Renewable energy manufacturing in Southeast Asia can generate USD 90 billion to USD 100 billion in sustainable revenue by 2030

News

The Southeast Asian region could lose up to 30 percent of its gross domestic product by 2050 due to increases in global temperature and extreme weather events, but bolstering the region’s renewable energy manufacturing capacity would position Southeast Asian countries to create new jobs and meet growing energy demand while drastically reducing emissions, according to new research released today on the sidelines of the ASEAN Finance Ministers and Central Bank Governors Meeting by the Asian Development Bank (ADB), Bloomberg Philanthropies, ClimateWorks Foundation, and Sustainable Energy for All (SEforALL). 

Growing Southeast Asia’s solar photovoltaic (PV) cells, battery, and electric two-wheeler industries presents an estimated USD 90 billion to USD 100 billion revenue opportunity by 2030, with a potential 6 million renewable energy jobs to be created by 2050.

SEAREMI report launch
The Renewable Energy Manufacturing: Opportunities for Southeast Asia report was launched in Jakarta on 24 August on the sidelines of the ASEAN Finance Ministers and Central Bank Governors Meeting.

The new report, Renewable Energy Manufacturing: Opportunities for Southeast Asia, explores how to support the development of the clean energy manufacturing sector in Southeast Asia and help countries reap its immense economic potential while mitigating the impacts of climate change. Seizing this opportunity depends on government policy measures specific to each country in the region, including stimulating domestic renewable energy demand, ensuring cost competitiveness, improving the ease of doing business, and improving access to export markets. Collaboration at the regional level is also essential to provide further support through the deepening of intra-regional trade.

The report identifies potential ambition and outcomes for Southeast Asia to achieve the following:

  • Grow solar PV manufacturing capacity in modules from 70 GW to 125–150 GW by 2030.   
  • Develop a regional battery manufacturing value chain, increasing national and regional demand, and establish Southeast Asia as a regional and global export hub, producing 140-180 gigawatt-hours (GWh) of battery cells by 2030.
  • Expand assembly capacity for electric two-wheelers (E2W) in Southeast Asia from 1.4 to 1.6 million units annually to approximately 4 million units by 2030.

The report also highlights how Southeast Asia can build on its strong history of regional collaboration to enhance the competitiveness of its renewable energy industries and meet its Net Zero targets. For example, production factors could benefit from trade across the value chain and regional efforts to improve workforce quality and distribution. Demand markets could be supported by the build-out of the ASEAN Power Grid to enable higher renewables deployment through multilateral power trade and expanded grid balancing areas. Harmonization of technical standards for E2W vehicles and charging stations could enable original equipment manufacturers (OEMs) to develop products that suit needs across Southeast Asian markets.

Today's announcement builds on collaboration earlier this year between the African Climate Foundation, Bloomberg Philanthropies, ClimateWorks Foundation, and Sustainable Energy for All to publish Africa Renewable Energy Manufacturing: Opportunity and Advancement and launch the Africa Renewable Energy Manufacturing Initiative to drive investment and mobilize action with partner governments to scale up renewable energy manufacturing capabilities in African countries.

 

"As we often say in ADB, the battle against climate change will be won or lost in Asia and the Pacific. A decisive front in that battle is Southeast Asia. This research shows the promise of renewable energy manufacturing – with policy, technical, and financing support – in helping the region's developing countries to transition away from coal-based energy, while lowering carbon emissions, expanding local industrial capabilities, spurring job creation, and driving long-term economic growth."

 

Ramesh Subramaniam, Director General and Chief, Sectors Group, Asia and the Pacific, Asian Development Bank

“Southeast Asia has the potential to become a leader in renewable energy manufacturing to contribute to the global renewable energy deployment, while simultaneously achieving economic growth and mitigating the impacts of climate change. This report proves how increasing private sector investments into local renewable energy manufacturing sectors, strengthening regional value chain collaboration, and bringing together key stakeholders will create jobs, increase GDP, and help Southeast Asian nations meet their climate goals."

 

Antha Williams, Environment Program, Bloomberg Philanthropies

“The clean energy industry is already a massive growth opportunity, and will need to scale even more rapidly for us to achieve carbon neutrality globally by 2050. Southeast Asia, which is home to one-fourth of the world's population, is well positioned to become a global leader in renewable energy manufacturing with its vibrant business environment and large talent pool. In doing so, the region can boost the supply of affordable and reliable renewable energy solutions to people and communities in Southeast Asia and around the world, and create new job opportunities locally.”

 

Helen Mountford, President and CEO, ClimateWorks Foundation

“By growing their renewable energy manufacturing capabilities, Southeast Asian countries can increase GDP, create jobs and decarbonize energy systems, contributing to both economic growth and climate progress. This report highlights how countries within the region can establish strong, local industries that will contribute to a prosperous and sustainable future."

 

Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, and Co-Chair of UN-Energy


 

COP28 President-Designate, Ministers, SEforALL and UNEP call for action on sustainable cooling at Clean Energy Ministerial

News

The Government of India, as G20 President, and the Government of the United Arab Emirates, which holds the COP28 Presidency, put cooling firmly on the international energy agenda today at the High-Level Dialogue on Sustainable Cooling, which was part of the Clean Energy Ministerial-Mission Innovation Summit in Goa, India.

At a time when unprecedented heatwaves are gripping many regions of the world, today’s event highlighted how urgent action is needed to deliver sustainable cooling solutions that will protect people without hastening climate change. Several ministers and high-level representatives rallied behind the Global Cooling Pledge, its calls to action on sustainable cooling, and the steps the global community must take to achieve a “Cool COP28”, specifically one that sparks commitments towards improving sustainable cooling access.

The Global Cooling Pledge is an initiative led by the COP28 Presidency and supported by the Cool Coalition and its partners, including SEforALL. As highlighted by Ms. Ligia Noronha, UN Assistant Secretary-General and Head of the New York Office of UN Environment Programme (UNEP), “the Pledge offers state and non-state actors a unique chance to enhance commitments to climate mitigation, to adaptation, resilience and investments towards sustainable cooling.”

Previewed earlier this year, it calls for progress on nature-based solutions, super-efficient appliances, food and vaccine cold chains, district cooling, and National Cooling Action Plans, among others.

During the event in Goa, Dr. Sultan al Jaber, COP28 President-Designate and the UAE’s Special Envoy for Climate Change, said, “We have a unique opportunity to deliver a significant collective response to the cooling challenge via this very important initiative – the Global Cooling Pledge. This Pledge aims to improve efficiency and increase access to sustainable cooling. It is gaining momentum, with more than 20 early supporters, including India and Denmark.”  

The COP 28 President-Designate was joined by Ministers and international energy sector leaders to call on governments to join the Global Cooling Pledge in the lead up to COP 28.

HLD Cooling
From left to right: Shri Abhay Bakre (Government of India); Dr. Sultan al Jaber (UAE); Ligia Noronha (UNEP); Dr. Jitendra Singh (Government of India); Dan Jørgensen (Government of Denmark); Damilola Ogunbiyi (SEforALL); Rohit Monserrate (City of Panaji)

Speaking on behalf of the Government of Denmark, Dan Jørgensen, Minister for Development Cooperation and Global Climate Policy, declared, “It is clear that achieving universal access to sustainable cooling requires international corporation, dedicated climate finance, and leadership from key players.” He then urged decision-makers from government, private sector and civil society to raise awareness and advocate for a global approach to sustainable cooling.

Recent record-breaking temperatures, including some exceeding 50 degrees Celsius, accentuate the need for progress on sustainable cooling for all. New data from the Chilling Prospects research series show progress is not moving quickly enough to beat the heat. Around 1.12 billion people are still at high risk due to a lack of access to cooling, a decrease of just over 20 million compared to last year. The most acute and dangerous cooling access gaps are in the poor rural areas of Sub-Saharan Africa and in the growing cities in high-temperature regions of the Global South.

In these areas, people face risks to their health, safety and productivity because they can’t access the cooling they need. Bringing them cooling solutions is therefore a critical development and climate issue, because rising demand for cooling needs to be met sustainably. Currently, conventional cooling, such as air conditioning, is already responsible for over seven per cent of global greenhouse gas emissions. These emissions are on a path to doubling by 2050 without stronger action.  

SEforALL is pleased to work with the Governments of India and the UAE, as well as the Cool Coalition to advance action on sustainable cooling in the run-up to COP28 and beyond. Together, we will be working to generate:

  • Pro-poor, pro-rural innovation to put sustainable solutions in reach. 
  • More effective financing for the productive use of energy for cooling, building on the result-based financing that works for electrification.
  • Strong policy commitments from national governments on codes, standards and integrated electrification planning that includes cooling.
  • Financing for data, technical support, and project implementation that can turn a commitment into results for those at highest risk due to a lack of access to cooling

During the High-Level Dialogue, Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All, and Co-Chair of UN-Energy, highlighted how SEforALL is already supporting the Governments of Kenya and Ghana to mobilize investment in sustainable cooling solutions for the most vulnerable. We have also launched our second #ThisisCool youth innovation challenge, with winners to be profiled at COP 28.  

In Malawi, SEforALL ensured that the cooling, energy, and associated investments needs to guarantee vaccine cold chains for the COVID-19 response were included in the Government’s Integrated Energy Plan. And in Madagascar, we are going a step further by including vaccine and agricultural cold chains in the support provided to the Government of Madagascar to develop their Integrated Energy Plan.

“Over the next few months, SEforALL is looking forward to working with you all on the success of the Global Cooling Pledge, and subsequently support countries to implement the solutions after the Pledge,” Ogunbiyi expressed at the event in Goa.

The effects of a warming planet, insufficient action on climate change adaptation, and the growing impacts of extreme heat on human lives underline the urgency of the issue. With 2023 representing a year of opportunity for new commitments to sustainable cooling, let us use the moment to prioritize the opportunity of Cooling for All for equality of opportunity, productivity, and health of the most vulnerable.

Chilling Prospects: Nature-based solutions to reduce the urban heat island effect in Mumbai, India

Data analysis

India is home to 309.2 million people at high risk due to a lack of access to cooling. Mumbai, the most heavily populated city in the country, has undergone rapid urbanization, converting natural land cover with soil, water and vegetation into urban paved areas. Consequently, it has developed a pronounced urban heat island effect (UHIE).

Measured land surface temperatures in Mumbai demonstrate that areas with low built-up density experience temperatures around 28°C, whereas high built-up urban areas exhibit significantly higher temperatures of approximately 34°C. In contrast, on the city's outskirts, where vegetation density and water coverage are more abundant, temperatures range from 21°C to 23°C. [1] Discover more urban land use and heat analysis for Mumbai here and in the WRI Working Paper Urban Blue-Green Conundrum: A 10-City Study on the Impacts of Urbanization on Natural Infrastructure in India

The impact of Mumbai’s UHIE was particularly noticeable in the suburb of Andheri East, specifically at the Marol Co-op Industrial Estate, following the construction of a metro line. Before the metro’s construction in 2005 and 2010, average temperatures recorded were 29.27°C and 33.4°C, respectively. However, after the construction, the average temperature rose to 38.8°C. [2]

In response to this, the Brihanmumbai Municipal Corporation (BMC) and Marol Co-op Industrial Estate initiated the development of a 3.2 acre Urban Forest and Nature Conservancy Park in Marol along the Mithi river to increase green cover in this heat-stressed part of Mumbai. On World Environment Day in June 2023, the BMC carried out a tree plantation drive supporting this initiative. [3]

Based on studies of the cooling intensity of trees in an urban environment, the temperature reductions achieved could range from 0.4° C to 3.0° C. [4] More cooling may be achieved with a higher density of the proposed green space. Once complete, the Urban Forest and Nature Conservancy Park is expected to serve up to 172,824 people who can access the green space within a 15-minute walk. [5]

This nature-based initiative was made possible by the Mumbai Climate Action Plan (MCAP). The MCAP includes a priority action track to ‘increase vegetation cover and permeable surface to 30-40 percent of the city surface area by 2030 to tackle flood- and heat-related disaster risk’ with sub-actions that include developing low-cost nature-based solutions to reduce heat stress in low-income neighborhoods and an increased budget allocation for urban green development and maintenance to tackle heat. Furthermore, India is establishing nationwide strong nature-based solution networks for the peer-to-peer exchange of best practices, technical training and knowledge sharing, such as the India Forum for Nature-based Solutions

Mumbai is demonstrating that evidence-based policymaking, sub-government actions and practice-based change can help reduce the impact of excess heat on its citizens through nature-based solutions.

Notes and references

[1] Grover, Aakriti & Singh, RB. (2016). Monitoring Spatial Patterns of Land Surface Temperature and Urban Heat Island for Sustainable Megacity: A Case Study of Mumbai, India Using Landsat TM Data. Environment and Urbanization Asia. 7. 38-54. 10.1177/0975425315619722.
[2] https://www.knocksense.com/mumbai/bmc-to-develop-urban-forest-in-marol-industrial-area-to-reduce-heat-island-effect-in-the-region
 [3] https://www.linkedin.com/posts/wri-india_worldenvironmentday-worldenvironmentday-activity-7072092710051938306-L4py/?originalSubdomain=in
[4] Planting Healthy Air: A global analysis of the role of urban trees in addressing particulate matter pollution and extreme heat. The Nature Conservancy (2016)
[5] SEforAll analysis using catchment for locations within a 15-minute walk captured from https://app.traveltime.com. Estimated population taken from https://www.freemaptools.com/find-population.htm using 0.9 km radius catchment.

Country

India

Programme

Cooling for All

Chilling Prospects: The impact of Climate Saathis in India’s urban slums

Empowering women for climate resilience
Data analysis

The Chilling Prospects 2023 analysis shows that in India, over 215 million people in urban settings are currently estimated to be at high risk due to a lack of access to cooling services, including over 121 million women living in poor urban areas and urban slums. The Mahila Housing Trust (MHT) is empowering women to build climate resilience in slums by becoming Climate Saathis (friends in Hindi). The model builds upon the notion that if the urban poor are provided with the necessary knowledge, tools and leadership skills, they will be able to devise and implement climate-resilient technologies solutions locally.  

Through the Climate Saathis project, women are trained to be energy auditors who encourage households to switch to more energy-efficient lighting, fans and cooling devices and become grassroots-level micro-entrepreneurs, forming a women-led distribution network of efficient and off-grid products. The programme also focuses on educating participants about various aspects of energy, including understanding electricity bills, calculating energy consumption, and identifying sources of energy wastage. Women also encourage households to use building materials and technologies that reduce heat. Passive cooling solutions such as white roofs and improved roofs can reduce home temperatures by up to 6°C. 

Cool roofs are a strategic component of India’s response to increased temperatures. Cities like Ahmedabad are including cool roofs in Heat Action Plans and Monsoon Action Plans, providing a model for other communities to follow.  

To date, around 28,000 energy audits have been undertaken in slum communities, which have saved families over USD 700,000 per year in electricity costs. This support has included the installation of over 200 modular roofs and 500 roofs with solar-reflective white paint. In addition, this has also led to a reduction of 105 tonnes of carbon dioxide equivalent, CO2e, per year. 

The Climate Saathis project is an excellent example of how grassroots-level initiatives can significantly impact climate change mitigation. The project recognizes the important role that women can play in building climate resilience and improving the lives of those living in informal settlements. It also provides a model for other communities to follow. 

Country

India

Programme

Cooling for All

Chilling Prospects: Addressing heat-related risks in Bangladesh's Ready-made Garment (RMG) Sector

Towards sustainable cooling and improved working conditions
Data analysis

According to Chilling Prospects 2023 analysis, Bangladesh is home to 20.7 million women and 16.5 million men at high risk due to lack of access to cooling services. Women make up as much as 57 percent of the urban poor at high risk in the country as a result of their over-representation in urban slums.

Bangladesh regularly experiences some of the highest maximum temperatures registered in Asia and it is expected to see an increase of up to 3.6°C under a high greenhouse gas (GHG) emissions scenario (RCP8.5) by the end of the century. With more severe and frequent heatwaves, it is predicted that Bangladesh will suffer economic losses and occupational health risks in some sectors, particularly in the ready-made garment (RMG) industry. By 2030, Bangladesh is expected to lose 4.84 percent of working hours due to heat stress – the equivalent of 3.833 million full-time jobs.  

The RMG industry in Bangladesh is a strong driver of economic growth and female employment. Some of the world's biggest fashion brands operate in Bangladesh, representing around 25 percent of the total garment workforce worldwide, the second-largest clothing manufacturer after China. In 2019, the industry accounted for about 83 percent of the country’s export earnings and represented 12-15 percent of its GDP. According to the Bangladesh Bureau of Statistics, there are 7,727 establishments in the country, and female workers represent at least 60 percent of the workforce in this industry.  

Poor ventilation, insufficient lighting, lack of drinking water and inadequate sanitation facilities are common, and heat-related risks in the RMG sector are a major concern. Activities such as sewing, ironing, pressing, steaming and other processes contribute to the overall heat generation in factories, making it critical to address the impact of high temperatures and humidity on workers, particularly female employees.  According to a recent study in Dhaka, the temperature on the upper floors of garment factories can consistently exceed 30°C and there are 110 days throughout the year when temperatures can surpass 35°C. Another study shows that heat causes dizziness, headaches, fatigue and nausea among RMG workers.  

In hot working environments with inadequate sanitation facilities, workers avoid drinking water as they often need permission from their supervisors to leave their places of work to refill water containers or go to the restroom. Passive solutions such as green roofs, white roofs and shading can decrease indoor temperatures by 2-3°C in the hottest parts of the factories, decreasing demand for active cooling and improving work conditions. Other measures to improve well-being and productivity include heat education and awareness, improved hydration, and sanitation facilities for women.  

In recent years, international garment brands, government, labour organizations and multilateral organizations have been working to improve working conditions in the sector and modernize structural, electrical and safety standards. The Bangladesh National Cooling Plan for the Implementation of the Montreal Protocol marks a milestone in the response to tackle the impact of extreme temperatures. In the coming years, a holistic approach that encompasses passive and cooling solutions is expected not only to curb carbon emissions but to improve working conditions for both sexes in the garment sector and set an example for other countries relying on this sector.  

Country

Bangladesh

Programme

Cooling for All

Chilling Prospects: Policy progress in Cambodia with a region-leading National Cooling Action Plan

Data analysis

Cambodia has a rapidly growing economy and significant cooling needs. As in other parts of the world, temperatures are rising, with the capital of Phnom Penh experiencing 40°C in April 2023. The increasing incidence of extreme heat will affect not only people’s health and safety, but also key economic sectors such as agriculture, textiles, tourism and construction. Cambodia’s GDP increased 2.5 times between 2010 and 2020, when it reached approximately USD 25.9 billion. Still, it is currently estimated that GDP loss due to extreme heat is between USD 1.12 and USD 1.26 billion, or approximately 4-5 percent of GDP (2020) annually.  

In response to the challenge of meeting growing cooling needs, Cambodia released its National Cooling Action Plan (NCAP) in March 2023, developed in collaboration with the United Nations Environment Programme (UNEP) and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) and with support from the Alliance for an Energy Efficient Economy (AEEE) and Sustainable Energy for All (SEforALL). The plan leveraged the National Cooling Action Plan Methodology developed by the partners of the Cool Coalition to deliver a comprehensive framework to address cooling needs holistically and systematically, and has been recognized as a leading example of policy progress in the region.  

The plan itself sets targets for the cooling sector to reduce emissions by 17 percent and electricity consumption for cooling by 20 percent by 2040 compared to a business-as-usual scenario.  It also includes a cooling demand assessment not only for buildings, but for food and health cold chains, mobile air-conditioning and process cooling. Under the intervention scenario of the plan, refrigerant demand and energy consumption in the sector can be reduced by 9 percent and 26 percent respectively. These reductions can only be achieved with the support of policy and regulatory interventions, efficient technologies, market-supporting instruments and international investment.  

The comprehensive NCAP includes cross-sectoral domestic targets on cooling and supportive actions and is a model not just for the region but for all economies vulnerable to the increasing risk of heat stress. With the 10th anniversary of the Kigali Amendment to the Montreal Protocol approaching, it is imperative that countries demonstrate policy progress on sustainable cooling as a key tool to create markets and attract investment that can protect people and power economic growth.  

Country

Cambodia

Programme

Cooling for All

Sustainable Cooling for All in Asia

Webinar
Date
13:30 IST
18 Jul 2022
End
14:30 IST
18 Jul 2022
Location
Online

Watch the Sustainable Cooling for All in Asia webinar to discuss how cities in South and Southeast Asia can accelerate efficient, sustainable and innovative cooling solutions to boost the resilience of urban systems and their people.

 

Moderator: Alvin Jose, Principal Specialist, SEforALL

Scene-setting: Giorgia Pasqualetto, Energy Efficiency and Cooling Specialist, SEforALL

Speakers: 

  • Ishita Yadav, Regional Focal Point for South Asia, SDG 7 Youth Constituency
  • Kimberly Roseberry, Economic Affairs Officer, UN ESCAP
  • Herlin Herlianika, Refrigeration and Air Conditioning Expert
  • Mehul Jain, Climate Change Specialist, The World Bank

Agenda

2 min.

Welcome by moderator

4 min.

Opening Remarks

  • Damilola Ogunbiyi, CEO and Special Representative of the UN Secretary-General for Sustainable Energy for All (video)

6 min.

Youth in Action

  • #ThisIsCool Challenge perspectives from young leaders

10 min.

Scene-setting

  • Deep dive on Chilling Prospects 2022 global, regional and country data 

25 min.

Panel discussion 

  • Cooling needs, trends & solutions in Asia

10 min.

Q&A

3 min.

Closing by moderator

Programme

Cooling for All

Chilling Prospects 2022: China's progress towards sustainable cooling

Data analysis
Chilling Prospects 2022

Reflections on five years of the Kigali Amendment by the Building Energy Research Center of Tsinghua University, China

See all Cooling for All partner stories

Explore the full report


China’s National Green Cooling Action Plan  

In June 2019, China unveiled its first national Green Cooling Action Plan (GCAP), an integrated master plan with new energy efficiency and market penetration targets for air conditioners and other cooling products, driving improvements in cooling efficiency and the transition to green refrigerants. The plan was the result of an 18-month-long joint effort between key government agencies, including seven ministries, and was led by the National Development and Reform Commission (NDRC), in collaboration with research institutes, industry associations and civil society. 

The GCAP sets clear targets for China's cooling sector. By 2030, the energy efficiency of major cooling products should increase by over 25 percent; the market share of green and efficient cooling products should increase by 40 percent; and the energy efficiency of large public buildings should increase by 30 percent compared to 2022 levels, achieving annual electricity savings of 400 billion kWh combined. Actions to achieve these targets include upgrading energy-efficiency standards for air-conditioning and refrigeration; increasing the supply of green cooling products; promoting cooling-efficiency retrofits; and deepening international cooperation. Following the launch of the GCAP, cooling retrofit projects were also included in the subsidy programme of China’s Special Fund for Ecological Civilization Construction. 

Upgraded energy performance standards to accelerate market shift  

After the launch of the GCAP, and in synergy with the implementation of the Kigali Amendment, China upgraded the minimum energy performance standards (MEPS) for room air conditioners (RACs) and multi-connected air-conditioning (heat pump) units with variable refrigerant flow (VRF), the two dominant air-conditioning products for the residential and commercial sectors.  

The revised standard for RACs merged requirements for fixed- and variable-frequency air conditioners, which accelerated the market transition toward variable-speed air conditioners. Today, fixed-frequency air conditioners account for only 2 percent of the domestic market (Figure 1a). Positive trends were also seen in the use of refrigerants, with the market shifting quickly away from the use of R-22 and R-410a refrigerants, and R-32 technology dominating about 80 percent of total refrigerant sales in 2021 (Figure 1b). 

Figure 1a: Domestic sales % of RAC by fixed/variable frequency ACs

Domestic sales of RAC

 

Figure 1b: Domestic sales % of RAC by refrigerant type

RAC sales by refrigerant type


In October 2021, the revision of MEPS for multi-connected air-conditioning units led to an overall energy-efficiency improvement of 40.5 percent compared to 2008 figures. The testing method was also upgraded with a more rigorous annual performance factor (APF). Overall, the revision is expected to generate over 278 billion kWh in energy savings by 2030. 

Further opportunities for efficient technologies  

Promoting better passive building design to reduce cooling demand  

Passive building design takes optimal advantage of natural resources, including light, ventilation, shading and cooling, to create an optimum indoor environment and reduce energy demand. Well-designed natural ventilation systems save 13 to 44 kWh/m2 of cooling net energy per year. For instance, one office building in Shenzhen that has incorporated passive design has reduced the time that air-conditioning is in use by 40 percent compared with other local office buildings, while achieving the same level of indoor thermal comfort. 

Meeting end users’ cooling demands with decentralized cooling systems  

In the past two decades, surveys on the energy consumption of buildings found that among the main drivers of variation in buildings’ energy consumption are: i) the type of cooling system used; and ii) occupant behaviour patterns. Analysis showed that as much as 71 percent of the total operating time of VRF systems during one cooling season is characterized by only one unit in operation (Figure 2). In this context, centralized air-conditioning systems, provide full-time and full-space service regardless of the occupancy state of each room. Decentralized cooling systems, on the other hand, can provide a flexible, controllable part-time and part-space service, by switching off devices when the space is empty. Occupant energy usage patterns lead to further variation in energy consumption: while for most users energy consumption per unit area is below 30kWh/m2, the maximum usage can reach 89kWh/m2. 

Figure 2: Distribution of the number of operating indoor units and energy consumption 

Distribution of the number of operating indoor units and energy consumption

 

Distribution of the number of operating indoor units and energy consumption

Data source: Gree analysis in 2,776 residential VRF systems (2020)

Increasing energy efficiency of cooling systems  

High-efficiency cooling systems require that: i) the rated coefficient of performance (COP) of cooling devices is as high as possible; and ii) the capacity of cooling devices is adequately combined so that they operate in the high-efficiency zone at different load levels. In this context, it is important to further develop cooling equipment that can operate with high efficiency even at partial load. For instance, magnetic levitation chillers can increase cooling energy efficiency over full range, especially on a low load ratio, compared to traditional centrifugal chillers (Figure 3). 

Figure 3: COP of chillers under different load ratio

COP of chillers under different load ratio

Source: Manufacturer's test results (Cooling water inlet 30℃, chilled water outlet 7℃) 

A newly developed compressor technology for air conditioners shows significant potential to solve the efficiency problem at partial load. Combining a large- and a small-volume cylinder operating in parallel, this compressor greatly improves efficiency at load below 30 percent, even surpassing that of mono-split units.  

New, ultra-efficient air conditioners also combine smart evaporative cooling ventilation with photovoltaic panels, which could reduce the climate impact of air-conditioning1 by more than 85 percent. 

Replacing refrigerants with zero GWP cooling technology  

Efforts to replace refrigerants in line with the Kigali Amendment currently tend to focus on deploying refrigerants with low global warming potential (GWP), zero ozone depletion potential (ODP) and high efficiency. Air conditioners are typically among the first categories of equipment that are targeted by policymakers in this area. However, solutions such as direct and indirect evaporative cooling technologies provide valid alternatives to mechanical air-conditioning, particularly for dry regions. Indirect evaporative cooling solutions consume electricity only for pumps and fan operation and do not use any refrigerant gas. Test data suggest that this solution could save up to 40 percent of energy use compared with traditional vapour compression air-conditioning systems.  

Meet our Global Panel on Access to Cooling member from the Building Energy Research Center of Tsinghua University

Country

China

Programme

Cooling for All

Chilling Prospects 2022: Lessons learned from developing the India Cooling Action Plan

Data analysis
Chilling Prospects 2022

Reflections on five years of the Kigali Amendment by the Alliance for an Energy Efficient Economy (AEEE)

See all Cooling for All partner stories

Explore the full report


Climate change-induced warming trends, population growth and rapid urbanization are driving an unprecedented increase in the global demand for cooling across sectors, including thermal comfort in buildings, food supply chains, storage and transfer of medical products, transport of people, and industrial processes. This growth in cooling is linked with the socioeconomic progress of countries as they work to achieve the Sustainable Development Goals (SDGs). India currently has low access to cooling, but its economic progress, coupled with global warming trends, will drive an eight-times increase in the demand for cooling in the next two decades. While India’s projected cooling growth is in step with its development needs, this growth, under a business-as-usual scenario, will strain existing power systems and have an adverse impact on the environment.  

India’s Ozone Cell of the Ministry of Environment, Forest and Climate Change (MoEF&CC), has developed a plan to harmonize the energy efficiency of refrigeration and air-conditioning equipment with refrigerant transition pathways for enhanced climate action (as agreed in the 29th Meeting of the Parties to the Montreal Protocol). Launched in March 2019, the India Cooling Action Plan (ICAP) is the first-of-its-kind initiative of its scale in the cooling sector to be taken by any country globally that underscores the urgency of proactively and collaboratively addressing cooling growth. It strikes a balanced approach to goal-setting by establishing high-level nationwide targets while allowing line ministries flexibility in setting their own targets within a directional framework of recommendations.

ICAP’s high-level goals are:

  • reduction of cooling demand across sectors by 20–25 percent
  • reduction of refrigerant demand by 25–30 percent,
  • reduction of cooling energy requirements by 25–40 percent, all by 2037–38
  • training and certification of 100,000 service technicians by 2022–23
  • recognizing cooling and related areas as a focus area of research under the national science and technology programme.

The Alliance for an Energy Efficient Economy (AEEE) was closely involved in the ICAP development process from inception to completion. AEEE led two of the seven working groups established for sector-specific analysis (space cooling in buildings and the food cold chain), supported the Ozone Cell in synthesizing and integrating the working-group outputs into a cohesive ICAP report, and provided strategic guidance in the Steering and the Inter-ministerial Committees.  

AEEE’s key lessons and takeaways from the ICAP development process 

Key lessons and takeaways from the ICAP development process



It has been just over three years since the launch of the ICAP. Programmes and initiatives are already underway to advance the Plan, despite a slowdown due to the COVID-19 pandemic. AEEE is supporting the operationalization of ICAP through multiple avenues: as part of the Implementation Steering Committee established by the Ozone Cell, as part of the India Cooling Coalition and directly through a multi-year programme to implement ICAP recommendations.

One limitation of the ICAP development process was not including macroeconomic modelling to evaluate the impact of cooling on emissions. Incorporating such a modelling exercise would make the analytical outcomes more robust and is considered a future area of improvement. In parallel, the ongoing collaboration and alignment between the MoEF&CC and other line ministries to help effectively execute the ICAP is important. 

ICAP has placed India on the international radar and garnered significant interest in supporting global momentum for the creation of National Cooling Action Plans (NCAPs). The ICAP experience has been influential in guiding the ‘global’ NCAP Methodology developed by AEEE under the leadership of the UN Environment Programme (UNEP) and the UN Economic and Social Commission (UNESCAP) and supported by the Cool Coalition’s NCAP Working Group.

Beyond the direct application for cooling action plans in other countries, the ICAP lessons are relevant to environmental and climate-related policymaking in key areas such as sustainable urban development, greenhouse gas (GHG) net-zero pathways for cities or regions, low-climate impact mobility solutions, including the transition to electric vehicles, and waste management. 

Chilling Prospects

Chilling Prospects 2022

Sustainable cooling policy progress

Country

India

Programme

Cooling for All

Chilling Prospects 2022: Integration of inland waterways in the cold chain in West Bengal

Data analysis
Chilling Prospects 2022

Reflections on five years of the Kigali Amendment by the World Bank Group

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West Bengal produces a lot of fruits, vegetables and fish, and has well-connected networks of highways and railways. However, transport accounts for 2.6 million tonnes of greenhouse gas (GHG) emissions in the state. In addition, inefficiencies and a lack of transport connectivity adversely affect the state’s economy, increase congestion and contribute to post-harvest losses of temperature-sensitive goods. Waterways have the potential to support a multi-modal cold chain transportation network with reduced emissions, environmental impact, fuel usage and costs.

Potential of inland waterways

Environmental impact 7 times less than roadways
Carbon friendly mode of transport For every tonne-km transported on water, the GHG emission is estimated to be 50% of that by road
Most fuel-efficient mode of transport 105 tonne-km by with 1-litre fuel
Low maintenance cost 20% that of road
Low capital cost 5-10% to that of a 4-lane highway/railway

Source: World Bank Group

 


Improving the inland waterways infrastructure

To address this, the Government of India, the Government of West Bengal and the World Bank signed a USD 105 million project to improve inland waterway (IW) infrastructure and spatial planning in Kolkata in January 2021. To complement this lending project, the World Bank with funding from the UK’s Department for Environment, Food and Rural Affairs (DEFRA) contracted KPMG India and the International Institute of Refrigeration (IIR) to undertake a pilot study on IW integration in the West Bengal Cold Chain to reduce congestion, GHG emissions and hydrofluorocarbon (HFC) refrigerant usage.  

The initial baseline assessment of the project reviewed the demand and emissions of temperature-sensitive goods such as fruits, vegetables and fish in West Bengal across the post-harvest, primary-transport, cold-storage and distribution segments of the cold chain. The study, conducted by KPMG India and IRR under the World Bank, found that in 2020, the total Temperature Controlled Logistics (TCL) demand was 6.28 million tonnes, accounting for 1.98 million MWh of energy consumption and over 620,000 tonnes of CO2 emissions annually.  

A key driver of the demand arises from the production and transportation of temperature-sensitive goods. About 65-70 percent of freight in India is transported by road and the transportation of fruits and vegetables to and from Kolkata wholesale markets and mandis primarily takes place in non-refrigerated trucks. This results in food spoiling, reduced shelf life and post-harvest losses to the tune of 10-15 percent. The global footprint of food loss and waste excluding emissions from land-use change is 3.3 gigatonnes of GHG, corresponding to about 7 percent of total GHG emissions. There is a need for a new cold chain infrastructure for most products.  

An efficient, well connected cold chain in West Bengal has the potential to significantly reduce post-harvest losses

Post-harvest losses with and without TCL
TLC: Temperature Controlled Logistics. Source: World Bank Group

The Government of India has shown a keen interest in IWs as a means of diversifying and improving the transport modal mix, which could also reduce post-harvest losses while reducing the negative environmental impact and cost of meeting the cold chain demand. IW transport has an environmental impact which is seven times less than roadways, and for every tonne-Km transported on water, the GHG emission is estimated to be 50 percent of that by road. Additionally, IW is a fuel-efficient mode of transport (105 tonne/km with one litre of fuel), has a lower capital cost (about 5–10 percent of that of a four-lane highway/ railway), and maintenance costs 20 percent lower than roads. In order to understand the feasibility of transporting temperature-sensitive goods on waterways, the study looked at the potential impact of diverting traffic to IW.

Integrating inland waterways with RoRo cargo services

In 2026, there is the potential to divert around 30,556 tonnes of traffic to IW while around 233,409 tonnes could potentially be diverted via roll-on roll-off (RoRo) cargo service. In 2035, around 210,419 tonnes could be diverted to IW and around 1,084,346 tonnes could be diverted to RoRo. With the integration of IW and RoRo services, there is the potential for GHG emissions savings of around 10 percent and 27 percent in 2026 and 2035, respectively. In addition, with the adoption of newer technologies, fisheries could save up to 77 percent of their energy consumption by 2030 and fruits and vegetables could save up to 77 percent. Cold storage for potatoes could save up to 75 percent by shifting to improved technologies. The fruit and vegetable value chain could save about 38 percent in post-harvest refrigeration but could save up to 77 percent in transportation. The dairy value chain could save 83 percent of its energy demand by the end of 2030. 

Overall, the integration of IW in sustainable cold chains is promising but requires context-specific evaluation. The study in West Bengal is expected to inform the financing of ‘greener’ vessels with energy-efficient cooling technologies that can have significant climate benefits. However, the refrigerant market is underdeveloped in India and West Bengal. Some cold chain facilities operate using R22 or R404A, which are higher Global Warming Potential (GWP) refrigerants. R22 will be banned from use in India in 2030.

Reaping climate and economic benefits  

However, while refrigerants such as R717 with low GWP would be preferable, it is prohibited in the KMA following the 2011 ammonia gas leaks that had detrimental health and safety impacts. In addition, the initial findings of the assessment of the three pilot models (for potatoes, Tetra Pak milk and fisheries) noted that the longer travel time needed by IW may not be well suited for certain temperature-sensitive goods. Based on these results, by 2025 these barriers will need to be addressed to effectively divert temperature-sensitive goods to IW and reap the associated climate and economic benefits.

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