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02/09/08 | Competitiveness, energy and environment

Sustainability for the electrical and electronic sector

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The Electra industry policy group for the electrical and electronic engineering sector was established last year to address the EU's policy objectives on climate change and on boosting growth and creating better jobs. The group presented its 20 key recommendations on 25 June. Taking the lead in improving products' energy efficiency will boost Europe's economy, saving every consumer money in the long term and allowing everybody to contribute to reducing environmental damage.

The electrical and electronic engineering sector is an engine of economic growth in the EU, accounting for a turnover of about €320 billion a year and employing 2.8 million people in 18 000 companies. EU manufacturers account for 21% of the overall worldwide production of electrical and electronic products by value, behind China, which holds a 30% share, and just ahead of the USA and Japan, which each have a 19% share.

The sector's scope covers a broad range of technologies, equipment, systems, software and services, and includes the manufacture of such products as household appliances, electromedical equipment, cabling, wiring and lighting or complete power plants.

In addition, the electrical and electronic engineering sector plays a significant role as a key driver of innovation in the EU. Its manufacturers are among the most important suppliers to other industry sectors, such as transport, health, chemicals, and information and communications technology.

Facing globalisation and climate change

The Electra report makes key recommendations on how to boost the sector's competitiveness in the face of increasing globalisation, and on how industry can help the EU meet its commitment to achieve by 2020 a 20% improvement in energy efficiency, a 20% reduction in CO2 emissions and a 20% share of renewables in energy consumption.

Electra was set up as a joint initiative between the European Commission and Europe's electrical and electronics engineering industry under the sectoral industrial policy initiatives in the framework of the 2005 Industrial Policy Communication.

The report was presented in Brussels on 25 June by Commission Vice-President Günter Verheugen, responsible for Enterprise and Industry, and Professor Edward Krubasik, co-chairman of Electra, along with Robert Mahler, President of Orgalime (the European Engineering Industries Association representing the interests of the mechanical, electrical, electronic, metal-working and metal articles Industries).

Under the slogan "We can do it", Verheugen said the climate change policy presents an opportunity for industry to innovate and create better, more efficient products for Europeans and the world.

Electra represents one of the most important among a number of industrial sector initiatives supported by the Commission as part of the Lisbon Strategy's objectives of growth and job creation and is in line with sustainable development in Europe, he told attendees at the presentation.

The work goes beyond making proposals on innovation, growth and jobs, by connecting policies with Europe's industrial transformation to a low-carbon economy.

"Electra connects our most important industrial sector with our most important political and economic policies," he said.

Electra's 20 recommendations focus on the electrical and electronic sector's present and long-term competitive outlook in a globalised world. They deal with measures to promote the industry's growth beyond the current 4% annual increase in output and to boost job creation.

Energy efficiency as a driver of innovation

Improving energy efficiency, creating and supporting future lead markets for innovation, along with the design of an effective regulatory framework are the key areas that need addressing, the Electra report states.

The recommendations also outline measures to stimulate significant additional investments in the industry's key customer segments. All of the recommendations ultimately tie into the technologies and innovations that will drive energy efficiency and CO2 reduction in the EU.

Among the recommendations is a call for an EU-wide set of harmonised energy-efficiency targets for products and systems. Incentives for consumers to invest in the most energy-efficient products are also needed, the report states.

Regulation must continue to support energy efficiency in buildings and homes. Minimum energy-efficiency requirements must be introduced progressively for products and systems, the report states.

The Electra team also calls for improved market surveillance to verify compliance with targets, and increased investment by public authorities in energy-efficient infrastructures.

Attracting investments

Fiscal and financial policies should be designed to attract investment and should be complemented by incentives for private input.

Energy-efficient products need to be bought by consumers who are aware of the role they play in a low-carbon economy. Policy-makers need to foster research and development programmes that support the goals outlined for the industry, the report states.

Energy efficiency targets need to be set for each EU Member State, based on the current conditions of each of their local environments. Member States' environmental policies need to be more consistent, while trading partners need to align their own legislation to the EU's as far as possible.

Overall, Electra stresses that the move towards energy efficiency and CO2 reduction targets is a driver of innovation in the industry, one that will keep manufacturers at the forefront of the competition and ensure job growth for Europeans.

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