Opportunities and Lessons from the Transition to Efficient, Clean Cooling - PowerPoint Presentation

1. Opportunities and Lessons from the Transition to Efficient, Clean Cooling Gabrielle Dreyfus, Head of Policies, Standards, and ProgramsKigali Cooling Efficiency Program30th Meeting of the PartiesQuito, Ecuador – November 6, 2018

2. AGENDA27:00 Welcome and Introduction, and announcementsGabrielle Dreyfus, Head of Policies, Standards, and Programs, Kigali Cooling Efficiency Program 7:10 Idris Abdullahi Ishaka, National Ozone Officer, Nigeria 7:20 Agustín Sánchez Guevara, Ozone Unit Coordinator, Mexico [unable to participate due to co-convening contact group at same time] 7:30 Jessica Brown, Director, Kigali Cooling Efficiency Program 7:45 Q&A moderated by Gabrielle Dreyfus

3. Overview of K-CEP 3AIM4 WINDOWSCOLLABORATIONK-CEP focuses on the energy efficiency of cooling to increase & accelerate the climate and development benefits of the Kigali Amendment on HFCs.Focus on the largest mitigation opportunities but also development benefits (especially health)To demonstrate what is possible and share with parties to inform future work of the MP on energy efficiency (and link to the UNFCCC)The program has 4 ‘windows’Strengthen institutionsPolicies, standards and programsFinanceAccess to cooling K-CEP also supports the International Energy Agency to run the Global Exchange – an online tool to track cooling policies and market transformation K-CEP is a philanthropic collaboration catalyzing further collaboration between public and private sector actors. Work closely with MP institutions and agencies as well as governments, international organizations, NGOs, academia, businesses and financiers. Need a much stronger demand signal that efficient, clean cooling matters

4. ACCESSTO COOLING

5. MISSION AND AREAS: Increase Access To Efficient, Clean Cooling.Avoid Lock Into High Carbon Cooling Pathways.5

6. Chilling Prospects: Providing Sustainable Cooling for All Approximately 1.1 billion people face cooling access risks: 470 million people living in poor rural areas without access to electricity and cold chains for food and medicines, and630 million slum dwellers living in hotter-climate urban areas where electricity services do not exist, are intermittent, or are too expensive.

7. 7Cooling4all SecretariatSupport SE4ALL establish a Cooling for All secretariatContinue the Global Panel on Cooling for All and associated advoacyEstablish an Ashden Award on “Cooling for People”Integrate A2C to national policies: IEA training programPartners:

8. 8GAVI-X ProjectPartner with GAVI to co-fund Project X on GAVI-X project to promote access to efficient and low-GWP cold chain for vaccine:Optimize GAVI’s cold chain for vaccineIncrease access to cold chain for vaccine in GAVI & KCEP high impact countiesImpact global supply chain and increase market penetrationPartners:

9. 9Fishery and Cold ChainPartner with WWF in Tanzania, Kenya and China: Addressing the challenge of post-harvest losses, the project will promote widespread use of appropriate cold storage facilities along the fisheries value chain in Tanzania and Kenya, to improve livelihoods, cut pollution and enhance conservation efforts. Decarbonize the logistics and distribution system and address the booming cold chain demand due to life style change and online fresh food market growth in China.

10. 10US$2 M. for Million Cool Roofs Challenge

11. Kigali Cooling Efficiency Program (K-CEP)Window 3 briefingJessica Brown, DirectorKigali Cooling Efficiency Program30th Meeting of the PartiesQuito, Ecuador – November 6, 2018

12. WINDOW 3 CONTEXTK-CEP can help demonstrate new, innovative approaches for financing clean, efficient cooling and share successes and lessons learnt with a wide group of relevant stakeholders.Window 3 support intends to inform the ultimate direction the Montreal Protocol takes on financing cooling efficiency and influence the actions of other large capital providers/institutions. Multiple capital providers need greater awareness of cooling efficiency financing opportunities and stronger evidence of what works (and doesn’t) to help mobilise funding and action at scale, including helping to facilitate adoption of new MEPS and driving consumer choices to higher efficiency models.

13. We proactively developed a strong pipeline of applications for Window 329 final proposals (including four from organisations with no prior contact)250+ individuals from 160 different organisations contactedSome kind of response from 90 individualsActive engagement from 40 individualsAt least five ‘near’ proposals – concepts actively discussed but ultimately not submittedIncluded many that were not potential applicants themselves but channels to other interested parties

14. Key criteria: Capital mobilization, CO2e reductions, political economy, institutional change, and fundingCapital mobilization: making sure this is both credible (support letters from investors or if applicant is itself a capital provider) and additional. Capital mobilized considered progressively more additional if program: Brings forward investment earlier than might have happened anywayIntroduces an element not previously included (e.g. a phase down of refrigerants)Is wholly new and would not proceed at all without K-CEP funding.CO2e emissions reductions; Political economy - supporting the wider cause of introducing and extending efficient, clean cooling; and If initiative would help catalyse institutional change in the financial sector.

15. We adopted a portfolio approachThere are several relevant portfolio considerations for a $10 million package including:Range of implementers: Spread across multiple submitters.Country/regional spread: Aim was for a good mix. Ideally should not include two projects in the same country. Must include China.Type of cooling: Aim was for a good mix across air conditioning and refrigeration, with some representation from district cooling, cold chain, and system approaches (e.g. renewables powering cooling).Finance scheme proposed: Aim was to support a range of different approaches e.g. credit lines, procurement schemes, guarantees, Cooling-as-a-Service etc.To satisfy these portfolio considerations within the total funding envelope, the scale of resources allocated to each proposal was adjusted.We ended up with a portfolio of 6 grantees

16. Submitting organisation and titleCountry focusDescriptionAsian Infrastructure Investment BankEnergy Efficiency in Public Buildings in BangladeshStudy to determine potential for reducing the need and energy used for cooling in public buildings in Bangladesh, and then secure government buy-in for a potential US$15-20 million energy efficiency loan.Sustainable Development Capital LLPSDCL Kigali Cooling Efficiency ProgramProgram to deliver cooling and efficiency gains in industrial and commercial operations of global companies present in A5G1 countries. Support to be delivered via a holistic approach to optimising technologies across supply-side, process and demand-side requirements where the benefits are delivered as a service rather than through ownership and operation of the assets. Portfolio of 6 grantees chosen; examples include:

17. Submitting organisation and titleCountry focusDescriptionUN Environment1) District cooling in Egypt; 2) ECOWAS Refrigerators (ECOFRIDGES);3) Rwanda Cooling Finance Initiative (R-COOL-FI)1) Scaling up investment in low-refrigerant, energy efficient district cooling systems in Egypt;2) ECOFRIDGES will support the replacement of domestic refrigerators in Ghana and Senegal through on-bill financing;3) R-COOL FI will support the replacement of domestic refrigerators and commercial air-conditioning in Rwanda.MGM InnovaMGM Efficient Cooling Demonstration ProgramIdentification, structuring, investment support, monitoring and reporting of the demonstration of non-F-gas efficient cooling projects across several sectors in countries in Latin America.

18. Likely geographic coverage of recommended package

19. Sectors and types of cooling technology in the recommended packageSectorNo. of proposals including this sectorType of cooling technologyNo. of proposals including this technologyCommercial3Air conditioning5Industrial3Refrigeration4Public2District cooling2Residential1Cold chain2All1All1Not specified0Not specified0*One proposal (within the consolidated UN Environment proposal) is exclusively focused on district cooling with another including district cooling as one of several named technology types supported.

20. Finance sources and modalities included in the recommended packageCapital funding sourceFunding modalityCommercial bankSpecialised credit linesMultilateral development bankPublic procurementPrivate financeCooling-as-a-ServiceMultilateral development bankLikely to include many different modalitiesPrivate financeMultilateral development bankNational development bankInfrastructure investmentOn-bill financingVarious (concessional credit lines, on-bill financing, leasing)Private financeLease-back operations