Southeast Asia Transitioning to Low Global Warming Potential Refrigerants
- brg_news_room
- 1 day ago
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Over the past decade, Southeast Asia’s cooling industry has been undergoing a profound transformation. Once dominated by high global warming potential (GWP) refrigerants such as R22 and R410A, the region is now steadily transitioning towards lower-GWP alternatives, led by R32 and other next-generation blends. This analysis focuses on the five major ASEAN markets, Thailand, Vietnam, Malaysia, Indonesia, and the Philippines, which together account for the majority of the region’s installed cooling capacity and ongoing refrigerant transition efforts. These countries are also leading policy implementation and market adoption under the Kigali Amendment to the Montreal Protocol. This shift reflects not only the region’s growing commitment to environmental sustainability but also its alignment with international climate obligations under the Kigali Amendment to the Montreal Protocol.
The adoption of the Kigali Amendment in 2016 was the defining milestone that set the trajectory for Southeast Asia’s refrigerant transformation. By agreeing to a gradual phase-down of hydrofluorocarbons (HFCs), regional economies committed to reshaping their cooling and refrigeration markets. Between 2018 and 2020, most ASEAN member states developed national cooling action plans outlining policy frameworks, timelines, and capacity-building targets. Thailand and the Philippines were among the early movers, introducing import licensing systems and technician-training programmes to manage refrigerants responsibly. Vietnam and Malaysia followed with similar regulatory measures, ensuring compliance with both the Montreal Protocol and domestic environmental goals. Indonesia, which hosts one of the largest installed bases of cooling equipment in the region, also integrated the phase-down strategy into its national energy-efficiency roadmap.
A decade ago, R22 dominated the regional AC and refrigeration markets. Its familiarity, wide availability, and performance made it the preferred refrigerant across both household and commercial systems. However, as the global phase-out took effect, sales and servicing of R22-based systems declined sharply.
By contrast, R410A, once regarded as the natural replacement for R22, continues to see widespread use, particularly in mid-range split and packaged units. Despite its high GWP, it remains the industry’s transitional refrigerant, sustained by existing manufacturing lines and installer familiarity. Similarly, R134a, widely used in chillers, industrial refrigeration, and automotive systems, has retained strong demand thanks to its proven efficiency and the lack of large-scale alternatives in some sectors.
The most significant growth, however, stems from R32, now firmly positioned as the refrigerant of choice in new residential and light commercial installations. With a GWP roughly two-thirds lower than R410A and better thermodynamic performance, R32 has quickly gained market acceptance. Manufacturers have expanded local production, and in 2025, most leading brands operating in the region have fully converted their inverter-type RAC portfolios to R32. For example, Daikin Industries, Ltd inaugurated a new full scale residential AC factory in Indonesia with an annual capacity of 1.5 million units, all utilising R32 and serving not only the domestic market but also exporting into ASEAN.
In 2025, Thailand and Vietnam are leading the regional transition, with the majority of new residential systems already based on R32. The Philippines follows closely, with strong policy support through public procurement guidelines. Malaysia is consolidating its framework for refrigerant recovery and low-GWP product labelling, while Indonesia, despite its vast market size, is making steady progress through industrial-sector initiatives and energy-efficiency projects. Mitsubishi Electric has expanded its regional R32 product line, while Panasonic has reinforced its ASEAN focus through an air-conditioning R&D centre in Malaysia supporting low-GWP product localisation.
Vietnam’s complete ban on R22 for new installations has been followed by policy efforts to promote R32 in both residential and commercial markets. The Philippines has reinforced its Energy Efficiency and Conservation Act with green-building certification systems like BERDE, which reward projects using low-GWP refrigerants.
In Thailand, environmental compliance has become a decisive factor in product selection. Updated building codes and procurement rules increasingly mandate the use of systems that meet global efficiency and refrigerant standards. Malaysia’s Ministry of Environment and Water has endorsed R32 as the preferred low-GWP alternative in new residential air-conditioning systems, aligning its standards with regional efficiency benchmarks and manufacturer conversions. In Indonesia, the Ministry of Energy and Mineral Resources continues to support the transition from R22 to R32 and R410A through its National Cooling Action Plan, which promotes incentives for inverter-based systems and certified technician training for mildly flammable refrigerants. LG has invested in a new room air-conditioner plant in West Java to expand ASEAN supply of inverter-based R32 systems, while Thailand’s AC manufacturing base is strengthening with Haier’s new Chonburi facility for regional production.
Consumer perception has also evolved dramatically. In 2015, refrigerant type was rarely a deciding factor in purchase decisions. A decade later, rising energy costs, heightened environmental awareness, and government-led education campaigns have changed that narrative.
Homeowners across Vietnam and the Philippines now increasingly demand inverter-based air-conditioning systems that not only deliver energy efficiency and comfort but also utilise newer low GWP refrigerants such as R32. This shift reflects growing consumer awareness that modern, high-efficiency systems are typically designed to operate with environmentally sustainable refrigerants, reinforcing the broader regional transition away from legacy gases like R22. Developers of hotels and high-rise apartments in Thailand and Malaysia specify R32-based central systems to meet both ESG (Environmental, Social and Governance) commitments and tenant expectations. In Indonesia, commercial facilities such as shopping centres and hospitals are upgrading to more efficient VRF and chiller systems featuring low GWP refrigerants, often supported by concessional finance programmes linked to climate-action funds.
Looking ahead, technological innovation will play a critical role. Hybrid systems combining high energy efficiency with next-generation refrigerants such as R454B and R1234yf are emerging as viable options. Smart controls and IoT-based leak-detection solutions are also helping to reduce direct refrigerant emissions.
As Southeast Asia’s cooling demand continues to grow alongside urbanisation and rising living standards, the challenge will be to meet that demand sustainably.
Find out more in our latest edition Southeast Asian's reports:
Source: Ravi Sharma, BRG Research
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