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The document argues that Brazil's air conditioning sector suffers from low energy efficiency compared to international standards, partly due to industrial policies in the Zona Franca de Manaus (ZFM) that create distortions. It finds that the Basic Productive Process (PPB) requirements, such as the use of outdated national compressors, hinder the adoption of inverter technology and overall efficiency. Despite significant tax exemptions, the sector's productive and energy efficiency deteriorated between 2003 and 2015, contrasting with the stability of the broader Brazilian manufacturing industry. The authors recommend aligning industrial and energy policies to promote competitiveness and higher efficiency standards.

The report finds that despite significant tax exemptions, the industrial sector in the Zona Franca de Manaus (ZFM) shows no increase in productive or energy efficiency compared to the Brazilian national average. Analysis of the most representative sectors, including two-wheelers and audio/video, confirms that these incentives have not translated into comparative efficiency advantages.