Cooler Finance

Cooler Finance: Mobilizing Investment for the Developing World’s Sustainable Cooling Needs

Acknowledgements

This report is the result of a joint effort between the International Finance Corporation (IFC) and the United Nations Environment Programme (UNEP)-led Cool Coalition. It was prepared under the guidance of key individuals including Jamie Fergusson, Director of IFC’s Climate Business Department, and Dechen Tsering, Director in UNEP’s Climate Change Division. The research was further supported by various partners and contributors from organizations such as BASE, Gluckman Consulting, CLASP, UNEP, C40, and the Islamic Development Bank.

Table of Contents

1. The Urgent Need for Sustainable Cooling Solutions in Developing Countries
2. Diverse Sources and Sectors Imply Diverse Cooling Financing Needs
3. Challenges and Response Strategies for Promoting Sustainable Cooling
4. Financing Solutions and Innovations
5. Conclusions and Recommendations

Summary of Key Points

1. The Urgent Need for Sustainable Cooling Solutions in Developing Countries

• Critical Importance: Implementing sustainable cooling is crucial for addressing urgent adaptation needs and meeting Sustainable Development Goals.
• Financing Importance: There is a strong need for financing to support sustainable cooling solutions.
• Contributions: The report contributes to the global cooling agenda by highlighting the importance of sustainable cooling and providing actionable insights.

2. Diverse Sources and Sectors Imply Diverse Cooling Financing Needs

• Investment and Financing Landscape: The report maps out the investment and financing landscape for cooling across different sectors.
• Market Size: Estimates the market size of cooling in developing economies.
• Economic and Business Case: Highlights the economic and business case for accelerating the adoption of sustainable cooling.
• Financing Gaps: Estimates the financing gaps across developing economies.

3. Challenges and Response Strategies for Promoting Sustainable Cooling

• Private Investment Challenges: Identifies challenges to private investment in sustainable cooling in developing economies.
• Response Strategies: Provides strategies for addressing these challenges, including regulatory and policy frameworks, financial incentives, and public-private partnerships.

4. Financing Solutions and Innovations

• Business Models and Financial Instruments: Discusses how business models and financial instruments can address affordability and financial constraints.
• Program Design: Outlines program designs to address market barriers to sustainable cooling finance.
• Financing for Different Stages: Describes financing solutions for businesses at different stages of maturity.
• Concessional Funding: Emphasizes the role of concessional funding in supporting sustainable cooling.
• Financing Instruments: Details various financing instruments for sustainable cooling.
• Development Finance Institutions: Highlights the role of development finance institutions in mobilizing investment.

5. Conclusions and Recommendations

• Conclusions: Summarizes the main findings and insights from the report.
• Recommendations: Provides actionable recommendations for policymakers, investors, and other stakeholders to promote sustainable cooling.

Abbreviations and Acronyms

• ACES: Africa Centre of Excellence for Sustainable Cooling and Cold-Chains
• AFWAA: Affirmative Finance Action for Women in Africa
• ASFA: Avaana Sustainability Fund
• BAU: Business as Usual
• BOO: Build-Own-Operate
• BOOT: Build-Own-Operate-Transfer
• B2C: Business to Consumer
• B2B: Business to Business
• CaaS: Cooling-as-a-Service
• CCAC: Climate and Clean Air Coalition
• CAPEX: Capital Expenditures
• CDD: Cooling Degree Day
• CDM: Clean Development Mechanism
• CIF: Climate Investment Funds
• CO2e: Carbon Dioxide Equivalent
• EPCE: Energy Performance Contract
• ESCO: Energy Service Company
• ESMAP: Energy Sector Management Assistance Program
• GABCG: Global Alliance for Buildings and Construction
• GCCA: Global Cold Chain Alliance
• GCF: Green Climate Fund
• GDP: Gross Domestic Product
• GEF: Global Environment Facility
• GIZ: German Society for International Cooperation
• GWPG: Global Warming Potential
• HFC: Hydrofluorocarbon
• IEA: International Energy Agency
• IFC: International Finance Corporation
• ILO: International Labour Organization
• IRENA: International Renewable Energy Agency
• K-CEP: Kigali Cooling Efficiency Program
• MEPS: Minimum Energy Performance Standards
• MLF: Multilateral Fund for the Implementation of the Montreal Protocol
• MP: Montreal Protocol
• MSME: Micro-, Small, and Medium Enterprises

This summary provides a comprehensive overview of the report's key points and recommendations, focusing on the critical need for sustainable cooling solutions in developing countries and