Under the National Program on Energy Efficiency and Conservation and the direction of the Prime Minister, the Ministry of Industry and Trade (MOIT) has developed the project "Roadmap of energy labeling and building energy efficiency standards in the period of 2010 - 2015". MOIT has announced the energy labeling program for energy using products, but there are still so many questions from both enterprises and people.

To answer these questions, we had an interview with Mr. Phuong Hoang Kim, Deputy Director of Science and Technology Department, Deputy Chief of MOIT’s Energy Efficiency Office.

Could you tell us the purpose of energy efficiency labeling?

Energy labeling is an effective measure to orient the use of high efficiency facilities and equipment, striving to dispose of obsolete facilities and equipment and reducing energy consumption in production.

Energy labeling will create pressure on manufacturers to produce and launch high performance products, force businesses and importers to sell products which meet or exceed energy efficiency standards and ensure parameters indicated on the label, helping consumers choose the right energy saving products or products with the desired efficiency in the market. With millions of energy efficiency products widely used, the saving potential will be very large and may bring big economic benefits for the whole society.

Among the measures to implement energy efficiency and conservation, the labeling program is considered very successful, which brings high energy efficiency in many countries in the world, especially in the U.S. (with the famous star label), the EU, Japan, Korea, China, India, and Thailand. Energy efficiency labeling has also been recorded in the Action Program of ASEAN Energy Cooperation Plan, through the cooperation plans in 1999-2004 and 2004-2009.

What benefits will enterprises enjoy when implementing energy efficiency labeling?

So far, the energy efficiency labeling regulation for energy using products is recommended rather than compulsory. The Law on Energy Efficiency and Conservation was officially approved by the National Assembly and will be enforced from 1/1/2011. Accordingly, in the coming time, MOIT will submit to the Prime Minister to issue the List of energy using equipment to be labeled and to apply minimum energy efficiency when being circulated in the market.

For consumers, the presence of energy efficiency labels in the market will draw their attention and frequently recommend them when making decisions to purchase energy using equipment. Actually, this is an extremely important communication measure in energy efficiency activities. For manufacturers, once the labeled energy efficiency products appear in the market and draw the attention of the community, they will create the pressure on manufacturers who have not implemented energy efficiency labeling for their products, motivating manufacturers to invest and improve the efficiency of their products.

Participating in Energy Efficiency Labeling Program, businesses will have both short term and long term benefits. The immediate benefit is the increased product output. At the same time, companies which have energy efficiency products will get financial incentives. In the long run, the implementation of energy efficiency labeling is the opportunity for companies to promote their brands and confirm their credibility in the market. Energy efficiency labeling is not only criteria to evaluate the consciousness of implementing energy efficiency and conservation of businesses but will also create the consumption trend in modern society.

Would you please tell us the procedure to label products?

Energy labeling procedures were specified in Circular No. 08/2006/TT-BCN dated November 16, 2006 of the Ministry of Industry (now the MOIT). The Circular detailed the products to be labeled, the testing agency to grant certification and standards as a basis for evaluating energy-saving products. MOIT is the agency which has the authority to evaluate and grant the certificates of energy labeling and energy saving products.

Accordingly, all businesses which have energy using products included in the energy labeling list can register to participate in the labeling program. The process of labeling must comply with many different stages including sampling products, testing energy consumption indicators and then forming the technical documents and energy saving products certified registration document to submit to the MOIT. Within five days after receiving the dossiers, the MOIT will be responsible for reviewing and technically evaluating products which meet energy efficiency standards and then granting certifications and labeling products. Insufficient applications will be notified in writing to request businesses to supplement and complete document.

The MOIT is currently reviewing Circular No. 08/2006/TT-BCN regulating procedures for energy efficiency products labeling. Basically, the draft contents of the revised circular have included international experiences, regulating sufficient procedures from the evaluation and testing to energy efficiency product labeling.

However, in a chaotic market, does the MOIT have any plans to prevent imitation and fake products? 

In fact, many people are worried that products only meet the standards when being labeled, but the quality will not be guaranteed or will decline over time when being massively produced and marketed.

To avoid the above cases, MOIT’s Energy Efficiency Office has also regulated the mechanism for checking and monitoring after labeling. Every 6 months, businesses certified with labeled energy efficiency products will report on the quantity and types of energy efficiency labeled to the Ministry. MOIT’s Department of Market Management, with the professional support of the Energy Efficiency Office, will carry out random tests of already labeled products. In case of detected violations, there will be immediate sanction, suspension or withdrawal of the energy efficiency certificate.

What is the roadmap of energy efficiency labeling in the coming years?

As of December 2009, nine companies have participated in Energy Efficiency Product Labeling for T8 fluorescent lamps, electromagnetic ballasts and energy saving street lights. The number of labeled product provided in the market in 2009 was over 5 million T8 fluorescent lamps and two million energy saving electromagnetic ballasts.

In the coming time, the labeling program will turn from voluntary to compulsory under the Roadmap. New labels will include Recognized energy label (applied to the leading energy efficiency products) and Comparative energy label (using 5 levels of efficiency to compare the energy efficiency of products on the market).

The roadmap for implementing labeling will aim to energy using products in large quantity. Specifically, according to the Draft Decision of the Roadmap, for some household appliances, the voluntary phase will be completed before 1/1/2011 and turned into compulsory after 1/1/2013. Fluorescent lights, fluorescent light ballasts, air conditioners, refrigerators, washing machines, electric pots, electric fans, television with the energy efficiency lower than the minimum energy efficiency level will not be allowed to be imported and produced from 1/1/2015.

For the group of industrial equipment, the voluntary phase for electric motors (with the capacity of up to 200 kW), small and medium boilers and three-phase transformers (with the capacity of up to 2000KVA) will be completed before 1/1/2012. From 1/1/2013, these products will be forced to be energy labeled. Electric motors, small and medium boilers and three-phase transformers with the energy efficiency lower than the minimum energy efficiency level will not be permitted to be imported and produced from 1/1/2015.

For the group of office and commercial equipment, the voluntary energy labeling for photocopy machines, computer power supplies, and commercial refrigeration cabinets will be completed before 1/1/12014. Mandatory energy labeling for these products will start from 1/1/2015. Products with the energy efficiency lower than the minimum energy efficiency level will not be allowed to be imported and produced from 1/1/2015.

For the group of energy saving materials, the voluntary energy efficiency labeling for products using renewable energy technologies and energy saving materials will be executed after 1/1/2015.

So, in your opinion, what is needed for the project to get into life as early as possible?

After three years, the pilot Energy Efficiency Labeling Program has achieved some initial results. Compared to the plan which is to build standards and label for 5 energy efficiency products, the program has completed the target. To overcome the existing limitations in the pilot labeling project, in addition to overcoming the shortage of human resources and skills or ensuring resources for implementing; the direction, inspection and supervision of management agencies and the high determination, the program also really needs the active participation of ministries, sectors and related partners.

To support the Energy Efficiency Labeling activity, in addition to promulgating energy efficiency standards, in the coming time, it is also necessary to support and invest in building the testing facilities system to test parameters of products which are proposed to be energy efficiency labeled by businesses. The eligible equipment performance testing system is a necessary condition which ensures the feasibility of energy efficiency labeling.

And more importantly, for a labeling program to receive the support of the public, the requirements in the label should be accurate and reasonable. For mandatory labeling, it is necessary to develop policies and mandatory mechanisms as well as sanctions for products which are not labeled.

Thank you!

By Minh Duc