Motors are the invisible heartbeat to economic progress. They are found across industrial facilities, powering production lines for goods like metals, paper, cement, textiles, and packaged food and beverages. Energy efficient motors and their associated components are key tools to enable economic growth, but inefficient ones can hinder progress via high energy demand and associated costs.

Efficient motors systems offer a golden opportunity for all countries –from existing economic powerhouses to newly industrializing nations– to expand and thrive in global markets while simultaneously slashing energy costs and emissions.

Industrial motors, like those found in factories, are part of a system of several components. When evaluating efficiency, governments and the private sector must look at and address the whole system, from power source to mechanical output. These systems are responsible for powering many recognizable factory features like conveyer belts and air compressors.

Without intervention to ramp up efficiency, motor systems will account for 25% of global energy demand and 33% of global energy related emissions by 2050.

And these inefficiencies are expensive: continued use of outdated motor systems will be responsible for $9 trillion of lost GDP in 2050.

Outdated and inefficient motors represent two-thirds of today’s global stock. These motors can last upwards of 15 years, locking countries into a future of high energy consumption, unnecessary emissions, and strained power grids.

Increasing the market share of efficient motor systems for all economies offers significant and sustained benefits. A timely transition will require leaders to push the boundaries on policymaking and financing.

Heavily industrialized countries, like China and the European Union, need to replace existing inefficient motor stock with the most efficient IE5 compliant technologies and pair them with variable speed drives to achieve the biggest cost and climate benefits. This move can be catalyzed by ambitious efficiency policy and will require significant financing support from sources like industrial banks.

In countries where manufacturing is expected to grow significantly, with commensurate increase in motor stock, like Nigeria and Indonesia, quick government action to incentivize or require efficient motor systems in new factories will prevent runaway emissions and costs from the start. External financial support and mechanisms, like subsidies and bulk procurement, will be critical for supporting emerging industry.

In October 2025, CLASP was invited to join policymakers, manufacturers, retailers, civil society representatives, and market surveillance authorities at the European Commission’s implementation dialogue on energy-efficient product legislation.

Hosted by Commissioner for Energy and Housing Dan Jørgensen, the discussion focused on how to strengthen the implementation, enforcement, and real-world impact of the European Union’s (EU) product efficiency policies.

During the dialogue, Nicole Kearney, the director of CLASP’s Europe program, highlighted that ambitious ecodesign and energy labeling policies drive progress far beyond the EU’s borders. Drawing on CLASP’s global experience and collaboration with policymakers, she noted how countries like Australia, Brazil, China, India, and South Africa often look to EU policies as models for their own frameworks—or even adopt them directly.

“The European Union sets the pace for global progress on energy and climate through product efficiency,” Kearney said. “Every step forward in Brussels accelerates action worldwide, and every delay slows it down.”

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.

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.

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.

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.

Hundreds of millions of people globally still live without access to electricity. That means no way to cool their homes during hot summers, refrigerate food to keep it fresh, cook without inhaling toxic fumes, or farm without hours of grueling, manual labor.

For decades, the response has focused on expanding energy infrastructure. But power lines alone can’t deliver the full benefits. A village may get connected, but without a fridge, a fan, or a clean cookstove, electricity access remains incomplete.

This is where efficient, affordable appliances come in. They transform energy into opportunity for better health, productivity, and livelihoods. They also improve the economics of grid expansion which makes investment more attractive and sustainable.

To achieve the goal of universal energy access and improve millions of lives, we need to look beyond electricity. Appliances are not a luxury; they are essential energy infrastructure.

To learn more, explore CLASP’s research report “The Missing Piece of Energy Access: Why 15% of Energy Infrastructure Investment Must go to Appliances”.

Excerpts from this article first appeared in Business Daily Africa in the lead-up to the second Africa Climate Summit in 2025.

By centering climate responses within Africa’s development needs, the continent can unlock new investments, boost incomes, and enhance its resilience. As leaders gather in Addis Ababa for the Africa Climate Summit, the continent must define a bold narrative that strategically links climate action with development progress.

Climate change should not be a global emergency that Africa is simply signing up to solve. This crisis is already costing Africa billions every year, and an estimated 110 million people have been directly affected by climate-related hazards.

Climate action can and must be made to work for Africa by recasting it through an Africa-centered development lens. Responses to the climate crisis offer Africa an opportunity to leverage climate solutions and sustainable technologies to increase incomes, accelerate poverty reduction, and improve adaptation and resilience.

African and global leaders will be converging at the second Africa Climate Summit in Ethiopia from 5 to 10 September. When we gather in Addis Ababa, we must use the Summit as a platform to drive bold reforms and ambitious actions that can repurpose climate change solutions to address Africa’s core development imperatives.

Framing climate action as an opportunity for Africa’s development

Income growth and poverty reduction remain as Africa’s core development pathway, the rising tide that promises improvements across all other social, economic and political indicators.

Africa’s income growth and poverty reduction needs are clear. The average GDP per capita of Sub-Saharan Africa was $1,506 USD in 2024, 40% lower than middle-income countries, and 90% lower than upper upper-middle-income countries. The continent’s GDP grew by 3.3% in 2024. That annual growth rate must increase to approximately 19% on average for GDP per capita to double by 2030. The continent’s GDP must multiply seven times over for African countries to reach middle-income country status.

The pathway to income growth and poverty reduction is equally clear. Africa must increase investments several-fold to drive economic growth, create new jobs, increase productivity, improve competitiveness and enhance social services. Sustained economic growth will result in higher incomes, delivering the poverty reductions that are urgently needed.

Climate change response strategies can be repurposed to meet Africa’s income growth and poverty reduction goals in two ways. First, climate solutions can free up investments, which can then be more productively deployed to drive economic growth. Second, climate solutions can be used to reduce climate vulnerability, improve adaptation, resilience and enable sustained economic growth.

Climate solutions can free up investments for economic growth

Energy efficiency can help secure the emissions reductions that the world needs to achieve to minimize the harshest impacts of the climate emergency. Improving energy efficiency also means lower utility bills for consumers and businesses, and less demand on power grids for governments. The International Energy Agency (IEA) estimates that Africa currently uses 3.7 gigajoules (GJ) of energy for every thousand USD of Gross Domestic Product (GDP). By transitioning to a higher efficiency of 2.7 GJ per thousand USD of GDP by 2030, consistent with IEA’s net zero emissions pathway, Africa could save billions through avoided energy and infrastructure costs. These avoided investments could then be productively deployed for economic and income growth in areas where they are needed.

Climate solutions can reduce climate vulnerability

Climate change is already costing Africa 2-5% of its GDP, the World Meteorological Organization (WMO) estimated. In Sub-Saharan Africa, for example, that translates to approximately $ 40 – $100 billion USD of lost incomes in 2023 – money that could have been utilized to enhance economic growth or support social services.

Africa bears a disproportionately large share of climate impacts because the poor and vulnerable are the least prepared to face climate vulnerabilities when they occur. The WMO projects that by 2030, 118 million extremely poor people in Africa will remain highly vulnerable to climate impacts such as heat stress, droughts and floods.

Energy-efficient appliances, such as lights, fans, air-conditioners, refrigerators, electric cookers, water pumps, cold storages, and milling equipment, are crucial to building adaptive capacity and resilience to climate change among the world’s most vulnerable populations. CLASP estimates that more than half of the population in Africa lacks access to many essential appliances, such as fans and refrigerators. There are equally large ownership gaps for agricultural equipment, such as water pumps, milling equipment and cold storage. These appliances are critical to helping reduce the risks of income and productivity losses from climate impacts.

CLASP estimates that increasing access to seven key appliances across Africa could create a market worth approximately $50 billion USD and catalyse accelerated power infrastructure development to provide electricity for all. It would improve people’s access to essential services, helping individuals manage environmental stressors and economic instability.

Climate change was not Africa’s making, but it is Africa’s fight to shape. If leaders gathering at the Africa Climate Summit in Ethiopia can reframe the response to the climate crisis as an opportunity to accelerate income growth and poverty reduction, then climate action will not only protect the vulnerable but also power the continent’s prosperity. The future is not about choosing between climate action and development; it is about making climate action the very centre of Africa’s development.

Globally, hundreds of millions of people lack electricity. Most solutions focus on extending power supply infrastructure, but in marginalized areas, low electricity demand makes the expense of such infrastructure hard to justify. Increasing the use of energy-efficient appliances in these areas can attract electricity supply investments while delivering climate benefits. Achieving sufficient levels of appliance use to meet these goals would require allocating 15% of supply-side investments, or $38 billion USD, toward demand growth between now and 2030. The funding should focus largely on improving appliance affordability.

Key Findings

• Energy-efficient appliances are essential energy infrastructure, critical for achieving universal energy access and meeting climate mitigation and adaptation goals.
• Bringing modern energy to the 666 million people who lack it (most of whom live in Sub-Saharan Africa) requires expanding power infrastructure to places with low electricity consumption.
• Increasing appliance access across Africa could generate demand for 342 terawatt hours of electricity annually, creating a market worth approximately $50 billion USD that would catalyze accelerated power infrastructure development.
• Focusing on expanding markets for energy-efficient appliances (as opposed to standard, less-efficient appliances) would provide many benefits, including avoiding an estimated 2.6 gigatons of CO2 equivalent emissions annually.

Recommendations

• The IEA estimates that at least $50 billion USD of public investment annually is needed until 2030 to achieve universal energy access. CLASP analysis shows 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.
• Relevant decisionmakers should allocate 10–15% of power supply-side investments toward establishing sustainable electricity demand growth.
• Public institutions should target investments to overcoming market failures that limit appliance use—in particular, a lack of affordability and consumer confidence.
• All stakeholders should prioritize energy-efficient appliances over standard, less-efficient appliances.

AMDA represents over 40 mini-grid developers across the continent and is a strong voice for policies, financing, and standards that enable scale. The organization actively engages in regulatory reform and promotes sustainable business models.

“In the face of challenges that seem insurmountable, one truth remains: Business as usual is not an option. We cannot unlock universal energy access with fragmented strategies. We cannot power 680 million people still in the dark by 2030 without bold, coordinated, and scalable action,” Olamide (‘Lamide) Niyi-Afuye, CEO, AMDA.

Fun Fact: Mini-grids are key to reaching remote communities and AMDA is uniquely positioned to ensure the enabling environment keeps pace with the sector’s growth.

CCA drives efforts to make clean cooking affordable, accessible, and aspirational. Their work spans research, policy, investment facilitation, and ecosystem coordination.

“Whether from an energy access, climate, environment, health, or empowerment perspective, clean cooking is increasingly recognized as a critical component of a just energy transition. CCA is proud to have contributed to this shift. Our focus remains on turning commitments into actionable policies, business opportunities, and tangible investments that transform the pathways to clean cooking for the billions of people who still live without it,” Dymphna van der Lans, CEO, CCA.

Fun Fact: The clean cooking sector needs strong institutions to match its ambition. CCA brings the convening power, technical capacity, and cross-sectoral reach needed to transform this critical area of energy access.

GOGLA is the global association for the off-grid solar energy industry, representing over 200 members. As a long-standing convener and advocate, GOGLA plays a critical role in shaping policy, collecting market intelligence, and promoting consumer protection. Their leadership helps build a transparent and investable solar market.

Fun Fact: GOGLA’s deep sector expertise, strong relationships with governments and financiers, and commitment to evidence-based advocacy make them a linchpin in advancing off-grid solar.

NOMAP supports Nigeria’s distributed renewable energy market through policy analysis, investor engagement, and ecosystem strengthening.

Fun Fact: NOMAP is helping to tackle Nigeria’s energy access challenge with strategic, locally grounded solutions and strong partnerships.

Precise builds learning ecosystems and delivers cutting-edge research and insights to business, governments, and non-profits in Ethiopia to help them make strategic development decisions.

“At Precise, we build market systems that empower local innovators and entrepreneurs to win the war against poverty. By partnering with philanthropies, we design and deliver bold, private sector-led solutions tailored to local realities. Solutions that help our partners do more with less. Our work drives systemic change that supports climate-resilient growth, creates jobs, raises incomes, improves nutrition and health, and empowers women,” Henok Assefa, Managing Partner, Precise.

Fun Fact: Precise designs and delivers bold, private sector-led solutions tailored to local realities that help their partners do more with less.

UOMA works closely with government, industry, and development partners to identify market barriers and coordinate solutions. Their work includes technical assistance, data analysis, and stakeholder engagement to advance energy access nationally.

“UOMA has played a pivotal role in Uganda’s energy access journey, unlocking capital, enabling last-mile delivery, and supporting over 250,000 households. As the sector grows more complex, UOMA’s role as a neutral intermediary is critical in bridging silos, aligning stakeholders, and translating ambition into coordinated, on-the-ground action, especially in emerging areas like productive use and humanitarian energy access,” Reza Fazel, Associate Partner at Open Capital and Head of UOMA.

Fun Fact: Uganda is a key energy access frontier, and UOMA has a strong record of translating insights into action and facilitating national-level collaboration.