I. Title of the Best Practice

II. Overview of the Best Practice

A. General Description
ENERGY STAR is a U.S. Government program designed to remove market barriers to the purchase of energy efficient products and services in residential, commercial, and industrial markets. The program is administered jointly by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE).

Studies show that many homes, businesses and industrial facilities could reduce their energy use by about 30% by using proven, cost-effective products and investing in simple, profitable building upgrades. However, many businesses and consumers fail to take advantage of these opportunities because of informational, financial and technical market barriers. In essence the transaction costs and perceptions of risk are higher for more efficient technologies than for their less efficient counterparts.

ENERGY STAR Programs are designed to reduce these transaction costs and to help consumers and businesses overcome these market barriers. The programs address three market barriers that have resulted in under-investment in energy efficiency: (1) lack of objective information; (2) definition of efficiency and comparability of competing products; (3) and higher purchase prices for many efficient products. ENERGY STAR addresses these market barriers with the following innovations designed to build incentives for investment in energy efficiency.

B. Special Characteristics of the Best Practice
Labeling: The ENERGY STAR label is a simple, objective logo that identifies products that reduce energy waste, prevent pollution and reduce utility bills while offering the same or better product performance. It provides a common definition of energy efficiency for manufacturers, retailers and energy efficiency advocacy groups nationwide, and eliminates the need for consumers to be familiar with complex measures of energy efficiency.

Consumer Education: ENERGY STAR Programs produce public service advertisements, media events, brochures, and other outreach materials to educate consumers about the economic and environmental benefits of energy efficient products.

Support Tools: ENERGY STAR Programs invest in tools including retail sales training modules, efficiency "calculators," store locators, software, reduced cost loans for efficient products, and toll free hotlines to answer consumer questions. These tools are used by manufacturers, retailers, and utility efficiency programs nationwide.

The U.S. Government and the European Community are about to enter into an agreement on the Coordination of Energy-Efficient Labeling Programs which is intended to unify voluntary energy efficiency labeling programs in two of the major global markets for office equipment. This coordinated effort will serve to increase global supply of and demand for energy efficient equipment by establishing uniform criteria of energy efficiency in the United States and the European Union. In addition, the proposed agreement would lend greater authority to other governments' efforts to stimulate the market for energy efficient products and establish the ENERGY STAR program as the international leader in voluntary energy efficiency labeling.

C. Reasons for Inclusion as a Best Practice
ENERGY STAR is now eight years old. Through the ENERGY STAR effort, an extensive energy efficiency deployment infrastructure has been and continues to be developed across the country. Key successes include:

A clear national label that defines energy efficiency has been established - the ENERGY STAR label, supported by the U.S. Environmental Protection Agency and the U.S. Department of Energy.

Over 1,200 manufacturers offer ENERGY STAR products in over 29 product commercial and residential product categories.

ENERGY STAR Residential Products are now featured in over 4,000 retail storefronts nationwide. Retail industry partners include Best Buy, Circuit City, Sears, and Home Depot.

Consumer awareness of the ENERGY STAR label is up to about 40% in some regions of the country -- a tremendous accomplishment in today's brand-dominated market place.

About 50 utilities representing over 30% of US households now promote ENERGY STAR labeled products to their customers as an integral part of their efficiency services.

A brand new development is the ENERGY STAR Building Label, which serves as the mark of energy performance excellence for commercial buildings. It builds upon a new benchmarking tool that ranks the energy performance of office buildings.

Over 13% of commercial building square footage across the country signed on to the ENERGY STAR Buildings Program.

ENERGY STAR has tremendous potential to direct investments in the United States over the next decades in a manner that reduces greenhouse gas emissions while saving businesses and consumers money.

Actions already taken through 1998 in the U.S. as a result of the ENERGY STAR Program will reduce carbon dioxide emissions by about 40 million metric tons of carbon equivalent by 2010 and more than US$13 billion in energy cost savings.

ENERGY STAR programs reduce emissions of conventional air pollutants, in addition to emissions of greenhouse gases. They have produced sizable reductions in emissions of sulfur dioxide and nitrogen oxides.

ENERGY STAR creates a set of energy efficiency qualifications for product and building categories across the nation. The result is consistent demand for energy efficient products and systems across the country that is significant enough to influence manufacturers and building designers so that they incorporate greater efficiency into each new generation of offerings.

While product specifications are consistent across the nation (with the exception of windows, which have specific regional characteristics), the supporting activities are highly customized to local challenges and interests. For example, regions with high levels of consumer interest in environmental causes may highlight ENERGY STAR's greenhouse gas emission reductions in promotional activities. Other regions may capture improved quality or comfort of ENERGY STAR qualified products and buildings, while others may tout the reduced water use, for example, of ENERGY STAR qualified clothes washers. The national platform offers some national harmonization, with a great deal of local flexibility and customization in order to achieve real changes in consumer understanding of energy efficiency and purchasing decisions.

Examples of ENERGY STAR Products include:

ENERGY STAR TVS and VCRs. Each year, Americans use US$1 billion to power their TVS and VCRs while they are switched off. Today, due to the ENERGY STAR program, every major manufacturer is producing TVS and VCRs that can cut the energy use of conventional models in their standby modes by 75%, without any change in performance, and typically without a price increase. That will eliminate 75% of the greenhouse gases released when creating the electricity. The ENERGY STAR label is the way the average consumer can find the TVS and VCRs that consume less energy when switched off, improving performance and saving consumers money.

ENERGY STAR Washing Machines. Purchasing just one standard, or less efficient washing machine commits a consumer to 13,000 pounds of carbon dioxide emissions over the lifetime of the washer. That is more pollution than the average car emits in one year. Purchasing an ENERGY STAR washer not only prevents unnecessary pollution but it also will save nearly US$1,000 over the lifetime of the product.

III. Categorizing the Best Practice

1. Classification(s) (Indicate main classification(s) only.)
( ) Regulatory Approach (Policy approaches-- regulations, incentives, etc.)
( ) Practical Action (Action undertaken independently by a social actor)
( X ) Social Network Mechanism (Cooperative structure)

2. Social Actor(s) Involved (Indicate main social actor(s) only.)
( X ) Citizens
( X ) Central government
( X ) Local government
( X ) Business

3. Sector(s) (Indicate main sector(s) only.)
( X ) Energy
( X ) Household
( ) Transportation
( ) Industrial Enterprises
( X ) Other (Non-Industrial) Businesses
( ) Agriculture/ Land Use/ Forestry
( ) Other (Please specify.)

4. Target Greenhouse Gas(es)
( X ) CO2
( ) CH4
( ) N2O
( ) HFC
( ) PFC
( ) SF6
( ) Other (Please specify.)

IV. List of References

http://www.energystar.gov

V. Please indicate a person to contact for more information about this Best Practice.

Contact Person:	Virginia Lee
Title:	Special Assistant
Organization:	U.S. Environmental Protection Agency
Email:	lee.virginia@epa.gov
Tel:	202-564-8977
Fax:	202-565-2134
Address:	401 M Street SW (6202J), Washington, DC 20460 USA