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TheHomeApplianceIndustryinEurope2022-2023

1

TheHomeApplianceIndustryinEurope2022-2023

2

Tableofcontents

Introduction

Foreword 3

APPLiADirectMembers 4

NationalAssociations 5

APPLiASecretariat 6

ThehomeapplianceindustryinEuropein2023.7

Products 8

Projects 9

Policydevelopmentsin2023 10

Roadmaptoafair,sustainableandprosperous

Europeansociety 16

Headingtowardsthe2024Europeanelections17

Pillar1

Advancingsustainablelifestyles18

Materialuseduringtheproductionprocess 20

Averagewaterconsumptionofwashingmachines

anddishwashers 21

Averageenergyconsumptionofwashing

machinesanddishwashers 22

Averagematerialcompositionofhomeappliances

23

Quantitiesofindividualmaterialsusedinhome

appliances 24

Averagematerialcompositionoflargehome

appliances 25

Averagematerialcompositionofsmallhome

appliances 26

Plasticflowsfromhomeappliances 27

RoutesofrecycledplasticsfromWEEE 28

Energyconsumptioninthehomein2021 29

HoardingofWEEE 30

WEEEflowsinthehomeappliancesector 31

Materialsrecoveredfromwaste 32

Pillar2

AcceleratingEurope’sgrowth33

Electricalandelectronicequipmentplacedonthe

EUmarket 35

Europeanmarkethistoricalpicture 36

Largeappliancessoldgloballyin2023 37

UnitstradedinEurope 38

APPLiADirectMembersmanufacturingsitesin

Europe,in2023 39

Patentsfiledandgrantedforhomeappliances40

InvestmentinR&DbyEUMemberStates 41

InvestmentinR&DbyEUMemberStatesas

fractionofGDP 42

Foreword

HakanBurlgurlu

—APPLiAPresident

Amidstcontinuedmacroeconomicandpoliticalturbulence,theglobaleconomyisstillnavigatingchoppywaters.Consumersworldwideexperiencetheripplesofthesechallenges,facingheighteneduncertainty.TheloomingthreatofdeindustrializationandsocialunrestunderscoresthecriticalimportanceofEurope’sdualmission:maintainingindustrialleadershipwhilepursuingasociallyjust,greentransition.Climatechangeishere,andourindustryplaysapivotalroleinthedecarbonisationoftheeconomy.

ThisreportaimstoshowcasetheprogressmadebythesectortowardstheadoptionofacircularmodelandanimprovedpolicyframeworkbolsteringaunitedandharmonisedEUsinglemarket.Itcoversallmajoraspects,fromproductionmaterialsandconsumption,torepairandrecycling,markettrends,andanoutlookon2024EuropeanElections.

PaoloFalcioni

—APPLiADirectorGeneral

Overthepastcentury,wehaveburnedthroughfossilresourcesatanalarmingrate.

Ourplanetandthefuturegenerationsareaskingustoact.Inthissense,theupcoming2024EuropeanelectionswillbeadefiningmomentforEuropeandtheworld.Addressingclimatechangemeansmobilisingseveralleversatthesametime.Homeappliancesareatthecentreofoureverydaylifeathomeandstrategicenablersofsustainabilitywiththepotentialtosignificantlyreduceenergyconsumptionandcarbonemissionswhilepreservingthewell-beingofconsumers.

Establishingtherightpolicyframeworkisintegraltorealisingthispromisetoitsfullestextent.ThenextEUlegislativeterm(2024-2029)willneedtodevisefurtherpracticalandeffectivesolutionstopromotealow-carboneconomy,encourageinvestment,andensureEurope’scompetitivenessontheglobalstage.

The8theditionofthereportpresentsacomprehensiveupdateontheindustry’sachievements,anoverviewoftheupcomingregulatorylandscape,anditsimpactontheindustry.Additionally,thedocumentincludesAPPLIA’sindustryManifesto,providingactionablerecommendationsfortheEuropeanCommission,theEuropeanParliament,andthe27nationalgovernmentsthroughoutthe2024-2029legislativeterm.

Introduction3

4

Introduction

APPLiA

DirectMembers

APPLiAhas25DirectMembers,whichhave

atleastonemanufacturingfacilityinEurope

andadirectpresenceinatleastfourEuropeancountries.

AllDirectMembersarealsoamemberofthe

relevantAPPLiANationalAssociationsinmore

than50%ofthecountriesinwhichthecompanyhasdirectoperations.

APPLiADirectMemberssubscribetoAPPLiA’s

statutes,by-laws,allindustry-establishedagree-ments,andaresignatoriesoftheAPPLiACodeofConductonCorporateSocialResponsibilitytopromotefairandsustainablestandardsfor

workingconditions,socialcomplianceandenvironmentalperformance.

Argelik

LIEBHERR

PHlLIPS

dyson

oiaea

B/S/H/

Qelectrolux

DAsxsnu

gorenje

panasonic

GROUPE

SEB

erswnji

whir

CORPORATION

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Introduction

f

National

ETK

Associations

APPLiANorway

APPLiASweden

9APPLiABaltics

i

APPLiADanmark

9AMDEA/BEAMA

APPLiAPolska

WGA

APPLiANederland

AGORIA/FEE

APPLiACZ

APPLiALuxembourg

ZVEI

APPLiASlovakia

FEA

APPLiAHungary

APPLiAAustria

APPLiARomania

GIFAM

AGEFE

APPLiAItalia/Assoclima

TurkBESD

APPLiAEspa?a

APPLiAHellas

9APPLiABulgaria

6

Introduction

APPLiA

Secretariat

APPLiA’sSecretariatcounts14staff

membersfromdifferentnationalities,workingoncommunication,

corporate,energy,environmentanddigitalandcompetitivenesspolicyareas.

PaoloFalcioni

DirectorGeneral

NaomiMarc

PolicyManager,Environment

CandiceRichaud

SeniorPolicyManager,Corporate

CandiceFranck

OfficeManager

FranziskaDecker

PolicyManager,Environment

MartinOresic

EUInstitutionsLiaisonOfficer

FedericaLavoro

SeniorCommunicationManager

MatteoRambaldi

SeniorPolicyDirector,Energy

Micha?Zakrzewski

SeniorPolicyDirector,

Digital&Competitiveness

MariaVittoriaSbrescia

CommunicationOfficer

GiuliaZilla

SeniorPolicyManager,Energy&Environment

AlvaroVilas

PolicyManager,Digital&Competitiveness

KorrinaHegarty

SeniorPolicyDirector,Environment

AntonArabadjiev

PolicyOfficer,Energy

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Introduction

ThehomeapplianceindustryinEuropein2023

3.300

Number

ofenterprises

54,0

billion€

Totalpurchasesofgoodsandservices

220.000

Personsemployed

77,0

billion€

Direct&indirectvalueaddedtoGDP

968.000

Indirect&directemployees

8

Introduction

Products

APPLiArepresentsthehomeappliancesectorin

Homecomfortappliances

Europe.Ourmembersmanufactureawidevarietyofhomeapplianceswhichcanbecategorisedintothreemaingroups:smallhomeappliances,largehomeappliances,andhomecomfortappliances.

Largehomeappliances

Appliances

Smallhomeappliances

Airconditioners

Air-to-airheatpumpsLocalspaceheaters

TowelheatersWaterheatersDishwashersFreezers

Hobs

Ovens

Rangehoods

Refrigerators

Tumbledryers

Washerdryers

WashingmachinesBlenders

CofeemachinesIrons

JuicemakersKettles

KitchenrobotsMicrowaves

Mixers

RaclettemakersRicecookers

Toasters

Toothbrushes

VacuumcleanersWa代emakers

Projects

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Introduction

?/4R-platform

TheCircularPlasticsAllianceworksoninnovative

andsustainablesolutionsthatreducepackagingwasteandincreaserecyclingtomakeadifferencefortheenvironment.Andthattogetherwithcarefullyselectedcompanieswho,likeAPPLiA,wanttoreducetheircarbonfootprint.Willyoujoinus?

ECOSWEEEisfinancedbytheLIFEProgramme2021-2027oftheEuropeanUnionandisaimedatimprovingthesmallWEEEcollectionrate.APPLiAisamemberoftheAdvisoryBoardoftheproject.

TheI4Rplatformprovidestreatmentandrecyclingfacilitiesandpreparationforre-useoperatorswithaccesstoWEEErecyclinginformationinlinewiththerequirementsofDirective2012/19/EU.Tobetterrespondtorecyclers’needs,APPLiAandDIGITALEUROPEhavecreatedthissinglecentralonlineplatform–theInformationforRecyclersPlatform(I4R)–whererecyclerscanaccessrecyclinginformationatproductcategorylevel.TheWEEEForum,aninternationalassociationofproducerresponsibilityorganisationsandacentreofcompetence,hostsandmaintainstheplatform.

INCREACEisaEU-fundedprojectaimedatincreasingtheuptakeofrecycledplasticsinproductsthroughinnovativeandinterdisciplinarysolutions.ByusingrecycledplasticsfromElectricalandElectronicWaste,theprojectwilltackleareaswheretheuseofrecycledplasticsismarginaltoday.APPLiAisamemberoftheAdvisoryBoardoftheproject.

PRIMUSisaEU-fundedprojectaimedatreformingsecondaryplasticstobecometheprimaryrawmaterialchoiceforaddedvalueproducts.APPLiAisamemberoftheAdvisoryBoardoftheproject.

FutuRaMisaEU-fundedprojectlookingtoenablefact-baseddecisionmakingfortherecoveryanduseofsecondaryrawmaterialswithinandoutsidetheEU.APPLiAisamemberoftheAdvisoryBoardoftheproject.

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Introduction

Policydevelopmentsin2023

2023wasacrucialyearintherun-uptothe2024Europeanelections.Theimpactofclimatechangeisnowmorevisiblethanever.Citizensandbusinessesarestrugglingtocopewiththerisingcostoflivingandtoreducecarbonemissions.Inthefirsthalfoftheyear,electricitypricesintheEUcontinuedtoshowanincreasecomparedtothesameperiodin2022,makingithardforEuropeancompaniestocompeteininternationalmarketsandforhouseholdstopaytheirbills.Alongside,theeconomyhasbeenaffectedbyunprecedentedgeopoliticalandsanitarycrises,puttingatstakeEurope’scapacitytoinvestandinnovate.Allofwhichcoupleswithalarminglabourshortagesinsectorsvitaltothegreenanddigitaltransition,withariskofjeopardisingcommonobjectivesoftheEUindustrialstrategy.

TheEuropeanGreenDealisthekeylegacyoftheconcludingVonderLeyenCommission(2019-2024)settingambitiousclimatetargetsandregulationsfor2030,inconcertwiththeEuropean

Parliamentandthe27nationalgovernments.Whilealothasbeenachieved,muchremainstobedoneanditwillbeuptothenextlegislativeterm(2024-2029)tofindconcretewaystoacceleratedecarbonisationinEurope,whileminimisingthecostsonsocietyandsettingacompetitivemodelforsustainableinvestments.

Sustainability

EcodesignforSustainableProductsRegulation(ESPR)

PublishedinMarch2022,theEcodesignforSustainableProductsRegulation(ESPR)wouldreachthefinalstageswiththeplenaryvoteforeseenforApril2024.ThenewlegislationwouldapplyonallproductsplacedontheEUmarket,includinghomeappliances,withaneyetofosterperformanceandsustainabilitythroughouttheirlifecycle.Concretely,thelawwouldextendtheexistingEcodesignframeworksettingcriterianotonlyforenergyefficiency,butalsoforcircularitywithanoverallreductionoftheenvironmentalandclimatefootprintofproducts.Initsadvocacy,APPLiAhighlightedtheimportanceoftakingintoaccountinterdependenciesandtrade-offsbetweendifferentproducts’aspects,definingproductsustainabilitythroughanaggregatedevaluationinsteadofsettingindividualrequirements.Fromenergyefficiencyanduseofrecycledmaterialstodurabilityandrepairability,theroadstosustainabilityaremanyandtheyshouldallbeequallyvalued.AllregulatedgoodswouldalsohaveaDigitalProductPassport,asetofproduct-specificinformationaccessible

electronicallybyallconsumers.APPLiAalongsideotherpivotalindustriestotheEuropeaneconomyfoundcommonagreementontheimportanceofbuildingonalreadyexistingdatabasessuchasSCIPandEPRELtoavoidunnecessaryandburdensomereplications.Thenewproductframeworkisexpectedtoenterintoforcefrom2025.

FitforPurposeEvaluationoftheWEEEDirective

InAutumn2022,theEuropeanCommissionlauncheditscallforevidenceontheevaluationofEUrulesonwastefromelectricalandelectronicequipment(WEEE)toassessifthelegislationisstillfitforpurposeaccordingtothekeyobjectivesoftheEuropeanGreenDealandCircularEconomyActionPlan.AtargetedamendmenttotheWEEEDirectiveapprovedinMarch2024,introducedareviewclausebywhichtheCommissionmustassesstheneedforarevisionoftheDirectivebytheendof2026.Inviewofsuchrevisionand

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Introduction

leveragingits20+yearsexperiencewithWEEErequirements,thehomeappliancesectorvaluesthecurrentevaluationoftheWEEElegislationandlooksforwardtocollaboratingwiththeCommissiontoinvestigatethechallengesandthepotentialfuturesolutionstofurtherimprovethelevelofWEEEcollectedandproperlytreatedandrecycledacrosstheEU.HomeappliancesmakeupalargeproportionoftheWEEEvolume.AmountsofWEEEcollectedandproperlyrecycledhavesteadilyincreasedthroughtheinvestmentsmadebyindustry,inlinewiththeWEEEDirective.BetterrecyclingtechniqueshavebeendevelopedthroughcooperationbetweenproducersandrecyclersandtheintroductionofEuropeanstandardswithrespecttocollection,handling,storage,recycling,preparationforreuseandtreatmentofWEEE.However,APPLiAhasbeenadvocatingforfutureWEEElegislationtoclosetheexistinggaps.Inthisregard,wesupportthatallWEEEactorsinvolvedinthecollection,transportation,sortingandtreatmentshouldhavearesponsibilityunderaneffectivelyenforcedlegislationtoensurethatallWEEEisaccountedforandtreatedproperly.FutureWEEElegislationshoulddefineobligationsforallactorsbasedonagoodunderstandingoftheirrespectiverolesinWEEEmanagement.

F-gasRegulationReview

InSpring2022,theEuropeanCommissionputforwardaproposaltoupdatetheF-gasRegulationwithaneyeatfurtherreducinggreenhousegasemissions,aspartofthesetclimateambitions.ThenewRegulationwasadoptedandpublishedatthebeginningof2024,whichincludesbansofusingF-gasrefrigerantsforcertaintypesofapplications.Applicationsincludeheatpumps,whichwill

havetorelyonnaturalrefrigerantsasfrom2027.However,heatpumpsremainatthecentreoftheEuropeanCommission’sREPowerEUplantoditchEurope’sdependenceonfossilfuels,withatargettodeploy60millionunitsby2030.Despitethenewbans,thehomeapplianceindustryremainscommittedtofindandinvestinnewtechnologiesandinnovationsasanintegralpartofitsbroaderemissionreductionefforts.

GreenDealIndustrialPlan

InMarch2023,theEuropeanCommissionpresenteditsGreenDealIndustrialPlantomaketheindustryfitfor2050.ThePlanwouldprovideaframeworktosupportthetransitionofEuropeanindustrytowardclimateneutralityandtodevelopthenet-zerotechnologiesnecessarytoachievetheEU’sclimatetargets.Underitsscopeandwithaneyetoenhancingindustrycompetitiveness,theCommissiontabledtheNet-ZeroIndustryActandtheCriticalRawMaterialsAct.

TheNet-ZeroIndustryActwouldaimtoprovideasimplifiedregulatoryenvironmentsuitedforthequickdeploymentofnet-zerotechnologies.TheCounciladoptedaGeneralApproachonthefileinearlyDecember2023withtriloguenegotiationsbetweentheinstitutionsexpectedforearly2024.WhiletheproposalisessentialindefiningEurope’spathto2030,mosthomeappliances-withthesoleexceptionofheatpumps-wereleftoutoftheCommission’slistofsolutionswhosedeploymentwouldbeinstrumentaltorampupEuropeanproductioncapacitiesforrenewableenergytechnologies.By2030,morethan1,5billionhomeapplianceswillbeplacedontheEuropeanmarket,offeringimmediatesavings.Decarbonisationtoolswouldalreadybeavailabletodayandshouldallbe

equallyacceleratedandenabled.AdefinedscopethattakestechnologyneutralityasastartingpointandidentifiesproductscriticalformeetingtheEU’sclimateneutralitytargetmustbeassessed,thatbuildsontheEU’sexistingstrengthsandsettinginplaceastableandlong-termregulatoryframework.

TheCriticalRawMaterialsActismeanttodiversifythebloc’ssupplyofrawmaterialsneededforgreentransitiontechnologies,bysettinganumberoftargetsfordomesticextraction,processingandrecyclingofso-calledstrategicrawmaterials.Recyclingofhouseholdappliancesisavaluablemeanstoensureasteadysupplyofrawmaterials,avoidingfurtherextractionandkeepingresourcesintheloop.Accordingtotheadoptedtext,productsincludingwashingmachines,tumbledryers,microwaves,vacuumcleanersordishwasherswouldhavetoaffixalabelstatingwhethertheycontainpermanentmagnetsornotasaninformationforrecyclers,accompaniedbyadatacarrier.

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Introduction

GreenClaimsDirective

InMarch2023,theEuropeanCommissionputforwardaproposalforaDirectiveonGreenClaims.Theproposeddirectivewouldaimtofightso-calledgreenwashingpracticesbypreventingcompaniesfrommakingunclearorunsubstantiatedenvironmentalclaimsonproductsatthepointofsale.Particularly,theCommissionproposedtoprohibitallvoluntaryenvironmentalclaimsunlesstheyhavebeencertifiedbyathird-partyverifier.Asanactiveplayerinthediscussion,APPLiAsupportedtheoverallgoalofempoweringconsumerswithclearinformationforinformedpurchasingdecisions.Greenclaimsare,forbrands,adriverofinnovationandprogressintheareaofsustainability.However,concernshavebeenraisedthatthisproposalcouldbeoverlyrestrictiveandultimatelydecreasetransparencyandprogress.Specifically,theamendmentbanningallgreenclaimsonproductscontaininghazardoussubstanceswashighlycritical.Existingchemicalregulationsalreadysetstrictlimitsandexemptionsforspecificapplications.Thisbanwouldn’tacceleratethephase-outofharmfulsubstances,butratherhindersignificantinvestmentsin

sustainableproductdevelopmentandlimitvaluableinformationreachingconsumers.TheprovisionaldealneedsfinalapprovalfromtheParliamentandtheCouncil.TheplenarysessionisforeseenforMarch2024.

PackagingandPackagingWasteRegulation(PPWR)

2023wasaheatedyearalsofortheEU’sproposedPackagingandPackagingWasteRegulation(PPWR),alandmarklegislationtocombattheover-packagingofproductsandgrowingamountsofwasteinEurope.Packagingisnecessarytoprotecthomeappliancesinthefactorywarehousesandduringshipping,ensuringthattheproductisingoodworkingorderwhenitarrivesatconsumershomes,andtheconsumer’ssafetyispreservedwhileusingtheequipment.UndertheCommission’sproposal,90%ofpackagingusedforlargehouseholdappliancesmustbemadeavailableinreusabletransportpackagingby2030whentheyareplacedontheEUmarketforthefirsttime.However,APPLiAhasraisedconcernsaboutthetechnicalfeasibilityandtheenvironmentalimpactofthisapproachwhichriskscompromisingproduct’sintegrity.Anytargetsshouldbebasedoncomprehensiveanalysesthattakeintoaccountthefullpackaginglifecycle.Theproposalisundergoingthefinalstagesofthetriloguenegotiationswhichshouldconcludeinthefirstquarterof2024.

Corporate

RighttoRepair

On1February2024,institutionsreachedanagreementontheEuropeanCommission’sproposaltopromotetherepairofgoods.

Whiletherepairofhomeapplianceshasbeenarealityforyearsalready,thefuturelawwillrequiremanufacturerstoprovideconsumerswithrepairoptionsforproductsthataretechnicallyrepairableunderEcodesignrules.APPLiAhadstronglyadvocatedtokeepthelinktoEcodesignalsoforsparepartsaccessandavailability,providingmanufacturers,repairersandconsumersalikelegalcertaintyandproductsafety.

Iftherepairoccurswithinthelegalguaranteeofconformity,consumerswillinthefuturebeentitleda12-monthextensionofthisguaranteeafterrepair.APPLiAhadsupportedsuchanextensionofthelegalguaranteeafterrepairasitcouldactasaboostforconsumerstochooserepairoverreplacement.Yet,policymakersmissedanotheropportunitytoharmonisetherequirementacrosstheEU.MemberStateswillindeedbeallowedtogobeyondthe12monthsperiod,withahighriskoffurtherfragmentingtheEUSingleMarket.

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Introduction

Empoweringconsumersforthegreentransition

WeexpectthelawaimingtobetterinformconsumersbeforepurchaseandprotectthemagainstgreenwashingtopassinSpring2024.

TheAssociationhasbeensupportivethatinformationontheproductisbettercommunicatedatthepointofsaleasameanstoempowerconsumerswhilekeepingcompanyfreedomindeterminingtermsofcommercialguaranteesofdurability.ItalsocalledforconsistencyinsettingrequirementsinthisDirectiveandboththeGreenClaimsDirectiveandtheEcodesignforSustainableProductsRegulationthatwerenegotiatedinthesameperiod.

DirectiveonCorporateSustainabilityDueDiligence

InDecember2023,theCouncilandtheEuropeanParliamentreachedaprovisionaldealontheCommission’sproposedDirectiveonCorporateSustainabilityDueDiligence.TheDirectivewouldsetobligationsforlargecompaniesregardingactualandpotentialadverseimpactsonhumanrightsandtheenvironment,withrespecttotheirownoperations,thoseoftheirsubsidiaries,andthosecarriedoutbytheirbusinesspartners.Whilesharingthepurposeofthelegislation,APPLiAhasbeenengagingwithpolicymakerstoconsidera“supplychain”insteadofa“valuechain”scope.APPLiAmembersagreedthatcompaniesmustberesponsiblewhenthereisanestablished,directrelationshipandmoreaccountabletotheirsupplychainidentifyinganypotentialrisk.Assuch,thedutyofefforthastoberecognisedandverified.

TheformaladoptionhasbeenpostponedafewtimesduetoadverseviewsintheCouncil,raisinguncertaintyfortheindustry.

DeforestationRegulation

TheRegulationonDeforestation-freeproductsenteredintoforceinJune2023.Underthenewlegislation,anyoperatorortraderwhoplacescommoditiesincludingwood,cocoa,rubber,andsomeoftheirderivedproducts,suchaschocolate,tyres,orfurnitureontheEUmarketorexportsfromit,mustbeabletoprovethattheproductsdonotoriginatefromrecentlydeforestedlandorhavecontributedtoforestdegradation.SomeofthesecommoditiescoveredbytheRegulation,namelyrubberandpaper,canbefoundincertainhomeappliances.Giventhecommitmentoftheindustrytoanimprovedcircularityandreducedcarbonfootprintatthedifferentstagesoftheproductlifecycle,APPLiAkick-startedaninternaldiscussionwithitsmembercompaniesandappliedtobepartoftheMulti-StakeholdersPlatformonprotectingandrestoringtheworld’sforests.Acleardistinctionbetweennaturalrubberandsyntheticonehas

beenadvocatedbyAPPLiA,tomakesureonlytheformerwaspartofthelegislation.

Energy

DirectiveonEnergyEfficiency

TomeettheEU’s2030climatetarget,energyefficiencyneedstobeprioritised.Tostepupitsefforts,theCommissionhadputforwardinJuly2021aproposalforarecastDirectiveonEnergyEfficiencyrequiringEUcountriestocollectivelyensureanadditionalreductionofenergyconsumptionof9%by2030comparedtothe2020referencescenarioprojections.Co-legislatorseventuallyagreedtosetthe2030EUenergyefficiencytargetatan11.7%reductionforbothfinalandprimaryenergyconsumption.Forthefirsttime,thetargetforfinalenergywouldbebindingatEuropeanlevel.APPLiAadvisedrelevantpolicymakersonputtingtheefficiencyfirstprincipleatequalfootingwithemissionsreductionandrenewableenergyandiscontinuouslyworkingtopushfortherolloutofthemostenergyefficientappliancesintohouseholdsviafinancialincentives.In2023,therecastEnergyEfficiencyDirectivewasofficiallypublishedintheEUOfficialJournal.

EnergyPerformanceofBuildingsDirective

Toboosttheenergyperformanceofbuildings,theEUhasestablishedalegislativeframeworkthatincludestheEnergyPerformanceofBuildingsDirectiverevisedin2023.Buildingsrepresent40%oftheEU’senergyconsumption,withspaceheatinganddomestichotwateraccountingforabout80%ofthetotalenergyuseinEuropeanhouseholds.Twothirdsofthisenergyiscurrentlyproduced

14

Introduction

witholdandinefficientsystemsbasedonfossilfuels,whichiswhyAPPLiAhasbeenadvocatingtoaccelerateandsupportthemodernisationoftheinstalledheatingstock.Replacingobsoletesystemswithhighlyefficientandrenewable-basedappliancesispivotaltoachieveEurope’sdecarbonisationgoals.Furthermore,securingsufficientfundingforthesereplacementsandadequateincentivestoapplianceownerswouldalsosupportthecompetitivenessofEUindustriesintherenewablesandenergyefficiencyfields.TheformaladoptionprocessoftheDirectiveisforeseenfor2024.

Digitalisation&Trade

ArtificialIntelligenceAct

Inthecloseof2023,theCouncilpresidencyandtheEuropeanParliament’snegotiatorshavereachedaprovisionalagreementontheproposalonharmonisedrulesonartificialintelligence(AI).ThedraftregulationaimstoensurethatAIsystemsplacedontheEuropeanmarketandusedintheEUaresafeandrespectfundamentalrightsandEUvalues.Thislandmarkproposalalsoaims

tostimulateinvestmentandinnovationonAIinEurope.

TheAIActincludesalistofbannedapplicationsthataredeemedtoposeanunacceptablerisk.Concretely,thedraftlawconsidersashigh-riskproductsinwhichAIposespotentialriskstoindividuals,societyorenvironment.Initsadvocacyonthesubject,APPLiAhasbeenremarkinghowstrikingafairbalancebetweensafetyandinnovationiscrucialtostrengtheningEurope’sabilityto