Energy consumption for space cooling has more than tripled since 1990, as have indirect CO2 emissions, which surpassed 1 billion metric tons in 2022. And there is no sign of this trend slowing: demand is projected to triple again by 2050 without a pointed focus on energy efficiency. The onus is therefore on the HVAC sector to innovate and decarbonize at pace.  

When we talk about decarbonizing the industry, we are focusing on three pillars that have the most significant impact on onsite and off-site emissions: energy efficiency, refrigerants and electrification. While individual companies like ours can — and do — set specific sustainability goals to reach global climate targets, legislation and industry standards are also essential to accelerate progress.   

As these standards evolve, they are reshaping the design, manufacture and operation of HVAC systems, pushing the industry toward a more sustainable future. Here’s how legislation is impacting and advancing the decarbonization of HVAC. Updated every three years, the aim is to reach net-zero buildings by 2031. One of the ways it will achieve this is by setting increasingly stringent requirements for HVAC equipment efficiency. ASHRAE is discussing a new proposal that would prescriptively require HVAC systems in buildings with both heating and cooling to be “space heating heat pump primary” systems. What this means is that the first heating system to turn on in such buildings would be a high-efficiency heat pump.  

Daikin and other companies offer a range of products that meet and sometimes surpass the ASHRAE 90.1 requirements. Our Pathfinder air-cooled screw chiller, for example, exceeds Standard 90.1 baseline efficiency levels by more than 60%. These levels are the environmental impact of HVAC systems.  The AIM Act is designed to reduce the supply and use of HFCs while increasing their recycling. We already employ this approach here at Daikin. Our reclamation program facilitates the recovery, regeneration and reuse of refrigerants such as R-410A, R-134a and R-32, reducing the environmental impact of end-of-life refrigerant disposal. Through programs like this, we recover over 4 million metric tons of CO2 equivalent of refrigerants each year.  

We believe in the right refrigerant for the right application — and R-32 will support our new generation of rooftop units and air-cooled scroll chillers. Meanwhile, more environmentally friendly hydrofluoroolefin (HFO)-based solutions like R-513A, R-515A 1233zd(E) and 1234ze(E) will be available to support our screw and centrifugal compression chiller products.  

We don’t expect the U.S. Environmental Protection Agency, which enacts the AIM Act, to take any further action on GWP restrictions for residential and commercial HVAC applications in the foreseeable future.It has led to the increased adoption of heat pumps and variable refrigerant flow systems for both heating and cooling, the integration of thermal energy storage solutions, and the development of hybrid systems combining gas and electric heating in conjunction with heat pumps. 

Other U.S. states are following suit. In New York, there’s now a proposed cap-and-invest program that will help fund critical investments in energy efficiency. Meanwhile, in Washington, the Clean Buildings Bill came into force in 2023, with early-adopter incentives to encourage building owners to make energy efficiency improvements ahead of schedule. 

Daikin has been at the forefront of this transition, developing advanced heat pump technologies that are three to five times more efficient than traditional heating systems such as boilers. Global heat pump sales have grown steadily over the past decade and, soon, are likely to be either greatly incentivized or become a requirement, as the rating systems for energy efficiency are set to change and become more stringent in 2029.To address the challenges of decarbonization, our entire industry must collaborate and shape the related standards and regulations, ensuring positive outcomes for both customers and the environment.  

Industry bodies like the Air-Conditioning, Heating, and Refrigeration Institute are crucial in lobbying for regulations and influencing standards. In addition, external stakeholders, such as non-profits, utilities, hospitals and municipalities, also play a significant role here. 

Decarbonizing the HVAC sector is both urgent and complex. As an industry, we must continue to innovate and adapt within this evolving standards landscape to meet climate targets while achieving design and cost goals. 

To learn more about how Daikin is helping customers build a carbon-free future, visit daikinapplied.com/decarbonization.