Booming Cooling Market: A $600 Billion Opportunity by 2050

A new report from UNEP and IFC projects the cooling market in developing economies to grow to USD 600 billion annually by 2050. The fastest growth is expected in Africa and South Asia, driven by population growth, urbanization, and economic expansion. The report highlights the need for sustainable and energy-efficient cooling solutions to meet this demand without exacerbating climate change.

In a transformative projection, a new report from UNEP and IFC has forecasted that the cooling market in developing economies is poised to double, reaching USD 600 billion annually by 2050.

According to the report, titled 'Cooler Finance: Mobilizing Investment for the Developing World's Sustainable Cooling Needs,' the most significant growth in cooling demand is expected to occur in Africa and South Asia. These regions are predicted to see the market multiply by seven and four times, respectively.

The report underscores the urgency of adopting sustainable cooling solutions. About two-thirds of the cooling-related emissions in 2022 originated from developing countries, a figure that could surpass 80 percent by 2050 due to surging population growth, economic advancements, and urbanization.

Sustainable cooling technologies have the potential to cut these emissions by nearly half. This includes prioritizing passive cooling strategies, enforcing energy performance standards, and phasing out climate-warming refrigerants.

The report also calls for a systematic approach to cold chains, large cooling infrastructures, and incentives for innovation as critical measures. The sustainable cooling market represents a potentially lucrative opportunity for the private sector, with benefits exceeding 8 trillion dollars.

'Developing nations especially are at the forefront of the deadly impacts of rising temperatures, necessitating immediate and effective cooling solutions,' remarked Makhtar Diop, Managing Director of IFC.

(With inputs from agencies.)