New products for use in and around the home will soon have to conform to demanding design standards intended to cut greenhouse emissions.

A new UE directive is set to cut greenhouse gas emissions from inefficient household appliances and other equipment by specifying efficiency standards for everyday household items such as boilers, washing machines and computers, along with commercial equipment and component parts.

Environment Minister Elliot Morley said the new directive will drive down emissions of carbon dioxide by encouraging better product design and by tackling problems such as excessive energy use during 'stand by' mode.

"Hundreds of thousands of tonnes of carbon dioxide are needlessly produced every year by computers, digital set top boxes, chargers and many other products left on stand by mode," said Morley. "We know that products can be designed to be much more efficient and do less harm to the environment. Wasted energy is a hidden cost for consumers and in this day and age that is unacceptable."

According to the European Commission by 2010 about 180 million tonnes of carbon dioxide - the equivalent output of around 50 power stations - could be prevented with new and energy-efficient appliances in Europe - around half of the EU's commitment under Kyoto.

As well as saving energy, the directive aims to encourage manufacturers to produce products that are designed to minimise their overall environmental impact, including the resources consumed in their production and disposal.

European Government Ministers have agreed to set standards for products that can have the most immediate impact on climate change.

Although the focus of the directive is on setting mandatory standards, a clear intention of the directive is to encourage voluntary action by manufacturers to improve their products without the need for further regulatory action.

However, policymakers have sent a tough message saying the intention of the directive is to set out a clear forward-looking agenda for manufacturers by removing poor performing products from the market. Elliot Morley said, "We need manufacturers to take notice of this new directive. The sustainable products agenda is one of growing importance and it isn't going to go away."

Meanwhile, new cars on garage forecourts will soon have a new fuel efficiency label scheme, showing buyers of new cars just how environmentally friendly their vehicle will be.

Cars will get one of six labels, ranging from red, to indicate the least "green" vehicle, up to green, to show the least-polluting car.

As well as indicating carbon dioxide emission levels, the labels give motorists information on how much they can expect to pay in fuel bills in a typical year and whether the car qualifies for a reduction in Vehicle Excise Duty (car tax).

Although the scheme is voluntary, more than 40 major car brands have signed up for it and labels will appear in cars in all showrooms by September 1.