A new report from the UN Environment Programme-led Cool Coalition and International Finance Corporation underscored that the market for cooling has growth potential in developing economies and will increase close to $300 billion per year at least up to $600 billion per year through 2050. Such growth would indeed mean a big challenge along with opportunities, especially regarding emissions related to cooling, which are highly centered within such regions.
Growth Projections and Emissions Landscape
The report, Cooler Finance: Mobilising Investment for the Developing World’s Sustainable Cooling Needs, claims that Africa will be the most rapidly growing region because the cooling market is set to multiply sevenfold in the region. It will also increase four times in South Asia. Today, two-thirds of the world’s cooling-related emissions emanate from developing countries. The share is likely to increase to more than 80 per cent by 2050 due to population growth, urbanization, and economic development.
Sustainable Cooling Technologies
By deploying sustainable cooling technologies, cooling-related emissions in developing economies can be reduced by nearly 50 per cent by 2050, the report believes. In this regard, the report calls for a structural approach that includes:
Passive Cooling Methods: Insulation, reflective materials, enhancement of green spaces, and energy efficiency technologies.
Energy Efficiency Standards: Harmonization of minimum energy performance standards for buildings and revision of the building energy codes based on new cooling needs.
Refrigerants that Harm Ozone Phase Down: Enhancing the phase down of refrigerants that encourage greenhouse gas emissions owing to their warming effect on climate.
The Call for Investment
These investments are going to be huge and upfront in order to achieve the objectives of the report. Closing the existing gaps in cooling access for households and SMEs in developing nations is going to require about $400-800 billion. To this end, this figure should also account for the expected increase in demand.
Saving cooling energy and reducing greenhouse gases has enormous potential benefits from investment in sustainable cooling solutions. The report expects the sustainable cooling market will provide a $600 billion opportunity for private action, which may generate more than $8 trillion of benefits for developing countries.
Climate Resilience and Public Health
COOLING SOUNDS LIKE something of an urgent concern when rising temperatures threaten the vulnerable people living in developing countries. The report stresses, however, that the solution implemented must not exacerbate climate change. Meeting growing demand while supporting climate goals, public health, food security, and economic development may require efficient, sustainable, affordable, and energy-efficient cooling solutions.
Collaborative Efforts
The report also underlines the importance of multiple types of stakeholders in achieving sustainable cooling solutions. National governments, multilateral banks, and private enterprises can leverage expertise to access a broad tool set of financial instruments intended to facilitate both cooling infrastructure building and resilience to extreme heat.
Conclusion
As the global temperature continues to increase, public health and environmental security are increasingly determined by integrating sustainable cooling solutions. “Cooler Finance”, a critical source of information, will help various stakeholders consider investments into innovative, energy-efficient, and climate-resilient cooling technologies. The proposed systems approach for cold chains as well as large cooling infrastructure-incentives for innovation-will be critical in reducing emissions and fostering sustainability in developing economies.
Source: UN Environment Programme (UNEP), International Finance Corporation (IFC)