Promoting the Spread of Energy Efficient Technology through Dialogue and Collaboration with Governments and International Agencies

DAIKIN'S APPROACH

Promoting the Spread of Energy Efficient Air Conditioners by Creating Energy Efficiency Standards

Daikin has promoted the spread of energy efficient air conditioners since before the IEA's recommendation. We are committed to spreading worldwide air conditioners using inverter technologies to reduce electricity consumption through more efficient operation.

Until now, we have focused on developing indicators and mechanisms for assessing the energy efficiency of air conditioners mainly in India and emerging countries in ASEAN. We have also supported the introduction of cooling seasonal performance factor (CSPF) as an indicator properly assesses the energy saving effects of inverters. As a result, in fiscal 2015, India rolled out a voluntary energy labelling program using CSPF as an assessment criterion. Daikin will continue to provide assistance aimed at the introduction of a unified program across ASEAN.

DAIKIN'S PERFORMANCE

Expanding Initiatives to Mexico and Brazil

Currently, Daikin is implementing initiatives in various regions in order to expand its activities in Asia to the rest of the world.

In Mexico, where air conditioner demand is growing on the back of the country's economic development, the government has established a target to reduce greenhouse gas (GHG) emissions 22% by 2030. However, the low cost of electricity has meant little progress is being made in conserving energy.

In fiscal 2016, Daikin together with Mexico's National Institute for Electricity and Clean Energy conducted a demonstration test comparing non-energy efficient (non-inverter) air conditioners, which account for more than 70% of the local market, with Daikin's energy efficient (inverter) air conditioners. The results showed that the air conditioners with an inverter are about 60% more energy efficient because they use a highly efficient refrigerant. With these results in hand, we presented the effects of reduced electricity demand from the greater use of energy efficient air conditioners to the government of Mexico.

With our track record recognized, in 2018 our environmental conscious air conditioner promotion project proposed to Mexico was adopted for a Collaboration Program with the Private Sector for Disseminating Japanese Technology administered by the Japan International Cooperation Agency (JICA), with the support of the governments of Japan and Mexico.

In June 2018, a delegation from the government of Mexico visited Japan to observe Daikin's manufacturing plant and other facilities, where we shared knowledge related to energy efficiency policy. We aim to create markets for environmentally conscious air conditioners through workshops and other opportunities to report the quantification of energy efficiency effects based on the results of the demonstration test in Mexico. In addition, under a similar JICA project in Brazil, we are raising awareness and making policy recommendations aimed at the spread of energy efficient air conditioners.

Initiatives to Spread Energy Efficient Air Conditioners in Emerging Countries

Confirming the Right Direction through Dialogue with International Agencies

The IEA released a report during the course of Daikin's initiatives, and in October 2018, Daikin invited Mr. John Dulac, an IEA analyst for building energy technology and policy, to be part of a seminar and panel discussion. The goal of the seminar was to confirm the direction of initiatives based upon a thorough understanding of the report's recommendations.

During the panel discussion attended by persons in charge from Daikin's operations in Europe, the U.S. and Asia, the IEA presented its stance that there are already technologies for balancing growing demand for air conditioning with controlling energy demand, but these solutions need to be spread further. On top of this, the IEA provided three other recommendations. First, manufacturers need to not only revolutionize technology for cheaper, higher efficiency air conditioners, but also use creative ingenuity for spreading the use of products and technologies. Second, the promotion of attractive technologies and services for consumers is key to spreading these products and services. Finally, third, the spread of these technologies requires that manufacturers correctly convey the advantages of technologies to government policymakers.

During the seminar, details of Daikin's Environmental Vision 2050 were also shared, and confirmation was made that Daikin will continue cooperating with the IEA going forward through close communication.

NEXT CHALLENGE

Creating a World Where People in Need Benefit from Air Conditioning and Environmental Impacts Are Controlled

To sustain the air conditioning business globally, Daikin will need to promote the spread of environmentally conscious products around the world and to introduce solutions to social issues advocated by the IEA from the standpoint of a business. For this reason, Daikin will work even more closely on engagement with the IEA and the governments of each country to lobby for energy conservation and CO₂ emission reduction. Our goal is to create a world without added environmental impacts from air conditioning while benefiting from the cooling and heating provided, by offering products and services that satisfy the needs of customers, including not only energy conservation, but also affordable prices and usability.