With an overall allocation of $10 million, Window 3 (Finance) is supporting initiatives that lead to faster implementation of efficient, clean cooling and that mobilize additional sources of public and private investment. We sought compelling proposals for targeted technical assistance grants to mobilize the capital needed to integrate energy efficiency improvements with the F-gas transition.

The response to our application process was overwhelming: we received 29 applications for a combined ask of $75 million in grant support. The overall quality of the applications was very high.

We have selected a package of grant projects covering a range of implementers across a broad geographic spread of developing countries. The selected proposals cover air conditioning, refrigeration, district cooling, cold chains and systems approaches across a range of sectors – from commercial and industrial applications to public and residential buildings. They employ different financing approaches such as on-bill payment, credit lines and procurement schemes, and financial mobilization from private equity and debt, multilateral and national development banks, and commercial banks.

GranteeCapital Funding SourceFunding ModalityCountry Focus*
Sustainable Development Capital LLP (SDCL)Private FinanceCooling-as-a-ServiceMorocco, South Africa, Indonesia, Malaysia and China
World Bank GroupMultilateral development bankLikely to include many different modalitiesGlobal
MGM InnovaPrivate FinanceLease-back operationsLatin America with a focus on Mexico, Colombia, Brazil
UN EnvironmentPrivate finance, Multilateral development bank, National development bankInfrastructure investment, On-bill financing, Concessional credit lines, LeasingEgypt, Ghana, Senegal, Rwanda
Asian Infrastructure Investment Bank/GIZMultilateral development bankPublic procurementBangladesh
China Industrial BankCommercial bankSpecialized credit linesChina
*Limited to developing countries in the fast phasedown group (A5G1) of the Kigali Amendment

We are excited to be piloting innovative approaches to unlock finance for this important sector. K-CEP intends to share successes and lessons learnt with a wide group of relevant stakeholders. We know that many capital providers need greater awareness of cooling efficiency financing opportunities and stronger evidence of what works to help mobilise funding and action at scale.

Introductions to examples of these supported projects are included below.

K-CEP Window 3 Grantees

Sustainable Development Capital LLP (SDCL)

SDCL has launched a program to deliver cooling and efficiency gains in industrial and commercial operations of global companies in fast phasedown countries (A5G1) under the Kigali Amendment. The K-CEP grant supports SDCL to deliver Investment Grade Audits (IGAs) that provide confidence to clients across Asia and Africa on the benefits of deploying efficient, clean cooling technologies. These technology solutions are optimized across supply-side, process and demand-side requirements and the benefits are delivered as a service rather than through ownership and operation of the assets. For further information on SDCL’s energy efficiency investments please visit their website.

World Bank Group

The World Bank Group has launched a new Efficient Clean Cooling Program (ECCP) to accelerate the uptake of sustainable cooling solutions, including air conditioning, refrigeration and cold chains, as well as cool surfaces in developing countries. The program will provide technical assistance to ensure that efficient cooling is included in new World Bank Group investment projects and mobilize further financing. The program sets out to make sustainable cooling accessible and affordable to developing countries and underpins the World Bank’s longer-term strategy on sustainable cooling, and is led by the World Bank’s Energy Sector Management Assistance Program (ESMAP) and the World Bank’s Climate Change Group. For more information, please see this press release on the programme.

MGM Innova

The MGM Innova Group provides integrated environmental, financial and technical solutions that contribute to sustainable energy management and climate change mitigation and adaptation. This new program involves identification, structuring, investment support, monitoring, and reporting on energy efficient, low global warming potential and non-F gas cooling projects across several sectors focusing on countries in the Latin America and Caribbean region. The capital is provided by MGM Innova’s MSEFII fund and builds on the foundations established in MGM Sustainable Energy Fund LP (MSEF).

UN Environment

This program supports energy efficient, climate-friendly cooling in a range of countries in Africa through the following projects:

  1. Scaling up investment in low global warming potential refrigerant and energy efficient district cooling systems in Egypt;
  2. ECOWAS Refrigerators and Air Conditioners(ECOFRIDGES) accelerates the switch to better cooling solutions in Ghana and Senegal through innovative financial mechanisms developed with the African Development Bank;
  3. The Rwanda Cooling Finance Initiative(R-COOL FI) is developing a new leasing scheme and on-bill financing mechanism to foster widespread adoption of superior domestic refrigerators and commercial air-conditioners.

See UN Environment’s website for further information on their involvement with K-CEP.

GIZ/Asian Infrastructure Investment Bank (AIIB)

The objective of this study, undertaken by GIZ, is to determine the potential for improving energy efficiency and reducing the need and energy used for cooling in public buildings in Bangladesh, and subsequently secure government buy-in for a potential energy efficiency loan to be considered by the Asian Infrastructure Investment Bank (AIIB). The study includes undertaking an inventory of existing public buildings in the country and conducting energy audits in selected public buildings to help determine the potential investment required, energy saving and climate mitigation benefits of a large-scale energy efficiency project in public buildings in Bangladesh. For more information, see GIZ Bangladesh and AIIB.

China Industrial Bank (CIB)

This new program will establish cooling efficiency business lines by focussing on privately owned commercial building and cold storage and logistics industries in China. The aim is to increase CIB’s lending to cooling by 50% to 75% and allocate funding to more efficient cooling activities. For more information on CIB see their website.


Case studies and other resources

How else does cooling efficiency get financed today? Check out some interesting case studies of initiatives that seek to promote efficiency in cooling, and take a look at the on-line toolkit, The Clean Cooling Landscape Assessment. Also see the K-CEP-supported Cooling-as-a-Service work here.