on Effective Consumer Information
for Sustainable Energy Use

 Seoul, Republic of Korea 19 - 21 May 1999

Organized by

CACPK    Citizens' Alliance for Consumer Protection of Korea
  United Nations Economic and Social Commission for Asia and Pacific

In collaboration with and supported by:

Ministry of Foreign Affairs and Trade of Korea
Ministry of Environment of Korea
Ministry of Commerce, Industry and Energy of Korea
Korea Energy Management Corporation
Friedrich-Ebert-Stiftung Korea Cooperation Office

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.

Intercountry 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 on the NGO Forum, participating organizations and papers presented can be accessed through the following

Web-Sites : "http://www.unescap.org/enrd/..." and "http://www.cacpk.org/...".

The NGO Forum was attended by representatives and experts of following organizations:

University of Adelaide, Faculty of Law (AUSTRALIA)
Consumers Association of Bangladesh (BANGLADESH)
Ministry of Trade and Industry (BUTHAN)
China Consumers Association (CHINA)
Hong Kong Consumer Council (CHINA)
Wuppertal Institute for Climate, Environment and Energy (GERMANY)
Arbeitsgemeinschaft der Verbraucherveraende e.V. (Germany)
Voluntary Organization in Interest of Consumer Education (INDIA)
Yayasan Lembaga Konsumen Indonesia (INDONESIA)
The Irian Society of Environmentalists ( ISLAMIC REPUBLIC OF IRAN)
Consumers of Union of Japan (JAPAN)
Consumers Council of Macau (MACAU)
Consumers International, Regional Office for Asia and the Pacific (MALAYSIA)
Alternative Energy Foundation ( MONGOLIA)
Consumer Association (NEPAL)
Consumentenbond (NETHERLANDS)
Consumer Affairs Council (PAPUA NEW GUINEA)
Consumer Federated Groups of Philippines (PHILIPPINES)
Citizens' Alliance for Consumer Protection (REPUBLIC OF KOREA)
Friedrich-Ebert-Stiftung Korea Cooperation Office (REPUBLIC OF KOREA))
Hankuk University of Foreign Studies, Institute of Environmental Science (REPUBLIC OF KOREA)
Korea Energy Economics Institute (REPUBLIC OF KOREA)
Foundation for Consumer (THAILAND)
International Institute for Energy Conservation, Asia Regional Office (THAILAND)
United Nations Economic and Social Commission for Asia and Pacific, Environment and Natural Resources Development Division (THAILAND)
Vietnam Standard and Consumers Association (VIET NAM)
Hochiminh City Consumers Association (VIET NAM)