UNEP climate division director Martin Krause says the biggest obstacle to rolling out effective cooling solutions is financing, not technology. Inefficient air conditioners are often cheaper upfront, which is why they dominate the market. In Southeast Asia, around 75 percent of ACs are less efficient models. Krause argues that governments, private investors, and development banks need to share the risk of bringing efficient cooling products to scale. The Global Cooling Pledge aims to cut cooling emissions by 68 percent by 2050. UNEP and the IFC project the cooling market in developing economies will grow from about US$300 billion to at least US$600 billion per year by 2050. The article also highlights innovative finance, including carbon credit revenue, such as the Switzerland-Ghana project using green refrigerants. For anyone tracking climate finance or carbon markets, this is a concrete example of how funding gaps shape adaptation outcomes.
