About the guideline

This guideline, developed by the Carbon Trust with industry stakeholders, supports cooling original equipment manufacturers (OEMs) and refrigerant gas manufacturers (RGMs) in embarking on Net Zero pathways. It shares practical experiences, examples and good practice to help businesses overcome common barriers to decarbonisation, particularly those at an early stage of their climate journey.

Introduction

The guide targets businesses across the cooling value chain, including HVAC, refrigeration equipment and refrigerant gases. Its objective is to provide practical steps, actions and processes to achieve Net Zero, focusing on real-world challenges, regulatory drivers and emissions reduction opportunities. It frames decarbonisation as both a climate imperative and a strategic business issue.

Context

Cooling is essential for health, food security and economic productivity, yet demand is rising rapidly due to population growth, rising incomes and increasing heat extremes. The cooling sector accounted for approximately 7–10% of global greenhouse gas (GHG) emissions, around 4.1 GtCO₂e in 2022. Under business-as-usual, emissions could more than double to 9 GtCO₂e by 2050, threatening global carbon budgets. Early adoption of efficient technologies, low-GWP refrigerants and improved maintenance can deliver near- and long-term emissions reductions.

Decarbonisation impact on business activities

Decarbonisation is driven by the Paris Agreement and science-based targets aligned to limiting warming to 1.5°C. For cooling businesses, it presents both opportunities and risks. Opportunities include innovation in low-carbon products, cost savings from energy efficiency, improved access to green finance and enhanced resilience to future regulation. Risks include capital constraints, skills and knowledge gaps, technology availability and regulatory uncertainty. Businesses are encouraged to assess how decarbonisation affects their operations, products and value chains when setting targets and strategies.

Levers to reduce GHG emissions along the cooling value chain

Up to 96% of cooling-related emissions could be avoided by combining efficiency measures, low-GWP refrigerants and rapid electricity grid decarbonisation. Key levers include reducing cooling loads through passive design, enforcing minimum energy performance standards, improving refrigerant lifecycle management and strengthening leak prevention. Regulatory actions such as building codes, energy efficiency programmes and end-of-life refrigerant recovery are critical. Businesses should measure emissions, decarbonise operations, design efficient products, reclaim refrigerants and collaborate across the value chain.

Decarbonising to net zero

Net Zero is defined as reducing GHG emissions by at least 90% across Scopes 1, 2 and 3, with residual emissions neutralised through high-quality carbon removals. Offsetting cannot replace deep emissions reductions due to limited global removal capacity. Businesses are advised to halve emissions by 2030, prioritise absolute reductions, then address residual emissions after 2045. Beyond value chain mitigation can support societal decarbonisation but must not delay internal reductions.

Typical sources of cooling businesses’ GHG emissions

Scope 3 emissions dominate, accounting for around 83% of OEM emissions and 71% for RGMs. For OEMs, the largest hotspot is the use of sold products, while RGMs’ emissions are driven by purchased goods and services. Scope 1 and 2 emissions are easier to manage initially, but tackling all three scopes is required for Net Zero. Businesses are encouraged to conduct detailed inventories to identify priority reduction areas.

How to deliver decarbonisation to net zero

The Net Zero Pathway outlines seven steps: planning, measuring emissions, setting targets, developing an implementation strategy, defining decarbonisation pathways, execution, and transparent reporting. Success depends on robust data, leadership accountability, sustainable finance and value-chain collaboration. Common challenges include resourcing, data quality and coordination. Transparent reporting aligned with frameworks such as TCFD, CSRD and ISSB supports accountability and tracks progress over time.