Adopting energy-efficient cooling technologies can save over $6 trillion in developing economies

Among low- to middle-income economies (or developing economies), SEforAll’s Chilling Prospects report evaluated that about 1.2 billion people across 54 countries are at high risk due to a lack of access to cooling ^[1]. Indeed, with rising global temperatures, refrigeration and air conditioning play a key role in the economic and social development of emerging economies ^[2].

 

Understandably, the adoption of refrigeration equipment is expanding dramatically. A new analysis from International Finance Corporation (IFC) and the United Nations Environment Programme (UNEP)-led Cool Coalition finds that the market for sustainable cooling in developing economies is set to more than double by 2050 from around $300 billion in annual demand currently ^[3].

 

The fastest growth in cooling is expected in Africa, which will see the market multiply by a factor of seven, and South Asia, which will quadruple in size.

 

Nevertheless, the adoption of energy-efficient refrigerating equipment across developing countries could cut consumers’ electricity bills by about $6 trillion over the next 25 years. In addition, a further $1.8 trillion could be saved by reducing the amount of new investment needed in new power generation to meet peak electricity demand. Therefore, sustainable cooling solutions can slash cooling-related emissions by almost 50 per cent and can reduce electricity bills, equipment costs, and power sector investments by $8 trillion by 2050.

 

The report presents detailed recommendations aimed at public and private sector stakeholders to access private and public investment in sustainable cooling and mitigate some of the barriers to widespread adoption.

 

For more information, the report is available here. 

 

 

Sources

[1] Chilling Prospects: Tracking Sustainable Cooling for All 2022. https://www.seforall.org/our-work/research-analysis/chilling-prospects-series/chilling-prospects-2022

[2] The Role of Refrigeration in the Global Economy (2019), 38th Note on Refrigeration Technologies. https://iifiir.org/en/fridoc/the-role-of-refrigeration-in-the-global-economy-2019-142028

[3] Mobilizing Investment for the Developing World's Sustainable Cooling Needs. https://www.ifc.org/en/insights-reports/2024/mobilizing-investment-for-the-developing-world-s-sustainable-cooling-needs