As global temperatures rise, the annual demand for cooling in developing economies is expected to increase from around USD 300 billion to at least USD 600 billion by 2050. This is according to a report published by the International Finance Corporation (IFC), and the UN Environment Programme (UNEP)-led Cool Coalition. The report predicts the fastest growth in cooling to occur in Africa where the market is expected to multiply by a factor of seven. In South Asia, the market is anticipated to quadruple in size.
The report is titled, ‘Cooler Finance: Mobilizing Investment for the Developing World’s Sustainable Cooling Needs.’ To reduce cooling-related emissions in developing countries by almost half in 2050, it calls for prioritizing sustainable cooling solutions, including:
- Passive cooling strategies like insulation, reflective materials, enhanced green areas, and energy-efficient technologies;
- Minimum energy performance standards, new building energy codes, and a faster phase down of climate-warming refrigerants; and
- A systems approach to cold chains and large cooling infrastructure services, along with incentives to promote innovation.
The report recommends that multilateral organizations, development finance institutions, and Cool Coalition members work with local businesses and financial sector associations, as well as with national and subnational governments to: improve data on cooling, capital costs, and financing; develop and implement a comprehensive strategy to address issues identified in the report; amplify dissemination strategies targeting key local cooling market stakeholders to build awareness; expand use of best practice business models and financing tools; increase seed and high-risk funding for pilot technologies; and leverage blended and concessional finance. It also calls for the creation of a Sustainable Cooling Finance Partnership to foster international cooperation.
Emphasizing developing countries’ vulnerability to “the deadly effects of rising temperatures” and their urgent need of cooling solutions, IFC’s Managing Director Makhtar Diop said the report “describes the opportunity to invest in sustainable, affordable, and scalable cooling solutions, aiming for near-zero emissions by 2050.”
The report was launched on 25 September, during the ENERGYNOW SDG7 Action Forum 2024.
The Cool Coalition was launched in 2019, at the First Global Conference on Synergies between the 2030 Agenda and Paris Agreement. The Coalition serves as the Secretariat to the Global Cooling Pledge launched at the Dubai Climate Change Conference (UNFCCC COP 28) in 2023. The Global Cooling Pledge seeks to contribute to sustainable cooling with concrete actions. More than 70 counties have signed the pledge, along with many subnational entities and non-state actors. [Publication: Cooler Finance: Mobilizing Investment for the Developing World’s Sustainable Cooling Needs] [Publication Landing Page] [IFC Press Release] [UNEP Press Release]
