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

Chilling Prospects 2022: The role of National Cooling Action Plans in delivering the global environment agenda

Data analysis
Chilling Prospects 2022

Reflections on five years of the Kigali Amendment by the Cool Coalition

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Increasing temperatures, growing economies, and more frequent heat waves and extreme weather events across the globe are resulting in a growing demand for cooling services.  

In recent years, the issue of promoting sustainable and affordable access to cooling has emerged as an area of focus for governments, the health and food industry, real estate and technology providers, and financial institutions. Cooling services are essential to provide human comfort and productivity and ensure the safety of foods, medicine and vaccines, but can have negative environmental and economic impacts. Cooling is currently responsible for more than 7 percent of GHG emissions, and this figure is projected to double by 2050 if left unmanaged. Given the adverse impact of cooling on greenhouse gas (GHG) emissions and climate change, accelerated global efforts on policy, technology and finance availability for sustainable cooling have now become inevitable. Climate-friendly cooling could cut 8 years’ worth of global emissions by 2050.

Current global status 

Since the inception of the Kigali Amendment, the need for holistic and synergistic actions on achieving the Sustainable Development Goals (SDGs), Nationally Determined Contributions (NDCs) and Kigali Amendment targets has been witnessed globally. National Cooling Action Plans (NCAPs), a global policy best practice, have gained prominence among countries beginning to develop long-term policy strategies. Starting in 2018 several countries opted to develop an NCAP with technical support from specialized agencies and address the cross-cutting nature of cooling, to bring stakeholders from government, industry and academia to the table, discuss needs and possible solutions, and translate this into a document that would provide a roadmap for action. 

To accelerate global efforts, in 2020 the Cool Coalition brought together several of these NCAP pioneers and members and developed a guiding framework and holistic but modular methodology for the development of NCAPs that cover cooling comprehensively, including various sectors and end uses, and both met and unmet cooling needs. Currently, over 30 NCAPs are at various stages of development. Several countries, including Cambodia, Indonesia and Pakistan, are piloting the Cool Coalition methodology to develop their plans, and others have leveraged the methodology to strengthen their ongoing work.   

Cool Coalition together with its partners organized a series of workshops between June and September 2021 to launch the NCAP Methodology, capture experiences and lessons learned from leading countries, and build capacity among national policymakers and stakeholders on developing and implementing NCAPs in various regions of the world. Some examples are:  

India: The India Cooling Action Plan (ICAP) was among the first NCAPs launched in March 2019, developed by the Ministry of Environment, Forest and Climate Change (MoEFCC). The ICAP presents a 20-year outlook on how cooling demand in India will evolve in priority-demand sectors, and outlines strategies and actions that promote sustainable and smart cooling practices across the nation while mitigating adverse impacts. This landmark policy document demonstrates unprecedented inter-ministerial and cross-sectoral collaboration in identifying ambitious goals and laying out actionable pathways.

The government has established an implementation framework through inter-ministerial and cross-sectoral working groups by aligning the plan with sectoral priorities and existing policy frameworks. Multilateral development organizations and financial institutions are increasingly viewing cooling through the ICAP as an investment opportunity, and the World Bank Group has conducted a study to operationalize the implementation of the ICAP through multilateral investments. 

Panama: Unlike most NCAPs, Panama’s NCAP falls under the Ministry of Health. The Panama Cooling Plan (PCP) was developed by three key government entities on cooling: the Ministry of Health, the Ministry of Environment and the National Secretariat of Energy and was supported by the UNDP. The PCP emphasizes the sustainability of the transition process and the importance of the participation of the private sector and the general public, and places special emphasis on women and the needs of the most vulnerable. The plan is helping the government to align policies and programmes, identify synergies related to climate change, environment and health, and transition to climate-friendly refrigerants.  

Rwanda: Rwanda was a pioneer in the development of its NCAP four years ago and now has ambitious cooling targets to reduce GHG emissions to 38 percent, rigorous energy-efficiency regulations and, together with the UK government, is developing the Africa Centre of Excellence for Sustainable Cooling and Cold-Chain (ACES). Its main objective is to address the complex and cross-cutting nature of climate-friendly cooling and incorporate the agriculture, health, industry, and building and construction sectors, both public and private. The NCAP serves as a call to sustained action with strategies that can be built upon over time. It is continuously strengthened and has a built-in ecosystem of multi-sector collaboration. Rwanda has a long-term vision to expand and collaborate regionally and internationally and is developing funding schemes to create access to sustainable cooling solutions and products.  

Cambodia: The Government of Cambodia through the Ministry of Environment’s National Ozone Unit and its Department on Climate Change, and in collaboration with six other ministries, has prepared a comprehensive NCAP in partnership with the UN Environment Programme (UNEP) Cool Coalition and the Economic and Social Commission for Asia and the Pacific (ESCAP). It has included comprehensive cooling measures in its updated NDC and is now working towards the integration of passive cooling into its green building guidelines.

The aim of the NCAP is to build upon the existing work on the hydrochlorofluorocarbon (HCFC) phaseout and forthcoming Kigali Amendment implementation plans to integrate energy-efficiency and demand-reduction measures and in doing so accelerate refrigerant transition and maximize GHG emission reduction benefits. The development of the NCAP has helped the Government of Cambodia unify information on multiple cooling sectors, analyze potential economic, energy and GHG savings and identify pathways to integrate comprehensive action to address its current and future cooling demands. 

Way forward and call for action 

NCAPs have been recognized by countries, partners, the Technical and Economic Assessment Panel (TEAP) and the UN alike as key to linking efficiency and the refrigerant transition and maximizing climate benefits.  

NCAPs are an important first step to establish frameworks and catalyze integrated and comprehensive action on cooling and cold chains. They can be used as a long-term strategy to achieve NDC targets and develop and deploy Kigali Amendment implementation plans. NCAPs have also helped countries attract finance for implementation.   

However, the development of NCAPs requires resources. To date, these resources have been largely provided by the Clean Cooling Collaborative (formerly the Kigali Cooling Efficiency Program (K-CEP)). Green Climate Funds (GCF) has indicated that countries can request its readiness funds to develop NCAPs, and several other development banks have also signalled their interest in supporting countries.

The Cool Coalition finance working group will also explore opportunities to support member countries who express an interest in developing NCAPs. However, given the importance of NCAPs in accelerating the refrigerant transition, it is hoped that funds could also be made available under the Multilateral Fund for the Implementation of the Montreal Protocol (MLF).  

Meet our Global Panel on Access to Cooling member from the Cool Coalition

Chilling Prospects

Chilling Prospects 2022

Sustainable cooling policy progress

Okra Solar: Start rapidly, start small and grow over time

SDG7 News

Based in Cambodia, Okra Solar provides IoT and AI enabled hardware and software to last-mile energy companies so they can sustainably energize remote off-grid communities. This interview with Afnan Hannan, CEO of Okra Solar, was originally published by the Mini-Grids Partnership.

Could you tell us more about Okra Solar and what inspired you to found Okra Solar?

One of the things I learned while growing up was that opportunities are now more accessible than ever. Having built robots and websites by learning on my own, it was pretty apparent that through the internet, people can basically learn anything and become anybody they want to be. But before getting there, people need to have their basic needs for livelihood addressed. And of course, before being able to use internet-connected devices, those devices need to be powered by electricity.

So I was inspired during my study years at university to figure out what drove people to set up infrastructure, and how this infrastructure could be set up in a sustainable manner. And that’s why we started Okra, to deploy a technology and business model that would make more money for communities connected to power than it would cost to connect them.

What do you see as the biggest challenges in implementing mini-grids in last-mile electrification and how do you work to help overcome them?

Upfront CAPEX cost and getting the land rights and permits to build mini-grids are often the biggest barriers to rolling out mini-grids at scale.

Okra mesh-grids give developers the ability to start rapidly, start small, and grow over time. In traditional systems, developers and governments have to try and size what a community might use years down the line and build infrastructure accordingly. Before building they need to submit these plans and get permits, which leads to projects taking a long time to get off the ground, being expensive, oversized and the vast majority of the time too expensive to warrant the risk of long-term load projections that may or may not be right. With Okra, developers can set up plug and play energy access on rooftops without land permits. These systems can be interlinked into mesh-grids to boost power availability.

Additionally, systems are modular so they can set up energy access for what the user needs on day one, and developers can then scale the assets as the load grows. This allows for low initial startup costs and rapid deployment, enabling them to tighten the loop to project development and implementation.

Could you tell us more about Okra Solar’s mesh-grid solution and how it can complement mini-grids electrification?

Mini-grids work great in powering productive centres and commercial productive loads, for example, agro-processing centres. These buildings or businesses, sometimes referred to as anchor loads, often need a system that can produce 100x the residential power consumption throughout the course of a day. With our goal of enabling productive power for communities while helping mini-grid developers optimize for cost, we have recently released a mini-grid to mesh-grid charger. This enables developers to set up the centralized solution where there is a large anchor load, then the residential network is implemented with a low-cost mesh grid, and excess power generated from the centralized grid is fed into the mesh. This lets mini-grid developers serve both anchor loads and residential loads. By slashing their distribution cost they can save about 50 percent of the CAPEX cost.

Could you share a mini-grid success story? How important is the productive use of energy for more rapid deployment of mini-grids?

Our pilot project in Cambodia was a great success story where 140 households were energized two months from the award of contract, including procurement. This was only possible because of the plug and play nature of these mesh grids. Each house can use up to 1.2kW of instantaneous power with AC power output.

This project was a 48.8kWp PV system with multiple villages energized in a commune spanning more than 3kM of distance and with a river separating the three villages. The average load in this community is currently over 500Wh/day and the network up-time is >99.8 percent. The community is using electric cooking, blenders, and kettles thanks to grant funding support from Efficiency for Access.

These productive loads are financed through the Okra software platform. If households do not top-up their mobile billing balance, which is used on a prepaid basis to cover their energy and appliance finance costs, households are temporarily disconnected over the cloud.

With this level of network control, high power availability, and productive appliance financing, the project is stimulating growth, which demonstrates the commercial viability of these projects in the most hard-to-reach areas.

Which markets are you active in and are you planning to expand to other geographies? What is the next big milestone for Okra Solar?

Currently, we are active in Cambodia, The Philippines, Indonesia, Nigeria, and Haiti. We have our hands tied up in these markets with more than 30 million households who are not connected to the grid in these markets alone. So, we’re working on expanding our operations and bringing in financing partners to facilitate our developer partners in rolling out at scale. Our next milestone will be when we hit 10,000 connections with our partners, and we’re gunning to make it happen in the next 12 months.

Photo credit: Okra Solar

The Recover Better with Sustainable Energy Guide for Southeast Asian Nations

Knowledge brief
Recover Better Southeast Asia

This sustainable energy guide highlights the opportunities, benefits and enablers that will help leaders guide their countries onto a more long-term sustainable and resilient development trajectory. As Southeast Asian countries recover better, they can also lead by example by translating their recovery actions into updated Nationally Determined Contributions (NDCs) under the Paris Agreement.

Investments in energy have a significant GDP multiplier that will benefit the country and its economy.  

  • For every US dollar invested in the transition towards renewable energy, an additional USD 0.93 of GDP growth above business as usual is expected to occur.
  • Investments in the Southeast Asian region to achieve the ASEAN target of 23 percent renewable energy share by 2025 can provide an annual additional GDP growth of USD 25 billion.
  • Providing modern clean cooking access to 30 percent of the currently unserved population is estimated to result in a macroeconomic benefit (economic, health and environment) of USD 15 for every dollar spent.
Estimated GDP impact
This report is part of the series:  Recover Better with Sustainable Energy