Brazil is one of the only countries in the world that produces the vast majority of the appliances sold on its domestic market. By implementing more ambitious energy efficiency standards that meet, or even exceed, global benchmarks, Brazil could bring its industrial power to the global market.

In addition to growing Brazil’s global appliance market share – thereby increasing local jobs and revenue – a move towards production of more efficient appliances would yield other benefits like reduced energy demand on national power grids and lower electricity bills for consumers.

Efficiency standards are a tool for industrialization

Ambitious efficiency policy spurs an improved manufacturing ecosystem, making the production of outdated products obsolete. Currently, Brazil’s appliance efficiency policies do not match the ambition of minimum energy efficiency standards of many nations, including potential trading partners like Argentina, the European Union, Kenya, Mexico, and the United States. As a result, Brazil’s appliances cannot enter these lucrative markets, while competitors from countries like China, with its world leading domestic efficiency standards, reap economic and industrial benefits as a global appliance exporter.

Appliance efficiency signals a readiness for investment

At the 2024 Clean Energy Ministerial in Fos do Iguassu, Brazil, CLASP Senior Director of Climate, Ana Maria Carreño explained, “Appliance efficiency policy signals to the private sector that it’s a good time to invest in industry, resulting in increased availability of more efficient appliances and benefits for industry, the country, and consumers.”

Brazil is already witnessing the impacts of this positive cycle. Following the country’s refrigerator policy revisions in 2021 and 2023, leading manufacturer, Midea, invested $122 million USD in a new factory in Brazil to produce efficient refrigerators. At the same time, companies already operating in Brazil – like Electrolux, Esmaltec, and Whirlpool – injected tens of millions of dollars into their manufacturing operations to upgrade production lines and enable production of more efficient refrigerators.

CLASP collaborating to chart Brazil’s path forward

CLASP is working alongside multi-sectoral partners to outline what a feasible and fruitful national transition to more efficient appliances would entail. Progressive industry and government have revealed a willingness to collaborate in pursuit of a larger market reach and better Brazilian-made products. Some local utilities are also considering incentive-based programs in to back ambitious industrial policies driving the availability of quality, efficient appliances. This will go a long way to reduce climate emissions and improve lives.