Newly revised efficiency standards for ACs in Brazil and India
Stringent minimum energy performance standards (MEPS) for air-conditioning (AC) equipment contribute to cutting down the energy demand for ACs globally. Setting up and periodically revising energy efficiency regulations on a national scale is key to moving towards more high-efficiency equipment.
In a 2018 report, the International Energy Agency (IEA) stated that setting up more stringent minimum energy performance standards (MEPS) for air-conditioning (AC) equipment could increase the average efficiency of installed equipment. As a result, an “efficient cooling scenario” in which the energy efficiency of equipment is maximized, could lead to a 45% reduction in the global energy demand for ACs by 2050.  In this context, Brazil and India have revised their air conditioners energy efficiency criteria upwards.  China had recently done the same. 
Brazil is the largest AC market in Latin America, with strong demand for more energy-efficient models due to high electricity prices.  In July 2020, Brazil introduced a new efficiency labeling scale for air conditioners (AC), with the objective of doubling the performance levels of ACs over the next five years. Published by the National Institute of Metrology, Standardization, and Industrial Quality (Inmetro), a new regulation will be implemented in two phases.
- Phase 1: Starting in December 2022, in order to obtain an A rating, ACs will have to be 52% more efficient than models currently rated ‘A’.
- Phase 2: Starting in December 2025, performance requirements will be raised again in 2025 and ACs will have to be 108% more efficient than today’s models.
The two-phase approach gives manufacturers time to adjust, since early compliance to phase 1 is optional, while compliance to phase 2 is mandatory. 
The regulation will introduce new levels of energy classification, using a Cooling Seasonal Performance Factor (CSPF) based on ISO 16358-1:2013. The CSPF is calculated as the ratio between the total annual amount of heat that the equipment can extract from the indoor air when operated for cooling in active mode, and the total annual amount of energy consumed by the equipment over the same period.
As of 31st December 2025, national manufacturers and importers will have to manufacture or import, for the domestic market, only split type air conditioners with a CSPF between ≥ 3.50 for class F and ≥ 7.00 for class A models. As of 30th June 2027, establishments engaged in distribution or commercial activities will have to sell on the national market only split air conditioners with a CSPF between ≥ 3.50 for class F and ≥ 7.00 for class A models. 
The expected impact of this new regulation includes: an estimated 2,804 GWh energy saved in 2023 – 2025 and 1.3 MT of potentially avoided CO2 emissions.
Table. Revised levels of energy efficiency classes according to Brazil regulation Inmetro n°234, 29th June 2020 
|Split Air Conditioners|
|(mandatory from 1st January 2023)||
(mandatory from 1st January 2026)
|Classes||Cooling Seasonal Performance Factor - CSPF||Cooling Seasonal Performance Factor - CSPF|
|A||≥ 5.50||≥ 7.00|
|B||≥ 5.00||≥ 6.00|
|C||≥ 4.50||≥ 5.30|
|D||≥ 4.00||≥ 4.60|
|E||≥ 3.50||≥ 3.90|
In 2015, the Indian Bureau of Energy Efficiency (BEE) introduced a star rating system for air conditioners based on the Indian Seasonal Energy Efficiency Ratio (ISEER). The ISEER is calculated as the ratio between the total annual amount of heat that the equipment can extract from the indoor air when operated for cooling in active mode, and the total annual amount of energy consumed by the equipment over the same period. 
In 2020, the BEE published an updated standard requiring an ISEER between 3.3 and 5.0 for split air conditioners and an ISEER between 2.7 and 3.5 for window air conditioners, effective 2021.  For instance, a 5-star split type room AC should currently have an ISEER of 4.5. Over the period 2021-2023, split type room ACs will require an ISEER of 5.0 to achieve a 5-star rating.
The BEE plans to periodically revise the star rating system in order to continuously improve the energy performance of ACs manufactured, imported, purchased or sold in India. Since the implementation of this policy in 2015, the energy performance of 1-star split ACs and 5-star split ACs has improved by 43% and 61% respectively. By 2018, the BEE estimated that the policy had led to savings of about 74 billion units of electricity (equivalent of 74 terawatt-hour) and avoided 60 million tons of CO2 emissions. Moreover, the BEE states that the ISEER score has pushed the market towards more efficient variable speed technology. Consequently, the market share of inverter ACs in India increased from 4% in 2015 to 54% in 2018.