Southeast Asia is becoming a dumping ground for outdated air conditioners, but stronger regulations could reverse the trend and benefit both wallets and the environment.
JAKARTA: As temperatures soar across Southeast Asia, demand for air conditioners has skyrocketed. For technicians like 25-year-old Riki in Jakarta, this means up to 12 service calls daily—double his usual workload. But while air conditioners provide relief from the heat, most of those purchased in the region are energy-inefficient and harmful to both the climate and consumers’ pockets.
A recent report by CLASP, a global NGO advocating for energy-efficient appliances, found that Southeast Asia is a dumping ground for outdated air conditioners. These units often fail to meet minimum energy performance standards (MEPS) in their countries of origin, where stricter regulations prevail.
Dumped Air Conditioners: A Growing Problem
Dumped air conditioners are units that fall below MEPS in the exporting country but are sold in markets with weaker standards. According to CLASP, nearly 6.2 million of the 8.3 million air conditioners sold across Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam in 2021 were low-efficiency models.
Indonesia is the worst-hit, with 97% of its air conditioners categorized as inefficient. The Philippines followed at 78%. Even Singapore, with its stricter standards, saw 21% of its sales comprising low-efficiency units.
“These inefficient air conditioners strain energy grids, increase electricity bills, and exacerbate climate change,” said Lina Kelpsaite, CLASP’s climate team manager.
The Role of Exporting Countries
Many inefficient units come from multinational brands based in China, South Korea, Japan, and the United States. About 30% of these air conditioners are imported from outside the region, with nearly 93% of Chinese exports failing to meet China’s MEPS.
South Korea and Japan, despite higher domestic standards, have also contributed significantly to the problem.
Climate and Consumer Costs
Indonesia, already the world’s ninth-largest emitter of greenhouse gases, heavily relies on fossil fuels for electricity generation. Inefficient air conditioners worsen the situation, leading to higher emissions and energy costs.
CLASP estimates that banning inefficient air conditioners across the six countries could save consumers $148 billion and cut over 1 billion metric tons of carbon dioxide emissions over 25 years.
For Indonesian households, opting for energy-efficient models could save $846 over eight years—more than offsetting their higher upfront cost.
Government Actions and Consumer Awareness
Indonesia has regulations requiring energy-efficiency labels on air conditioners, but enforcement is inconsistent. Many units sold in Jakarta lack labels, with prices varying widely: labeled, energy-efficient models cost significantly more than their unlabeled counterparts.
Officials acknowledge the issue and pledge to strengthen oversight. “We will enhance supervision in collaboration with the Ministry of Trade and Customs,” said Yudo Priaadi from Indonesia’s Ministry of Energy and Mineral Resources. He also promised periodic reviews of MEPS and educational campaigns for consumers.
A Call for Global and Local Action
Experts emphasize the need for incentives to encourage the production and purchase of energy-efficient units. Exporting countries must close regulatory loopholes allowing the sale of outdated models, while Southeast Asian nations should adopt stricter import policies.
With rising temperatures driving demand for air conditioning, governments must act swiftly to protect consumers and mitigate the environmental impact. Only then can Southeast Asia avoid being a dumping ground for inefficient technology.
