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The role of EU regulation in driving innovation and attract investments

Event reports 29 Jan 2025

The home appliance industry stands at a crossroads, with innovation and efficiency at the core of discussions shaping EU policy. Ensuring a regulatory framework that fosters innovation while maintaining market fairness is key to achieving Europe’s decarbonisation and digital ambitions. “We are looking at a sector that invests heavily in making products more sustainable and innovative, but we need policies that encourage these efforts,” said APPLiA Director General Paolo Falcioni, speaking at last night’s event “Decarbonisation through a technology neutral approach” hosted by the European Forum for Manufacturing at the European Parliament.

Recent studies show that home appliances today consume significantly less energy, with continued improvements in durability and recyclability. However, fragmented and sometimes conflicting policy measures risk slowing progress. "We need coherence across legislative initiatives to allow manufacturers to keep innovating," Falcioni stressed. Industry representatives in the room voiced concerns over regulatory overlaps that create unnecessary burdens without clear benefits for consumers or the environment.

European Commission’s Christian HOLZLEITNER, Head of Unit of DG CLIMA, stressed the goal of making Europe climate-neutral by 2050. Industry representatives convened on the need for a change of mindset in policymaking and called for a streamlined regulatory framework that not only supports climate goals but also attracts future investments. 

Technology neutrality remains a key principle, ensuring policies set targets rather than dictating specific methods or solutions. For instance, when it comes to energy efficiency in washing machines, manufacturers take different approaches, whether through heating design, drum design, or cycle optimisation. Falcioni also brought up the example of cooking appliances and stated that gas, electric induction, and downdraft hubs are all energy-efficient ways to cook that offer different, yet equally efficient, solutions to consumers. A regulatory approach that picks winners and losers risks stifling innovation and limiting consumer choice.

The broader industrial ecosystem is at stake, with technological innovation directly linked to Europe's competitiveness. A Clean Industrial Deal must create opportunities for all players rather than prescribing rigid pathways. The current regulatory landscape is complex and has conflicting requirements that should be addressed and simplified.

The discussion furthermore underscored a shared commitment to ensuring Europe's economic resilience and technological leadership in the face of global competition. Across sectors, there was a strong call for a technology-neutral approach in policymaking, enabling industries to innovate and compete on equal terms. Choosing which technologies should prevail undermines competition and slows progress in Europe. In addition, speakers highlighted the need for regulatory frameworks that support investment, maintain European industrial competitiveness, and foster innovation. Streamlining regulations will allow Europe to become a leader in sustainable technology and legislation.

As discussions continue, industry and policymakers must work together to ensure that regulation supports Europe’s climate-neutral objectives, safeguards consumer trust, and strengthens Europe’s industrial base.

 

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