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
International Energy Agency

Roadmap towards Sustainable and Energy-Efficient Space Cooling in the Association of Southeast Asian Nations

The Roadmap towards Sustainable and Energy-Efficient Space Cooling in ASEAN addresses the rapidly growing demand for space cooling (air conditioners and fans) in ASEAN due to economic development, population growth, and urbanization. It sets ambitious regional targets and milestones aimed at decoupling cooling access from high electricity demand and greenhouse gas emissions. The roadmap outlines a suite of foundational policy measures such as MEPS, energy labelling, and harmonized test standards along with complementary incentives, regulatory, information, and enforcement tools. It provides guidance to ASEAN Member States on designing policy packages tailored to their national contexts, including timelines and milestones to guide progress.
Type of Policy
Regulatory instrument
Market-based instrument
Information-based instrument
Target Group
Governments
Policymakers
Utility providers
Urban planners and developers
Energy planners and analysts
Value chain
Electricity generation
Manufacturing/assembly
Buildings/urban environment
Operations and maintenance/use phase
Recovery
Recycling and reclamation
Product design
Document type
Guidelines / Handbook
Region
Asia-Pacific
Year
2008
Case studies

Examples from multiple ASEAN countries including Thailand and Indonesia demonstrating the adoption of efficient cooling technologies.

Example links from case study:

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Supporting policies
MEPS, energy labelling, harmonized test standards, monitoring, verification and enforcement (MV&E) systems, regulatory incentives such as rebates, grants, or tax incentives, building energy codes
Tags
ASEAN
space cooling
MEPS
energy labelling
efficiency roadmaps
harmonization
policy package
cooling service models
fans
Air conditioners
International Energy Agency

Cities Technology Collaboration Programme (Cities TCP)

The Cities Technology Collaboration Programme (Cities TCP) is an international initiative under the IEA that supports cities and governments in advancing sustainable, energy-efficient, and resilient urban systems. It connects research outcomes from other IEA TCPs such as buildings, energy systems, and transport, with real-world applications in cities to accelerate the net-zero energy transition. The programme provides policymakers and planners with practical guidance, analytical tools, and tested strategies to integrate energy efficiency, clean energy, and digital innovation into urban development.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Governments
Policymakers
Public sector
Regional organizations and NGOs
Utility providers
Urban planners and developers
Energy planners and analysts
Value chain
Buildings/urban environment
Operations and maintenance/use phase
Product design
Recovery
Recycling and reclamation
Document type
Case study
Benchmarking tool
Region
Global
Year
2021
Case studies

Yokohama Smart City Project in Japan and Amsterdam Circular Economy Programme

Example links from case study:

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Supporting policies
Building energy codes, district energy systems, smart city strategies, renewable integration, energy-efficient building standards, data-sharing frameworks, public procurement
Tags
Cities
urban energy transition
smart infrastructure
Energy efficiency
district cooling and heating
renewable integration
policy collaboration
net zero
International Energy Agency

Heat Pumping Technologies-Technology Collaboration Programme (HPT TCP)

The Heat Pumping Technologies TCP (HPT TCP) is an international programme dedicated to advancing research, development, demonstration, and deployment of heat pump technologies used in heating, cooling, air-conditioning, and refrigeration. It supports member countries in overcoming technical, regulatory, and market barriers by organizing collaborative “annex” projects that focus on technical innovation, harmonizing test methods, exploring low-GWP refrigerants, and enabling system integration (e.g. with thermal networks or smart grid). The programme also publishes annual reports, organizes triennial conferences (Heat Pump Conference), and provides a platform for sharing best practices among policy, industry, and research actors.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Governments
Policymakers
Manufacturers
Energy planners and analysts
Urban planners and developers
Regional organizations and NGOs
Value chain
Product design
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Buildings/urban environment
Document type
Benchmarking tool
Case study
Region
Global
Year
1978
Case studies

Examples from Austria, France, Germany, Italy, South Korea, Sweden demonstrating how to transition to refrigerants with lower climate impact.

Example links from case study:

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Supporting policies
MEPS, energy labelling, financial incentives for cleaner refrigerants, market surveillance, regulation of refrigerants, policies for system integration and grid flexibility
Tags
Heat pumps
low-GWP refrigerants
high-temperature applications
system integration
technical standards
innovation
clean cooling
International Energy Agency

4E (Energy Efficient End-use Equipment) technology collaboration programm

The Energy Efficient End-Use Equipment (4E) Technology Collaboration Programme is an international platform under the International Energy Agency (IEA) that supports governments in designing, implementing, and harmonizing policies to improve energy efficiency in appliances, lighting, and equipment. Through research, data sharing, and comparative analysis, 4E helps member countries coordinate minimum energy performance standards (MEPS), labelling schemes, and test procedures across global markets. It focuses on end-use products with significant energy demand such as air conditioners, heat pumps, lighting, and motors. The programme supports participating countries in developing robust monitoring, verification, and enforcement (MVE) systems and advancing test methods that reflect real-world energy use. It also conducts policy impact assessments and develops guidelines for harmonized performance standards.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Governments
Policymakers
Public sector
Regional organizations and NGOs
Manufacturers
Value chain
Product design
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Document type
Benchmarking tool
Case study
Region
Global
Year
2008
Case studies

Examples from multiple 4E economies including China, Japan and Korea demonstrating the application of this tool.

Example links from case study:

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Supporting policies
Energy labelling, MEPS, test standards harmonization, product registration systems, public procurement, consumer awareness, and compliance frameworks
Tags
Energy efficiency
MEPS
labelling
testing
harmonization
compliance
market transformation
cooling
appliances
International Energy Agency

The Go-to Guide for Sustainable District Cooling

The Go-to Guide for Sustainable District Cooling summarises state-of-the-art technologies, methods, and approaches for designing and operating district cooling systems in a sustainable way. It covers innovative cooling technologies, residual heat use, storage, free cooling, solar cooling, and demonstrates how to combine systems to improve efficiency, reduce environmental impact, and lower operational costs. The resource aims to help practitioners and policy makers understand what direction district cooling should move toward (efficiency, sustainability, integration of low-GWP refrigerants) and provides detailed examples of existing demonstration plants.
Type of Policy
Information-based instrument
Market-based instrument
Target Group
Utility providers
Urban planners and developers
Energy planners and analysts
Policymakers
Value chain
Product design
Manufacturing/assembly
Sales and distribution
Operations and maintenance/use phase
Buildings/urban environment
Document type
Guidelines / Handbook
Case study
Benchmarking tool
Region
Global
Year
2020
Case studies

Examples from Sweden, China and Italy demonstrating the application of the guidelines.

Example links from case study:

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Supporting policies
Inclusion of district cooling in building authorizations, subsidies or financing support for sustainable district cooling, regulation of refrigerants (Kigali Amendment), test standards / performance requirements, integration with renewable energy and residual heat, environmental impact assessments
Tags
District cooling
sustainable cooling
guidelines
residual heat
free cooling
solar cooling
district energy systems
environmental impact
CLASP

Mepsy: Appliance & Equipment Climate Impact Calculator

Mepsy is CLASP’s digital tool for modeling the energy, emission, and cost impacts of different policy assumptions for appliances and equipment. It is pre-loaded with data for over 160 countries, enabling users to simulate policy scenarios through 2060. Users can select countries, set policy timelines, and adjust assumptions to see the projected outcomes of efficiency measures, helping them make informed decisions, track progress, and design targeted strategies to drive appliance markets toward higher efficiency.

Type of Policy
Capacity-building resource
Information-based instrument
Target Group
Consumers
Donors
Energy planners and analysts
Governments
Importers
Manufacturers
Policymakers
Public sector
Regional organizations and NGOs
Retailers/small and medium-term enterprises (SMEs)
Urban planners and developers
Utility providers
Value chain
Buildings/urban environment
Disposal/destruction
Electricity generation
Manufacturing/assembly
Operations and maintenance/use phase
Product design
Recovery
Recycling and reclamation
Sales and distribution
Document type
Modelling / Scenario analysis
Region
Global
Year
2025
Case studies

Example from Botswana demonstrating how the tool was used to prioritize appliances for government action.

Example links from case study:

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Supporting policies
Energy standards and labelling, public procurement, financial incentives, building energy efficiency
Tags
climate assessment
Energy efficiency
market transformation
policy evaluation

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