· 3 min read
illuminem summarises for you the essential news of the day. Read the full piece on CNBC or enjoy below:
🗞️ Driving the news: Europe is experiencing a surge in demand for air-conditioning units, driven by record-breaking heat waves, longer summers, shifting cultural attitudes, and rising incomes
• Despite traditionally low AC adoption, especially in northern Europe, 2025 has seen sharp increases in both portable and built-in cooling systems as citizens seek relief from temperatures reaching up to 39°C in cities like Paris
🔭 The context: Only 20% of European households currently own an air conditioner — compared to 90% in the U.S. — but the trend is shifting. Climate extremes, remote work, and generational change are reshaping public perception of AC from a luxury to a necessity
• The International Energy Agency (IEA) warns that unchecked growth in cooling demand could triple energy consumption by 2050
• Recent power outages in Spain and France have also exposed infrastructure vulnerabilities
🌍 Why it matters for the planet: Cooling is energy-intensive and, if powered by fossil fuels, can significantly increase carbon emissions — potentially undermining EU climate goals
• However, the rise of heat pumps and smart HVAC technologies offers a greener path forward
• The shift also highlights climate inequality: access to cooling remains unequal across Europe and globally, with southern nations like Greece (60% AC penetration) far ahead of northern ones like Germany (19%)
⏭️ What's next: The European HVAC market is growing, with firms like Johnson Controls and investors doubling down on smart, integrated, and efficient cooling technologies
• Governments are rolling out incentives for heat pumps, which offer both cooling and heating
• But as grids face added pressure from electric vehicles, heat pumps, and industrial electrification, timely investment in grid expansion and efficiency will be critical to avoid future bottlenecks or failures
💬 One quote: “Air conditioning was once seen as wasteful—now it's increasingly viewed as essential,” said Paolo Spranzi, partner at McKinsey. “But the challenge is to grow the sector sustainably”
📈 One stat: France recorded a 25% spike in electricity demand during this summer’s heat waves compared to the off-season average, despite having one of Europe’s lowest AC ownership rates
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