Europe’s approach to improve the business climate for LED lighting, amongst others by a manufacturer driven market surveillance approach

Alfred Haas Member of LightingEurope Executive Board Vice President, OSRAM GmbH)

2nd March 2015 in Tokyo

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Content Chapter 1 LightingEurope market surveillance activities

to support good quality LED lighting

Chapter 2 LightingEurope activities on LED Customs Codes

Chapter 3 LightingEurope activities on Human Centric Lighting

SSL-erate project – Lighting for People

3 March 2015

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• Market Assessment: • Significant quantity of LED lighting products non conforming to

applicable legislation and technical/administrative requirements

• Put on stake consumer health and safety

• Distort competition

• Damaging the achievement of European environmental targets

Importance of market surveillance for quality LED lighting

3 March 2015 Chapter 1

LightingEurope market surveillance activities to support good quality LED lighting 1/7

• Market surveillance has a high priority on the agenda of LightingEurope

• A dedicated and active Working Group has been established with relevant experts from LightingEurope member companies and Associations in the various EU countries

• Objectives of LightingEurope Market Surveillance Working Group:

o To help securing a level playing field on the European lighting market by promoting enforcement and improving market surveillance

o To develop tools and an effective process to support the work done by the

Market Surveillance Authorities and to protect the European consumers and lighting market from non-compliant lighting products

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3 March 2015 Chapter 1

Supporting tools, education & training: New LightingEurope Guide about LED standards will soon be published

Publication (1st Edition November 2013) of LightingEurope EU Compliant Requirements Products Sheets for its major lighting products’ groups including LED to educate the economic operators and support the Market Surveillance & Customs Authorities in the various EU Member States (2nd Edition expected 2015)

These documents provide the authorities and the economic operators with a simple and immediate way to: • Identify the product • Identify the applicable legislations and standards • Do a preliminary check on the compliance and/or non-compliance of the major

lighting products’ groups with the applicable EU legislation requirements

All LightingEurope Guides are available for free at LightingEurope website http://www.lightingeurope.org/library 5

Chapter 1 3 March 2015

LightingEurope market surveillance activities to support good quality LED lighting 2/7

Supporting tools, education & training: Publication of several LightingEurope guides for the application of EU Regulations on Ecodesign and Energy Efficiency Labelling available for free on LightingEurope website http://www.lightingeurope.org/library

• EU Regulation No. 1194/2012 setting ECODESIGN requirements for directional lamps, LED lamps and related equipment:

• LightingEurope Guide • LightingEurope Questions & Answers document • LightingEurope Position on the draft regulation of Commission amending lamp regulations 244/2009

and 1194/2012

• EU Regulation No. 874/2012 on ENERGY LABELLING of electrical lamps and luminaires • LightingEurope Guide • LightingEurope position paper on the compatibility requirements for the luminaire label and lamps

included with the Luminaire

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Chapter 1 3 March 2015

LightingEurope market surveillance activities to support good quality LED lighting 3/7

Cooperation with national market surveillance authorities:

• Local market surveillance training sessions on lighting together with local associations and market surveillances authorities. Examples: training for Polish inspectors in Warsaw Feb 2015, training for the 16 German Market Surveillance Authorities in Frankfurt Feb 2014

• Joint Market Surveillance Project on retrofit LED lamps between the UK Lighting Industry Association and the UK National Measurement Office

• Active participation in EU funded Ecopliant project with more than 10 market surveillance authorities from various EU countries: member of the Advisory Board + participation to Ecopliant training seminars in Budapest & Brussels

• Dialogue with the EU Energy Labelling & EcoDesign ADCO group (market surveillance authorities from all EU countries)

• Cooperation with PROSAFE - organisation for market surveillance authorities throughout the EU to improve the safety of users of products and services in Europe: LightingEurope presentation to their Annual Meeting in Brussels on 13 May 2014 + involvement in several PROSAFE project proposals covering LED lighting products

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Chapter 2 3 March 2015

LightingEurope market surveillance activities to support good quality LED lighting 4/7

LightingEurope Compliant Lighting Initiative

• The objective of the initiative is to create an effective lighting industry driven market

surveillance system for lamps to assure safe products for the end users, level playing field and fair competition through samples testing performed by independent third laboratories

• LightingEurope is acting directly on behalf of its members towards an offender (from warning letters to possible legal actions)

• EU scope starting in 4 countries (Germany, France, The Netherlands and Hungary) New countries are wished and will be added at a later stage

• For the moment lamps only. A feasibility study on a possible luminaire program has started • Dedicated separate budget for this program financed by the current members • Product related allegations raised in the LightingEurope initiative are communicated to the

relevant national market surveillance authorities in order to enable them if they wish to take own actions against these specific infringements

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Chapter 1 3 March 2015

LightingEurope market surveillance activities to support good quality LED lighting 5/7

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Scope of LightingEurope Compliant Lighting Initiative

• Products scope: for the moment only lamps with LED & halogen lamps from producers, importers or other label owners • Legal scope: EU Regulations on Ecodesign, Energy Labelling, RoHS, Low Voltage Directive • Infrigements scope:

LED lamps Halogen lamps

Chapter 1

Initial lumen output 0hr (continue till 1000h if at 0h was OK)/consumed power/energy class

Safety check

Premature failure rate

CCT with color consistency and CRI

Packaging & website

Energy efficiency class

Beam Angle

Life Testing

Initial lumen output 4hr

Wattage Energy efficiency class (based on packaging values)

Premature failure rate Safety check (incl. visual safety check, base torsion etc)

Packaging & website

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LightingEurope market surveillance activities to support good quality LED lighting 6/7

Chapter 1

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Milestone 0 Reception of Complaint by

LightingEurope Administrator

Milestone 1 Transfer to test house to carry

out testing

Milestone 2 Return of results to

LightingEurope

Administrator

Milestone 3 Issuing of

Mandate to external Law

Firm / Arbitration Procedure

Milestone 4 Warning

letters / Filing of Action to competent

Court of Law

Milestone 5 Proceedings concluded

Number of products being handled by the LightingEurope Compliant Lighting Initiative mechanism per milestone

0 10 0 1 5 3

The feedback from our local lawyers so far is that the effect of the LightingEurope actions is very positive and efficient as already a few important retailers in Europe responded quickly and in a professional and

friendly manner. Last but not least now they know that we are « watching them »!

Results so far LightingEurope Compliant Lighting Initiative

LightingEurope market surveillance activities to support good quality LED lighting 7/7

LightingEurope activities on LED Customs Classification • European lighting companies are seriously concerned about inappropriate

classification of LED lighting products in the World Customs Nomenclature resulting in certain cases in significant cost disadvantages and a non-level playing field in international competition

• LightingEurope requests a thorough review of the current practice for classification

of LED lighting products into customs tariff classes in the different European countries and by the different customs offices

• LightingEurope requests the publication of relevant classification regulations supported by transparent guidelines (CN explanatory notes) for product classification which are necessary for reliable and accurate business planning

• LightingEurope suggests a review and appropriate amendment of the existing nomenclature to better accommodate LED lighting products.

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3 March 2015 Chapter 2

Summary of LightingEurope Position on LED Customs Classification • LEDs (i.e. LED Chips and LED Packages) should be covered under new/modified

sub-headings of appropriately amended heading 85.41. − Heading 85.41 is currently used for semiconductor devices (including basic types of LEDs).

• LED Light Sources (i.e. LED Lamps and LED Modules/Assemblies) should be

covered under new/modified sub-headings of appropriately amended heading 85.39. − Heading 85.39 is currently used for conventional lamps.

• LED Luminaires should be covered under new/modified sub-headings of

appropriately amended heading 94.05. − Heading 94.05 is currently used for conventional luminaires.

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Chapter 2

• SSL-erate is a 3-year coordination project co funded by the EU Commission that

aims to accelerate the uptake of high-quality Solid State Lighting (SSL) technology in Europe by supporting open innovation and bringing validated information to all relevant stakeholders.

• SSL-erate is carried out by a twenty-four member consortium - including LightingEurope - representing thirteen EU countries

• This project addresses a number of socio-economic challenges Europe is faced with:

• health, energy consumption, and resource effectiveness • the future development of the European lighting industry as outlined in

the European Commission Green paper Lighting the Future • how to enable lighting solutions with a societal and environmental

sustainability perspective, leading to a future in which Europe evolves to global leadership in SSL systems and solutions

LightingEurope activities on Human Centric Lighting SSL-erate project

3 March 2015 Section

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SSL-erate project To enhance the awareness, promote high-quality system solutions and, bring functional lighting solutions to all, the SSL-erate project is: • Creating active involvement of various stakeholders through workshops hosted

throughout Europe.

• Launching Lighting For People, a new web-based platform that is the go-to site for topical high-quality information on solid-state lighting and the user and society value system solutions to get the right light, at the right place, at the right time. The platform is providing the latest scientific findings on advances in human centric lighting and encourage green business development by means of open innovative collaboration. The Lighting For People platform represents a new model for connecting people, municipalities, lighting, and business in order to make the best —and most informed— lighting decisions in sectors from elderly care and healthcare to education and beyond.

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3 March 2015 Section

15 SSL-erate 1st review meeting 28 January 2015

Human Centric Lighting

Smart cities

Workplace

Education Healthcare & Elderly care

Domestic

scientific insights, new functions & use cases for 5 domains

support users with visual and non-visual benefits of light

16 SSL-erate 1st review meeting 28 January 2015

Effects of human centric lighting are beneficial in numerous segments

Human Centric Lighting

Industrial

• Enhanced drug efficacy, e.g. of antidepressants

• Reduced therapy times and capacity requirements

Education

• Decreased fatigue and shortened wake-up times

• Extended and deepened concentration periods

Office

• Increased employee motivation and commitment

• Individualized maximization of concentration and energy

• Improved output and error rates of repetitive work steps

• Biorhythm adjustment for nightshift workers

Wholesale and Retail

• Daylight-compatible product presentations

• Extended daytime in shopping malls

Hospitality

• (Colored) accentuation of architecture and design

• “Mood support” in wellness and dining areas

Residential

• Prevention of depressions, dementia etc.

• Integrated wake-up and relaxation support

Source: ELC, A.T. Kearney, Thinkstock

Health

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European Human Centric Lighting market – conservative scenario

• Human centric lighting can be a multi-billion-euro business in Europe

Human Centric Lighting

1. Indicated chart values until 2017 are for scenario with high growth Source: A.T. Kearney "Light and Health" market model

(bn €)

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Any question?

Thank you very much for your attention!

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www.lightingeurope.org

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Backup

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• Executive Summary: It‘s time to act

• Background & Current Situation: LED products don‘t fit into current

HS/CN

• Guiding Principles: Customs classification should follow the LED Value Chain

• Proposal for HS 2017: Example of possible (preferred) solution

• Considerations & Discussions: We are flexible to negotiate alternative approaches

• Conclusion: Invitation to stakeholders to work out joint positions

LightingEurope Position Paper on LED Customs Classification - February 2014

Chapter 2

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Implementation Status / Achievements LED Customs Classification

• Positive decision of EU Commission on Tariff Suspension for LED Packages included in

EU Regulation (EU) No 1387/2013 as of Dec. 2013 with restriction for use in the manufacture of general lighting products

• New EU Regulation (EU) No 1037/2014 to harmonize classification of LED Packages in 85.41 (in HS 2012) as of Sept. 2014 Typical LED packages now have to be classified under 85.41 as suggested by LightingEurope

• WCO agreement for amendment of HS 2017 to cover LED Lamps in 85.39 Further amendments to be considered for HS 2022.

• Classification of LED Luminaires is not really of concern. • Discussion on LED Modules / LED Assemblies will probably continue for some time. • Full implementation of LightingEurope Position hopefully with revision HS 2022

• Last but not least, LightingEurope is in contact with some of the GLA members (eg.

NEMA& JLMA) to discuss a joint position which is expected to be based on the position detailed in the previsous slide

Chapter 2