Europe's AC Gap Threatens Economic Competitiveness as Heat Intensifies

A senior executive in the climate technology sector has warned that the widening air conditioning (AC) gap between Europe and the U.S. is becoming a growing economic liability, as the continent struggles to adapt its infrastructure to increasingly severe heatwaves [1]. With 90% of U.S. households equipped with AC compared to just 20% on average in Europe—and some countries like the UK at under 5%—the disparity is no longer just a matter of comfort but one of productivity and competitiveness [1].

The executive noted that the lack of widespread cooling systems is beginning to affect European economies in tangible ways. As heatwaves become more frequent, they disrupt transportation, reduce worker efficiency, and place additional strain on energy grids, which are already under pressure from the transition to renewable energy and aging infrastructure [1]. Employers are increasingly forced to alter working hours to protect staff from extreme heat, while families struggle with the daily realities of uncooled homes. In the long term, this could lead to reduced economic output and a loss of competitiveness in key sectors [1].

The tourism industry is also at risk. Southern European countries, which rely heavily on summer tourism, face a potential decline in visitors as heat becomes more unbearable. This trend signals a broader threat to the region’s economic stability, particularly as global travelers increasingly seek destinations with more favorable climates [1].

Public demand for AC is rising, particularly in countries like the UK, where home buyers are increasingly prioritizing properties with cooling systems. Political figures, including Marine Le Pen in France, have also stepped in, proposing large-scale AC rollout plans. However, the executive emphasized that simply copying the U.S. model is not a feasible solution for Europe due to the continent’s outdated grid infrastructure and regulatory constraints [1].

Air conditioning is highly energy-intensive, and many European grids are already struggling to meet current demand. In Italy, for example, a summer heatwave triggered blackouts due to surging AC use. The challenge is compounded by delays in connecting renewable energy sources to the grid, despite the fact that hotter, drier summers are increasing solar output. Without better infrastructure, these energy sources cannot be effectively utilized to power the cooling systems needed to adapt to rising temperatures [1].

The executive called for smarter infrastructure planning, using advanced modeling and AI to identify grid weaknesses and optimize energy distribution. By simulating future heat scenarios and targeting infrastructure upgrades where they are most needed, Europe can reduce the economic and social costs of delayed adaptation [1].

Without urgent action, the gap between Europe and the U.S. in climate resilience is expected to widen, further eroding European economic competitiveness and public health outcomes. The AC gap is not just a technological issue—it is a symptom of a larger systemic challenge in how different regions are preparing for a rapidly warming planet [1].

Source: [1] Fortune (https://fortune.com/2025/08/11/europe-air-conditioning-economic-liability-ac-gap/)