The past decade and the last year were both the warmest on record, causing heat-related deaths, food losses, and more than $2.0 trillion of GDP lost due to heat-related declines in productivity. Without the right interventions, cooling demand will rise substantially contributing to global warming that generate further negative climate effects.
Hydrochlorofluorocarbons (HCFC) – gases used worldwide for refrigeration and ai-conditioning – are powerful greenhouses gases and major contributors to depleting the ozone layer. Under the Montreal protocol, a multilateral agreement adopted in 1987, countries committed to reducing and phasing out HCFCs step-by-step to preserve the stratospheric ozone layer, the Earth’s protective shield that protects humans and the environment from harmful levels of ultraviolet radiation from the sun. Transitioning to more sustainable, climate-friendly ways of cooling is imperative for reaching the goals of the Montreal protocol and reducing planet-warming GHG emissions.
IFC’s Sustainable Cooling Initiative is a “five by five” strategy, scaling up five pillars of engagement in five key sectors where cooling interventions are most needed:
- District cooling and cooling-as-a-service
- Cooling for green buildings
- Consumer and SME finance
- Innovation for manufacturing and agribusiness
- Cold chain and temperature-controlled logistics.
Sustainable cooling is a cross-cutting theme that cuts across many sectors and touches many of IFC’s priority areas. Providing and increasing access to sustainable cooling is fundamental to countries’ adaptation needs and development goals, from health and food security to education, productivity and economic growth.
Investment Opportunity
Sustainable cooling represents a significant investment opportunity: the market in developing economies is large and expected to grow substantially from $272 billion to $600 billion per year by 2050. Mobilizing private finance is essential to the transition of developing economies to a sustainable cooling pathway. Sustainable cooling provides ample business opportunities for innovators, entrepreneurs, cooling provider firms, investors and financiers.
