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
United for Efficiency of UNEP (U4E)

Manual of Financing Mechanisms and Business Models for Energy Efficiency

This manual presents a wide range of innovative financing mechanisms and business models that have enabled investments in energy efficiency in the residential, commercial, and public sectors. It covers the barriers to investment, such as high upfront costs, risk perception, limited access to finance, and split incentives, and shows how mechanisms like loans, green credit lines, subsidies, guarantee schemes, on-bill finance, ESCOs, and public-private partnerships are used globally to overcome those challenges. For someone designing or implementing policy, this document provides examples, structuring principles, and approaches to adapt mechanisms to local conditions. It helps you understand what financing and business models are likely to work in your context, how to pair them with regulatory tools like MEPS and labels, and how they can unlock private investment.
Type of Policy
Fiscal & Financial Instruments
Market-based instrument
Target Group
Public sector
Energy planners and analysts
Utility providers
Value chain
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Product design
Document type
Case study
Modelling / Scenario analysis
Guidelines / Handbook
Region
Global
Year
2019
Case studies

Example from Rwanda demonstrating the application of the financing mechanisms and models

Example links from case study:

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Supporting policies
Energy labelling, MEPS, product registration systems, public procurement, consumer awareness campaigns, support to SMEs, cooling as a service, bulk procurement, building energy efficiency, public-private partnerships
Tags
Energy efficiency
energy finance
business models
market transformation
residential sector
commercial sector
public sector
risk mitigation
United for Efficiency of UNEP (U4E)

Ensuring Compliance with MEPS and Energy Labels

This guide helps manufacturers, importers and regulatory officials ensure that products meet energy performance standards (MEPS) and energy labelling requirements. It focuses especially on air conditioners and refrigerating appliances but the principles are applicable to other equipment. The guide outlines approaches for market surveillance, testing, verification, import controls, and enforcement so that MEPS and labels deliver real energy savings. It covers what suppliers need to do, what officials should check, and how to build reliable systems of compliance to avoid non-compliant products undermining efficiency goals.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Public sector
Manufacturers
Importers
Value chain
Manufacturing/assembly
Sales and distribution
Product design
Document type
Guidelines / Handbook
Region
Global
Year
2021
Case studies

Example from China demonstrating the implementation of energy labels

Example links from case study:

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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
Energy labels
MEPS
compliance
enforcement
supply side
regulatory guidance
refrigerating appliances
Air conditioners
United for Efficiency of UNEP (U4E)

Product Registration System (PRS) specification document

This specification document provides detailed guidance on how to set up an effective Product Registration System (PRS) to support energy efficiency policies. It defines what information regulators should capture from manufacturers or importers; product test results, model identifiers, refrigeration / cooling equipment details etc., in an online registry to help monitor market compliance with performance standards and labeling programmes. It outlines functional requirements for the software, data fields, verification steps, and processes for granting or rejecting registration. For anyone building regulatory or compliance frameworks, the PRS becomes an entry checkpoint ensuring only compliant products enter the market, helps customs, supports market surveillance and enables transparency in the supply chain.
Type of Policy
Information-based instrument
Target Group
Public sector
Policymakers
Importers
Value chain
Product design
Operations and maintenance/use phase
Document type
Guidelines / Handbook
Region
Global
Year
2020
Case studies

Examples from Australia, the EU and Philippines demonstrating the implementation of product registration system.

Example links from case study:

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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
Product registration
MEPS
compliance
Energy efficiency
refrigeration
Air conditioners
cooling sector
regulatory tool
market surveillance
United for Efficiency of UNEP (U4E)

Ceiling Fans Savings Potential Assessment

This assessment estimates the potential electricity, cost, and carbon emissions savings from implementing Minimum Energy Performance Standards (MEPS) for ceiling fans in fourteen countries with reliable sales and stock data. It compares three scenarios: Business As Usual; Minimum Ambition (applying U4E’s baseline MEPS starting January 2023); and High Ambition (applying the highest efficiency levels in the guidelines). Using country-specific data on fan efficiency, airflow, hours of use, service value, and stock turnover, the report shows how stricter MEPS can reduce electricity use significantly by 2040, lower consumer electricity bills, and avoid substantial CO₂ emissions. This resource helps governments, standards bodies, and energy agencies see what gains are possible, design MEPS for ceiling fans, estimate national savings, and justify implementation of efficiency policies.
Type of Policy
Fiscal & Financial Instruments
Market-based instrument
Information-based instrument
Target Group
Governments
Policymakers
Retailers/small and medium-term enterprises (SMEs)
Consumers
Importers
Public sector
Value chain
Electricity generation
Manufacturing/assembly
Product design
Operations and maintenance/use phase
Document type
Analytical study
Benchmarking tool
Case study
Region
Global
Year
2024
Case studies

Examples from fourteen countries demonstrating assessment of ceiling fans savings.

Example links from case study:

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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
ceiling fans
Energy efficiency
MEPS
scenario modelling
electricity savings
emission reduction
policy assessment
United for Efficiency of UNEP (U4E)

Heat Pumps Savings Potential Assessment

This assessment estimates how much energy and emissions could be saved by introducing energy-efficient heat pumps in countries with high heating demand. It compares several scenarios, including Baseline (no new interventions), Minimum Ambition (introducing MEPS from 2023), High Ambition, and a Replacement Scenario where all new heating demand is met with heat pumps. The report uses country-specific data on product efficiency, lifetime, fuel sources (gas, coal, oil, biomass, etc.), and heating degree days to project savings in delivered (and primary) energy, reductions in CO₂ emissions, and cost savings from energy bills by 2040. It shows that switching traditional heating systems (like boilers and burners) to efficient heat pumps plus stricter performance standards can offer substantial benefits. The resource helps users understand what policy levers matter most (e.g. MEPS and market penetration assumptions), and it supports planning efforts (e.g. setting efficiency targets, designing incentives) with quantitative evidence.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Public sector
Policymakers
Utility providers
Energy planners and analysts
Urban planners and developers
Value chain
Manufacturing/assembly
Sales and distribution
Buildings/urban environment
Operations and maintenance/use phase
Recovery
Recycling and reclamation
Disposal/destruction
Document type
Analytical study
Case study
Benchmarking tool
Region
Global
Year
2024
Case studies

Examples from Albania, Algeria, Argentina, Azerbaijan, Belarus, Bhutan, Bosnia and Herzegovina, Chile, China, Ecuador, Iran, Iraq, Jordan, Kazakhstan, Korea, Kyrgyz Republic, Lebanon, Macedonia, Montenegro, Peru, Russian Federation, Serbia, South Africa, Tunisia, Turkey, Turkmenistan, Ukraine, Uruguay, and Uzbekistan demonstrating the assessment of heat pump savings.

Example links from case study:

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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
Heat pumps
Energy efficiency
MEPS
cooling and heating
emissions reduction
policy assessment
sustainable technologies
United for Efficiency of UNEP (U4E)

Harmonizing of Energy-Efficiency Standards for Room Air Conditioners in Southeast Asia

This study examines how ASEAN countries can harmonize energy-efficiency standards and testing methods for room air conditioners. It provides a detailed comparison of performance metrics across member states, including adjustments for different climate zones, and highlights approaches for developing climate-sensitive minimum energy performance standards (MEPS). The resource is particularly useful for government agencies, standards bodies, and regional policymakers seeking to align national regulations, reduce market barriers, and enhance regional cooperation. It includes practical recommendations on harmonization pathways, technical considerations for MEPS and labelling programmes, and insights into how consistent standards can drive higher efficiency and cost savings for both governments and consumers.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Public sector
Policymakers
Regional organizations and NGOs
Governments
Value chain
Manufacturing/assembly
Sales and distribution
Buildings/urban environment
Operations and maintenance/use phase
Document type
Guidelines / Handbook
Analytical study
Benchmarking tool
Region
Asia-Pacific
Year
2021
Case studies

Examples from ASEAN region demonstrating the application of the standards.

Example links from case study:

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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
Room air conditioners
MEPS
Energy efficiency
ASEAN
standards harmonization
test methods
climate-sensitive policies
regional cooperation

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