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Application of the best practice of setting minimum energy performance standards (MEPS) in technically disadvantaged countries (TDCs) faces many barriers. The best practice of determining MEPS has a comprehensive analytical framework including engineering-economic analysis, life-cycle cost-benefit analysis, as well stakeholders’ and market impact assessments. However, TDCs usually are lack of reference product classes, market data, and other necessary inputs data. This study demonstrated how to overcome those barriers to apply the best practice to TDCs using the actual experience in setting initial MEPS for Air Conditioners (ACs) in Brunei from scratch with limited secondary data as an example. The series of application works include definition of the product classes and the baseline group; collection of market data; formulation of cost-efficiency relationship from the market data; examination of the economic, environmental, and financial impacts of various MEPS options; revealing of the consumers’ willingness to pay; and analysis of the impacts and responses from the industry and consumers. The coordination with the compliance of the Montreal Protocol was also considered. The methodology should also be applicable to setting MEPF for other appliances in any TDCs. [ABSTRACT FROM AUTHOR]