Efficient products deliver a long list of benefits – they ease domestic energy bills, bolster European energy security, reduce pressure on aging energy grids, generate valuable export opportunities for firms and help us meet carbon reduction targets.

Ecodesign sits at the heart of Europe’s push to drive up product efficiency and at the heart of the directive is a formula. the Least Life Cycle Cost formula compares the costs of improving a product with the cash savings delivered by those savings over the lifetime of a product in order to ensure that the former does not outweigh the latter.

This report shows that the formula is overly conservative and dramatically cutting short the savings potential of the directive. The results are long-lasting policies that are out of date the moment they enter into force. Correcting such a value stands to double the savings achieved through Ecodesign. With legislative revision due in 2014, Europe has the chance to tune the ecodesign motor. This report outlines some policy options in hand.

Download the report here.

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With the support of thr European Union (LIFE Programme and European COmmission). This work reflects the author's views and does not commit donors.