Cooling & Heat Resilience

The European Union's Copernicus Climate Change Service, or C3S, reported that August 2026 was the hottest month ever recorded in history, with the global average surface air temperature reaching 16.96 degrees Celsius, slightly above the previous record of about 16.95 degrees Celsius set in July 2023, and 0.85 degrees Celsius above the August average for the 1991-2020 period. It was also about 1.65 degrees Celsius above pre-industrial levels for the 1850-1900 period. The month was also the first since November 2025 that the global monthly average temperature rose more than 1.5 degrees Celsius above pre-industrial levels. Meanwhile, Western Europe also experienced its hottest summer on record, as a heatwave that began unusually early and intensely in May pushed the June-August average temperature above the previous record set in 2003. The global average sea surface temperature outside the polar regions, between latitudes 60 degrees south and 60 degrees north, reached 21.07 degrees Celsius in August, the highest level ever recorded for that month, and remained unusually high across much of the tropical Pacific Ocean, where the El Nino phenomenon is intensifying and could become one of the strongest on record in the coming months. Samantha Burgess, head of climate strategy at the European Centre for Medium-Range Weather Forecasts, said the figures reflect that climate change is driving extreme weather in both the atmosphere and the oceans, with growing impacts on communities, economies and ecosystems worldwide.

Belgium's public health office reported 2,935 excess deaths above the normal level during three heat waves from June 18 to August 16, representing an excess mortality rate of 22.6%. In the first wave, from June 18 to July 3, there were 2,035 additional deaths, or 48.8% above the expected level, the highest since the analysis of heat wave impacts began in 2000. The other two periods, July 4-17 and July 28-August 16, saw excess deaths of 535 and 365 respectively, with excess mortality rates of 14.8% and 7%. Although those aged 65 and above were the most affected, higher-than-normal deaths were also observed among younger people. This past summer, Europe faced multiple heat waves, while the United Nations weather agency noted that periods of extreme heat are becoming more frequent, intense, and longer-lasting due to climate change.

The Robert Koch Institute, Germany's public health agency, said the estimated number of heat-related deaths in Germany from the start of the year through August 9 stood at around 14,000, a rate of nearly 17 per 100,000 people. The figure exceeds the full-year totals of every previous year, breaking the previous record set in 2018, when about 9,000 people died from heat, and it continues to trend upward. The elderly are at especially high risk, with people aged 75 and over accounting for nearly 10,500 of all heat-related deaths this year.

The Mayor of London's office has released a report saying climate change could cause up to £36 billion, or $50 billion, in damage to London per year by the 2050s, with lost working hours, business disruption, and damage to infrastructure from extreme weather likely to drag down London's gross domestic product. The report recommends that businesses adjust working hours, allow working from home, and relax dress codes, while calling on Transport for London to install air conditioning in new underground trains and find ways to keep trains and platforms cool. The Greater London Authority will prioritise protecting parks, publicising cool spaces, providing more public toilets and drinking water, and increasing shade in public areas. Mayor of London Sadiq Khan said climate change is threatening the lives of Londoners and causing hundreds of millions of pounds in economic damage, stressing the need to build cooler homes and buildings, greener and shadier communities, and infrastructure resilient to hotter weather. This summer, five heatwaves and weeks of low rainfall put pressure on the UK's public services, water systems, and infrastructure, while research in July found that the June heatwave caused £1.15 billion in damage to the English economy.

Europe is facing its fifth heatwave of this summer, expected to peak on Thursday, August 13, amid extreme weather that is straining public health systems and energy networks across the region, while the United Kingdom is on track for its hottest summer on record. The scorching conditions are driven by successive high-pressure systems, or heat domes, blanketing the region, and are also disrupting freight transport on some major rivers. In financial markets, global stocks climbed near record highs after US inflation data came in cooler than expected, easing concerns that the Federal Reserve would raise interest rates in the near term. The yen strengthened after the Japanese government signaled support for the Bank of Japan to raise rates sooner, with the next hike possibly coming in September or October. West Texas Intermediate crude traded around 83 dollars a barrel, snapping a six-day winning streak. On the geopolitical front, the administration of President Donald Trump is stepping up economic pressure on Iran, including successive rounds of additional economic sanctions and maritime interdiction measures aimed at curbing Iranian oil exports. The UK government is planning legislation to regulate the use of AI in gene synthesis, amid concerns that the absence of global oversight could allow malicious actors to use the technology to create synthetic DNA that might lead to the development of biological weapons. In tech stocks, Lenovo surged as much as 22 percent in Hong Kong to a record high after reporting quarterly revenue up 43 percent, beating market expectations on AI-related demand. In contrast, Cerebras fell in after-hours trading after hardware revenue declined, while Cisco slipped as analysts viewed the company's AI sales outlook as highly cautious. Another focus is US-Japan cooperation on developing rare earth deposits beneath the seabed near Minamitorishima Island, more than 1,000 miles southeast of Tokyo, with estimates suggesting the resources could meet industrial demand for centuries and help both countries build a complete rare earth supply chain, reducing reliance on China for strategically important minerals.

The global average sea surface temperature outside the polar regions in July 2026 surged to 20.96 degrees Celsius, breaking the record for July, according to data from the Copernicus Climate Change Service. The previous record was 20.89 degrees Celsius in 2023, partly driven by an emerging El Niño in the Pacific Ocean. Meanwhile, last month tied as the second-hottest July on record globally, with global temperatures about 1.47 degrees Celsius above the pre-industrial average. Western Europe experienced its hottest June and July on record, with an average temperature of 21.62 degrees Celsius, 2.79 degrees above the norm. The persistent hot and dry conditions also fueled severe wildfires in several areas. Samantha Burgess from the European Centre for Medium-Range Weather Forecasts said July 2026 marked the third consecutive month of exceptional heat in Western Europe, warning that extreme weather is becoming the new normal.

In the area hit by the earthquake that registered a maximum intensity of 7 in Kumamoto Prefecture on July 28, 2026, evacuees forced to live under scorching sun with temperatures exceeding 35 degrees Celsius have been suffering a spate of heatstroke emergencies. In Hikawa Town, a woman in her 70s died of suspected heatstroke inside her car after it ran out of fuel and the air conditioning stopped. Yoshiharu Yokoyama, an expert in earthquake damage assessment, visited the site the day after the disaster and found many elderly people staying in their cars or outdoors, too afraid of aftershocks to go inside their homes. In areas with water outages, a vicious cycle emerged where people limited their fluid intake due to water shortages. Over the two days from July 29 to 30, at least 42 people were taken to hospital with suspected heatstroke, and securing fuel has become difficult, with lines of cars stretching up to 300 meters at gas stations. Experts point to the risks if a major earthquake were to strike directly beneath Tokyo or along the Nankai Trough in midsummer, and are calling for a shift in summer disaster preparedness that includes measures against extreme heat, not just earthquake readiness.

South Korean President Lee Jae-myung has ordered agencies to urgently assist people affected by the record-breaking severe heatwave, after the death toll rose to 16, warning that extreme weather is becoming more frequent and likely to become the new normal. At a cabinet meeting today, Lee Jae-myung also ordered a review of the power grid due to surging air-conditioner demand, and said the country needs to upgrade its major crisis response system to effectively handle extreme weather. Meanwhile, the Korea Meteorological Administration reported that the city of Yangsan hit 42.5 degrees Celsius on Sunday, the highest temperature since records began 122 years ago, and expanded heatwave warnings to cover all of Seoul today.

The southeastern city of Yangsan in South Korea has recorded an all-time high temperature of 42.5 degrees Celsius since record-keeping began more than a century ago. The Korea Meteorological Administration said the temperature was measured at 1:26 p.m. local time, and Yangsan has now seen temperatures above 40 degrees for five consecutive days. More than 20 areas nationwide are under an emergency heat wave warning, a new category introduced this year, which is issued when the perceived temperature is expected to reach 38 degrees or the actual temperature hits 39 degrees for a day. Scientists warn that such extreme weather events are becoming more frequent and severe due to climate change.

A recent study warns that Europe could experience maximum temperatures of up to 55 degrees Celsius by the end of this century if greenhouse gas emissions remain high. The Mediterranean region, including Spain, Italy, Greece, and parts of France, is at the greatest risk of facing temperatures between 50 and 55 degrees Celsius late in the century. Researchers say that more intense heatwaves will increase the risk of death from heatstroke and heart disease, affect agricultural yields, strain public health systems, raise wildfire risks, and cause significant economic damage. Experts stress that reducing global greenhouse gas emissions remains the most critical factor in limiting the severity of future heatwaves.

Thailand's exports of air conditioners and components to Europe in May 2026 reached 148.6 million US dollars, expanding 40.7 percent compared with the same month last year. This accelerated from April's 8.5 percent growth and marked the highest expansion rate in seven months. As a result, exports in the first five months of 2026 totaled 783.9 million US dollars, up 18.9 percent. Key export products that stood out in May included reversible heat pump air conditioners, which grew 70.6 percent, air conditioner parts, up 49.6 percent, and window or wall-mounted air conditioners, up 21.6 percent. A major factor was the severe and earlier-than-usual heatwave in Western Europe during May 2026, driven by a persistent heat dome that pushed average daily temperatures in many areas more than 10 degrees Celsius above normal. This prompted European importers and retailers to accelerate advance orders to meet peak summer demand. Most major European markets expanded in line with the abnormally hot weather. Germany was the top export market, with a value of 30.8 million US dollars and a sharp 89.6 percent increase, followed by France, up 50.9 percent, the United Kingdom, up 58.2 percent, and Spain, up 42.2 percent. Northern European markets also continued to grow at high rates, such as Finland, up 366.6 percent, and Sweden, up 177.3 percent. This reflects a structural shift in a market where air conditioner ownership is only about 20 percent, well below the global household average of 37 percent in 2022. The Trade Policy and Strategy Office assesses that European air conditioner demand is likely to remain strong in the third quarter, as Europe faces a new, more intense heatwave in late June. Additionally, the World Meteorological Organization forecasts that temperatures in Europe will likely stay above normal from July to September 2026 due to a strengthening El Niño, causing European retailers' inventories to be drawn down rapidly and prompting continued restocking orders. Beyond short-term support, the European market also has structural factors favoring long-term growth. Europe is the fastest-warming region in the world, with temperatures rising about 0.53 degrees Celsius per decade since the mid-1990s, more than twice the global average. Meanwhile, household air conditioner ownership remains low, and European Union policies promote heat pump systems that work in both summer and winter. This is shifting air conditioners in Europe from luxury goods to necessities, presenting a significant opportunity for Thai exporters to steadily expand their market. Europe's share of Thailand's global exports in this category rose from 19.4 percent in January to 23.8 percent in May 2026, clearly higher than in May of the previous three years. However, growth in the European market is governed by environmental policy conditions, particularly the EU's strict environmental standards. Thai operators should therefore focus on developing high-efficiency energy-saving products and heat pump systems that align with EU energy and carbon-reduction policies. They should also keep abreast of tightening environmental regulations, especially the phasedown of refrigerants with high global warming potential, and shift competition from price to quality, energy efficiency, and environmental standards to create sustainable added value in a market where consumers increasingly prioritize sustainability.

Brokers are advising investors to gradually accumulate stocks in the meat and beverage sectors before the impacts of the El Niño phenomenon become pronounced from late this year into early next year. This follows the NOAA Climate Prediction Center's official declaration on June 11, 2026, that the world has entered El Niño conditions, with a 63% chance it will intensify into a super El Niño between November 2026 and January 2027. This could bring hotter and drier weather than usual to Thailand. Historically, during super El Niño periods, Thailand's average annual rainfall dropped to about 1,446 millimeters, roughly 9.4% below the 40-year long-term average of 1,596 millimeters, while maximum temperatures reached around 41 degrees Celsius, about 2 degrees above normal. In the meat sector, particularly pork, prices are likely to benefit from upward pressure as heat stress slows pig growth and raises disease risk, reducing market supply. Data from 2004 to 2023 shows pork prices rose an average of about 17% during El Niño periods, compared to an average increase of around 12% for chicken. Meanwhile, the beverage and convenience store sectors are expected to be supported by higher beverage consumption during hot weather. Brokers therefore recommend meat stocks such as BTG, TFG, and CPF, and beverage stocks including ICHI, CBG, and OSP, as well as convenience store operator CPALL.

Japan's Meteorological Agency issued an extreme heat warning today, with temperatures expected to soar to dangerous levels across many parts of the country and could reach 40°C in Kumagaya, Saitama Prefecture. Meanwhile, Nagoya and Maebashi could see highs of 39°C, while Saitama and Kofu are forecast to hit 38°C. Authorities have issued heatstroke alerts in 42 of the nation's 47 prefectures, advising people to use air conditioning, drink plenty of water and electrolytes, and avoid prolonged outdoor activities.

The regional grid operator responsible for electricity across 14 central US states has warned that the power system faces a capacity shortfall and may need to implement rolling blackouts, as demand surges to record highs amid a heat wave stretching from North Dakota to Louisiana. The Southwest Power Pool issued a Level 3 energy emergency alert on Monday evening Eastern Time for the western portion of its grid, before downgrading the alert about two hours later, stating that while the situation remains high-risk, rolling blackouts are not yet required.

Tokyo experienced its first extreme heat day of the year today after the temperature surged past 35 degrees Celsius, according to the Japan Meteorological Agency. On the same day, the agency also officially declared the end of the rainy season in the Kanto-Koshin and Tokai regions. By the morning, temperatures had reached 30 degrees Celsius or higher at more than 600 of the 914 weather observation points nationwide, prompting heatstroke alerts across much of Japan. The intense heat is expected to persist throughout the week in western and eastern parts of the country.

Extreme heat is the number one weather concern for Americans, cited by 70% of respondents in a new survey from First Onsite Property Restoration, as a dangerous heat dome expands across the U.S. this week. Wildfire smoke follows at 60%, drought at 59%, and wildfires at 52%, with concern highest in the West for all four threats. Power outages rank as the top property worry at 72%, while only 38% of Americans have an emergency kit prepared and just 54% feel personally ready for a weather emergency. The survey of 1,007 Americans was conducted in March 2026 and reveals a significant gap between high awareness and low preparedness.

The Monaco Energy Boat Challenge is evolving into a key forum for shaping sustainable yachting, with a recent conference session titled 'Climate Adaptive Yachting: Innovation for an Uncertain Maritime Future' exploring how yachts must adapt to rising sea temperatures, extreme weather, and stricter regulations. Natalie Quévert, General Secretary of SEA Index, noted that more owners are now requesting environmental certification before construction begins, reflecting the tool's value. SEA Index is collaborating with start-up NEMO Systems, founded by former Challenge competitors, to provide real-time energy consumption data for yachts and commercial vessels. The conference also highlighted the need for a combination of digital technologies, advanced materials, AI, and next-generation propulsion systems to reduce emissions and improve efficiency. The event continues with the 7th Alternative Fuels Conference, organized with the Prince Albert II of Monaco Foundation, examining pathways like hydrogen, wind-assisted propulsion, and battery technologies.

Cisco highlights that smart buildings can leverage workplace data to improve energy efficiency, reduce emissions, and enhance employee experience. Buildings accounted for about 28% of global energy consumption and 37% of global carbon dioxide emissions in 2024, according to a 2026 UN Environment Programme report. Cisco worked with the U.S. General Services Administration on a Workplace Innovation Lab in Washington, D.C., where a renovated space was 73% more energy efficient than an unrenovated area and avoided five metric tonnes of greenhouse gas emissions over one year. The company also points to its London office, designed with neuro-inclusivity in mind, as an example of using technology to support a more inclusive environment. Cisco emphasizes that connecting data from systems like HVAC, lighting, and collaboration tools enables better decisions about energy use, real estate, and employee experience.

Consolidated Edison recently managed an extreme heat wave that caused record power demand, leading to targeted outages, voltage reductions, and conservation appeals across New York City boroughs and nearby suburbs. The company also elected former prosecutor Tali Farhadian Weinstein to its Board, where she will serve on governance and sustainability committees. These developments highlight near-term operational risks and potential regulatory scrutiny, though the share price reaction suggests investors do not yet see a material change to the core investment thesis.

Citi analysts say persistently higher temperatures in Europe could create a significant long-term opportunity for U.S. HVAC manufacturers as demand for cooling systems rises. The bank noted that only around 20% of European households had air conditioning in 2018, compared with about 90% in the U.S. and Japan, and that increasingly frequent heatwaves may accelerate adoption. Carrier Global was identified as having the greatest exposure, with more than one-fifth of its revenue from its Climate Solutions Europe division, and it is the market leader in Europe's commercial HVAC sector. Citi also highlighted continued momentum in Carrier's European heat-pump business, where first-quarter sales rose by a low-teens percentage, and pointed to healthy demand indicated by German heat-pump subsidy applications. Trane Technologies and Johnson Controls, while generating a smaller share of revenue from Europe, are also seen as well positioned to benefit from greater investment in cooling technology and energy-efficient climate solutions.

An open-data analysis by RMIT University urban greening expert Dr Thami Croeser has found that 84% of 5.5 million buildings across 25 European cities fall below the 30% nearby tree canopy threshold needed for meaningful cooling. Cologne and Hamburg performed best with about 45% of buildings above the threshold, while Sevilla had 98% of buildings below it. The study also found poorer neighbourhoods were consistently more exposed, with lower tree cover and higher surface temperatures. Areas with adequate canopy could be 4 to 10 degrees Celsius cooler than comparable urban hotspots, with a gap of 10.5 degrees in Paris. Croeser said cities need to plant trees close to where people live and work, give them enough soil and water, and protect mature canopy.

The Trump administration declared a power emergency Tuesday for PJM Interconnection, the largest U.S. energy grid, ahead of a dangerous heat wave that threatens to strain electricity infrastructure. The emergency order issued by the Department of Energy said a statutory emergency exists in PJM's region due to surging electricity demand and limited generation capacity. The order authorizes power plants in the PJM region, which serves 67 million people across 13 states, to operate at maximum levels and exceed some environmental requirements. PJM submitted a formal request for the action on June 29, warning of an imminent electricity reliability emergency driven by the potential for record power demand amid temperatures forecast to exceed 100 degrees Fahrenheit.

Britain paid nearly £1,400 per megawatt hour, about 17 times normal prices, to import emergency electricity from Europe on Wednesday evening during a record heatwave, adding an estimated £11 million to bills. National Energy Systems Operator (Neso) was forced to obtain special dispensation from EU counterparts to buy up to 2.3 gigawatts of extra capacity, mainly from the Netherlands, after a shortfall in domestic generation from solar and gas-fired power stations. The surge in air conditioning use and malfunctioning solar panels contributed to the supply gap, with Neso apparently underestimating demand by up to three gigawatts. Several gas-fired plants were offline for summer maintenance, and four of the UK's ten nuclear reactors were also shut down. The incident has raised questions about Neso's forecasting and the country's generating capacity during extreme weather.

OSHA has officially extended its Heat National Emphasis Program through April 2031, reinforcing the agency's focus on preventing heat-related illnesses and fatalities. The updated program provides a more structured enforcement framework, including detailed checklists in Appendix I and Appendix J that outline how inspectors will evaluate heat safety programs. Ergodyne Heat Stress Product Manager Lexi Hagler encourages employers to use these appendices as self-audit tools to identify gaps before an inspection occurs. The extension also expands coverage to additional industries and emphasizes documentation, training, acclimatization, and access to water, rest, and shade. OSHA has increased heat-related inspection activity nationwide and may use the additional time to gather data for a potential federal heat stress standard.

The global smart greenhouse market is projected to grow from USD 2.30 billion in 2025 to USD 5.75 billion by 2035, according to a report by SNS Insider. The market is expected to expand at a compound annual growth rate of 9.72 percent from 2026 to 2035. North America led the market in 2025 with a 38.66 percent revenue share, driven by strong commercial greenhouse technology and venture capital investment in agricultural technologies. The Asia Pacific region is forecast to register the highest growth rate, supported by large greenhouse farms in China and government modernization schemes in countries such as China, Japan, South Korea, and India. By component, HVAC systems held a 42.9 percent market share in 2025, while LED grow lights are expected to grow fastest due to increasing energy efficiency and year-round cropping demand.