How can Viet Nam meet its growing demand for cooling without compromising its climate ambitions? This study explores the market for room air conditioners and the case for revising Viet Nam’s national technical standard. Against a backdrop of rapid urbanization, a hot and humid climate, and a power system still heavily reliant on coal, it examines why more efficient cooling is increasingly important for comfort, energy use and the country’s net-zero goals by 2050.
Market Insights for Better Cooling Standards
Viet Nam's electricity grid emission factor has been on a declining trend in recent years, reflecting efforts to integrate more renewable energy sources into the national power mix. In 2020, the emission factor was 0.8041 tCO₂/MWh, which decreased to 0.7221 tCO₂/MWh in 2021, 0.6766 tCO₂/MWh in 2022, and further to 0.6592 tCO₂/MWh in 2023. Despite this progress, coal fired power remains a significant component of Viet Nam's energy landscape, accounting for 50% of the country's electricity generation as of 2024. The industrial sector's growing energy demands have led to increased coal consumption, which poses challenges for reducing the carbon intensity of the electricity system. The carbon intensity of Viet Nam's electricity system is a crucial factor influencing the indirect CO₂ emissions from the cooling sector. As the cooling demand rises due to economic growth and increasing temperatures, the reliance on electricity-intensive air conditioning and refrigeration systems grows. If this electricity is sourced from fossil fuels, particularly coal and natural gas, the indirect CO₂ emissions from the cooling sector will be significant. The increasing demand for cooling, driven by rapid urbanization and rising temperatures, underscores the importance of addressing the carbon intensity of electricity used in this sector.
The project “Accelerating Air Conditioning Transformation through Enhanced Energy Performance Standards” (ACT MEPS) conducted a market assessment for room air conditioning in Viet Nam. The project is particularly timely and significant as it aligns with Viet Nam's national priorities for sustainable development and climate action while addressing increase in MEPS and amends standards for improving energy efficiency for RACs of Viet Nam and harmonizing standards with ASEAN countries. The project's outcomes will provide valuable insights and practical recommendations for policymakers, building professionals, and stakeholders working towards achieving Viet Nam's sustainability and climate goals. This will contribute to achieving national and international environmental goals while supporting economic development and sustainability in the refrigeration and air conditioning industry.