Electrolux urges EU to offer cash for buyers of green white goods

Electrolux, the Swedish home appliance maker, is calling on the EU to offer consumers cash and fiscal incentives to dispose of their "gas-guzzling" fridge-freezers, washing machines and dishwashers and switch to more energy-efficient models as part of its ambitious plans to combat climate change.

The call has come from Hans Stråberg, Electrolux chief executive, who says replacing 188m appliances more than 10 years old would cut the EU's CO2 emissions by 18m tonnes and help to meet its target of reducing overall emissions by at least 20% by 2020. There are 630m household appliances in use in the EU.

It coincides with moves by the French government to offer cash bonuses of up to €1,300 (£940) to buy new low-emission cars and penalties of up to €2,600 for buying the most polluting models. The "malus-bonus" scheme would affect 60% of French new car buyers, some of whom would gain a superbonus of €300 for trading in a 15-year-old model.

Stråberg told journalists that today's appliances consume on average half as much energy as those sold a decade ago but consumers were reluctant to replace their old models. Though eight out of 10 compare energy efficiency levels before purchase only one in four makes it a key criterion.

"It's time for European decision-makers to realise the potential here," he said. "I'm not talking about subsidies for the industry but a win-win-win situation for society, the economy and the environment. The technology is here but the consumers are not picking it up fast enough."

Stråberg claims that European consumers could save €3.4bn by switching to new energy-efficient models, with pay-back time - offsetting the higher prices for new appliances with savings on bills - reduced to as little as two or three years. The average German family could save €85 in power and water costs in a year if it bought the newest models.

Belgium, Italy and Spain are among those countries which have introduced incentives to buy energy-efficient appliances and Stråberg wants the EU to adopt a pan-European incentive scheme that, he claims, would deliver 6% of its Kyoto targets. The most modern dishwasher, he says, consumes 13 litres of water compared with 90 litres 20 years ago.

He conceded that the proposed scheme would benefit the bottom line of an industry hit by recession for the past six quarters and by rising imports from low-cost competitors. "But if we could get people to switch faster to more energy-efficient appliances that would help the EU meet its emissions targets."

Last week Europe's committee of electrical manufacturers, CECED, urged the EU to scrap the voluntary labelling scheme (A to G) that classifies appliances according to their energy efficiency and adopt instead a binding numerical scheme in a move designed to prevent alleged cheating by overseas manufacturers. It said that, in exchange, it would phase out class A fridges and freezers by 2013.

The French car scheme took effect last week and offers a €1,000 bonus for cars emitting less than 100 grammes of CO2 a kilometre, €700 for those emitting less than 120g and €200 for those emitting less than 130g. A new model emitting more than 250g, such as a Porsche Cayenne Turbo or a BMW X5, carries a penalty of €2,600.