Cooling systems (air conditioning and refrigeration) and heat pump systems have become essential technologies for public health, food security, industrial development, and human well-being over the past decades.
In 2016, the Parties to the Montreal Protocol adopted the Kigali Amendment, an international agreement that establishes a schedule for the gradual phase-down of hydrofluorocarbons (HFCs) production and consumption, addressing this challenge through the adoption of low-global-warming-potential (low-GWP) refrigerants and more sustainable technologies.
Nearly a decade after its adoption, Ibero-America has emerged as one of the regions most committed to implementing this transition.
A Region Committed to Climate Action
Most Ibero-American countries have ratified or formally accepted the Kigali Amendment, incorporating its commitments into national policies on climate change, energy efficiency, and sustainable development.
Across Latin America and the Iberian Peninsula, virtually every country has made significant progress in this process, including:
- Argentina
- Bolivia
- Brazil
- Chile
- Colombia
- Costa Rica
- Cuba
- Ecuador
- El Salvador
- Spain
- Guatemala
- Honduras
- Mexico
- Nicaragua
- Panama
- Paraguay
- Peru
- Portugal
- Dominican Republic
- Uruguay
- Venezuela
Throughout the region, there is broad recognition of the strategic importance of the HVAC&R sector in achieving climate objectives while strengthening economic competitiveness. The Kigali Amendment represents a profound technological transformation, driving the adoption of equipment that is more energy-efficient, safer, and environmentally sustainable.
Among the common regional priorities identified are:
- Transitioning to low-GWP refrigerants;
- Strengthening the training and certification of technicians and engineers;
- Updating technical standards, regulations, and safety codes;
- Improving refrigerant recovery, recycling, reclamation, and destruction systems;
- Promoting Minimum Energy Performance Standards (MEPS), supported by energy labeling programs; and
- Providing incentives for technological modernization.
Energy efficiency has therefore become an essential component of emissions reduction. Modern equipment not only uses refrigerants with a lower climate impact but also consumes significantly less energy throughout its operational lifetime.
The Role of Natural Refrigerants and Emerging Alternatives
One of the Kigali Amendment’s most significant impacts has been accelerating the adoption of technologies using environmentally friendly refrigerants.
Across Latin America, the solutions gaining the greatest market share in commercial and industrial applications include:
- Carbon dioxide (CO₂, R-744): Widely used in supermarkets, retail stores, and convenience stores.
- Propane (R-290): Applied in commercial refrigeration and industrial solutions, as well as in certain secondary refrigerant applications.
- Isobutane (R-600a): Extensively used in domestic refrigerators as a direct replacement for R-134a.
- Ammonia (R-717): A highly energy-efficient and cost-effective solution for large-scale industrial refrigeration systems.
- Water (R-718): In several countries, district cooling and district energy systems use water as a refrigerant medium, reducing the need for individual cooling systems while providing additional environmental and operational benefits.
At the same time, many manufacturers and suppliers serving the region have incorporated transitional synthetic refrigerants into their product portfolios, including R-32, R-454B, R-455A, and R-454C. These refrigerants facilitate a gradual transition toward lower-GWP solutions while maintaining high levels of energy performance and significantly reducing the sector’s climate impact.
Challenges Still Facing the Region
Although substantial progress has been achieved, significant challenges remain before the transition can be fully consolidated.
Key challenges include:
- Replacing an installed base of equipment that is more than ten years old;
- Expanding the availability of technicians qualified to work with emerging technologies;
- Improving access to financing for small and medium-sized enterprises (SMEs);
- Continuously updating technical regulations, standards, and safety requirements;
- Strengthening infrastructure for refrigerant recovery, reclamation, recycling, and destruction; and
- Raising awareness among end users and facility owners about the economic and environmental benefits of upgrading to modern equipment using low-impact refrigerants.
An Opportunity to Transform the HVAC&R Sector
The Kigali Amendment represents a unique opportunity to modernize the HVAC&R sector throughout Ibero-America.
Beyond its contribution to climate change mitigation, the gradual phase-down of HFCs is driving technological innovation, improving energy efficiency, reducing operating costs, and enhancing the competitiveness of businesses across the region.
Technical associations and industry organizations play a fundamental role in promoting knowledge transfer, developing skilled professionals, and encouraging the adoption of industry’s best practices.
Regional cooperation will be decisive in accelerating the implementation of sustainable solutions and building a more efficient, resilient HVAC&R market aligned with international climate goals.
Claudia Sanchez
Bolivar Monroy