Energy labeling is a critical component of effective appliance energy efficiency policy. While minimum energy performance standards (MEPS) remove the least-efficient products from the market, energy labels drive product markets to higher efficiency by:

• Allowing consumers to make informed purchasing decisions by differentiating high efficiency products from average and low efficiency products;
• Incentivizing the production of more efficient products by helping manufactures market their high efficiency products, as labels provide unbiased evidence that products are more efficient; and
• Providing the foundation for market transformation programs by allowing policymakers to easily identify high efficiency products to target for bulk purchasing, financing, and incentives.

In Brazil, the efficiency levels of air conditioners (ACs) on the market have been noticeably shaped by two labels: the comparative label from the Brazilian Labeling Program and the Selo PROCEL endorsement label. Assessment of Brazil’s Labeling Program for Air Conditioners presents an in-depth analysis of the two labeling programs for ACs in Brazil. Building from the analysis, the report further identifies opportunities to advance energy efficiency in Brazil by integrating international best practices in appliance and product labeling programs. Best practices are drawn from case studies from the European Union, India, China, Vietnam and Thailand.

The Brazilian Labeling Program and Selo PROCEL are well placed to move the Brazilian AC market to high efficiency products; they are well-understood and recognized by consumers and they clearly influence AC manufacturers’ product design. Increasing the stringency of both labels’ requirements will realize this potential and meaningfully improve the efficiency of ACs sold in Brazil.

The report is available in English and Portuguese.