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Achieving a Sustainable Economy

A big priority this year for the government is to raise awareness of households about sustainable practice in energy and water use, transport and waste disposal. This priority contributes to the goal of putting sustainability at the heart of our nation's thinking and decision-making. The government has announced its aim for New Zealand to be the first nation that is truly sustainable. This outcome complements New Zealand's enviable reputation as a country with a clean environment, smart and innovative people and an inclusive community.

One tool for encouraging new behaviours and businesses which are more sustainable is "information" to consumers to help guide their purchases. Water efficiency labelling is such an information tool. This discussion paper outlines proposals for mandatory water efficiency labelling for six specific products – washing machines, dishwashers, taps, toilets, showerheads and urinals.

In New Zealand we have had a tendency to take water for granted. In the main we have good rainfall and access to river, lake and aquifer systems. There are times, however (especially dry summers), when freshwater supply to some areas is not able to meet demand. The choices for extending water supply are often expensive and technically complex. There are also competing uses for land, lakes and rivers that need to be taken into account.

Using Our Water Resources in a Smarter, More Sustainable Way

Using our water resources in a smarter, more sustainable way is a good thing to do and it will be positively beneficial to our economy by reducing or removing the need for new investment in water supply and achieving more from our resources.

Research (Moxie Design Group) indicates that nearly a third of New Zealanders avoid buying from companies because of their impact on society or the environment; and will pay a premium for products and services which have a positive social or environmental benefit. Water efficiency labelling based on accurate, comparable and relevant information will help those households and businesses who are keenly taking up the sustainability challenge with enthusiasm. When consumers have good information about what is available and the implications of their choices, they have the tools to make responsible decisions around their consumption.

Confident and responsible consumers will move society towards a sustainable future.

Saving Water Will Save Consumers Money

There are also financial reasons for consumers to care about their water usage. In parts of Auckland, Tauranga, Tasman and Whangarei variable charges are levied for water supply. Two local network operators also have variable charges for wastewater. For most New Zealanders though, the biggest water efficiency savings will come via their power bills. Improvements in the water efficiency of appliances and fixtures that use hot water will also result in energy savings. Cost benefit analysis suggests water efficiency labelling of washing machines, dishwashers, showers and taps would result in national energy savings of 47.7 TJ (13,250,000 kW/h)[1] by 2020.

When a consumer makes an electrical appliance purchase, they can factor the energy efficiency of the appliance into their purchasing considerations. The consumer may be motivated by different factors, such as the capital outlay versus the cost of running the appliance, a desire to minimise carbon emissions or wanting to ensure energy demand does not outstrip production or transmission capacity. Regardless of what factors may contribute to a decision, a consumer has energy efficiency and consumption information available through mandatory energy efficiency labelling. There is evidence that the energy efficiency labels influence purchasing decisions. A 2006 UMR Research nationwide omnibus survey of New Zealanders concluded that of those who had purchased an appliance, 22% declared labelling had a lot of influence on their decision and 22% some influence (20% were neutral and 35% stated that it had very little influence).[2]

Water efficiency labelling will give consumers information on expected water consumption when in use of washing machines, dishwashers, taps, toilets, showerheads and urinals. This information will also allow consumers to compare different brands or models to assess which is the most water efficient. The information on the label will be based on tests conducted by certified laboratories.

The proposed water efficiency labelling requirements complement those already in place in Australia. Australia introduced a mandatory water efficiency labelling scheme as part of the Water Efficiency Labelling and Standards Act 2005 (Cth). This legislation and the underlying regulations also require all designated products to be registered. The Australian regime came into force on 1 July 2006, however, grace periods (of six to 18 months) apply to products imported or manufactured before 1 July 2006.

Under a special agreement between Australia and New Zealand – the Trans Tasman Mutual Recognition Arrangement (TTMRA) – goods that can be legally sold in New Zealand can be legally sold in Australia. This means that water-using fixtures and appliances imported into Australia from New Zealand just need to meet New Zealand's regulatory requirements. If New Zealand and Australia do not have a similar approach to providing consumers with water efficiency information, there is a risk for Australia in terms of New Zealand goods undermining the effectiveness of the Australian scheme. The severity of water shortages in Australia is the strong driver for water efficiency labelling there. New Zealand supports Australia's initiatives in this area and has given a commitment that we will introduce similar labelling requirements in New Zealand.

The Australian labelling grace period has already expired for some products. This means there is a degree of urgency for New Zealand to introduce our own labelling scheme.

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