Efficiency of electronic devices is an area of active interest by policy makers in the European Union and elsewhere. Efforts to create a uniform horizontal efficiency standard (one that applies to many different types of equipment) have worked in the past, but as standards become more stringent, the need for product-by-product differentiation for such standards becomes more pressing. Devising sensible regulations requires making reasonable average power consumption estimates for groups of components that reflect how they would actually be used in real products, not just treating components in isolation. Deep interactions between regulators and manufacturers are often needed to create efficiency targets that improve efficiency without sacrificing innovation. There are models of such interactions that have proven to work well (like the processes for developing Energy Star voluntary programs, many minimum efficiency standards, and industry voluntary agreements) that represent the best path forward.