Since June, European countries have been scrambling to combat rising temperatures. In Germany, the Czech Republic, Italy, Austria, and Poland, public hydrants and sprinklers were regularly used to spray water onto sidewalks to mitigate urban heat. Spain, France, Belgium, Portugal, and Greece designated air-conditioned public buildings as climate shelters.  

According to the Copernicus Climate Change Service (C3S), an EU-funded monitoring service, average temperatures across the continent rose from 1.24 degrees Celsius above pre-industrial levels to 1.43 degrees Celsius in June, a 15.3% jump. That “is twice as fast as the global average, making … Europe … the fastest-warming continent on earth,” noted C3S. In practice, temperatures exceeded 40 degrees Celsius on multiple occasions in 15 EU nations from May to July. 

The result is rising demand for air conditioners (ACs) in households. “The days of low AC penetration in Europe are coming to an end,” said Boston Consulting Group in September 2025. “We are seeing substantial momentum in the market due to this year’s multiple heatwaves. The European cooling market presents a significant growth opportunity that will continue to scale over the next decade, fueling double-digit growth year on year.” 

For Egypt-based AC manufacturers, this growing demand is an export opportunity supported by an active zero-tariff trade agreement with the EU and a robust AC manufacturing landscape that includes global brands such as Carrier, LG, Midea, and Haier.  

Cultural acceptance  

For the longest time, AC manufacturers have been shut out of Europe. “For decades, air conditioning was viewed as a cultural anomaly, a symbol of excess, environmental disregard, or simply an … import that didn’t fit the continent’s temperate climate and architectural traditions,” said Peacock Tariff Consulting (PTC). 

However, as Europe breaks heat records, that perception is changing at an unprecedented pace. “Air conditioning is no longer a luxury, but a tool of climate adaptation,” noted PTC, “not just in southern Europe, but in traditionally cooler regions like the U.K., Germany and the Netherlands.”  

Rising temperatures are further cementing AC demand by causing a variety of problems throughout the continent. “Railways buckled, power grids strained and hospitals overflowed. Schools closed early, and major tourist sites like the Acropolis in Athens shut down midday due to heat stress,” said PTC.  

Meanwhile, media coverage across Europe has raised awareness of the importance of AC. “Heat waves dominated headlines, shifting public discourse from ‘AC is wasteful’ to ‘AC is essential.’ Editorials and op-eds began advocating for cooling as a human right,” PTC explained. “Countries like Spain and France introduced subsidies for heat pumps and energy-efficient cooling systems. The U.K. began reviewing building codes to encourage passive cooling and AC installation.”  

 A social right 

Marine Cornelis, founder and executive director of Next Energy Consumer, a policy consultancy, made the case for “why cooling must become Europe’s next social right” on the European Commission website. 

She stressed that Europe is suffering from “summer energy poverty,” in which “households [are] unable to maintain adequate indoor thermal comfort due to insufficient or unaffordable access to cooling.” A 2026 survey by the European Environment Agency found that nearly 66% of the least affluent respondents could not afford to keep their homes cool in summer.  

Cornelis believes this access-to-cooling gap violates European residents’ right to live with dignity, arguing that it is on par with the right to education, healthcare, social security and welfare, and adequate housing. 

“Cooling is a matter of resilience. It belongs to Europe’s social contract,” she said. “Renovation programs must require summer thermal performance alongside winter insulation” for both rented and owned properties. 

Additionally, individual EU governments need to direct “energy tariffs [to] protect low-income consumers during heat periods,” Cornelis stressed. “Solar generation and cooling demand align in southern and central Europe, making time-of-use pricing a real opportunity. Citizens who ask … about summer tariff protection [have a] right to do so.”   

 Import regulations 

As it stands, neither EU nor non-EU countries have announced plans to ramp up AC production. That means most AC supply will be imported. To access these markets, foreign manufacturers must comply with several strict regulations, particularly environmental rules. 

One key law is the F-Gas rules. The EU Commission website says it applies to “importers of refrigeration, air-conditioning, heat pump equipment or metered dose inhalers containing hydrofluorocarbons (HFCs).” 

It requires imported cooling appliances not to contain “high-global-warming gases.” That means greatly reducing, if not eliminating, the use of HFCs in these devices and replacing them with alternative cooling gases. 

Imported ACs also need to comply with the EU Type Examination, which reviews technical documentation and compares it with a sample of devices. They must also comply with the Seasonal Coefficient of Performance and Seasonal Energy Efficiency Ratio metrics, which measure a device’s year-round energy efficiency for cooling and heating. 

AC manufacturers selling into the EU must also comply with the Substances of Concern In Products (SCIP) database reporting requirements, as well as the EU’s Registration, Evaluation, Authorization and Restriction of Chemicals regulations and related restrictions. 

Foreign-made AC units also need to have energy labels or QR codes proving their inclusion in the European Product Database for Energy Labeling, which determines their efficiency. 

Lastly, AC units must have CE Marking. It is a health, safety and environmental framework for electronic devices that demonstrates compliance with the EU’s Low Voltage Directive and Machinery Directive.  

EU’s buyers, ACs 

Despite only recently becoming acquainted with the AC market, European buyers have specific priorities. According to EuroDev, a consultancy, “European consumers prioritize power and cost efficiency due to elevated electricity prices … as well as sustainability concerns.” 

Noise levels from internal and external units are another factor. “Noise generated by AC units continues to be a source of concern, particularly in urban areas,” noted EuroDev.  

Traditionally, Europe has long relied on China and other Asian countries to meet its demand for ACs. In 2025, 41% of the EU’s AC market came from Asia, according to White Goods Now, a consultancy.  

That is changing. As temperatures rise, Southern European countries, in particular, are looking to North Africa. In August, Algeria’s Condor Electronics announced it had secured orders for 250,000 ACs from European buyers. “Rather than waiting several weeks for shipments from Asia, European distributors are increasingly looking across the Mediterranean … where products can reach key markets in as little as 48 hours,” reported Africa Business Insider.    

Egypt’s opportunity? 

For Egypt-based AC manufacturers, the EU’s shift toward North Africa and rising demand for ACs and other cooling devices present a new export opportunity. 

This is supported by several positive domestic indicators. First, overall exports to Europe have been rising since 2021, from $ 10.6 billion to $ 13.5 billion in 2025. Meanwhile, in August, Minister of Investment Mohamed Farid said the government is working to increase exports by 15% to 20% annually through 2030.  

Furthermore, Egypt-based AC manufacturers will benefit from Minister of Industry Khaled Hashem’s strategy to “transform Egypt into a regional hub for manufacturing and exports,” he said in July. 

To achieve this vision, Hashem stressed, “The ministry’s action plan is based on two main pillars. The first focuses on supporting existing investments and companies operating in the Egyptian market by addressing challenges and improving the business environment, while the second aims to attract more new industrial investments.”