Brazil’s Rapid AC Overhaul Offers a Blueprint for Sustainable Cooling
With a recent effort to improve its air conditioner efficiency policies, Brazil proved that smart planning and thoughtful partnerships can help countries fast-track climate change mitigation and improve social equity.
As climate change continues to drive temperatures higher, threatening health and livelihoods, air conditioners remain out of reach for millions of people around the world. In Latin America and the Caribbean, only 15% of households in the warmest areas own ACs.
Increasing access to air conditioners is part of the solution. But to avoid further worsening climate change, it’s critical for these ACs to be energy efficient and use climate-friendly refrigerants. This is because inefficient units drive up energy demand and increase planet-warming emissions, while some refrigerants are potent greenhouse gases thousands of times more harmful than CO2.
Energy efficiency can also help address one of the main barriers that’s preventing many people from owning an air conditioner: affordability. The high upfront cost of these appliances puts them out of reach for many households. Additionally, inefficient models can be expensive to run, driving up electricity bills. Improving energy efficiency can help lower operating costs and make cooling more affordable overall.
As demand for ACs is rising in Latin America and the Caribbean, putting the right policies in place will protect both people and planet. Brazil’s example shows how it’s done.
The policies that transformed Brazil’s market
Today, Brazil has the most efficient room air conditioner market in Latin America and the Caribbean. More than half of units sold there meet or exceed leading global efficiency standards.
Just a few years ago, the picture looked very different. Brazil’s appliance efficiency labeling program, first introduced in 1984, is one of the oldest in the world. But until recently, it offered little real guidance to consumers looking for ACs, since it had only two categories and labeled around 70% of all air conditioners as “efficient.”
That changed in 2020, when INMETRO, the federal agency responsible for appliance labeling, introduced a more rigorous classification system with a wider range of performance tiers.
Today, more than 60% of consumers report relying on appliance labels to guide their purchasing decisions. What’s more, 85% of the ACs sold in Brazil use inverter technology, which is more efficient than non-inverter alternatives.
Energy label at an appliance store in Rio de Janeiro, Brazil.
CLASP
“This shows that consumers have already understood that the most efficient equipment is also the best choice for everyday use,” says Hercules Souza, head of INMETRO’s regulatory division.
But labels alone didn’t drive this transformation. Brazil also aligned energy labeling, appliance efficiency standards, and endorsement programs (in which efficient units are recognized with a government seal) into a coherent policy package that accelerated the shift to more efficient technologies.
As Alexandra Albuquerque Marciel, an energy efficiency projects coordinator at Brazil’s Ministry of Mines and Energy, puts it, the key was “straight dialogue between the different agencies in charge of these policies.”
The government also enlisted the support of international appliance efficiency policy experts at CLASP. Our staff worked alongside Brazilian policymakers throughout this process, providing data, global insights, and technical analysis to inform policy design and align new regulations with global best practice while ensuring they reflected local market realities.
Industry was part of the solution
Policymakers often fear that strengthening appliance efficiency standards will have negative impacts on local industry. Brazil, home to the largest AC manufacturing sector in Latin America and the Caribbean, shows the opposite: Well-designed policies can actually strengthen domestic manufacturing.
From the outset, policymakers worked closely with manufacturers to set clear timelines, incorporate feedback, and allow time for transition. “Dialogue is super important,” Hercules Souza emphasizes. “Don’t do anything hastily . . . the [manufacturing] sector must be part of the discussion.” Without industry buy-in, he notes, policies risk being unrealistic or hard to implement, undermining progress.
Moreover, producing more efficient appliances allows manufacturers to compete globally. “Industry also has an international market to fulfill,” Alexandra Albuquerque Marciel says.
A model for other countries
The results of these efforts speak for themselves. The standards currently in place are expected to save 8 million megawatt-hours of electricity annually while avoiding 4 million tons of greenhouse gas emissions.
A planned revision in 2028 is projected to expand these impacts dramatically, achieving electricity savings of 284 million megawatt-hours—nearly four times the amount of electricity Itaipu, one of the world’s most productive hydroelectric plants, supplies to Brazil each year. This will reduce grid stress, lower costs for consumers, and cut greenhouse gas emissions.
While policymakers in Brazil are already looking ahead to further tighten their efficiency policies, the speed of their cooling market transformation offers a strong example for other countries to follow. By bringing together policymakers, industry, and international experts, Brazil’s government ensured that these policies are smart, inclusive, and implementable.
Both regionally and globally, many countries are at a similar inflection point as Brazil six years ago. Since policy decisions often shape cooling markets for years, governments have the potential to realize major benefits for public health and climate over time.
The takeaway from Brazil is simple: Efficient cooling doesn’t require a trade-off between keeping people cool and supporting domestic manufacturing. Instead, strong AC policies represent an opportunity to protect people from rising temperatures, reduce costs, strengthen industry, and cut emissions all at once.
Sources
CLASP. “Lessons from Cooling Champions: The Impact of Brazil’s Leading Efficiency Policies.” YouTube video, 1:16. February 26, 2026. https://www.youtube.com/watch?v=MYOZ-aZD_5k.
CLASP. “Lessons from Cooling Champions: How collaboration made Brazil’s leading efficiency policies possible.” YouTube video, 1:00. February 26, 2026. https://www.youtube.com/watch?v=4fHWFwPBvz8&list=PLvc9P9LzyLdNO6aabS7a6uURfkQo24o61&index=8.
CLASP. “Lessons from Cooling Champions: How Brazil’s Labeling Program Transformed Their Market.” YouTube video. March 24, 2026. https://www.youtube.com/watch?v=mPYWx6V22Uo&list=PLvc9P9LzyLdNO6aabS7a6uURfkQo24o61&index=2.
CLASP and IGSD (2026). Pathways to prevent environmental dumping of climate-harming room air conditioners in Latin America and the Caribbean. https://doi.org/10.70098/JCRA7148. Produced with support from the Climate and Clean Air Coalition.
Powering Thriving Communities: Efficient Appliances for Climate Change Adaptation and Resilience
CLASP
Technology Options for Doubling the Energy Efficiency of Room Air Conditioners
This report explores pathways to double the global rate of energy efficiency improvement, focusing on room air conditioner (AC) technologies that deliver substantial efficiency gains. It analyzes the technical potential of ultra-efficient room ACs in China, showing efficiency could improve by up to 40% within a decade with only a 10% increase in cost. The report also examines market implications and estimates the associated carbon reduction benefits from reduced energy consumption.
Key Findings
- Room ACs are becoming more efficient thanks to better compressors, inverter technology, larger heat exchangers, and electronic controls. They are also becoming more climate-friendly due to the uptake of low-GWP refrigerants.
- Efficiency improvements now focus on optimizing the whole system instead of individual parts, using smarter design and controls to reduce energy use.
- Some technologies are already widely used and can improve efficiency by 15–25%, while newer smart control technologies could deliver up to 40% efficiency gains in the future.
- Different refrigerants require different design approaches to maximize efficiency and reduce costs.
- Room AC efficiency is expected to continue improving over the next decade, with the potential to reduce electricity use and cut up to 3.7 gigatons of carbon dioxide emissions.
Recommendations
- Governments should support high-efficiency air conditioners through incentives, rebates, and policies that encourage climate-friendly refrigerants and smart technologies. This can lower consumers’ energy bills, reduce pressure on power grids, and significantly lower greenhouse gas emissions.
- Countries should strengthen energy efficiency standards and align them with the best available technologies while keeping products affordable.
- Governments, industry, and researchers should work together internationally to share knowledge, develop common standards, and speed up the adoption of efficient cooling technologies.
Residential Energy Consumption Patterns and Appliance Ownership in India: Insights From a 2024 Household Survey
India’s energy landscape is rapidly evolving, driven by a growing population, an expanding economy, and growing access to modern energy services.
With a population exceeding 1.4 billion, India’s residential sector is a key contributor to the country’s overall electricity consumption. As of 2024–25, it accounts for ~25% of total electricity usage in the country, with an annual growth rate of 6%.
To better understand the factors driving up this energy use, CLASP conducted a study examining appliance ownership, usage patterns, and their impact on residential electricity demand. The study draws on data collected from a sample of 4,321 households across 20 states, covering both urban and rural areas and representing major climatic zones.
Key findings
- Energy consumption in surveyed households is not uniform: Climatic conditions, socioeconomic status, awareness of energy efficiency strongly influence appliance use.
- Among surveyed households, electricity use is primarily driven by thermal comfort, which accounts for 40% of total consumption, reflecting the growing demand for cooling solutions. Kitchen appliances contribute 28% to electricity use, while lighting accounts for 11%, and other miscellaneous uses make up the remaining 21%.
Annual electricity use in surveyed households by end use
- Affordability is a decisive factor in appliance purchases, often outweighing energy efficiency considerations.
- Consumer behavior around energy efficiency is inconsistent. All surveyed households reported using LED lighting, however, only 2% actively considered energy efficiency when purchasing lighting solutions. This contrast highlights the importance of initiatives promoting the adoption of energy-efficient technologies.
By identifying the key factors that influence residential energy use, this study aims to inform the development of effective energy efficiency policies and provide policy recommendations for managing growing demand efficiently. By acting on these insights, India can ensure that its residential sector evolves in a sustainable, energy-efficient, and climate-resilient manner.
2025 CLASP Annual Report
Collective action for people,
prosperity, and planet.
A note from CLASP’s CEO,
Christine Egan
Appliance and equipment energy efficiency is a triple-win for people, planet, and prosperity. In a time of multiplying global crises, it stands out as a durable climate solution and key element of smart decarbonization strategies. It also creates jobs and improves livelihoods, enhances energy security and food system resilience, and helps people adapt to a changing climate.
Looking back at 2025, I’m wowed by the work of CLASP’s global team and dedicated partners, and the focus of the decisionmakers we support. Through purposeful collaboration, we forged the policy instruments, finance, and intelligence to drive positive momentum.
Together, we are changing the way we use energy.
2025 by the numbers:
4.6 Gt 18 CLASP-supported appliance and equipment efficiency policies will avoid 4.6 gigatons of CO2 by 2050, improving planetary and human health and saving money.
30K+ Over 30,000 people experienced improved health and livelihoods via access to efficient, solar powered appliances and equipment.
Skyline of Jakarta, Indonesia
Image credit: CLASP
Elevating Appliance Efficiency in National Climate Commitments
What we did
Ahead of COP30, CLASP led a global campaign to improve inclusion of appliance and equipment energy efficiency in national climate goals (nationally determined contributions or NDCs).
How we did it
Through our Net Zero Appliance NDC Toolkit and bespoke support for governments around the globe, CLASP elevated appliance efficiency policy as a key climate mitigation solution. Now, appliance and equipment efficiency policy is included in 90% of all submitted NDCs—up from below 50% in the last cycle.
Image credit: CLASP
Powering Africa’s Green Economy
Solar-powered appliances and equipment turn energy into opportunity, helping small businesses generate jobs and income. In 2025, CLASP re-launched our innovative Productive Use Financing Facility to make it cheaper and easier for entrepreneurs, farmers, and small businesses in Ethiopia, Kenya, and Nigeria to buy solar-powered appliances and equipment that power livelihoods. Last year, CLASP partnered with 11 companies to drive jobs and economic growth in Africa’s informal and agricultural sectors, which make up 70-80% of African economies.
Slashing Emissions Through Smart Policy
Australia
National leaders passed a lighting policy that will transition Australia’s market to an all-LED future and avoid 41 Mt of CO₂ by 2050, informed by CLASP-led analysis.
Brazil
Policymakers made strides in Brazil’s LED transition with CLASP’s support, approving a lighting policy package that will slash nearly 3 Mt CO₂ by 2050.
China
CLASP supported seven major policy updates, including for compressed air systems, refrigerators, and water pumps. Altogether, the new policies are estimated to cut nearly 3 Gt CO₂ by 2050.
India
CLASP supported the advancement of policies for space cooling appliances that will place India among global leaders in efficiency and cut 1.2 Gt CO₂ by 2050.
Image credit: ImageDB
Making Efficient, Affordable Fans the New Standard in India
India is one of the places on the planet most at risk of extreme heat. 90% of households rely on fans as their only form of space cooling. CLASP partnered with government and private sector partners to drastically improve fan efficiency, availability, and affordability. A major part of the effort was supporting small and medium enterprises to improve their production capacity.
The impact has been catalytic. Together, CLASP and partners cut energy demand and climate emissions from cooling, while safeguarding jobs, strengthening local supply chains, and making efficient cooling more affordable to the people who need it.
Joining Up with the Modern Energy Cooking Services (MECS) Programme
CLASP joined the UK Aid-supported MECS programme as a core partner alongside Loughborough University and the World Bank’s ESMAP. CLASP now leads on venture building and market shaping, helping e-cooking businesses scale up. In 2025, CLASP launched the Global LEAP Awards Induction Cooktops Competition to identify and promote the most innovative electric cooktops on the market.
How UK Housing Authorities Can Power the Switch to Electric Cooking
Global Action Plan, in partnership with CLASP, piloted gas-to-electric cooking retrofits in a social housing community in Manchester.
For participating households, switching to electric meant more than lower emissions. It meant breathing more easily in the kitchen, a cleaner and more practical cooking experience, and greater peace of mind for families with young children. Every household preferred its new induction cooktop over gas.
Watch the video:
Image credit: CLASP
Economies Can Boom When Powered by Efficient Motor Systems
Industrial motor systems are the invisible heartbeat of economic development. Universally used across industrial facilities, they power the production of goods like metals, paper, cement, textiles, and packaged food. Motor systems are also ferocious energy consumers, due to their function and prevalence. Without intervention, and in step with global economic development and industrialization, by 2050 motor systems will account for 35% of global electricity demand and 19% of energy related emissions. CLASP is taking action on this priority appliance in the fight for Net Zero, identifying high impact opportunities at national and global scales to drive up efficiency, slash emissions, and boost economic progress.
Image credit: CLASP
In Brazil, Partnering for Change
Ahead of COP30 in Brazil, CLASP joined forces with science communication agency Bori to drive national awareness of the benefits of appliance efficiency. Our InfoEnergia Mentorship was an 8-week, in-depth workshop that connected 25 journalists with experts and expertise to produce smart, contextualized reporting on appliance efficiency and its social, economic, and environmental impacts. Robust local journalism is a key element of durable climate policy.
Elevating Appliance-Centered Solutions at COP30
At COP 30 in Brazil, appliance and equipment energy efficiency stood out as a powerful climate solution, driving job creation, energy security, and adaptive capacity. CLASP provided expert testimony on the power of appliance efficiency solutions.
Insights driving action
Delivering COP28’s Doubling Efficiency Goal Through Appliances
Appliance efficiency will play a critical role in meeting the COP28 commitment to double the global rate of energy efficiency improvement by 2030. CLASP research found it could deliver 20% of the energy savings needed, highlighting the value of strong standards, clear targets, and international collaboration.
The Missing Piece of Energy Access
666 million people, most of them in Africa, lack access to electricity. 2025 CLASP research shows that directing just 15% of existing energy investments toward efficient appliances can generate the demand needed to make grid expansions financially viable and help those currently living without electricity gain access to healthier, more productive lives.
Finances
- Revenue by donor type
- Expenses by region
- CLASP collaborates with a global network of partners. In 2025, CLASP channeled nearly half our resources to civil society and energy groups, innovators, academic institutions, and experts — essential partners in changing the way we use energy.
About CLASP
Efficient appliances and equipment are essential drivers of economic growth and a fast, practical energy transition. With over 25 years of expertise and offices on five continents, CLASP collaborates with governments, industry leaders, and other experts to change the way we use energy.
We’re proud of what our team and partners achieved in 2025, driving progress for a better world. In 2026, we remain committed to championing appliance efficiency as a powerful solution for people, prosperity, and planet.
CLASP Research Helps Set the Stage for Climate-Friendly, Efficient Cooling in Indonesia
Home to over 280 million people, Indonesia is one of the world’s top 20 emitters of greenhouse gases. With temperatures rising, the government’s Nationally Determined Contribution (NDC) commits to reducing emissions while continuing to support the nation’s economic growth.
Meeting both of these goals requires a strong focus on air conditioning. With global warming driving temperatures ever higher and the nation’s middle class growing, more Indonesians are buying ACs. By 2050, 85% of households in the country are expected to own ACs. But while this will create important quality-of-life benefits, it also poses risks. Today, low-efficiency ACs dominate the Indonesian market. Without policy intervention or market shifts, increased AC use will result in a significant rise in emissions and electricity usage across the country, jeopardizing the nation’s climate goals and raising consumers’ electricity bills.
One of the easiest and most cost-effective ways to make air conditioners more efficient and affordable is to improve national policies that determine the energy efficiency of appliances produced and sold in the market.
An air conditioner in Indonesia with an energy rating label
CLASP
Setting realistic and effective AC efficiency standards requires rigorous data on air conditioner performance. The Indonesian government, with technical support from CLASP, undertook a recent project to strengthen this evidence base.
We partnered with India’s CEPT University, University of Indonesia and other local universities, government and industry representatives, and certified AC technicians to study one important aspect of air conditioners: the difference in energy consumption between inverter and non-inverter technology.
Most air conditioners fall into these two types. An inverter AC can adjust how much power it uses depending on the cooling needed in the space, using less energy to maintain the right temperature. A non-inverter AC, on the other hand, repeatedly switches on and off to cool the room, which tends to consume more energy.
CLASP studied the energy consumption of these two technologies over a period of six months in three Indonesian cities: Jakarta, Medan, and Bali. In each location, two identical homes with identical bedroom conditions were identified. One home was fitted with an inverter AC and the other with a non-inverter unit, allowing researchers to compare their electricity usage under the same conditions. The study also provides independent evidence on whether inverter ACs can truly deliver electricity savings in Indonesia’s hot, humid climate.
The results showed:
- Field tests are consistent with global findings, indicating that inverter ACs consume less electricity than non-inverter units under similar conditions, with Jakarta measurements showing approximately 28% savings during the test period.
- The difference in energy use remained steady throughout the testing period, with inverter ACs consistently using less electricity.
Research has also shown that while inverter ACs cost more upfront, their lower electricity usage means households typically recover the extra cost in a few years through reduced electricity bills and continue saving afterward.
By providing empirical data to stakeholders and policymakers in Indonesia and elsewhere, CLASP aims to support stronger efficiency standards for air conditioners. These policies can help bring more efficient models to the market and encourage large-scale production, which can ultimately reduce the upfront cost of high-efficiency ACs, helping more people stay cool.
CLASP research helps set the stage for climate-friendly, efficient cooling in Indonesia
Home to over 280 million people, Indonesia is one of the world’s top 20 emitters of greenhouse gases. With temperatures rising, the government’s Nationally Determined Contribution (NDC) commits to reducing emissions while continuing to support the nation’s economic growth.
Meeting both of these goals requires a strong focus on air conditioning. With global warming driving temperatures ever higher and the nation’s middle class growing, more Indonesians are buying ACs. By 2050, 85% of households in the country are expected to own ACs. But while this will create important quality-of-life benefits, it also poses risks. Today, low-efficiency ACs dominate the Indonesian market. Without policy intervention or market shifts, increased AC use will result in a significant rise in emissions and electricity usage across the country, jeopardizing the nation’s climate goals and raising consumers’ electricity bills.
One of the easiest and most cost-effective ways to make air conditioners more efficient and affordable is to improve national policies that determine the energy efficiency of appliances produced and sold in the market.
An air conditioner in Indonesia with an energy rating label
CLASP
Setting realistic and effective AC efficiency standards requires rigorous data on air conditioner performance. The Indonesian government, with technical support from CLASP, undertook a recent project to strengthen this evidence base.
We partnered with India’s CEPT University, University of Indonesia and other local universities, government and industry representatives, and certified AC technicians to study one important aspect of air conditioners: the difference in energy consumption between inverter and non-inverter technology.
Most air conditioners fall into these two types. An inverter AC can adjust how much power it uses depending on the cooling needed in the space, using less energy to maintain the right temperature. A non-inverter AC, on the other hand, repeatedly switches on and off to cool the room, which tends to consume more energy.
CLASP studied the energy consumption of these two technologies over a period of six months in three Indonesian cities: Jakarta, Medan, and Bali. In each location, two identical homes with identical bedroom conditions were identified. One home was fitted with an inverter AC and the other with a non-inverter unit, allowing researchers to compare their electricity usage under the same conditions. The study also provides independent evidence on whether inverter ACs can truly deliver electricity savings in Indonesia’s hot, humid climate.
The results showed:
- Field tests are consistent with global findings, indicating that inverter ACs consume less electricity than non-inverter units under similar conditions, with Jakarta measurements showing approximately 28% savings during the test period.
- The difference in energy use remained steady throughout the testing period, with inverter ACs consistently using less electricity.
Research has also shown that while inverter ACs cost more upfront, their lower electricity usage means households typically recover the extra cost in a few years through reduced electricity bills and continue saving afterward.
By providing empirical data to stakeholders and policymakers in Indonesia and elsewhere, CLASP aims to support stronger efficiency standards for air conditioners. These policies can help bring more efficient models to the market and encourage large-scale production, which can ultimately reduce the upfront cost of high-efficiency ACs, helping more people stay cool.
Rising Temperatures Put Millions Across Latin America and the Caribbean at Risk as Cooling Appliances Remain Inefficient
Washington, DC, 25 February 2026 — As temperatures rise and demand for air conditioning accelerates, new research reveals that nearly 70 million people across Latin America and the Caribbean exposed to rising heat risks lack efficient cooling appliances.
Despite the region’s growing need for sustainable cooling, only 15% of households own an air conditioner, leaving millions vulnerable to extreme heat. For many families, the affordability of purchasing and operating an air conditioner remains a key barrier to sustainable cooling access. Consequently, the lack of access to adequate cooling along with rising temperatures severely affects human health.
A new report from CLASP and the Institute for Governance & Sustainable Development (IGSD), with the Climate and Clean Air Coalition (CCAC) finds that these challenges are compounded by environmental dumping—the export of low-efficiency, climate-harming cooling equipment that does not meet existing standards in its country of origin.
Environmental dumping raises household energy bills, increases greenhouse gas emissions, and threatens to lock the region into decades of low-efficiency and polluting cooling infrastructure.
- The research, which focused on Argentina, Barbados, Brazil, Chile, Colombia, Dominican Republic, Grenada, Jamaica, Mexico, and Uruguay, finds:
- 44% of all new air conditioners sold in Latin America and the Caribbean are categorized as environmental dumping, which means they cannot be legally sold in the countries where they are manufactured.
- More than one-third of new room air conditioners sold in the region use obsolete refrigerants, which are currently phased down or phased out under the Montreal Protocol on Substances that Deplete the Ozone Layer and its Kigali Amendment.
- Existing cooling access gaps disproportionately affect low-income households and women, and the influx of outdated equipment deepens energy inequality and increases emissions.
- Without stronger efficiency and refrigerant standards, the region could lock in 173 million tons of CO₂e by 2050, emissions equivalent to more than three coal-fired power plants over the next 20 years.
Despite these challenges, the report highlights clear positive pathways for action. Brazil and Grenada are emerging as regional leaders by adopting modern efficiency standards and climate-friendly refrigerant policies and initiatives that protect consumers and close the door to environmental dumping.
While strong national efficiency policies are among the most effective ways for countries to protect themselves from environmental dumping, solutions ultimately require shared responsibility and close collaboration between importing- and exporting-country governments, the private sector, civil society, and international partners.
As extreme heat becomes a defining risk, access to efficient and climate-friendly cooling appliances is no longer optional; it is essential,” said Martina Otto, Head of the Climate and Clean Air Coalition Secretariat. “This year marks ten years since the adoption of the Kigali Amendment, a decade that has demonstrated how effective international partnerships can drive meaningful action. By acting together now, importing and exporting countries have a clear opportunity to shape markets, protect communities, and steer the inevitable growth in cooling toward solutions that advance climate justice while delivering economic, social, and environmental benefits.
Environmental dumping is an equity issue. As our research shows, millions of people across Latin America and the Caribbean are being left behind with inefficient, outdated cooling equipment that costs too much money to run. Manufacturers have the know-how to produce better appliances but are lacking the right incentives to manufacture and export them to Latin America and other regions in the Global South. This undermines people’s ability to stay safe in a warming world and deepens existing inequalities. —Ana Maria Carreño, Senior Director of Climate at CLASP
We must pursue innovative business models that do not export energy poverty and other burdens of obsolete cooling technologies to vulnerable countries in the Global South. Multilateral platforms, South-South cooperation, and collaborative government-industry partnerships can help. In this way, these countries can leapfrog to becoming innovation hubs for next-generation cooling solutions that support clean air, climate resilience, and prosperity. —Tad Ferris, Senior Counsel at IGSD
For inquiries, please reach out to Marina Baur, Senior Communication Associate, CLASP at mbaur@clasp.ngo.
Pathways to Prevent the Environmental Dumping of Climate-Harming Room Air Conditioners in Latin America & the Caribbean
Millions of people across Latin America & the Caribbean are being left behind with inefficient, outdated cooling equipment that's too expensive to run. Manufacturers have the know-how to produce better appliances but lack the incentives to manufacture and export them to the Global South.Ana Maria Carreño
Senior Director of Climate, CLASP
India Raises AC Efficiency Amid Growing Demand
India is facing hotter summers and more frequent heatwaves, making cooling essential for millions of households. About 110 million room air conditioners (ACs) are already in use in the country, which is expected to add another 130–150 million units over the next decade, making it one of the fastest-growing cooling markets in the world. The International Energy Agency (IEA) forecasts a ninefold rise in home AC ownership in the country by 2050. This growth could increase peak power demand by more than 180 gigawatts (GW) by 2035, putting significant strain on the power system.
Yet access to cooling remains highly unequal. Only about 8% of India’s 300 million households own an AC, with higher-income urban families accounting for most of this group. Rural AC ownership remains at around 1%, and the richest 10% of households hold the majority of ACs.
Why efficiency matters
Without stronger energy efficiency standards, the growth in AC ownership will lock in high energy use, drive up emissions, and increase household energy costs. Efficient ACs reduce electricity consumption, lower peak demand on the grid, and make cooling more affordable.
India’s energy labeling program has already helped buyers choose better-performing ACs and has shaped the market toward higher efficiency, but more can be done.
India’s new room AC efficiency standards
To meet the rising cooling demand, the Bureau of Energy Efficiency (BEE) in India has approved stringent efficiency standards for room ACs, effective January 2026, with further revisions in 2028, which will put India’s standards at global best levels. The standards establish minimum efficiency levels that appliances must meet, encouraging the use of more energy-efficient models.
By 2030, the new efficiency standards could reduce India’s peak electricity load by 8–10 GW, avoiding the need for more than 20 large coal power plants. Consumers could collectively save $12 billion on electricity bills annually, making cooling more affordable, especially for low and middle-income households. At the same time, they could help the country avoid up to 12 megatons (Mt) of CO₂ emissions annually.
India’s efficiency journey
The BEE has led India’s AC efficiency journey for nearly two decades. It introduced the star labeling system for room air conditioners in 2006 to remove inefficient appliances from the market and enable informed decision-making for consumers who might purchase high-efficiency products. Since then, baseline standards have been periodically tightened, resulting in a 43% energy efficiency improvement in ACs sold in the country. Inverter ACs, which are more energy-efficient, now dominate the domestic market, and companies have adopted a default temperature of 24°C to save energy.
These standards advance the goals of the India Cooling Action Plan (ICAP), which targets a 20–25% reduction in cooling demand by 2037–38 through efficient appliances, sustainable refrigerants, and improved building design.
By promoting efficient cooling, India is managing energy use, strengthening resilience against extreme heat, protecting public health, and creating jobs in manufacturing, testing, and supply chains.
Data-driven support for stronger standards
CLASP supported BEE by providing robust, evidence-based analysis to ensure that the new standards are both ambitious and achievable. It built clear evidence through product tests and an analysis of the Indian market, demonstrating that upgraded standards were both technically achievable and practical. It conducted affordability and feasibility studies and reviewed global pricing trends. It also assessed the financial performance of publicly listed companies and original equipment manufacturers (OEMs). The analysis confirmed that higher efficiency was financially viable. By providing this evidence, CLASP helped ensure that the revised standards are technically sound, cost-effective, and aligned with India’s goals of reducing electricity demand, emissions, and consumer costs.
India’s approach shows that fast-growing economies can expand access to cooling without harming the environment. Higher efficiency will also spur the adoption of next-generation ACs, creating new jobs in manufacturing, design, and testing, and contributing to economic growth.