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.

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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)

Model Regulation Guidelines for Climate-Friendly and Energy-Efficient Refrigerators

The Model Regulation Guidelines for Climate-Friendly and Energy-Efficient Refrigerators help governments, especially in developing and emerging economies, design or update regulatory frameworks requiring new refrigerators to be both energy-efficient and climate-friendly, by setting Minimum Energy Performance Standards (MEPS) and encouraging lower-GWP refrigerants while banning imports of used models. The guidelines target residential and light commercial appliances and are paired with supporting information that explains the policy rationale, methodological underpinnings, and global context of expanding refrigerator ownership while managing energy and environmental impact.
Type of Policy
Regulatory instrument
Market-based instrument
Information-based instrument
Target Group
Manufacturers
Governments
Public sector
Importers
Policymakers
Value chain
Manufacturing/assembly
Sales and distribution
Product design
Operations and maintenance/use phase
Document type
Guidelines / Handbook
Model code / Regulation
Region
Global
Year
2019
Case studies

Example from Chile demonstrating how the guidelines have been applied.

Example links from case study:

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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
low-GWP refrigerants
cooling
market transformation
refrigerators
supply side
Sustainable Purchasing Leadership Council

Refrigerants Procurement Climate Collaborative

The Refrigerants Procurement Climate Collaborative (PCC) provides guidance and practical tools to help organizations reduce greenhouse gas emissions associated with refrigerants used in air conditioning, refrigeration, and heat pump equipment. Developed by the Sustainable Purchasing Leadership Council, the resource supports institutional and public procurement professionals in identifying, specifying, and managing low-GWP refrigerant alternatives across the equipment life cycle. The PCC offers model procurement language, technical resources, and policy templates that can be integrated into organizational purchasing and facility management processes.
Type of Policy
Market-based instrument
Information-based instrument
Capacity-building resource
Target Group
Governments
Policymakers
Manufacturers
Retailers/small and medium-term enterprises (SMEs)
Public sector
Donors
Urban planners and developers
Energy planners and analysts
Utility providers
Value chain
Refrigerant production
Manufacturing/assembly
Buildings/urban environment
Operations and maintenance/use phase
Recovery
Recycling and reclamation
Product design
Disposal/destruction
Sales and distribution
Document type
Toolkit / Tools
Region
Global
Year
2025
Case studies

The report includes examples of public and private sector organizations implementing low-GWP refrigerant procurement policies and refrigerant tracking systems

Example links from case study:

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Supporting policies
Sustainable public procurement, refrigerant management and inventory tracking, minimum energy performance standards (MEPS), end-of-life recovery and destruction, green building certification, lifecycle GHG reporting
Tags
Refrigerants
sustainable procurement
HFC phase-down
low-GWP technologies
institutional purchasing
cooling sector
lifecycle management
International Energy Agency

Energy Technology Perspectives 2024

The Energy Technology Perspectives 2024 (ETP-2024) is the IEA's flagship analytical report, focusing on the evolving landscape of clean energy technology manufacturing and trade. It provides in-depth analysis based on new data, industry surveys, and bottom-up modeling approaches. The report examines the connections between energy, trade, manufacturing, and climate, offering insights into developing secure and resilient supply chains for key clean energy technologies such as solar PV, wind turbines, electric vehicles, batteries, electrolysers, and heat pumps.
Type of Policy
Information-based instrument
Target Group
Governments
Policymakers
Value chain
Product design
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Document type
Analytical study
Region
Global
Year
2024
Case studies

The report includes detailed analyses and case studies on the development of clean energy technology supply chains, highlighting best practices and lessons learned from various countries and regions. Specific case studies are embedded within the report's chapters.

Example links from case study:

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Supporting policies
Energy labelling, MEPS, building energy codes, harmonized testing procedures, public procurement, financial incentives, capacity building, consumer awareness campaigns
Tags
Clean energy technologies
manufacturing
trade
supply chains
policy recommendations
energy transition
International Energy Agency

Regional Energy Efficiency Policy Recommendations

The Regional Energy Efficiency Policy Recommendations document provides a comprehensive framework for enhancing energy efficiency across various regions. It emphasizes the importance of adopting a combination of regulatory measures, information dissemination, and incentives to drive energy efficiency improvements. The recommendations are designed to assist policymakers in developing and implementing effective energy efficiency policies tailored to their specific regional contexts.
Type of Policy
Information-based instrument
Target Group
Policymakers
Governments
Public sector
Value chain
Product design
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Buildings/urban environment
Document type
Guidelines / Handbook
Region
Global
Year
2023
Case studies

Report outlining how different countries (Australia, Austria, Brazil, Canada, Chile, China, Denmark, France, Germany, India, Ireland, Italy, Japan, Mexico, Netherlands, New Zealand, Norway, Singapore, South Africa, Sweden, Switzerland, Thailand, United Kingdom, and United States) have implemented the recommendations.

Example links from case study:

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Supporting policies
Energy labelling, MEPS, building energy codes, harmonized testing procedures, public procurement, financial incentives, capacity building, consumer awareness campaigns
Tags
Energy efficiency
policy recommendations
MEPS
labelling
appliance standards
buildings
cooling
market transformation
International Energy Agency

Global Energy and Climate Model

The Global Energy and Climate Model (GEC Model) is a comprehensive modelling framework used by the IEA to produce long-term energy scenarios, including the Stated Policies Scenario (STEPS), Announced Pledges Scenario (APS), and Net Zero Emissions by 2050 Scenario (NZE). The model integrates current and planned policies, technology cost and performance data, socio-economic drivers, and energy demand/supply transformations to explore possible pathways for the global energy system. It helps countries understand implications of policy choices across sectors and gives insight on what kinds of appliance efficiency, cooling demand, refrigerant phase-down, and emissions reductions are feasible under various policy ambitions.
Type of Policy
Market-based instrument
Information-based instrument
Target Group
Governments
Policymakers
Manufacturers
Consumers
Importers
Public sector
Regional organizations and NGOs
Utility providers
Donors
Urban planners and developers
Energy planners and analysts
Value chain
Refrigerant production
Electricity generation
Manufacturing/assembly
Buildings/urban environment
Product design
Disposal/destruction
Sales and distribution
Document type
Modelling / Scenario analysis
Region
Global
Year
2024
Case studies

Example from Kenya and Example from China demonstrating the application of the projections from the model.

Example links from case study:

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Supporting policies
MEPS, appliance testing and labelling, refrigerant phase-down policies, renewable electricity expansion, clean cooling deployment, financial & regulatory incentives, clean technology innovation
Tags
Scenario analysis
climate modelling
cooling demand
emissions pathways
International Energy Agency

Net Zero by 2050: A Roadmap for the Global Energy Sector

This report lays out what would need to happen across the global energy sector to achieve net-zero carbon dioxide emissions by 2050, consistent with limiting global warming to 1.5 °C. It includes more than 400 milestones in energy supply, demand, infrastructure, technology deployment, and investment. It covers policy, behavioural changes, technology shifts, and regulatory measures needed from now through multiple decades to 2050. It’s a key evidence base for governments planning long-term strategies, including how cooling, refrigeration, and heat pump technologies should evolve.
Type of Policy
Information-based instrument
Target Group
Governments
Energy planners and analysts
Urban planners and developers
Donors
Utility providers
Regional organizations and NGOs
Manufacturers
Policymakers
Value chain
Electricity generation
Manufacturing/assembly
Buildings/urban environment
Operations and maintenance/use phase
Recovery
Recycling and reclamation
Sales and distribution
Product design
Disposal/destruction
Document type
Guidelines / Handbook
Modelling / Scenario analysis
Region
Global
Year
2021
Case studies

Illustrative trajectories in advanced economies vs emerging markets showing what efficiency, electrification, and renewable energy uptake must look like.

Example links from case study:

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Supporting policies
MEPS, labelling, renewable energy mandates, carbon pricing, building codes, phase-down of unabated fossil fuels, investment in grids and infrastructure, innovation and R&D funding, procurement and regulation of efficient appliances
Tags
Net zero 2050
energy transition
global roadmap
emissions reduction
cooling
Energy efficiency
renewable energy
policy milestones

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