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A Look into Today's Trends and Opportunities for HVAC

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SUSTAINABILITY, RELIABILITY & EFFICIENCY: A LOOK INTO TODAY'S TRENDS AND OPPORTUNITIES FOR HVAC Sustainability, Reliability & Efficiency A Look into Today's Trends and Opportunities for HVAC 3 In 2015, the Paris Agreement was signed by 196 countries to limit global warming and reduce greenhouse gas emissions in order to achieve a climate neutral world by mid-century. This has helped to usher in new government policies and grants to improve energy-efficiency and support clean energy innovations. Paving the way for investments in HVAC technologies around the world. • In the Asia Pacific region, Australia has instituted minimum energy performance standards while the Indian Bureau of Energy Efficiency and Labelling Standards is looking for manufacturers to actively adopt more advanced cooling technologies. The Chinese government is promoting the efficient use of energy, establishing minimum allowable values for energy efficiency and related grades for room air conditioners. The new standard, GB 21455-2019, is not only the strictest standard introduced to date in the Chinese market but is considered among the most stringent on an international basis, as well 2 . • In Europe, countries across the continent are initiating net zero strategies based on policies recommended by the International Energy Agency. For example, the United Kingdom (UK) and France have massive regulatory frameworks in place and binding targets for the building sector. In the UK, achieving net zero includes a plan to install 600,000 heat pumps per year by 2028. 3 Not only has this expanded UK manufacturing but the government is investing an additional £60 million into heat pump innovation. In addition, low-carbon heating systems will be required in all new homes built after 2025, replacing gas boilers 4 . • In North America, the U.S. and Canadian governments are issuing grants and making investments in energy- efficient technology. In addition, local government incentives and personal tax credits in the U.S., are encouraging energy-saving home improvements to help offset costs. Policy changes are also going into effect. Minimum Energy Performance Standards (MEPS) will be required for residential central air conditioners and heat pumps. Products installed as part of a home's central heating and cooling system and manufactured after January 1, 2023 will need to meet minimum Seasonal Energy Efficiency Ratios (SEER) and Heating Seasonal Performance Factors (HSPF) 5 .

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