How to Cool Down in a World Heating Up: Energy Efficiency Policies to Address Rising Cooling Demand

By Anoushka, Sophie Kalista, Adenieke Lewis-Gibbs, Evelyn Mang, Francesca Pastorelli

Abstract

Rising cooling demand driven by higher temperatures and incomes threatens to strain electricity grids and accelerate climate change, making effective, scalable policies urgently needed to ensure grid stability, equitable cooling access, public health protection, and emissions reductions. While passive cooling measures in buildings and behavioural changes should be prioritised, the demand for air conditioner units continues to increase. The scope of this paper will focus on policies targeting the energy efficiency of air conditioner plugged-in units in residential, commercial, and public spaces. To identify best-practice policies, a database of 88 policies spanning 26 countries and 3 multilateral coalitions was collected and the following case studies were selected: Green Cooling Action Plan (China), Coolease (Rwanda), Cool Biz (Japan), and regional initiatives (ASEAN and SADC). The case studies cover several policy instruments, including regulatory, information, and incentive-based policies in different regions, to identify how different policy levers address barriers to energy-efficient cooling. Our findings suggest that strong policies targeting energy efficiency for cooling involve comprehensive policy packages, strong stakeholder engagement, financial mechanisms tailored to local contexts, and public leadership to set norms.