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The Economics of Cooling

The India Cooling Action Plan

How India became one of the first countries to create a comprehensive cooling plan in 2019, and its goals for demand, efficiency and refrigerants.

In March 2019, India released the India Cooling Action Plan (ICAP), one of the world’s first national plans covering cooling across sectors.

Sectors covered

  • Buildings: homes and offices.
  • Cold chains and refrigeration.
  • Transport: air conditioning in vehicles.
  • Refrigerants used in cooling equipment.

Goals for 2037-38

The plan set goals compared with a 2017-18 baseline, including:

  • Reducing cooling demand across sectors by 20 to 25 percent.
  • Reducing refrigerant demand by 25 to 30 percent.
  • Reducing cooling energy requirements by 25 to 40 percent.
  • Training 1 lakh servicing technicians.
  • Recognising “cooling and related areas” as a thrust area for research.

Strategies

  • Efficient equipment through stricter star ratings.
  • Building codes encouraging passive cooling.
  • Better refrigerants.
  • Skills for technicians to reduce leaks.
  • Affordable housing designed for thermal comfort.

Why a plan matters

Cooling affects many sectors and ministries. A coordinated plan helps avoid a future where cooling demand overwhelms the grid and climate goals.

Challenges

  • Implementation across ministries and states.
  • Affordability for poorer households.
  • Monitoring progress.
The technician training

Under ICAP, AC technicians receive training in proper installation and servicing, reducing refrigerant leaks and improving efficiency. Technicians also gain better job prospects.

Thinking cooling policy is only about air conditioners

The plan covers buildings, cold chains, transport and refrigerants.

Key takeaways
  • India released the India Cooling Action Plan in March 2019.
  • It covers buildings, cold chains, transport and refrigerants.
  • It targets reducing cooling demand and energy by 2037-38.
  • Efficiency, building codes, refrigerants and training are key strategies.
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