High temperature and frequent rainstorms What far-reaching impacts of global climate events on China's air-conditioning industry?

In the context of global climate change, since the beginning of this year, many countries and regions in the world have frequently experienced extreme weather and climate events. Since January, Argentina, Australia and other countries have experienced extreme high temperatures. In February, Petropolis, north of Rio de Janeiro, Brazil, was hit by torrential rains, causing severe geological disasters such as flash floods and landslides and landslides, as well as casualties. Exceptionally heavy rains on Australia's east coast lasted from 23 February to March. Sydney has been raining for 16 consecutive days, with a maximum annual cumulative rainfall of 872.4 mm.

The warming of the Arctic and Antarctic is equally worrying. According to data observed by the Concordia Antarctic Research Station on March 18 this year, temperatures in Antarctica reached minus 11.5 degrees Celsius, about 40 degrees Celsius higher than the average in the same period in previous years, and a record high. Scientists at the National Center for Ice and Snow Data Research have observed temperatures in parts of the Arctic in mid-March about 30 degrees Celsius higher than the average for the same period in previous years. These extreme weather phenomena have been described by scientists as "historic," "unprecedented," and "shocking."

In the entire home appliance industry, the air conditioning industry is closely related to weather and climate change, China is one of the major exporters of air conditioning, according to Chinese customs data, the number of Air Conditioners exported by China in 2021 is 52.77 million units. Industry online monitoring data shows that the total capacity of the global household air conditioning market in the cold year of 2021 is 167 million units, an increase of 6.97% year-on-year. From the data, it can be intuitively seen that China's air conditioning sales in the global market is relatively large, then in the context of great changes in the global climate, there are three factors affecting the development of China's air conditioning industry that must be paid attention to.

First of all, extreme high temperature weather abroad will affect the changes in China's air conditioning exports

As mentioned earlier, high temperature weather in Argentina, Australia and other countries is not an accidental situation, and the United Nations Intergovernmental Panel on Climate Change (IPCC) has released the "Climate Report 2021" and mentioned that the frequency and severity of extreme high temperature events in many regions of the world are significantly increasing. The "2021 China Climate Bulletin" issued by the China Meteorological Administration mentioned that many places in the northern hemisphere suffered from high temperature "scorching" in the summer, and record high temperature weather occurred in Seattle, California, and most of the southwest, and high temperature and drought occurred in western Canada, Sicily, Turkey, Tunisia, Spain, Madrid and other countries and regions.

The global heat weather is a potential market opportunity for China, a large producer of air conditioners and a large exporter. Taking Europe as an example, according to incomplete statistics, the penetration rate of air conditioning in European countries and regions is only about 5%, according to industry online data, the overall scale of China's air conditioning exports to the European market in 2021 is 12.156 million units, an increase of 6.3% year-on-year. In recent years, the overall market size of the industry in the European market has grown well, and the temperature rise and the increase in home under the epidemic situation are the main factors driving the growth of european air conditioning demand in the past two or three years.

Secondly, Under the tide of global carbon reduction, China's air-conditioning industry will usher in technological changes

The United Nations Intergovernmental Panel on Climate Change has issued a report noting that many changes in the climate system are directly related to increasing global warming, including extreme heat, ocean heat waves, the increase in the frequency and intensity of heavy precipitation, agricultural and ecological droughts in some areas, the scale of strong tropical cyclones, and the reduction of Arctic sea ice, snow and permafrost. Unless greenhouse gas emissions are drastically reduced in the coming decades, global warming could exceed 1.5 degrees Celsius in the short term.

As an active promoter and firm practitioner of climate action, China declared to the world in 2020 that carbon dioxide emissions will peak by 2030 and strive to achieve carbon neutrality by 2060.

Under the tide of global carbon reduction, energy efficiency upgrades have become an important trend in the global home appliance market. As a major air-conditioning manufacturer, the energy efficiency of air-conditioning products exported by China also determines the energy efficiency level of global air-conditioning. In the future, the proportion of energy-efficient products in China's air-conditioning market will continue to grow, which will directly promote the continuous improvement of the scale of global energy-efficient air-conditioning products and make more contributions to the global green, environmental protection and energy-saving cause.

In addition, on June 17, 2021, the Permanent Mission of China to the United Nations deposited with the Secretary-General of the United Nations the Acceptance of the Chinese Government's

China's accession to the Kigali Amendment will promote the shift of the mainland refrigeration home appliance industry to environmentally friendly refrigerants and accelerate technological change. Enterprises facing it with a positive attitude will enhance their global competitiveness, and it will also be more conducive to the achievement of the mainland's "double carbon" goal, while natural working materials such as R290 can better meet the Kigali amendment and add luster to the realization of China's "double carbon" goal.

Third, global public events such as climate change will challenge the security and stability of China's supply chain

Of course, whether it is extreme high temperature weather, or the occurrence of serious geological disasters brought about by heavy rains, in the context of global climate change, and the repeated impact of the current new crown epidemic, the global industrial chain supply chain is in a state of "disorder", the price of bulk raw materials continues to rise, and logistics costs rise rapidly, all of which continue to test the ability of China's home appliance supply chain, including air conditioning, to maintain security and stability.

Chinese home appliance brands opened the window of global supply chain layout earlier, in recent years are also accelerating the global layout of the supply chain system and the export of their own brands, such as midea's acceleration of the "China for the world + regional supply region" supply chain system, refrigerators, washing machines, water heater production bases in Egypt have been put into production, Brazil has started new base construction, Thailand air conditioning base completed trial production, Haier in India, Turkey and Russia to increase investment, Hisense in the United States, Japan to establish a new home appliance research and development center, And in the global layout of nearly 100 high-end brand flagship stores.

According to the statistics of the China Chamber of Commerce for Import and Export of Machinery and Electronics, the cumulative export of China's household electrical appliances (white electricity) products in 2021 was 118.45 billion US dollars, an increase of 26.4% over the export scale in 2020, and the export scale and growth rate hit a new high in the past decade. In the future, in the face of a more complex external environment and challenges, China's home appliance industry needs to strengthen the security and stability of the industrial chain supply chain system with a longer vision and greater and more comprehensive investment, and achieve the goal of being a leader in the global home appliance market.