In Europe, buildings tend to be equipped with individual air conditioners, which constitute a fast growing electrical end-use. In this context, this study aims to assess the environmental impacts of European individual air conditioners and to analyse policy strategies to reduce these impacts. After analysing the European context concerning individual air conditioners, the environmental impacts of European air conditioners are assessed using a Life Cycle Analysis approach. The following step consists in studying, both technically and economically, different improvement options aiming at reducing the environmental impacts of these appliances. These results, obtained at the product level, are then generalised at the European level and different policy measures are defined and analysed. The main conclusion is that the implementation of a Minimum Energy Performance Standard based on Least Life Cycle Costs could save up to 49 TWh and 20 MtCO(2-eq) in 2020 and be economically beneficial to the European end-user. (C) 2011 Elsevier Ltd. All rights reserved.