As global temperatures rise, cooling appliances like air conditioners (ACs) are becoming increasingly essential for people to cope with extreme heat. Global demand for ACs is skyrocketing, with the International Energy Agency predicting a surge in the global number of ACs in use from 1.6 billion in 2023 to 5.6 billion in 2050.
India is on the frontline of this shift. Hotter, longer summers and more frequent heatwaves are driving rapid growth in AC demand. The country already has 110 million room ACs in use, and the number is expected to more than double over the next decade. Despite this rapid growth, access to cooling remains highly unequal. Only about 8 percent of India’s 300 million households own an AC, with higher-income urban families accounting for most of that group. For many households, affordability is the key challenge. Inefficient cooling appliances risk locking consumers into high electricity bills.
The rapid surge in cooling demand also puts climate and energy systems at a crossroads. Without efficient technologies and smart policies, this surge could drive up peak electricity demand, strain national grids, raise costs for consumers and utilities, and increase CO₂ emissions.
India raises the bar on cooling efficiency
To sustainably address India’s skyrocketing AC demand, the Bureau of Energy Efficiency (BEE), with support from CLASP, adopted strengthened efficiency standards for ACs in 2024, which took effect on 1 January 2026. Building on this progress, CLASP and BEE have collaborated on an even more ambitious revision that will position India as a global leader in AC efficiency when it takes effect in 2028.
Appliance efficiency has a proven track record of delivering immediate, measurable results. Strong efficiency standards reduce electricity consumption, curb peak demand, and lower energy bills. As heat intensifies and fans are no longer enough to ensure people’s safety and productivity, energy-efficient ACs are becoming essential infrastructure for protecting people and the planet.
Before the new AC policy was instituted, India had already demonstrated leadership through its National Cooling Action Plan, a comprehensive 20-year roadmap to reduce cooling demand and refrigerant use while improving energy efficiency and technology options across sectors. Under this framework, BEE has successfully regulated a wide range of appliances and equipment, including fans, cold chains, and chillers, with CLASP’s support.
On the AC policy, CLASP supported BEE by providing robust, evidence-based technical assistance. This included product testing to understand how ACs perform in real-world conditions, market and affordability analyses to assess impacts on consumers, and reviews of global pricing trends to benchmark ambition. CLASP also evaluated manufacturer performance to ensure the standards were feasible for industry to meet.
Overall, this analysis helped policymakers set efficiency levels that are both ambitious and achievable, while also technically sound and aligned with India’s broader cooling sustainability goals.
New policy yields massive returns for people, power systems, and planet
By 2030, the new standard could reduce India’s peak electricity load by 8–10 GW, avoiding the need for more than 20 large coal power plants. Consumers could collectively save an estimated $12 billion on electricity bills each year, making cooling more affordable, especially for low- and middle-income households. At the same time, the policy is projected to help the country avoid up to 1,185 megatons of CO₂ emissions by 2050.
India’s approach demonstrates that fast-growing economies can meet rising cooling demand while strengthening energy security, protecting vulnerable households, and advancing climate goals, offering a powerful model for other countries facing similar challenges.