The cooling market in developing economies is expected to grow from around $300 billion to $600 billion, at least, per year by 2050, according to a new report.
The report by the UN Environment Programme-led Cool Coalition and International Finance Corporation said 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.
The report titled 'Cooler Finance: Mobilizing Investment for the Developing World's Sustainable Cooling Needs' also called for prioritising passive, energy-efficient, environmentally friendly, and economically viable cooling solutions.
It said that about two thirds of emissions related to cooling in 2022 came from developing countries and this share could grow above 80% by 2050. This is due to population growth, economic expansion, and urbanisation.
The report found that sustainable cooling technologies can slash cooling-related emissions by almost half in 2050 in developing economies.
This requires prioritising passive cooling strategies like insulation, reflective materials, enhancing green areas, and energy-efficient technologies; enforcing minimum energy performance standards and new building energy codes and a faster phase down of climate warming refrigerants.
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A systems approach to cold chains and large cooling infrastructure services, and incentives to promote innovation would be crucial to achieve these cooling-related emission reductions.
"The sustainable cooling market represents a $600-billion opportunity for the private sector, which could generate more than $8 trillion in benefits for developing countries," said Makhtar Diop, IFC's Managing Director.
"These nations are especially vulnerable to the deadly effects of rising temperatures and are urgently in need of cooling solutions. We are proud to present this report which describes the opportunity to invest in sustainable, affordable, and scalable cooling solutions, aiming for near-zero emissions by 2050," he said.
The report also highlighted the need for significant upfront investments.
Closing existing shortfalls in access to cooling for households and SMEs in developing countries will require $400-800 billion, in addition to future increases in demand, it said.
"As record temperatures continue to be broken across the world, keeping cool is an essential need for both healthy communities and a healthy environment. However, we must avoid creating a vicious cycle of meeting cooling demands through solutions that further heat up the planet," said Inger Andersen, Executive Director of UNEP.
"We need sustainable, affordable and energy efficient cooling solutions that both meet growing demand and support climate, health, food security, and economic development.
"Governments, private businesses, and multilateral banks can use this report to harness a wide range of financial instruments for sustainable cooling and resilience to extreme heat," she said.
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