Key Policy Interventions

Effective interventions to boost cooling efficiency range from regulatory measures, market and economic incentives, information tools, to support for innovation among others:

Strengthen building energy codes to reduce cooling loads and encourage efficient cooling systems by design. 

Building codes can require that new buildings meet a maximum energy-use intensity for cooling or incorporate specific efficiency measures, such as high insulation, reflective roofing, or efficient heating, ventilation and AC equipment.

For large commercial buildings, standards like ASHRAE or ISO efficiency benchmarks for chillers and HVAC systems can be mandated. Ensuring proper sizing of cooling equipment (avoiding oversizing) and requiring efficient control systems (thermostats and smart sensors) can be enforced through codes or certifications (e.g. green building ratings). Integrated design, such as efficient district cooling systems in urban developments, can also be promoted via planning guidelines.

By embedding efficiency at the building and urban scale, policymakers lock in lower cooling energy needs for decades.
 

See resources

Introduce mandatory energy efficiency labelling for cooling appliances to guide consumers to buy energy-saving products. 

Energy labels (using stars, grades, or colour codes) communicate the energy efficiency rating of an appliance in a simple format. When combined with public awareness campaigns, labelling can shift demand towards 5-star ACs or A-rated refrigerators, motivating manufacturers to improve products. Clear labels also enable sustainable procurement by institutional consumers (government agencies or businesses) to create market demand for top-rated models. 

Public awareness initiatives can extend to promoting simple practices (like setting AC thermostats at moderate temperatures and cleaning regularly filters), which enhance efficiency in use.

See resources

Implement financial and economic incentive programmes to make efficient cooling equipment more affordable and attractive. 

Incentive options include rebates or tax credits for purchasing high-efficiency air conditioners or refrigeration units, on-bill financing schemes or low-interest loans for energy service companies. Smart subsidy programmes are key to overcoming the affordability gap, especially in developing countries. Bulk procurement programmes can aggregate demand and lower prices for super-efficient ACs, while utility rebate programmes can accelerate replacement of old units. The co-benefits include reduced peak load and avoided power capacity investments, which can justify the public expenditure.

Implementation can work alongside extended producer responsibility schemes that allow return and properly dispose of inefficient, older appliances and refrigerant substances. 

See resources

Support the research and development as well as dissemination of next-generation cooling technologies. 

This includes funding research, providing rewards for ultra-efficient cooling innovations, pilot projects for new technologies, and alternative cooling solutions.

Governments can lead by example, deploying innovative cooling solutions in public facilities to demonstrate viability. Partnering with international initiatives can bring technical and financial resources. Over time, as cutting-edge technologies scale up, their costs fall, creating a virtuous cycle where ambitious efficiency targets become easier to meet. Innovation support thus complements regulations by ensuring a pipeline of ever-better cooling options in the market.

See resources

Establish and regularly tighten MEPS for cooling appliances such as air conditioners, refrigerators, fans, and chillers. 

MEPS set the floor for energy performance, prohibiting market entry for devices that do not meet a certain threshold. MEPS influence not only equipment design but also regulate operating efficiency. Best-practice MEPS are updated every few years to reflect technological advances and push manufacturers toward continual improvement. 

Combined with refrigerant global warming potential limits and labelling, MEPS are a proven regulatory measure, used widely to drive improvements in energy efficiency of cooling.

See resources

Policy Resources

Policy area
CLASP

Net Zero Appliances NDC Toolkit

The Net Zero Appliances NDC Toolkit supports governments in integrating ambitious appliance energy efficiency targets into their Nationally Determined Contributions (NDCs) under the Paris Agreement. Since appliances and equipment account for nearly 40% of global energy-related CO₂ emissions, the toolkit highlights the critical role of efficiency policies in achieving climate goals. It outlines pathways for adopting targets across ten major appliance categories, including air conditioners, fans, refrigerators, lighting, televisions, water and space heating equipment, electric cooking appliances, electric motors, and solar irrigation, showing how efficiency measures deliver climate, economic, and social benefits aligned with national priorities.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Governments
Policymakers
Manufacturers
Public sector
Urban planners and developers
Energy planners and analysts
Value chain
Product design
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Buildings/urban environment
Document type
Case study
Toolkit / Tools
Guidelines / Handbook
Region
Global
Year
2025
Case studies

Examples from different countries and regions (eg Zimbabwe, United Kingdom) showcasing integration of appliance efficiency targets into national climate strategies.

Example links from case study:

Show more Go to resource
Supporting policies
Energy labelling, product registration systems, public procurement, consumer awareness campaigns, financial incentives, support to SMEs, service-based business models (e.g., Cooling as a Service), bulk procurement, building energy efficiency, integrated planning
Tags
Energy efficiency
NDCs
climate mitigation
net zero
Paris Agreement
market transformation
CLASP

World’s Best MEPS: Tracking Leaders in Appliance Energy Efficiency Standards

The World’s Best MEPS evaluates minimum energy performance standards (MEPS) for six major energy-consuming appliances across ten economies. It benchmarks existing standards against United for Efficiency’s Model Regulation Guidelines or, where guidelines are unavailable, against Best Available Technologies (BAT) derived from market analysis. This resource helps policymakers, regulators, and stakeholders understand how their MEPS compare internationally, identify opportunities to strengthen regulations, and track progress toward higher efficiency and climate-friendly appliances.
Type of Policy
Information-based instrument
Capacity-building resource
Target Group
Governments
Policymakers
Manufacturers
Regional organizations and NGOs
Value chain
Product design
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Recovery
Recycling and reclamation
Disposal/destruction
Document type
Case study
Benchmarking tool
Analytical study
Region
Global
Year
2025
Case studies

Example from Kenya demonstrating the implementation of these standards.

Example links from case study:

Show more Go to resource
Supporting policies
Energy labelling, product registration systems, public procurement, consumer awareness campaigns, financial incentives, support to SMEs, cooling as a service, bulk procurement, building energy efficiency, integrated planning
Tags
Energy efficiency
MEPS
benchmarking
standards
appliances
market transformation
United for Efficiency of UNEP (U4E)

Efficient Cooling in Dominican Republic: Cooling as a Service (CAAS)

This initiative introduces a pay-for-use model (Cooling as a Service, CaaS) to make energy-efficient, climate-friendly air conditioning systems more accessible in the Dominican Republic. Under this model, the customer (for example hotel operators) pays for the cooling service rather than buying, operating, and maintaining the AC equipment themselves. The service provider assumes the investment, regular maintenance, operations, and monitoring. The contract is structured so that the cost to the customer is fixed over the term, helping to avoid upfront costs and reducing performance risk. This resource highlights the roles of public sector agencies, equipment providers, finance partners, and stakeholders from the tourism sector for rolling out such models. It shows how policy, regulatory settings (standards, labels), financial innovation, and demand-side engagement combine to unlock energy savings, reduce load on the electricity grid, lower emissions, and ensure cost savings for users.
Type of Policy
Fiscal & Financial Instruments
Market-based instrument
Target Group
Public sector
Retailers/small and medium-term enterprises (SMEs)
Consumers
Value chain
Sales and distribution
Document type
Case study
Region
Latin America & Caribbean
Year
2021
Case studies

Example from the Dominican Republic demonstrating the application of the cooling policy

Example links from case study:

Show more Go to resource
Supporting policies
Energy labelling, MEPS, product registration systems, public procurement, consumer awareness campaigns, financial incentives, support to SMEs, bulk procurement, building energy efficiency, public-private partnerships
Tags
Cooling as a service
Energy efficiency
climate-friendly cooling
business model innovation
pay-for-use
market transformation
United for Efficiency of UNEP (U4E)

Energy -Efficient and Climate-Friendly Cooling in Nigeria

The energy -efficient and climate-friendly cooling project is a national programme in Nigeria aiming to accelerate the transition to more energy-efficient air conditioners (ACs) and lower-GWP refrigerants across residential, commercial, and public buildings. It supports the government in revising Minimum Energy Performance Standards (MEPS) and labelling, strengthening monitoring, verification and enforcement practices, and embedding cooling-related actions into Nigeria’s Nationally Determined Contribution (NDC). The fact sheet also lays out expected benefits by 2040; including large electricity savings (≈ 15 TWh/year), avoidance of fossil-fuel-based power plant investments, annual CO₂ emissions reductions (≈ 9.8 million tonnes), and significant savings in electricity costs, showing what gains are possible if ambitious efficiency and refrigerant targets are met. This resource helps policy makers, regulatory agencies, standards authorities, and implementers understand what specific actions can be prioritized, what impacts to expect, and how cooling efficiency links with climate commitments.
Type of Policy
Market-based instrument
Target Group
Public sector
Governments
Policymakers
Importers
Value chain
Electricity generation
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Buildings/urban environment
Document type
Case study
Region
Africa
Year
2022
Case studies

Example from Nigeria demonstrating the application of the cooling policies

Example links from case study:

Show more Go to resource
Supporting policies
Energy labelling, MEPS, product registration systems, public procurement, consumer awareness campaigns, financial incentives, support to SMEs, cooling as a service, bulk procurement, building energy efficiency, public-private partnerships
Tags
Cooling policy
Air conditioners
Energy efficiency
low-GWP refrigerants
refrigerant transition
demand & supply
climate mitigation
NDC alignment
United for Efficiency of UNEP (U4E)

Caribbean Cooling Initiative (C-COOL)

The Caribbean Cooling Initiative was initiated in 2018 to transform the cooling markets in select Caribbean countries (Bahamas, Barbados, Dominican Republic, Jamaica, and St. Lucia) by promoting energy-efficient and climate-friendly refrigerators and air conditioners. It includes a market assessment of existing stock and projected growth; development of national cooling strategies; technical assistance for MEPS and labelling; financial mechanism pilots to lower upfront cost barriers; capacity building and stakeholder engagement throughout the supply chain. For users interested in shaping policy, this resource provides data on projected electricity savings, emissions impact, policy levers (e.g. performance standards, financial incentives), and examples of how tourism-heavy economies can benefit from improved cooling efficiency.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Governments
Public sector
Importers
Consumers
Retailers/small and medium-term enterprises (SMEs)
Regional organizations and NGOs
Value chain
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Document type
Case study
Region
Latin America & Caribbean
Year
2021
Case studies

Examples from the Caribbean region demonstrating the implementation of the initiative.

Example links from case study:

Show more Go to resource
Supporting policies
Energy labelling, MEPS, product registration systems, public procurement, consumer awareness campaigns, financial incentives, support to SMEs, cooling as a service, bulk procurement, building energy efficiency, integrated planning
Tags
Cooling market transformation
MEPS
Energy efficiency
climate-friendly cooling
financial mechanisms
United for Efficiency of UNEP (U4E)

Rwanda Cooling Initiative (R-COOL) and Rwanda Cooling Finance Initiative (R-COOL FI)

The Rwanda Cooling Initiative (R-COOL) is a national programme launched in 2018 to accelerate the transition to energy-efficient and climate-friendly refrigerators and air conditioners. R-COOL integrates policy development, awareness campaigns, financial mechanisms, and other market transformation efforts. R-COOL FI, part of the programme, is an on-wage financial mechanism, where eligible salaried employees from the public and private sectors may request loans from participating banks to purchase new cooling appliances that meet strict performance criteria. The Coolease scheme lets enterprises get latest cooling equipment without an upfront investment. A financial institution provides the cooling system through a leasing agreement, using the AC and refrigeration equipment as collateral. A special subsidiary, set up by Rwanda Business Development Fund, manages financing and monthly payments. Technology providers install and maintain the equipment as part of the deal. Only approved efficient and climate-friendly technologies are eligible. A guarantee fund covers part of the risk if clients fail to pay.
Type of Policy
Fiscal & Financial Instruments
Market-based instrument
Information-based instrument
Capacity-building resource
Target Group
Governments
Consumers
Policymakers
Public sector
Utility providers
Donors
Value chain
Sales and distribution
Operations and maintenance/use phase
Document type
Case study
Region
Africa
Year
2021
Show more Go to resource
Supporting policies
Energy labelling, MEPS, product registration systems, public procurement, consumer awareness campaigns, financial incentives, support to SMEs, cooling as a service, bulk procurement, building energy efficiency, integrated planning
Tags
Cooling policy
financial incentives
MEPS
energy-efficient appliances
market transformation
demand side

Value chain approach

Ways to apply these policies for better outcome and climate impact.

Integrated approaches

  • Building energy codes and cooling design standards
  • Energy labelling and consumer awareness
  • Financial incentives and bulk procurement
  • Innovation, R&D, and bulk technology deployment
  • Minimum Energy Performance Standards (MEPS)
Building energy codes and cooling design standards
Establish mandatory energy efficiency building codes Update safety standards to reflect new technologies Integrate energy efficient design and passive cooling Show all tooltips Disposal / Destruction Reuse Buildings / Cities Operation & Maintenance Sales & Distribution Manufacturing / Assembly Refrigerant Production Electricity Generation Fossil Fuel Renewables Encourage proper recovery during retrofits Ensure safe removal during retrofits/ demolitions Promote reuse of efficient components Reuse Ensure environmentally safe management at the end of life and destruction Disposal / Destruction Raise awareness on building code benefits Train architects and engineers Provide incentives for code- compliant retrofits Integrate AC efficiency into building permits Enforce compliance through certifications and permits Build capacity for enforcement agencies and energy auditors Buildings / Cities Issue guidelines on efficient system operation Mandate certification of servicing technicians Increase awareness towards behaviour change Operation & Maintenance Provide guidance tools for builders and buyers Implement bulk procurement Sales & Distribution Align product design with building codes Ensure the supply energy efficient products Manufacturing / Assembly Phase out ODS Phase down HFCs Refrigerant Production
Energy labelling and consumer awareness
Mandate third party verified energy efficiency labels on appliances that meet MEPS Include refrigerant GWP value on labels Integrate energy efficiency aspects into life cycle-based ecolabels Conduct campaigns for public awareness and behavioural change (e.g. recognition scheme such as Energy Star or rating schemes) (e.g. Blue Angel) Show all tooltips Disposal / Destruction Reuse Buildings / Cities Operation & Maintenance Sales & Distribution Manufacturing / Assembly Refrigerant Production Electricity Generation Fossil Fuel Renewables Introduce extended producer responsibility schemes Facilitate take-back programmes Reuse Introduce extended producer responsibility schemes Facilitate take-back programmes Disposal / Destruction Implement strategies for reducing cooling load including through passive cooling Promote alternative cooling technologies Manage electricity demand through demand response programmes for consumers (e.g direct load control or critical peak pricing) Buildings / Cities Implement strategies for reducing cooling load including through passive cooling Promote alternative cooling technologies Manage electricity demand through demand response programmes for consumers (e.g direct load control or critical peak pricing) Ensure compliance with installation and servicing standards Educate consumers on energy efficiency, servicing practices Make it easy to find a certified technicians Set mandatory thermostat limits Operation & Maintenance Maintain product registration system Mandate energy efficiency labels on appliances Run in-store consumer awareness campaigns Provide digital comparison tools (apps/QR codes) Train retailers to explain labels Conduct awareness campaigns Provide incentive schemes for consumers Use labels as verification for public and bulk procurement Sales & Distribution Ensure supply of appliances compliant with MEPS Establish third party verification systems for compliance with standards for awarding labelling Manufacturing / Assembly Phase out ODS Phase down HFCs Refrigerant Production
Financial incentives and bulk procurement
Provide financial incentives targeting consumers to increase uptake of MEPS compliant products Use bulk procurement to reduce price per unit Use MEPS as specifications in tenders for bulk and public procurement Use labelling certification for compliance verification Show all tooltips Disposal / Destruction Reuse Buildings / Cities Operation & Maintenance Sales & Distribution Manufacturing / Assembly Refrigerant Production Electricity Generation Fossil Fuel Renewables Provide incentives for returning and exchanging inefficient models (e.g. discounts, consumer rewards) Reuse Ensure environmentally sound management of the end of life and destruction Disposal / Destruction Offer incentives for energy efficient retrofits Conduct bulk procurement for public buildings Promote incentives for smart cooling management systems Provide user replacement schemes for large users Buildings / Cities Mandate certification of servicing technicians Include the use of certified technicians for installation and servicing Promote servicing business models (e.g. cooling as a service) Operation & Maintenance Maintain product registration database for products entering the market Display third party certified energy efficiency labels on products Provide low-interest loans for consumers Introduce programmes for returning old appliances at purchase Sales & Distribution Ensure supply of appliances compliant with MEPS Offer grants/loans for upgrading production lines Support SMEs to access finance and technology Manufacturing / Assembly Phase out ODS Phase down HFCs Refrigerant Production
Innovation, R&D, and bulk technology deployment
Invest in R&D of efficient cooling and alternative cooling Deploy proven technologies in public facilities Support local manufacturing and innovation ecosystems Facilitate international technology transfer and partnerships Show all tooltips Disposal / Destruction Reuse Buildings / Cities Operation & Maintenance Sales & Distribution Manufacturing / Assembly Refrigerant Production Electricity Generation Fossil Fuel Renewables Recover and reuse refrigerants Innovate recycling methods Reuse equipment and components Reuse Ensure environmentally safe management at the end of life and destruction Disposal / Destruction Deploy smart controls and sensors Integrate hybrid cooling or heating solutions Scale up efficient building design Buildings / Cities Continuously upgrade certification curriculum for new technology Apply digital monitoring and predictive maintenance Operation & Maintenance Procure efficient appliances in bulk Launch large-scale technology deployment Showcase innovations through demonstration Sales & Distribution Redesign appliances to continuously improve efficiency Implement pilot demonstration projects Revise MEPS regularly Standardize testing and certification for new technology Manufacturing / Assembly Phase out ODS Phase down HFCs Refrigerant Production
Minimum Energy Performance Standards (MEPS)
Set mandatory MEPS for appliances’ design, operation and servicing Include refrigerant GWP value in MEPS Update standards regularly to reflect technological advances Harmonize MEPS regionally to reduce trade barriers Ensure interoperability of testing, verification and certification for mutual recognition Show all tooltips Disposal / Destruction Reuse Buildings / Cities Operation & Maintenance Sales & Distribution Manufacturing / Assembly Refrigerant Production Electricity Generation Fossil Fuel Renewables Mandate proper recovery of substances Establish extended producer responsibility schemes Implement life cycle refrigerant management Ensure environmentally sound management and destruction Disposal / Destruction Integrate MEPS compliance into building codes and permits Promote MEPS-compliant equipment in construction Implement strategies for reducing cooling load including through passive cooling Introduce alternative cooling technologies  Buildings / Cities Maintain product registration system Mandate certification of servicing technicians Introduce regular checks on installation, servicing and recovery  Conduct information campaigns on energy efficiency, servicing practices and behavioural change Promote servicing business models (e.g. cooling as a service) Operation & Maintenance Maintain product registration system Display MEPS-compliance labels on appliances Restrict sale of non-compliant products Train sales staff to explain MEPS requirements to consumers Include MEPS in bulk and public procurement and use labels for verification Provide financial incentives to consumers Sales & Distribution Design products to meet or exceed MEPS Certify compliance with MEPS through accredited labs Support industry transition (fiscal and financial  incentives, demonstration projects, rewards, support  to SMEs) Manufacturing / Assembly Phase out ODS Phase down HFCs Refrigerant Production Mandate proper recovery of substances Establish extended producer responsibility schemes Implement life cycle refrigerant management Reuse