Green Products in Germany: Status Quo and Trends

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1 For our Environment International Workshop Environmental Labelling Green Products in Germany: Status Quo and Trends Dr. Michael Bilharz Section III 1.1 (Sustainable Consumption) Berlin, November 11, 2014

2 GREEN PRODUCTS IN GERMANY: STATUS QUO AND TRENDS Agenda Goals and key elements of market monitoring Example: refrigerators Selected market data Conclusion

3 1 GOALS AND KEY ELEMENTS OF MARKET MONITORING Goals of market monitoring develop a tool to systematically track the market for green products provide an estimate of the growth in green products evaluate measures and instruments of promoting green products promote an understanding of willingness to buy and of relevant drivers and barriers

4 Key Elements Market data Willingness tobuy Review framework Sales andmarketshareof20 greenproducts Market dataindextoestimatedemandforgreen products Standardised questionnaire with about 30 items Willingnesstobuyindextoindicatetrendsin consumer attitudes Review framework to analyse relevant drivers and barriers Environmental impact(especiallyco 2 -emissions)

5 Sectors and Product Categories Food Homes and Living (energy consumption) Homes and Living (others) Mobility Other Consumer Goods and Services Finance Organic food MSC products Residential buildings (construction and renovation) Heat pumps, solar panels Energy-efficient refrigerators and freezers Energy-efficient washing machines, tumble dryers and dishwashers Energy-efficient electric cooker Energy-efficient lighting Green electricity tariffs Products out of sustainable forestry Low emission paints and varnishes Recycled paper Efficient vehicles Carsharing Public transport Ecolabelled clothing Cleaning agents and personal care products Ecolabelled soap and detergent Sustainable investment products Donations for environmental protection Private offset payments CO 2 -impact ofprivate consumption in Germany, by consumer sector % Food Spalte1 18% 14% Homes and Living Mobility 44% Other Goods and Services Source: German Federal Statistical Office 2014.

6 2 EXAMPLE: REFRIGERATORS Product choice: Refrigerator Electric power consumption of private households in Germany, 2008 Verkauf 23% 38% 15% Refrigerator and freezer Hot water Electric cooker Television Others 12% 12% Source: German Federal Statistical Office 2013.

7 Sales and market share Sales of efficient* refrigerators in Germany ( ) Market share of efficient* refrigerators in Germany ( ) * Efficiency classes A+ and A++ until 2010, from 2011 also A+++. Source: GfK 2012/2013

8 Willingness to buy Representative survey in 2012: 95% know the EU energy label (logo shown) 84% say, that it influences their buying decision When they have bought appliances in the last two years they have chosen energy-efficient products Always (46%) Nearly always (25%). (n = 2.117, Federal Environmental Agency 2012)

9 Analyse with Review Framework Development of energy efficient technology Government regulation (increasing minimum requirements) outlawed sale of inefficient appliances (EU Ecodesign Directive) Transparent consumer information: EU energy label (EU Energy Labelling Directive) High consumer acceptance Increasing energy prices

10 Environmental impact Decrease of the specific electric power consumption of refrigerators in Germany: minus 9 % (2003 to 2008). But: Increase of the electric power consumption of private households in Germany: plus 4 % (2003 to 2008).

11 3 SELECTED MARKET DATA Energy-efficient household appliances Market sales (2012) of other energy-efficient household appliances: Freezers: 67 % Tumble Dryers: 51 % Dishwashers: 49 % Electric cookers: 38 % *Efficiency category A+ and A++ until 2010; from 2011 also A+++ Source: GfK 2012/2013

12 Energy efficient illuminants Less dynamic than household appliances; (similar framework conditions (EU Energy Labelling directive) and phase-out of inefficient light bulbs) Significant shift to less efficient halogen lamps; *Energyefficientlight bulbs: LED lamps, low-energybulbs, fluorescentlighting. Source: GfK 2012/2013

13 Green electricity tariffs Often minimal price differences between conventional and green electricity; High willingness to buy; Fukushima effect since 2011; *Electricity tariffs with relevant parts/support of efficient or renewable energy extraction ** Sales figures of green electricity multiplied by the price for green electricity Source: Federal Network Agency 2009/2010/2011/2012/2013

14 Carsharing Dynamic, but niche market; 0.5% of persons with driving licence are carsharing customers; Concentration in larger towns and cities; General unwilligness to change mobility patterns (also affects public transportation ); *Estimated data; extrapolation through the sales per vehicle/customer of the cambio-group multiplied with the complete population of car-sharing-vehicles/-customers; **Effective january 2011 Source: cambiojournal( ); Kraftfahrt Bundesamt (2012/2013); BundesVerband Carsharing( )

15 Organic Food High consumer awareness; But still small market share; Higher prices and doubts about environmental benefits; *Different calculation method since Figures for 2008 and 2009 not comparable. Source: Bund Ökologische Lebensmittelwirtschaft

16 Recycled Paper (Blue Angel) In the packaging industry almost all of the paper is recycled; Still considerable potential on the consumer side: Recycled paper accounts for only 13% of office paper; *Estimated Data; **Office- and hygiene-sector Source: Blue Angel ( ); Federal Statistical Office (2012/2013)

17 Ecolabelled Textilies (GOTS) Ecologically-produced textilies remain a niche segment; High variety of competing labels in the textile industry; Relevance of the cost factor; *GOTS is a worldwide accepted standard for the production of organic textiles Source: GfK (2013)

18 4 CONLUSIONS Conclusions Market data are a crucial basis for shaping and evaluating political instruments such as EU Ecodesign Directive, EU Energy Labelling Directive or EU-Ecolabel: Household appliances show the way for market success: Combination of different instruments and an individual benefit. Concerted efforts of various actors (consumers, media, NGOs, labelling organisations, retailers, producers, state) are required. Sustainable consumption is a market trend, but a broader effort is needed. UBA market monitoring tool has proven to be valuable to track trends in sustainable consumption systematically and comprehensively. But there is still a lack of specific valid data for many labelled products.

19 Thankyouforprotecting ourenvironment

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