European appliance manufacturers are warning that rising EU regulation and carbon costs could put local production at a growing competitive disadvantage.

The industry is particularly concerned about the EU’s Carbon Border Adjustment Mechanism (CBAM) and the removal of free ETS allowances.

Manufacturers face higher costs for materials such as steel and aluminium, while imported finished appliances may not face equivalent charges. For washing machines, CBAM-covered materials can account for around 70% of the product’s weight.

Industry representatives are calling for more appliance categories, including dishwashers, ovens, freezers and water heaters, to be covered by CBAM.

The sector also faces expanding requirements covering ecodesign, repairability, digital product passports and recycling.

Industry leaders warn that the combined burden could hit investment, jobs and European manufacturing competitiveness, potentially encouraging production to move outside the EU.