Reflections on the Productive Use Financing Facility
The Productive Use Financing Facility (the Financing Facility), an innovative program implemented by CLASP and supported by the Global Energy Alliance for People and Planet (the Alliance), makes energy-efficient appliances more affordable to consumers and businesses in emerging markets in Africa. As the Financing Facility celebrates its first anniversary and concludes the initial phase of this expanded program, we reflect on the lives and communities it has already transformed. We also look at the road ahead and remain dedicated to our goals of helping to generate green jobs and equitable opportunities for thousands across Africa.
Empowering communities with the right tools
A single appliance has the potential to improve the quality of life for an entire household or community. A female entrepreneur with access to an off-grid refrigerator can sell cold beverages, attracting customers and increasing her income. A solar-powered mill can provide a central flour-processing location for a group of smallholder farmers in a remote community, allowing them to sell new products and avoid transportation costs and drudgery.
Despite the potential of these technologies, many businesses and households that need them can’t afford them due to high costs and limited financing. For the 750 million–plus people worldwide who live without access to electricity and the approximately 700 million living in extreme poverty, energy-efficient appliances are still out of reach.
The Financing Facility’s role in driving access and opportunity
The Financing Facility offers a solution: make these life-changing appliances more affordable to those who need them. By providing grants, subsidies, and technical assistance, the Financing Facility enables small businesses, entrepreneurs, and households to purchase energy-efficient appliances at lower prices.
The initiative launched a two-year pilot project that ran from 2022 to 2024, working with 24 companies across six countries, deploying nearly 16,000 appliances, and directly improving the lives of over 58,000 households. In June 2025, the Financing Facility entered a second phase with the announcement of its expansion and a $6.1 million USD funding boost. During this phase, the initiative aims to create over 3,000 green jobs through the sale and use of over 10,000 appliances in four years.
One year on: expanding reach and impact
The new cohort of 11 appliance companies, announced in November 2025, still focuses on productive-use appliances (in other words, technologies people use to generate income) like grain mills, solar water pumps, walk-in cold rooms, and refrigerator/freezers. From this cohort alone, the Financing Facility aims to deploy over 2,000 appliances across Kenya to women-owned and -led businesses.
The second cohort selection, launching in February 2026, will be open to appliance companies in Ethiopia, Nigeria, and Kenya. CLASP will announce and detail the process via the Financing Facility web page, LinkedIn and Bluesky.
Committed to the most underserved communities
Although electrification has expanded around the globe, energy demand is necessary to justify and maintain expensive infrastructure. Programs like the Financing Facility help get appliances into people’s hands, energizing ambition and output amongst local businesses and farms. The increased incomes from these activities can help drive economic growth, generate jobs, and improve quality of life—giving people greater opportunity to thrive. For small business owner Helen Obinna in Nigeria, for example, a solar refrigerator completely changed her business: since her refrigerator can keep products cool despite inconsistent power, sales of cold beverages have increased.
While electrification is expanding globally, deliberate efforts must be channeled into boosting energy demand to ensure the sustainability and commercial viability of renewable energy infrastructure. Programs like the Financing Facility place appliances into people’s hands, energizing ambition and output amongst local businesses and farms. Increased incomes from these activities drive economic growth, create jobs, and improve the quality of life, giving communities the tools to thrive.
About the Productive Use Financing Facility
The Financing Facility is an innovative program that provides grants, subsidies, and technical assistance to suppliers and distributors to lower appliance prices and reach more customers. This makes it easier for small businesses, entrepreneurs, and households to buy energy-efficient technologies, such as solar water pumps, mills, and refrigerators, at favorable prices.
This program is supported by the Global Alliance for People and Planet .
For more information, read the Productive Use Financing Facility 2.0 press release, contact financing@clasp.ngo, and follow us on LinkedIn for regular updates on how the Financing Facility is benefiting people and our planet.
About CLASP
CLASP is the leading global authority on efficient appliances’ role in fighting climate change and improving people’s lives. With 25 years of expertise and offices on four continents, CLASP collaborates with policymakers, industry leaders, and other experts to deliver clear pathways to a more sustainable world for people and the planet.
About the Global Alliance for People and Planet
The Global Energy Alliance for People and Planet works for a world where everyone has access to affordable, reliable, clean electricity and the means to use it to improve their lives. Our Alliance builds transformative public, private, philanthropic partnerships to end energy poverty and accelerate green economic opportunity. Founded in 2021 by The Rockefeller Foundation, IKEA Foundation, and Bezos Earth Fund, we unlock finance, strengthen institutions and transform markets, delivering progress anchored in deep community engagement. By uniting actors across the value chain, from households to heads of state, we go beyond individual projects to drive lasting systems change. With work in more than 30 countries across Africa, Asia, Latin America and the Caribbean, our Alliance aims to reach 1 billion people with clean electricity, prevent 4 billion tons of carbon emissions and create or improve 150 million jobs. For more information, please visit www.energyalliance.org and follow us on X at @EnergyAlliance.
Brazil Put a Spotlight on its Efficiency Agenda at COP30
In recent years, Brazil has taken initial steps toward a more sustainable future powered by energy efficiency. As the host of COP30, held in Belém in November, Brazil put a spotlight on this smart climate solution for the world to see.
The country is already a global leader in sustainable energy, generating 89% of its electricity with renewables. However, rapidly rising energy demand and decreased hydropower capacity are forcing policymakers and utilities to reevaluate the current energy mix.
Global warming and Brazil’s deep income inequality further complicate this challenge. For example, Brazil’s summers are growing hotter; in 2023, the country hit a new record temperature of 112.6° F (44.8° C). As a result, air conditioning, once considered a luxury, is becoming necessary for health and productivity. But today, air conditioning is found in only 20% of all homes, concentrated mainly in higher-income households.
The challenges lower-income Brazilians face in accessing energy services like air conditioning are reflected in the fact that almost half of the lowest-income Brazilians spend more than half of their household income on electricity and gas.
Air conditioners above a Rio de Janeiro street.
Credit: CLASP
Brazil’s solution for booming energy demand and high electric bills
Brazil’s leaders increasingly view efficiency as a cost-effective, climate-friendly tool for meeting the country’s energy needs while addressing economic barriers to energy access.
Analysis reveals that, in the absence of other interventions, meeting skyrocketing energy demand would require increasing domestic natural gas production by up to 300%. To avoid this, the government can embrace energy efficiency, making services like cooking and cooling less energy-intensive and therefore reducing overall energy demand.
Appliance efficiency has provided early wins in Brazil, although there are major opportunities to do more. New policies for air conditioners and LED lights are making the models available in Brazil more efficient. This, in turn, makes these appliances more affordable to operate—and therefore accessible to more people.
COP host puts efficiency on the podium
In conversations throughout COP30, the Brazilian government and media showcased energy efficiency as a key tool for meeting national and global climate targets, growing the country’s economy, and delivering accessible energy services for all.
Panelists from COP30 Casa Civil energy efficiency event.
In his speech to negotiators and delegates at the COP’s opening plenary session, Brazilian Vice President Geraldo Alckmin underscored the importance of meeting the COP29 pledge to double energy efficiency by 2030. “This COP must mark the beginning of a decade of acceleration and delivery—the moment when rhetoric gives way to concrete action, and when all parties move from setting targets to fulfilling them,” he said.
During a day dedicated to energy efficiency, the Brazilian Agency for Industrial Development (often referred to by its Portuguese acronym, ABDI) put together a packed agenda bringing together leaders from government, businesses, and international organizations to discuss how Brazil can achieve its goals through efficiency. During a session about the role of efficiency in the energy transition, speakers noted that a significant advantage of efficiency compared to other solutions is that technologies like efficient industrial equipment already exist and can be implemented immediately.
Another event organized by Casa Civil, the powerful organization run by Brazil’s presidential chief of staff, focused on the role of efficiency in achieving a just energy transition and expanding the Brazilian industry’s presence in the global marketplace. The event highlighted the fact that local appliance manufacturers can increase sales by making their products more efficient, which allows them to match international benchmarks and sell their products around the world.
Major Brazilian media outlets also jumped into the efficiency conversation at COP. Folha de São Paulo, the country’s largest newspaper, co-hosted a session with the Crux Alliance, a philanthropic organization focused on global climate policy, on leveraging demand-side strategies to deliver on renewable energy and efficiency targets.
Carving a sustainable path forward
With COP delegates from around the globe now back home, they have many opportunities to keep energy efficiency front of mind—and strong reasons for doing so.
“Efficiency lowers costs, expands access, and strengthens domestic industry,” said Edilaine Camillo, leader of CLASP’s Brazil program. “The more elements we add to this puzzle, the clearer it becomes how interconnected the energy transition is—and how it can positively impact multiple sectors of the economy and people’s everyday lives.”
Powering Progress: Three Local Appliance Companies Generate Job and Income Growth Across Africa
CLASP has selected 11 appliance companies to receive funding in support of job and income growth in sub-Saharan Africa. This support will be provided through the Productive Use Financing Facility (the Financing Facility), an initiative managed by CLASP and supported by the Global Energy Alliance for People and Planet (the Energy Alliance). The Financing Facility aims to accelerate the adoption of clean, energy-efficient appliances to power small businesses and support smallholder farmers, potentially transforming the lives of millions across Africa.
Baridi, Irri-hub, and Koolboks are three of the 11 impact-driven companies selected for the program whose work is already transforming the continent.
Solar appliances drive economic growth
For a smallholder farmer or business owner in sub-Saharan Africa, even a single appliance can go a long way. For example, a CLASP survey found that business owners in Uganda who purchased an off-grid refrigerator were able to increase their incomes twofold.
For women, an appliance can be a major driver of income. In the Finance Facility’s pilot program, households where women purchased an appliance saw incomes increase an average of 94%. From selling cold drinks using a refrigerator-freezer to growing high-value crops with a solar water pump, equitable access to reliable and affordable appliances can transform not only individual lives, but entire communities. Solar-powered appliances can reduce the physical strain attached to traditional working conditions, expand business opportunities, improve nutrition, and create local jobs.
Three African appliance companies making an impact
For Facility grantees like Baridi, Irri-hub, and Koolboks, this kind of transformative impact is what drives their work.
Baridi supplies solar-powered chilling technologies to smallholder farmers in Kenya, ensuring that their hard-earned produce remains fresh and market-ready.
Photo credit: Baridi
Photo credit: Baridi
Koolboks designs and distributes affordable solar-powered refrigerator-freezers, ensuring access for small businesses and farmers across the region. By providing reliable cold storage, Koolboks helps entrepreneurs expand product offerings and reduce the economic risks tied to spoilage.
Photo credit: Koolboks
Photo credit: Koolboks
Irri-hub is a provider of affordable water management solutions, including solar water pumps, that help smallholder farmers increase yields, improve crop predictability, and expand production.
Photo credit: Irri-hub
Photo credit: Irri-hub
Solar water pumps offer an enormous amount of income and job growth potential. CLASP’s report “Leave No One Behind: Bridging the Energy Access Gap with Innovative Off-Grid Solar Solutions” found that 87% of farmers in Rwanda who obtained a solar water pump reported an increase in their monthly incomes, while 64% reported hiring more laborers and growing more crops.
Enduring partnerships are the key to transforming lives and livelihoods
Both Baridi and Koolboks have longstanding partnerships with CLASP. Baridi was a finalist in the 2022 Global LEAP Awards Off-Grid Cold Chain Challenge, while Koolboks received funding from the first round of the Financing Facility.
This round of the Financing Facility is Irri-hub’s first partnership with CLASP.
From long and enduring partnerships to new collaborations, these kinds of local, on-the-ground partnerships are key to helping transform the sector, bringing life-changing appliances to the millions who need them. CLASP remains committed to strengthening these relationships and investing in partners who are creating green jobs and equitable opportunities across Africa.
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About the Productive Use Financing Facility
The Financing Facility is an innovative program that provides grants, subsidies, and technical assistance to suppliers and distributors, helping to lower appliance prices and expand customer bases. The Facility makes it easier for small businesses, entrepreneurs, and households to buy energy-efficient technologies, such as solar water pumps, mills, and refrigerators, at favorable prices.
This program is supported by the Global Alliance for People and Planet .
For more information, read the Productive Use Financing Facility 2.0 press release, contact financing@clasp.ngo, and follow us on LinkedIn for regular updates on how the facility is benefiting people and our planet.
About CLASP
CLASP is the leading global authority on efficient appliances’ role in fighting climate change and improving people’s lives. With 25 years of expertise and offices on four continents, CLASP collaborates with policymakers, industry leaders, and other experts to deliver clear pathways to a more sustainable world for people and the planet.
About the Global Alliance for People and Planet
The Global Energy Alliance for People and Planet works for a world where everyone has access to affordable, reliable, clean electricity and the means to use it to improve their lives. Our Alliance builds transformative public, private, philanthropic partnerships to end energy poverty and accelerate green economic opportunity. Founded in 2021 by The Rockefeller Foundation, IKEA Foundation, and Bezos Earth Fund, we unlock finance, strengthen institutions, and transform markets, delivering progress anchored in deep community engagement. Our Alliance aims to reach 1 billion people with clean electricity, prevent 4 billion tons of carbon emissions, and create or improve 150 million jobs. For more information, please visit www.energyalliance.org and follow us on X at @EnergyAlliance.
Making the Switch: The Deployment Handbook for Institutional E-Cookers
This report, “Making the Switch: The Deployment Handbook for Institutional E-Cookers,” conducted by Efficiency for Access in partnership with the Modern Energy Cooking Services (MECS) programme, aims to inform practitioners seeking advice on the design, deployment, and operation of commercially available institutional e-cooking technologies and provide actionable recommendations for scaling e-cooking in institutions in Kenya. This guide covers commercially available institutional e-cooking technologies designed for both on- and off-grid applications. It provides:
- An overview of the current state of e-cooking in institutions in Kenya
- Step-by-step advice for the pre-assessment, planning, installation, and commissioning of e-cooking solutions
- Opportunities to scale the adoption of institutional e-cooking
Download “Making the Switch: The Deployment Handbook for Institutional E-Cookers” to access key findings, recommendations, and guidance on electric cookers in institutional settings.
About Efficiency for Access
Efficiency for Access is a global coalition dedicated to advancing access to energy and affordable, energy-efficient appliances in underserved communities. It is a catalyst for change, accelerating access to off- and weak-grid appliances that boost incomes, avoid carbon emissions, improve quality of life, and support sustainable development. The coalition is co-chaired by UK aid from the UK government via the Transforming Energy Access platform and the IKEA Foundation.
About the MECS programme
Modern Energy Cooking Services (MECS) is an eleven-year research programme funded by UK Aid (FCDO). MECS is a geographically diverse, multicultural, and transdisciplinary team working in close partnership with NGOs, governments, the private sector, academia, research institutes, policy representatives, and communities in 16 countries of interest to accelerate a transition from biomass to genuinely ‘clean’ cooking.
In seeking to spark a new approach to clean cooking, the MECS programme researches the socio-economic realities of a transition from polluting fuels to a range of modern fuels. Whilst the research covers several clean fuels, the evidence is pointing to the viability, cost-effectiveness, and user satisfaction that energy-efficient electric cooking devices provide. Significant progress has been made in access to electricity in the last decade, but these gains are sometimes disconnected from the enduring problem of clean cooking. By integrating modern energy cooking services into the planning for electricity access, quality, reliability and sustainability, MECS hopes to leverage investment in renewable energies (both grid and off-grid) to address the clean cooking challenge.
CLASP Cooks Up Change at Brussels Event
In early November, CLASP joined global experts in Brussels, Belgium, to discuss the path toward electrifying cooking in Europe—a crucial but often overlooked step in building decarbonization. The daylong meeting brought together representatives from CLASP, E3G, ECOS, European Public Health Alliance (EPHA), Global Cooksafe Coalition, PSE Healthy Energy, Respire, and Universitat Jaume I.
The event took place as the European Union revises its ecodesign product regulations for cooking appliances. Today, less than half of Europeans use electricity to cook food, although clean cooking is more efficient, healthier, safer, and affordable than cooking with gas. The revision is an important opportunity to bring these benefits to people across the European market, while also making it easier for consumers to compare different hob models.
In panel discussions, speakers emphasized that cooking electrification is an important piece of the building decarbonization puzzle and noted that full household decarbonization may not happen without targeted support for cooking electrification. They also stressed the importance of an equitable, universal transition to clean cooking and discussed the critical role of consumer education in facilitating this transition.
The event featured a live induction cooking demo and food tasting with MasterChef UK winner Ping Coombes. Coombes demonstrated the versatility of electric cooking by creating a smoky flavor—often associated with open-flame cooking—in a wok heated by an inexpensive portable induction hob.
Learn more about CLASP’s work on electrifying cooking in Europe.
Efficient Appliances are a Powerful Tool for Creating Jobs and Growing Economies
As technological advances like artificial intelligence and advanced robotics reshape lives and economies around the world, it can be difficult to imagine living without even the most basic electronic devices: lights, for example. But today, this is the daily reality for millions of people.
In recent decades, governments and other actors have made significant progress in extending electricity to those who lack it, whether in the form of power grids, microgrids, or distributed solar. Today, the communities that remain without power are those that are the hardest to reach. Located primarily in sub-Saharan Africa, they’re cut off from the energy needed for economic development.
Emmanuel Aziebor, who leads CLASP’s Africa program, has spent years working on solutions to this challenge. He spoke to Marina Baur about the critical role of appliances in reducing poverty on the continent.
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Marina Baur: Globally, there are 666 million people who aren’t connected to the electric grid. More than a billion others are dealing with frequent power outages because their grids are unreliable. A lot of the people in both groups live in sub-Saharan Africa. Can you give us a sense of how the lack of reliable electricity shapes their lived reality?
Emmanuel Aziebor: Well, if you look at the data around electricity access in sub-Saharan Africa, some countries have much better statistics than others. In countries like Ghana and Kenya, over 70% of the population has electricity. But the reality is, if you go to any of these countries, there are still people with no access to even basic electricity. And by that, I mean they’re in darkness for much of the time; their only form of lighting is something like candles and kerosene lanterns. If they’re lucky, maybe they have a solar lamp.
Woman with solar lamp.
Credit: Steve Woodward
Many of these communities are only about a kilometer away from the nearest grid. This happens mostly as a result of what we can think of as geographical difficulties: Maybe the community is on an island, or maybe the location is very sparsely populated—most of the time, the government only electrifies communities that have at least a few hundred people. This can become a self-fulfilling prophecy, since people leave those areas for the cities in order to get electricity and job opportunities.
So that’s one side of the energy access issue in Africa: Some people just don’t have electricity. Another side is that some people who are connected to the power grid can’t always rely on it when they need it. In countries like Nigeria, Ghana, Kenya, you still have a lot of blackouts. These happen in part because the utilities are in so much debt, which affects how efficiently they can operate.
Credit: Dreamstime
These blackouts don’t only affect people in their personal lives; they also affect businesses. We see this at CLASP. Our team in Nairobi works from home several days a week, but sometimes they have to come to the office anyway because of blackouts where they live. The office is the only place they’re sure they can get the electricity they need to be productive, because the generator in our building is always going to run.
People in all kinds of businesses are affected by electricity problems. Think about agriculture. Even though we have a lot of freshwater resources in Africa, it’s often hard for farmers to irrigate their crops because you need pumps to move that water and many farmers don’t have electricity to power those pumps. And if farmers can’t irrigate their crops, the crops don’t grow as well as they should, which keeps farmers’ incomes low and raises local food prices, which, in turn, impacts food security.
It’s also important to understand that people use energy to indirectly support their incomes. A long time ago, my father retired from the force and moved from the city to the village. That meant carrying all his appliances and everything to the village, where there was no electricity. So he bought a car battery to run this black-and-white TV. My mom started a bakery, and in the evening, people would come there to sit around and watch TV, and then they would buy bread and pastries as well. So that TV set indirectly contributed to my mom’s income. Without it, she would’ve earned less.
Baur: Thanks for that. CLASP believes that a significant percentage of the money devoted to building energy systems needs to be invested in appliances. That’s not a very intuitive idea; why do you think that’s important?
Aziebor: Well, electricity is like water flowing in a river. There are electrons all over the place, but they must be captured into usable form, and what makes that possible is appliances.
Let’s look at this issue from the macro level. Utilities set up generation plants and transmission systems to transfer those electrons to a point of distribution: a pole that is metered, with a wire that goes into a home. Currently, in the energy sector, we measure these poles and say things like, “We have connected 10,000 households to electricity.” But having that connection in your home doesn’t mean you can actually use those electrons. That can only happen through a device that draws that power and turns it into the services you need. That device could be a light bulb or a TV; it could be a fan or an air conditioner.
So the actual benefit of electricity only happens when people have appliances. And that’s actually true for the utility as well. If nobody uses the electrons they generate and transmit, utilities do not make profit. A lot of utilities in Africa are in debt, partly because people aren’t using the electricity that essentially just stops at the metering point.
The actual benefit of electricity only happens when people have appliances.Emmanuel Aziebor
This is what CLASP focuses on, and it has implications at every level of society. At the individual or household level, appliances can improve quality of life, reduce sicknesses, and improve incomes. For example, in very hot places like West Africa, it’s hard to sleep without an air conditioner or fan, and if you can’t sleep well, your quality of life and productivity suffer.
At the institutional level, if you, say, provide high-quality appliances in health clinics and hospitals, enabling things like reliable refrigeration of vaccines, the provision of healthcare improves. It also becomes more cost-effective because you’re not wasting valuable resources that you then have to buy more of.
And at the small business level, businesses that have appliances will be able to earn more profit. This is very important for economies in sub-Saharan Africa, since small and medium companies make up 95% of registered businesses in the region. Today, many of these businesses are struggling, for a wide variety of reasons. Having better access to devices that turn energy into the services they need could really be a game-changer.
So when you talk about community resilience, appliances play a major role. They help people access better information, higher incomes, and less sickness. Appliances are how we turn energy into opportunities, into comfort, into quality of life.
A cook at a Kenyan school uses an electronic cooker.
Credit: CLASP
This is a very important topic in Africa. But for a very long time, it hasn’t really been explained—even to government decisionmakers—from a strategic position.
Baur: What could African governments do to help more people access appliances? What types of interventions should they be thinking about when they decide where to spend money or what solutions to drive forward?
Aziebor: If you speak to African policymakers, the main things they’re concerned about are job creation and economic development. So that’s what we focus on.
Seventy percent of the population in sub-Saharan Africa is under 30, and many of these young people can’t find jobs. If they cannot get opportunities in-country, they move out, and then we see all this risk on the Mediterranean. So how can we encourage African governments to look at appliance access as a solution to that problem?
Basically, we say that one way to resolve issues around youth unemployment and economic development is to utilize the abundance of energy that is available. A lot of countries have installed grid capacity that is not being utilized. Well, what if we used that capacity to support rural enterprises? About 60% of the labor force in sub-Saharan Africa works in agriculture. So there are major opportunities there, and we already have a good idea of where interventions would do the most good. Most countries are mapped out into places where there is agricultural productivity, places where you can have agricultural processing. So we could say, “Okay, we know this area is good for rice production. Let’s get some irrigation systems into that area to produce more rice and get the youth involved in this business.” Then, we could encourage rice processing, which adds value—we can provide rice mills to help people get into that business. And then those workers would earn money that can be invested back into their businesses. So with appliances, governments can use energy to catalyze rural economic development.
A farmer sets up a solar-powered sprinkler near Siaya, Kenya.
Credit: Futurepump
Another thing governments can do is introduce regulations to make appliances run more efficiently and eventually lead to lower consumption of energy. This may seem like a contradiction: If utilities need people to use more energy in order to be profitable, why would governments want appliances to use less energy? Well, the issue in Africa is that inefficient appliances have been dumped here for a long time. They overconsume energy, which creates an inflated need for grid capacity. And then governments build generation capacity to meet these inflated projections, which creates a huge delta in capital investment relative to the actual need. As a result, they’re spending money on power grids that could’ve been invested elsewhere, like schools or hospitals or job creation. Making matters even worse, these big generation capacities put the utilities in even greater debt because there aren’t enough appliances to use them all.
So our hypothesis here is that if we introduce efficiency regulations into the appliance sector, it allows the government and utilities to right-size the grid and right-size their capital spending.
Baur: Can you give examples of where this kind of approach has been tried and found successful?
Aziebor: Well, if you look at appliance dumping, African leaders have been at the forefront of a lot of these initiatives. For a long time, companies have sent products they can no longer sell in other parts of the world to the continent. This was happening with fluorescent lighting, which is extremely toxic, and African policymakers pushed back, which was instrumental in getting global agreement to phase out the production of fluorescent bulbs.
Lighting policy workshop in Kenya.
Credit: CLASP
I haven’t seen a large-scale program for other appliances, but I will mention a related example. Some time ago, the national government in Ghana came up with a way to transition all urban communities from charcoal to LPG (liquefied petroleum gas) as a cooking fuel, because we have abundant natural gas resources and the use of charcoal was causing deforestation in rural communities. So what did they do? They basically set up a government-owned LPG cylinder manufacturing company. They said, “Everybody, you’re going to get a subsidized cylinder and your first LPG fill-up is going to be free.” They also used a portion of taxes from petrol sales to fund the LPG program. All that helped people get used to cooking with LPG, since cooking is so cultural.
This program has been running for more than more than 20 years. Now, if you go to urban homes in Ghana, every one has a gas cylinder that they are using.
So this is one clear example where at the national level, the government drove adoption. And we see successful examples all the time with other kinds of infrastructure. The government provides the funding to build the airport and we all pay for flights to keep it operating. The government builds the road and we all pay a toll to use it. So these things can be translated into conversations about appliances—how public capital could be used at scale to address a particular solution.
But one problem we have in the appliance sector in Africa is that there are too many Mickey Mouse pilot projects. The problem has always been around scaling.
That means the government needs to be involved. For a very long time, we’ve had the impression that the private sector and nonprofits are the most important partners in the appliance sector. The idea was that nonprofits bring the money to derisk the private sector. But we must flip this equation. To reach the scale we need, we need to bring government to the table very early on.
The government is a fulcrum around which we all must build. The nonprofit brings philanthropic capital, the private sector brings commercial capital, and governments bring public capital to scale. But if we are not looking at scale with that equation in mind, it becomes difficult. We must be intentional. We know solar water pumps work; we know green milling can become a conduit for local economic development. So how can we get governments to scale these solutions, creating national programs where they invest public money into resolving both job creation and access-related issues? That is where I think the conversation should be.
Women use a solar-powered mill in Nigeria.
Credit: CLASP
Take a company like SunCulture, which makes solar irrigation. So far, they’ve sold about 200,000 solar pumps, which is just a drop in the bucket compared to the need, even just in Kenya. But what if we were able to partner with the government of Kenya to say, “We’re going to put public money in the budget to support to every corn farmer in Kenya. All you need to go is to go to your district government, sign up, and then you get a subsidized solar water pump.” That is what we need to scale these solutions, and that is how the issues around jobs and incomes can be addressed.
I want to wake up one day and find that my nonprofit job no longer exists because this problem has been solved. That’s how I’ll know we’ve succeeded. But that requires that public capital and public partnership.
Interview edited and condensed.
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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.
CLASP Highlights Appliance Repairability at Africa International E-Waste Conference
In October, CLASP’s Mike Ofuya discussed our work on appliance repairability at the Africa International E-Waste Conference in Mombasa, Kenya.
The conference focused on:
- Global e-waste trends.
- The impact of technological advancements on recycling.
- The urgent need for effective solar and battery waste management as Africa’s renewable energy sector expands.
- The importance of taking into account every stage in a product’s lifecycle, from design and manufacturing to distribution, use, and disposal.
It brought together representatives from key stakeholder groups including regional governments, the private sector, development organizations, academia, and financial institutions.
Speaking on a panel focused on recycling challenges and circular opportunities for solar, Ofuya emphasized that making appliances easy to repair reduces e-waste and saves consumers money. This is particularly critical in regions that lack reliable electricity, given the high purchase price of appliances suitable for those environments. For example, in Kenya, the cost of solar refrigerators is roughly equivalent to 85% of the average annual household income, making it cost-prohibitive to replace them if they stop functioning.
Ofuya’s presentation drew on the findings of CLASP’s ongoing research into appliance repairability, the Solar Appliance Reliability Index Series. An index providing criteria for assessing and scoring the repairability of solar water pumps, solar fans, and solar refrigerators is forthcoming in 2026.
Just How Bad Is Air Conditioning for the Climate—and What Can We Do About It?
As the planet warms, air conditioning is becoming a critical necessity in much of the world. But common AC technologies have an outsized climate impact, driving temperatures even higher.
Ana Maria Carreño has spent years working to disrupt this cycle. As CLASP’s senior director of climate, she identifies and implements solutions for keeping people cool without heating up the planet.
In this interview with CLASP’s Sarah Wesseler, she discusses AC’s mitigation challenges and what it would take to solve them.
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Sarah Wesseler: The links between climate change and air conditioning have been widely covered in the media. It’s a complex problem, though, and I suspect most climate advocates don’t have a nuanced understanding of it, let alone a sense of how to solve it. What do you see as the most important things to understand about reducing emissions from ACs?
Ana Maria Carreño: Well, first of all, you have to reduce the demand for artificial cooling. But that doesn’t mean asking people to live with excess heat. Instead, it means changing the way we design cities and buildings.
If you look at places built before modern HVAC [heating, ventilation, and air conditioning] equipment was invented, they’re highly responsive to their local climates. In hot places, design solutions like shade and natural ventilation kept people comfortable even during the summer. Things like large porches, internal courtyards, and trees kept direct sunlight out of building interiors, for example. Even something as simple as light-colored roofs that reflect heat away from buildings can make a huge difference.
Today, a lot of this nuance has been lost. You can find essentially the same types of buildings and neighborhoods being built in very different climates, which leads to unnecessarily huge air conditioning loads. It also means more heating is needed in the winter, but that’s another story.
So we need to go back to this older model of working with local environmental conditions to create places that are comfortable in hot weather even without air conditioning.
There’s a lot of really interesting work happening on this front. For example, in Colombia, where I’m from, the city of Medellín has had a lot of success in reducing heat by planting trees on busy streets to create shade. The program has really made a difference, lowering local temperatures by 2º degrees Celsius (3.6º Fahrenheit).
So reducing the demand for mechanical cooling is the first step. And then once we get that as low as it can go, we need to meet the remaining demand in a way that’s as climate-friendly as possible. That means paying close attention to electricity and refrigerants, which are the two main sources of emissions.
The electricity emissions come from burning fossil fuels in places where the electricity used by ACs is produced with oil, gas, or coal. Because a lot of electricity is produced this way, ACs are indirectly responsible for a large volume of emissions. That’s why it’s important to use efficient equipment. As we reduce the amount of energy needed to run ACs, we can reduce the amount of fossil fuels burned.
Refrigerants are also really important. They’re classified in terms of their global warming potential, which is extremely high for some refrigerants. One of the most common ones used in air conditioners, R-410A, is 2,000 times more potent than carbon dioxide.
The world is moving away from refrigerants that have high global warming potential, but that transition is not happening as fast as it should. The transition is being driven by commitments many countries made under the Kigali Amendment of the Montreal Protocol to phase down and phase out these refrigerants. But national regulations are needed to speed the process, and in many countries there is no regulation.
Wesseler: OK, so electricity use and refrigerants make ACs problematic from a climate perspective. How problematic, specifically? How much of a climate risk does AC pose?
Carreño: Well, data from CLASP’s appliance efficiency policy model, Mepsy, show that the projected emissions in 2030 from room air conditioners alone—so not counting any other type of space cooling, like fans—are about 800 megatons, which is almost a gigaton. That’s roughly equivalent to driving 186 million gasoline-powered cars for a year.
We’ve also found that, to achieve net zero scenarios by 2050, emissions from the entire appliance sector need to fall by nine gigatons by 2050. So when you consider that room air conditioners will reach one gigaton of emissions in 2030, that tells you the magnitude of the challenge AC poses for the climate community.
Credit: Shutterstock
What makes this even more difficult is that, at the same time that we need to reduce emissions from AC, we need to help more people get access to air conditioners.
For many years, the efficiency community talked about air conditioners being a luxury—something that was only for households with the capacity to purchase the equipment and pay high electricity bills. But now summers are becoming so hot in many places that it’s almost impossible to stay healthy, to work, to study without AC. But there’s still very low access to air conditioning in Southeast Asia, Latin America, and Africa.
Brazil is a good example. Only 20% of households there own an air conditioner—most people use fans for cooling since they’re cheaper than AC. But the summers are becoming hotter and hotter. This year, the temperature reached 44° Celsius (111° Fahrenheit) in Rio de Janeiro. In heat like that, fans are no longer enough to keep people cool.
Brazil actually set a new record for air conditioner sales in 2024 because of the growing heat. There were six million new ACs sold, which is a 38% increase from 2023.
Air conditioners above a Rio de Janeiro street. Credit: CLASP
This same kind of growth is happening in other countries as well. The IEA (International Energy Agency) has forecast that demand for cooling will triple by 2050.
Wesseler: You mentioned that regulations are critical to reducing the climate impact of ACs. What kinds of regulations are most effective?
Carreño: National governments have various policy options. The most popular, and the most effective, are energy efficiency standards. With standards, governments essentially say, “All ACs sold in this country have to operate above this specific level of efficiency.”
Of course, there’s more to it than simply setting the efficiency level. The policy has to be widely communicated to industry—manufacturers, importers, and others—and there have to be mechanisms for testing and certifying products for compliance. But in general, standards are a relatively simple and very effective tool for removing the least-efficient products from the market.
Another important policy is labeling. Labels are a consumer-facing tool; you use them to inform consumers about the different levels of performance of the equipment available on the market. So if you’re interested in purchasing an appliance that uses less energy, that has less impact on the climate, you can easily identify those products using this simple label system.
Brazilian air conditioner energy efficiency label. Credit: CLASP
Some governments also use incentives to promote the purchase of more efficient appliances. Public procurement is a very good incentive. Many governments purchase massive amounts of equipment for official buildings, for municipalities. When policymakers require high efficiency and low climate impact as part of this process, that incentivizes manufacturers and importers to bring in more equipment that meets those criteria. It’s an important lever.
Governments can also provide incentives to help consumers replace obsolete appliances they already own. There are a lot of examples of replacement programs for refrigerators, for instance.
Governments can also support local industry in upgrading appliance production lines. This is something CLASP is looking into in Brazil and India. Brazil produces about 90% of the air conditioners used in the country, and it already has good efficiency standards, but the idea is to support the domestic production of high-efficiency equipment and continue raising the level of ambition. We’re working with the Brazilian Agency for Industrial Development to incorporate energy efficiency into its programs. That’s turning out to be a very, very interesting program.
Wesseler: So it sounds like AC policy can be a win/win for the public and private sectors—it’s not necessarily punitive for manufacturers.
Carreño: Yeah, and this is a really important point. In general, countries’ AC policies are led by countries’ ministries of energy. Reducing energy demand and improving energy security is front and center for these ministries, of course, but they also assess the impacts of these policies on industry and consumers. And that means that policies cannot increase the price of the equipment for consumers or impact local manufacturing. That’s a challenge, because when you improve AC policies, sometimes local manufacturing is going to be impacted. So it’s important to work with local industries so they can continue to be competitive. In some cases, these upgrades can improve their competitiveness in export markets, too.
But this is the main challenge for AC policy in many of these countries. For many years, it’s the reason why policy progress has been slow.
Wesseler: Which countries are doing the most interesting things on AC policy today?
Carreño: China has the current world-leading standard for air conditioners, and the government is looking to go even farther. It’s trying to improve the technology itself, investing in research and development with the goal of doubling the efficiency of cooling equipment. The idea is that when that technology is available, that higher level of efficiency will become the new policy standard. So China is really pushing the envelope.
Brazil is another good example of where policy has really shifted the market to efficient products. For many years, Brazil didn’t revise its AC policies, but this has changed, partly because of efforts by the advocacy community in Brazil. So when the new AC label was published five years ago, followed by a new standard two years later, it really shifted the market to very efficient products.
India is also interesting. The government essentially sets up a schedule that gives manufacturers notice on what efficiency levels they need to reach in future years, helping them understand how policies will change over time. I think that’s a very good practice.
Residential buildings in Kolkata, India. Credit: Shutterstock
Wesseler: We’ve talked about national-level policymakers and manufacturers. Are those the main actors determining the future of air conditioning? Or are there other important nodes of influence?
Carreño: Well, policymakers are critical for advancing cooling efficiency, and in CLASP’s work they are an important stakeholder. Industry has the capacity to invest in innovation and producing the next generation of ACs, so it’s critical. And some of the interventions CLASP is working on focus on creating a policy environment that enables this kind of investment. We’re also looking at how global supply chains affect the cost of producing efficient AC units and their components, understanding that manufacturers need to keep prices down in order to stay competitive.
Things work differently on the refrigerants side. Ideally, air conditioner standards would also set requirements for refrigerant global warming potential, but ministries of energy are usually the ones that set those standards, and they don’t deal with refrigerants. That falls under the implementation of the Montreal Protocol, which is under the ministry of environment’s remit. But there are efforts to bring these issues together and help agencies collaborate.
Wesseler: You mentioned CLASP’s efforts. It sounds like, in addition to governments and industry, the nonprofit sector is also an important node of influence on this issue.
Carreño: Yeah. There’s a large community of organizations working in this space, striving to provide governments with the best research and technical evidence so that they can advance cooling policy, and identifying solutions for manufacturers and consumers as well.
Wesseler: What about people who don’t work in this space but want to do something about global warming? Let’s say somebody volunteers with a climate group like 350.org or the Sunrise Movement. What are some ways individual climate activists can influence what happens on this massive global issue?
Carreño: Participating in public consultations—for example, attending a meeting about building code standards or government incentive programs—can make a real difference. It can also help people understand the impacts of policies like these on their own communities.
This kind of advocacy is critical, because governments need to get feedback that this is an issue that’s important to their constituents. The more voices at the table the better.
Interview edited and condensed.
Universal Electricity Access is Possible—If 15% of Current Spending is Invested in Energy-Efficient Appliances
Nairobi, Kenya, 20 October 2025 – New research conducted by CLASP shows that to provide electricity for the 1.6 billion people who live with unreliable power and the 666 million who completely lack access, we must prioritize appliance access alongside energy infrastructure investments.
The International Energy Agency (IEA) estimates that achieving universal energy access by 2030 will take at least $50 billion USD of annual public investment. CLASP has determined that 10–15% of this amount (about $7.5 billion USD annually, or $38 billion USD in total) should be devoted to improving appliance access.
A reliable supply starts with reliable demand
CLASP’s new report, The Missing Piece of Energy Access: Why 15% of Energy Infrastructure Investment Must Go to Appliances, describes how the communities that remain unconnected to power supply infrastructure (located primarily in Sub-Saharan Africa) are those that are hardest to reach and have the lowest ability to pay. This makes the expense of building new infrastructure hard to justify for power supply developers and policymakers.
The report suggests that policymakers and other decision makers allocate 10–15% of power supply investments to establishing sustainable electricity demand growth. These investments should target market failures that hinder appliance use—in particular, a lack of affordability and consumer confidence. Importantly, all stakeholders should prioritize energy-efficient appliances over standard, less-efficient appliance options.
In-depth analysis also demonstrates that energy-efficient appliances are essential to reaching the United Nations’ Sustainable Development Goal 7 (SDG 7) of universal energy access by 2030 and the Paris Agreement target of net zero emissions by 2050. Researchers found that prioritizing energy-efficient appliances over less-efficient alternatives could avoid as much as 2.6 gigatons of CO2 equivalent emissions annually.
“I think we have to look at the pace of change in terms of the SDG indicators, not in its absolute but relative to what’s happening, and ask the questions, what’s not working?” —Bishal Thapa, Chief Strategy and Impact Officer
A solar-powered water pump in use: a standalone system delivering electricity where the grid doesn't reach. Credit: Dan Odero
Successfully deploying this strategy is possible
Africa currently spends approximately $800 billion USD every year as part of its 2010–2030 energy investment cycle. Governments and energy markets have proven their ability to mobilize resources at the scale required to achieve universal electricity access.
From 2013 to 2022, annual global grid electricity generation increased by 5,827 terawatt hours. Just 0.15% of this energy would be enough to provide at least 200 watt-hours daily per household.
Across the continent of Africa, where approximately 85% of the population lives without access to electricity, annual grid electricity generation grew by 178 terawatt hours from 2013 to 2022, an annual average growth rate of 2.5%. Just 4% of this growth would be sufficient to provide a basic electricity supply of at least eight hours daily for every African who currently lacks access.
Additional efforts could fully erase the electricity access gap by 2030—but the pace of progress must accelerate and utilize a variety of distribution approaches like grid extension, mini-grids, and standalone distributed energy systems.
These and other methods to improve access to energy-efficient appliances are viable and could serve as a stepping stone toward higher economic growth, improved livelihoods, and increased social wellbeing.
CONTACT
For more information or media queries about The Missing Piece of Energy Access: Why 15% of Energy Infrastructure Investment Must Go to Appliances, please contact Communications Associate Marina Baur at publication@clasp.ngo.
About CLASP
CLASP is the leading global authority on efficient appliances’ role in fighting climate change and improving people’s lives. With 25 years of expertise and offices on four continents, CLASP collaborates with policymakers, industry leaders, and other experts to deliver clear pathways to a more sustainable world for people and the planet.