Energy Efficient Appliances’ Market Developmentthrough Labelling and Eco-design

UN/ECE - ENERGY EFFICIENCY 21

Steering Committee

Milena PresuttoENEA

Estimated world population distribution (2004)

source: EuP studies, 2007

Africa14%

Asia60%

Europe11%

North America5%

Pacific/Oceania1%

South America9%

Worldwide production of large household appliances

source: EuP study, Lot 13, 2007

~291 million units in 2003-2004

Australia: 3 Africa: 9

North America: 73,0

South America: 19,5

Asia: 98,5

West & Central Europe and Turkey: 88,0

Major household appliances sales worldwide

source: GfK, Trade Bianco, December 2007

~ 138,9 billion USD in Aug. 2006-Aug. 2007

China6,3%

Japan4,6%

Other Asia10,4%

North America23,0%

Asia21,0%

CIS4,7%

Middle East and Africa

9,0%

South America

6,0%

Europe36,0%

$82

$262

$216 $211

$135$117 $112

$95 $91

$25 $23

World WestEurope

USA Turkey Japan MiddleEast*

East Europe Brasil Russia Africa China

Annual expenditure for major H.A. worldwide in 2006

* without Iraq, Afganistan, Pakistansource: AE, January 2008

Household appliances trends: Cold Appliances

─ As with other major appliances, refrigerators are undergoing something of a renaissance: more-frequent design changes, more-striking styling options and more convenience features that often involve the greater use of electronics.

─ Energy efficiency, improved performance, environmental responsibility, better food safety are goals to drive interest in new generations of products.

─ Regulations pertaining to environmentally friendly refrigerant gases and recyclable materials are becoming widespread throughout the world and will affect new product designs and manufacturing systems.

Household appliances trends: Washing Machines

─ Different regions and countries have preferences on top-loading versus front-loading washers. In the majority of markets, the top-loading washer format isthe most accepted.

─ The only exception is the European market.

─ The key advantage to the front-loading format is the achievable energy efficiency. However, with newtechnologies top-loading products could achieve similarlevels.

─ In North America, larger capacity is more important than elsewhere.

Eco-design policies worldwide for H.A.

─ Electricity and water resources are limited, and it is in the public interest to minimize resource use while maintaining or improving functions.

─ Several countries have programs that provide point-of-sale and media information about energy efficiency and, sometimes, performance. Minimum requirements have also been set worldwide

─ Electricity and water savings may offset the often higher price of more efficient appliances.

─ In some areas, consumer purchases are subsidized by rebates.

Major standards and labels worldwide

Mandatory requirements Voluntary Commitments Comparative Label Endorsement Label

source: ENEA elaboration on IEA 2006

EU labels USA labels

Examples of mantatory and voluntary labels

AU/NZ labels

The ENERGY STAR efficient products in USA

source: AE, December 2007

Value of ES qualified products in Jan.- Aug. 2007: 1,8 billion USD

46%36% 38%

54%64% 62%

0%

10%

20%

30%

40%

50%

60%

70%

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90%

100%

Refrigerators Washing machines Air conditioners

Not qualified/Not specified ES qualified

Impact of the Australian EE requirements

kWh/year

source: Retrospective Analysis of the Impacts of Energy Labelling and MEPS: Refrigerators and Freezers, October 2006

Refrigerators and freezers

Impact of the Australian Star Rating

source: Retrospective Analysis of the Impacts of Energy Labelling and MEPS: Refrigerators and Freezers, October 2006

Refrigerators by Star Rating in 1986 and 2005

Impact of the Australian Star Rating Index

source: E3 Report No 2007/09

Refrigerators and freezers by SRI in October 2007

Impact of the Star Rating on W.M. in New Zealand

source: Water Efficiency Labelling for New Zealand: Cost Benefit Analysis, June 2004

Washing machines by Star Rating Index and water consumption

Policy measure trends in the EU

─ Decision of manufacturers in 2007 to discontinue the Industry Unilateral Commitments for cold and wash appliances.

─ Announced revision of Energy Labelling scheme and enlargement to other non-household energy using products.

─ Eco-design directive requests specific and/or generic requirements to be set for EuPs, based on LCC and LCA.

─ Europe is leading the way in eliminating the use ofhazardous materials through RoHS regulations

─ WEEE directive has also established procedures for handlingequipment at the End-of-Life to minimize the environmentalimpact.

Household appliances in Europe

source: Appliance magazine, December 2007

Europe (including CH and TR, 2006)

Production:─ 21,4 million refrigerators─ 5,7 million freezers─ 23,1 million washing machines─ 11,2 million dishwashers

Sales: ─ 17,5 million refrigerators─ 4,8 million freezers─ 17,1 million washing machines─ 8,8 million dishwashers

Impact of the EU policy measures on W.M.

source: ENEA elaboration on CECED data

Market transformation in 1996-2006

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Impact of the EU policy measures on W.M.

source: ENEA elaboration on CECED data

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The cold appliances on the EU market in 2006

source: CECED

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Impact of the EU policy meaures on cold appliances

Market transformation in 1993-2006

source: ENEA elaboration on CECED data

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Impact of the EU policy meaures on cold appliances

source: ENEA elaboration on CECED data

Distribution of the models in energy efficiency classes

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2006 (EU 27) 1994 (EU 10) 1991(Italy)