Ecodesign Principles: everything you need to know about the requirements

The ecodesign principles and the resulting energy efficiency requirements are central to sustainable energy management. But what is ecodesign and what products does it apply to? The aim of ecodesign is to ensure that products have the lowest possible environmental impact throughout their life cycle, with a particular focus on energy consumption. In this article, we explain the principles behind ecodesign, the legislative background, the main product categories concerned and how these requirements influence the definition of energy efficiency investments.

 

What is Ecodesign and why is it important?

Ecodesign, also known as eco-design, is a design approach that improves the energy efficiency and environmental performance of products at the design stage. The aim is to ensure that products consume as little energy as possible and have a smaller ecological footprint throughout their life cycle, from manufacture to use and disposal.

In the European Union, Directive 2009/125/EC of the European Parliament and of the Council (Ecodesign Directive) serves as the framework legislation. This Directive is the basis for the direct application of product-specific implementing measures adopted by the European Commission. In Hungary, the transposition of the Directive into the legal order of the 65/2011. (IV. 15.) Government Decree has taken the form of. It sets mandatory minimum energy efficiency requirements for certain products.

 

Which Products are covered by the Ecodesign Requirements?

They cover an extremely wide range of products, from everyday household appliances to industrial equipment. The following categories are currently covered by the ecodesign requirement:

 

1. Household and Commercial Lighting Products

This category includes the following types:

• Directional and non-directional lamps
• Fluorescent tubes
• High intensity discharge lamps
• Ballasts and luminaires suitable for the operation of such lamps

 

2. Electrical Equipment

Electrical equipment is also subject to strict minimum energy efficiency requirements:

• Computers and servers
• Game consoles
• Simple/complex set-top boxes
• Network-enabled equipment with standby mode
• Televisions

3. Household appliances

Many of the appliances we use in our households are also designed with ecodesign principles inmind:

• Cookers and ovens
• Dishwashers
• Freezers
• Refrigerators
• Dryers
• Washing machines
• Vacuum cleaners

 

4. Heating and cooling equipment

Optimising heating and cooling systems is essential for energy-efficient buildings:

• Air conditioners
• Heaters
• Household fans
• Industrial fans
• Individual space heating equipment
• Solid fuel fired appliances for individual space heating
• Solid fuel boilers
• Ventilation equipment
• Water heaters

 

5. Other Products

Other important products covered by ecodesign:

• Circulation pumps
• Electric motors
• Equipment consuming electricity in standby and off-mode
• External power supplies
• Imaging equipment
• Power transformers
• Professional refrigerators
• Water pumps

The minimum energy efficiency requirements set by the ecodesign directives do not only play a role in the design phase of products. It is important that the energy savings that can be achieved through energy efficiency investments should in many cases also be benchmarked against these requirements, and not just against the baseline.

This is particularly the case for the corporate tax credit for energy efficiency investments (TAO audit) and the Energy Efficiency Obligation (EEO) scheme. If the useful life of the equipment to be replaced has expired or a new asset is being purchased, these requirements should be used as the pre-investment or alternative condition.

In the context of the TAO audit 176/2017. (VII. 4.) Government Decree on the implementing rules for tax relief for energy efficiency investments states that the energy audit must take into account energy savings:

• It should be compared to the baseline.
• If a general directly applicable EU act or legislation sets a minimum energy performance requirement, it should be compared to this requirement.
• If the useful life of the baseline tangible asset has expired and there is no requirement under point (b), then it shall be benchmarked against the energy savings achievable with the lowest energy-efficient tangible asset on the market that serves the need.

It is important to note that the ecodesign directives for lighting, transformers and tyres have been amended in 2021, so the energy savings definition and therefore the level ofenergy savings in these cases has recently changed.

The ecodesign principles and the resulting minimum energy efficiency requirements are essential for the environmentally conscious design of products and the achievement of energy saving targets. The requirements for a wide range of product categories and their impact on the TAO tax credit and the ERA underline the profound role of ecodesign in energy management. Continuously updating legislation, such as the 2021 amendments, underlines the importance of up-to-date information for businesses and consumers.

Do you have questions about ecodesign requirements, energy efficiency investments or tax incentives? Contact us, our experts will help you find your way around!

TAO audit / Investment tax relief