Sustainability Report 2007
Climate-smart products are available, and we have to get them into people’s homes. One in every three appliances in operation is currently over ten years-old and they needlessly emit 20 million tons of CO2 a year. That is why Electrolux urges policymakers to introduce tax credits for the purchase of energy-efficient appliances.
Our greatest potential to reduce CO2 emissions is to help societies leapfrog to the most efficient technologies. With the right market framework, we can maximize this potential. Tax credits give consumers the incentive to go energy-smart.
Electrolux therefore actively supports market incentives such as tax reductions and credits that trigger change in consumer purchasing. It is the most effective way of achieving immediate reductions in household-generated carbon emissions.
Our position is supported by the World Energy Council, whose 2008 study finds that policies with economic incentives are “very effective.” They have also been proven effective in Italy, where sales of energy-efficient refrigerators doubled in a year in 2007. The program has been extended to 2010. In Spain, meanwhile, over 600,000 appliances were sold through their ‘Plan Renove’ program, achieving 185,000 MWh energy savings per year. Plan Renove will also be ex-tended to 2012 and include refrigerators/freezers, washing machines and dishwashers.
Appliances contribute to reducing CO2
Upgrading to the highest efficiency models represents a significant potential source of consumer-generated CO2 savings. In Europe, one in every three appliance is over a decade old. This corresponds to 188 million of the 630 million appliances currently in operation. If every household adopted today’s efficient models, Europe would cut the annual carbon emitted from appliance use by approximately 20 million tons. This corresponds to emissions from 6 million cars a year.
Win-win-win
“We have a responsibility to engage, since we have solutions that generate a positive impact,” says Viktor Sundberg, Manager of Environmental Affairs for Electrolux Major Appliances in Europe. “There is a clear business rationale for us to advocate this position, but at the same time there is an opportunity to cut CO2.”
Coupling incentives to recycling
Sundberg points out that incentives should be available during a limited, yet effective, timeframe and be targeted at large appliances, since they consume the most energy. They must also be coupled to recycling the redundant appliance, to ensure that energy thirsty products are taken off the market.
Raising awareness
In 2007, Electrolux launched an Eco-savings website, hosted a media day and published ‘Incentives for change,’ a report that maps how incentives impact consumer purchasing.
“We’ve brought the potential to the public eye,” says Sundberg. “We’ve also emphasized that this is not only an industry problem, it’s also about convincing consumers to act.”
Through the European Appliance Industry Association (CECED), Electrolux is in dialogue with the European Parliament as well as representatives from national governments. Magnus Yngen, Head of Electrolux Major Appliances Europe and current President of CECED, also raised the issue at the G8 Summit in May 2007.
