IMPROVING EFFICIENCY FOR AIR CONDITIONERS

The document argues that Brazil's air conditioning (AC) sector lags in energy efficiency compared to international peers and that the current industrial policy in the Manaus Free Trade Zone (ZFM) creates distortions that hinder efficiency gains. Despite significant tax exemptions, the Basic Production Process (PPB) requirements—such as the mandatory use of domestically produced, outdated non-inverter compressors—conflict with energy efficiency goals. The brief recommends aligning industrial policy with energy performance standards and labeling policies to foster a more competitive and efficient sector.

• Brazil's air conditioner energy efficiency has lagged significantly behind other countries; between 2010 and 2018, average efficiency in Brazil increased by only 10.2%, whereas India saw a 29% improvement (2011-2017) and Vietnam saw a 30.8% improvement (2013-2018).
• The industrial policy of the Manaus Free Trade Zone (ZFM) does not appear to have improved the sector's efficiency; between 2003 and 2015, energy efficiency in the AC sector declined by 2% and productive efficiency declined by 5% for both Brazil and the ZFM.
• The Basic Production Process (PPB) mandates the use of domestic compressors (30% for split units and 50% for window units), but these are based on outdated technology and are not inverter compressors, which are essential for reducing energy waste.
• The ZFM is the primary hub for AC production in Brazil, accounting for 58% of the sector's gross value of industrial production and 48% of its employees as of 2015, though workers there earn the lowest average wages compared to other states.
• Tax expenditures for the industrial ZFM totaled approximately R$ 4.3 billion reals in 2015, with the air conditioning sector receiving 7% of that amount, or R$ 285 million reals.
• Rapid growth in AC sales—which more than tripled between 2005 and 2017—combined with stagnant energy efficiency led to a 237% increase in electricity consumption by residential air conditioners during that period.
• Increasing the efficiency of Brazil's air conditioners could reduce CO2 greenhouse gas emissions by 6.3 metric tons by 2035 and result in energy savings of 14.5 TWh or R$ 8 billion reals.

APA

SCHUTZE, A., HOLZ, R., & ASSUNÇÃO, J. (2020). IMPROVING EFFICIENCY FOR AIR CONDITIONERS. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/06/Policy-Brief-Improving-efficiency-for-air-conditioners.pdf

Chicago

SCHUTZE, AMANDA, RHAYANA HOLZ, and JULIANO ASSUNÇÃO. IMPROVING EFFICIENCY FOR AIR CONDITIONERS. Climate Policy Initiative, 2020. https://www.climatepolicyinitiative.org/wp-content/uploads/2020/06/Policy-Brief-Improving-efficiency-for-air-conditioners.pdf.

Wikipedia

{{cite report |last1=SCHUTZE |first1=AMANDA |last2=HOLZ |first2=RHAYANA |last3=ASSUNÇÃO |first3=JULIANO |title=IMPROVING EFFICIENCY FOR AIR CONDITIONERS |publisher=Climate Policy Initiative |date=August 2020 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2020/06/Policy-Brief-Improving-efficiency-for-air-conditioners.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{schutze2020improving, author = {SCHUTZE, AMANDA and HOLZ, RHAYANA and ASSUNÇÃO, JULIANO}, title = {{IMPROVING EFFICIENCY FOR AIR CONDITIONERS}}, institution = {Climate Policy Initiative}, year = {2020}, month = aug, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2020/06/Policy-Brief-Improving-efficiency-for-air-conditioners.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }