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Latin America and the Caribbean: implementing efficiency policies to curb dumping of inefficient air conditioners

According to a report published by the CLASP, 44% of all new air conditioners sold in eleven countries in Latin America and the Caribbean constitute environmental dumping of low efficiency equipment. However, Brazil and Grenada are paving the way to eliminate low-efficiency efficient ACs and obsolete refrigerants.

According to the Collaborative Labelling and Appliance Standards Programme (CLASP), the single split room air conditioner (AC) market reached 8.6 million units in 11 countries in Latin America and the Caribbean, with Brazil, Mexico, and Argentina accounting for 88% of the total.

 

Overview of environmental dumping in Latin America and the Caribbean

 

In a recent report, the CLASP concluded that 44% of all new AC units sold in Latin America and the Caribbean constitute environmental dumping of low efficiency equipment.

The minimum energy performance standard (MEPS) threshold used to define low-efficiency units in this report are consistent with best practice recommendations by United for Efficiency (U4E) in its model regulations for air conditioners. The threshold also aligns with China’s room air conditioner MEPS, which was identified as one of the most ambitious (see our previous articles [2] and [3]).

In this report, AC units which do not meet the efficiency levels described in Table 1 were considered low efficiency. Policies that align with or exceed this level are considered ambitious.

 

Table 1. Global benchmark efficiency levels for different room AC cooling capacities, according to CLASP [1]
Cooling Capacity (CC) Cooling Seasonal Performance Factor (CSPF)
CC ≤ 4.5 kW 6.1 Wh/Wh
4.5 kW < CC ≤ 7.1 kW 5.1 Wh/Wh
7.1 kW < CC ≤ 14.0 kW 4.5 Wh/Wh

 

 

In addition, room ACs containing R-410A, an obsolete high-GWP refrigerant, dominate the market in 10 of the 11 focus countries, ranging from 50% of sales in Grenada to 100% of sales in Colombia, the Dominican Republic, and Panama. As of 2025, 78% of AC units imported to the region contained R-410A (GWP100 = 2 285).

 

Based on the metric used in the report, room AC units using R-32 are considered on average more efficient than those that use R-410A, with a median efficiency of CSPF 5.53 Wh/Wh compared to CSPF 4.83 Wh/Wh for R-410A units.

 

Case studies of market transformation towards energy efficiency: Brazil and Grenada

 

In the report’s assessment of the regional market, Brazil positively stands out as most of the local manufacturing of AC units has transitioned to R-32, a low-GWP refrigerant. In 2025, 95% of the country’s available units contained R-32.

Following the implementation of stringent efficiency policies based on CSPF in 2020, Brazil now has the most efficient room AC market among focus countries, with over 55% of the units at or above the global benchmark level. In addition, the market share of room ACs using energy-efficient inverter technology in the nation increased by 35% within four years.

 

In Grenada, the transition from obsolete refrigerants to ultralow-GWP refrigerants such as R-290 is underway through capacity building and technician training, awareness-raising campaigns among stakeholders and the development a national code of practice for refrigerant handling and safety requirements. As a result of these coordinated efforts, the market share of R-290 room ACs in Grenada reached 10% by 2023 and is projected to grow to 65% by 2028.

 

According to CLASP, if the governments of all 11 countries studied adopted ambitious room AC efficiency policies, they could reduce emissions by up to 173 MtCO2e by 2050.

 

For more information on the air conditioner market in Latin America and the Caribbean, the complete report is available for download on the CLASP website:

 

 

Sources

[1] CLASP and IGSD (2026). Pathways to prevent environmental dumping of climate-harming room air conditioners in Latin America and the Caribbean. https://doi.org/10.70098/JCRA7148 Produced with support from the Climate and Clean Air Coalition.

[2] IIR (2023). The most ambitious energy efficiency standards compared. https://iifiir.org/en/news/the-most-ambitious-energy-efficiency-standards-compared

[3] IIR (2023). Positive impact of recent MEPS on the air conditioner market in China. https://iifiir.org/en/news/positive-impact-of-recent-meps-on-the-air-conditioner-market-in-china