Air Conditioning Demand and Tax Policies Spotlight Europe and Portugal

Rising global temperatures are driving a surge in demand for air‑conditioning. The International Energy Agency projects that by 2050 two‑thirds of households worldwide could own a unit. In Europe only about 20 % of homes have air‑conditioning compared with roughly 90 % in the United States, prompting political debate – for example, French politician Marine Le Pen has argued for broader installation while environmental groups warn of higher energy use and unequal access.

Researchers note that cooling systems account for roughly 3 % of global energy‑related CO₂ emissions, and some refrigerants have a warming potential far exceeding that of CO₂. Strategies recommended include planting trees, creating shade, using reflective materials and natural ventilation before relying on active cooling, especially in schools, hospitals and elder‑care facilities.

In Portugal, the VAT rate on air‑conditioning equipment rose from a temporary 6 % reduction back to the standard 23 % on 1 July 2025, ending a measure introduced during the 2022 energy crisis. Opposition politicians and consumer groups have criticised the change, arguing it hampers public health resilience during heat waves. The government cites EU VAT rules that do not permit a reduced rate for such equipment. A parliamentary recommendation to restore the lower rate until year‑end is under debate.