With an overall allocation of $10 million, Window 3 (Finance) intends to support initiatives that lead to faster implementation of clean, efficient cooling. We sought compelling proposals that could demonstrate how targeted grants can unlock the additional finance needed to integrate efficiency improvements with the F-gas transition. Our application package, including selection criteria, can be found here.
The response to our application process was overwhelming: we received 29 applications for a combined ask of $75 million in grant support. The overall quality of the applications was very high.
We are currently finalizing the selected grant packages, which cover a range of implementers across a broad geographic spread of developing countries. The selected proposals cover both cooling and refrigeration and include district cooling, cold chain and systems approaches. They employ different financing approaches such as on-bill payment, credit lines and procurement schemes, and financial mobilization from private equity and debt, development finance institutions and government.
The Energy Efficiency 2018 report from the IEA shows that energy efficiency could provide more than 40% of the abatement required by 2040 to be in line with the Paris Agreement. The enthusiastic response to our Window 3 solicitation tells us that there is great interest in clean, efficient cooling on the part of various stakeholders. We at K-CEP are excited to pilot innovative approaches to unlock finance for this important sector.
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How does cooling efficiency get financed today? Check out some interesting case studies of initiatives that seek to promote efficiency in cooling.