Public Disclosure Authorized
Public Disclosure Authorized
Public Disclosure Authorized

Public Disclosure Authorized

Climate Investment Opportunities
in India’s Cooling Sector

Climate Investment Opportunities in India’s Cooling Sector

012022 International Bank for Reconstruction and Development / The World Bank 1818
H Street NW, Washington, DC 20433
Telephone: 202-473-1000; Internet: www.worldbank.org
This work is a product of the staff of The World Bank with external contributions andfunding from the European Union. The findings, interpretations, and conclusions
expressed in this work do not necessarily reflect the views of The World Bank, its Board
of Executive Directors, or the governments they represent, nor of the European Union.
Although The World Bank and GFDRR make reasonable efforts to ensure all theinformation presented in this document is correct, its accuracy and integrity cannot be
guaranteed. Use of any data or information from this document is at the user’s own risk
and under no circumstances shall The World Bank, GFDRR, the European Union or anyof their partners be liable for any loss, damage, liability, or expense incurred or suffered
which is claimed to result from reliance on the data contained in this document. The
boundaries, colors, denominations, and other information shown on any map in thiswork do not imply any judgment on the part of The World Bank, nor of the European
Union concerning the legal status of any territory or the endorsement or acceptance ofsuch boundaries.
Rights and Permissions—The material in this work is subject to copyright. Because The
World Bank encourages dissemination of its knowledge, this work may be reproduced,
in whole or in part, for noncommercial purposes as long as full attribution to this work
is given.
Attribution—The World Bank, 2022. Climate Investment Opportunities in India’s Cooling
Sector. Washington, DC: The World Bank.
Any queries on rights and licenses, including subsidiary rights, should be addressed to
The World Bank Publications, The World Bank Group, 1818 H Street NW, Washington,
DC 20433, USA; email: pubrights@ worldbank.org.
Study Conducted by Iora Ecological Solutions Ecological Solutions, Energe-se, TESSOL
and Vertiver
Design by Vertiver

02

Climate Investment Opportunities in India’s Cooling Sector

Climate Investment
Opportunities inIndia’s Cooling Sector

Climate Investment Opportunities in India’s Cooling Sector03

Acknowledgements
The development of the roadmap to supportof the following experts and organizations

the implementation of the India Cooling Action

during this study:

Plan (ICAP) has been a multistakeholder•

Ministry of Power: Mr. Vishal Kapoor, Director

effort, with inputs from various Government of•Energy Efficiency Services Limited (EESL):Mr. Saumya Garnaik, Executive Director

India ministries and agencies, private sector
companies, industry associations, think tanks,•

Saurabh Diddi, Director

research institutions and individual subject•

experts.

Bureau of Energy Efficiency (BEE): Mr.
IIT Bombay: Dr. M. V. Rane, Professor,
Mechanical Engineering (Expert on Energy

Sincere thanks to Mr. Jigmet Takpa, Hon’ble

Conservation,

Joint Secretary, Ministry of Environment, Forest

Energy Resources)

andAlternate

and Climate Change (MoEFCC), Government•

National Institute of Urban Affairs (NIUA)

of India, Ms. Rajasree Ray, Economic Adviser,•

United Nations Environment Programme

MoEFCC, and particularly Mr. Aditya Narayan(UNEP): Ms. Lily Riahi, Programme Manager

Singh, Additional Director. Ozone Cell, for

and Global Lead – District Energy Initiative

providing their valuable inputs which helped

andguide the study and development of the sectoral

Technical Advisor for Asia and Europe•

roadmaps.

Mr.

BenjaminHickmanRegional,

BSES Delhi: Mr. Abhishek Ranjan, Vice
President,

SystemOperation,

Power

A special mention needs to be made of theMarkets and Head, Renewable, Smart &support provided by the Alliance for Sustainable

DSM projects:

Habitat, Energy Efficiency and Thermal Comfort•

Ashok B. Lall Architects: Mr. Ashok Lall,for All (SHEETAL), a civil society organization

Principal

initiative led by The Energy and Resources

Efficiency Expert)

Institute (TERI) and partners Alliance for an•

on Energy, Environment and Water (CEEW)••

Sustainable Development Summit•

Tabreed: Mr. Sudheer Perla, India Country
Voltas Limited: Mr. Srinivasu Moturi, Head,Godrej & Boyce Manufacturing Co. Ltd.: Mr.
Product Group Head, Air Conditioners

Finally, the report benefitted from several•

Amazon: Mr. Alex Rudee, Senior Manager –Nature-based Solutions (NbS)

The World Bank Global Practices and thematic
areas, experts from the International Finance

Danfoss: Mr. Nagahari Krishna, Director,

Santosh Salian, Assistant Vice President -2022.

rounds of consultations with technical experts in

EnergyR&D Center

study team and providing the platform for the
final stakeholder consultation at the World(Buildings

Manager

supported by the Children Investment FundFoundation (CIFF), for engaging with theArchitect

Industrial Affairs and Regional Hotspots

Energy Efficient Economy (AEEE) and Council•

Oorja Energy Engineering Services: Mr.
Madhusudan Rapole, Managing Director

Corporation (IFC) and study peer reviewers and

04

HVAC&R

subject experts, Dr. S.N. Srinivas and Professor•

Coldstar: Mr. Sameer VermaR.S. Agarwal. We would like to acknowledge the•

Rinac India Ltd.: Mr. P. Sukumaran, Director

active participation and invaluable contributions•

Indian Society of Heating, Refrigerating andClimate Investment Opportunities in India’s Cooling Sector

Air Conditioning Engineers (ISHRAE): Mr.

•

Prof.

R.

Saravanan,

Refrigeration

andVikram Murthy, National President and Dr.

Air conditioning Division, Department of

Roshini Eashow, Past President of ASHRAE

Mechanical Engineering, Anna University,

Mumbai Chapter and Past President ofCollege of Engineering, Guindy Campus,

ISHRAE Mumbai Chapter

Chennai

Trufrost: Mr. Neeraj Seth, Co-Founder &Valeo

Motherson•

Emerson Climate Technologies:
Mr.

Managing Director••

ThermalCommercial

Vehicles India Ltd.: Mr. Tarun Malhotra,

ChetanShetty,Sales

Manager(Technology Companies and Strat-ups)
RMI India

Head of Sales, Marketing and Business•

Development (OEM Business)

This study was financed by the EU-funded

Subros Ltd.: Mr. Arun Goel, Assistant Vice

EU-SAR Capacity Building for DRM Program,President (NTD, Design, R&D & Materials),managed by the Global Facility for Disaster

Subros Technical Centre

Reduction and Recovery.

This report, ‘Climate Investment Opportunities

The team worked under the overall guidancein India’s Cooling Sector’ is a collaborative effort

of Auguste Tano Kouame (Country Director,of the World Bank (WB), and a consortium of

India), John A. Roome (Regional Director, South

environmental and climate action advisory firms,

Asia Sustainable Development) and Abhas

led by Iora Ecological Solutions, comprising of

K. Jha (Practice Manager, South Asia Region

Energe-se, Tessol and Vertiver.

Climate Change and Disaster Risk Management

At the World Bank, the report is produced byUnit). The team also gratefully acknowledges

a core team led by Mehul Jain and includes

the support of Junaid Kamal Ahmad (Vice

Catriona Palmer, Deepak Singh, Devika Shisheer

President, Operations, Multilateral Investment

Panse, Karan Mangotra, Khyati Rathore, Thomas

Guarantee Agency, then Country Director, India)

Michael Kerr and Yeshika Malik. The sectoral

under whose guidance the report was initiallycontributors include Adarsh Kumar, Alexander

conceived.

Sharabaroff, Anupam Joshi, Ashok Sarkar,
Gayatri Acharya, Gerald Paul Ollivier, Gayane

The study is authored by Mr. Swapan Mehra, Ms.

Minasyan, Joanna Mclean Masic, Johannes

Sriya Mohanti, and Dr Aakriti Wanchoo from Iora

Heister, Manivannan Pathy, Martina Bosi, Monyl

Ecological Solutions, Ms. Smita Chandiwala from

Toga, Natalya Stankevich, Nitika Man Singh

Energe-se, Mr. Rajat Gupta from Tessol, and Ms.

Mehta, Patsy D’Cruz, Poonam Ahluwalia Khanijo,

Chhaya Bhanti from Vertiver.

Rahul Srinivasan, Rajesh Kumar Miglani, andSudip Mozumder. Other contributors include
Ananda Swaroop, Anup Karanth, Peeyush
Ramawtar Sekhsaria, Ritu Ahuja and Sumit
Gulati.

Climate Investment Opportunities in India’s Cooling Sector05

Table of Contents
List of Figures

08

List of Tables

09

Abbreviations and Acronyms

10

Executive Summary13

Chapter 1: Introduction

35

1.1 Cooling India: Development Prerogatives and Need for Sustainable Cooling
1.2 Study Objectives and Methodology

36
41

Chapter 2: Space Cooling45

2.1 Summary
2.2 Sectoral Overview
2.3 Landscape of Cooling Opportunities in the Sector

46
46
47

2.3.1

Reduce demand by integrating passive measures in buildings

47

2.3.2 Improve efficiency of cooling technologies

50

2.3.3 Shift demand to district cooling technologies

53

2.3.4 Adapt cities to manage heat stress55

2.4 Prioritized Opportunities for Concessional Finance2.4.1 Mainstream thermal comfort parameters in affordable housing policies and

57
58

programs at the national and state levels
2.4.2 Enable market transformation towards super-efficiency for high energy impact

59

cooling technologies
2.4.3 Support uptake of tri-generation and district cooling systems

60

2.4.4 Mainstream passive cooling measures in urban planning

62

Chapter 3: Cold Chain and Refrigeration

67

3.1 Summary

68

3.2 Sectoral Overview
3.3 Landscape of Cooling Opportunities in the Sector

69
70

3.3.1 Development of new energy efficient and sustainable cold chain networks

71

3.3.2 Improve energy efficiency, integrate RE in existing cold chain infrastructure and71

strengthen systems

3.4 Prioritized Opportunities for Concessional Finance3.4.1 Support development of sustainable and energy efficient end-to-end cold chain

72
72

networks, including refrigerated transport
3.4.2 Promote better operations and servicing through capacity building of all

78

stakeholdersand incorporation of effective monitoring system

Chapter 4: Passenger Transport Air Conditioning

85

4.1
4.2
4.3
4.4

86
87

Summary
Sectoral Overview
Landscape of Cooling Opportunities in the Sector
Prioritized Opportunities for Concessional Finance

88
89

Chapter 5: Refrigerants

93

5.1
5.2
5.3

Summary
Sectoral Overview
Landscape of Cooling Opportunities in the Sector

94
95
95

5.3.1 Support HFC phase down through roadmaps, policies and public procurement96

5.3.2 Promote domestic R&D and indigenous production of low-GWP refrigerants

97

5.3.3 Improve servicing, maintenance and disposal to reduce refrigerant demand

99

5.4

Prioritized Opportunities for Concessional Finance

100

Chapter 6: Conclusion and Way Forward

103

References
Annexes

108
116
116
121
136
147
151

Annex 1: Prioritization of sustainable cooling opportunities
Annex 2: Detailed roadmap for space cooling sector
Annex 3: Detailed roadmap for cold chain and refrigeration sector
Annex 4: Detailed roadmap for passenger transport air conditioning sector
Annex 5: Detailed roadmap for refrigerants07

List of Figures
Figure 1: Rising temperatures across India

36

Figure 2: Annual growth in cooling demand, refrigerant demand, energy

40

consumption and GHG emissions,Figure 3: Thematic areas and goals of ICAP

41

Figure 4: Projected growth in commercial and urban and rural residential

47

floor space,
Figure 5: Projected annual energy consumption for key space cooling

52

technologies in reference and intervention scenarios
Figure 6: Refrigerant demand in cold chain and refrigeration

70

Figure 7: Energy demand projection due to MAC in passenger cars, buses88

and railways under two scenarios (MAC shares being 15 percent and 18
percent of the total energy consumption)
Figure 8: Annual refrigerant demand under the BAU scenario

08

Climate Investment Opportunities in India’s Cooling Sector

96List of Tables
Table 1: Roadmap for prioritized opportunities in the space cooling sector

63

Table 2: Gaps in cold chain infrastructure in India in 2014-15

69

Table 3: Roadmap for prioritized opportunities for the cold chain and81

refrigeration sector
Table 4: Projected results for MAC energy consumption and emissions

89

under BAU and improved scenarios
Table 5: Roadmap for prioritized opportunities in passenger transport air

91

conditioning sector
Table 6: Roadmap for prioritized opportunities in refrigerants sector

102

Climate Investment Opportunities in India’s Cooling Sector09Abbreviations and Acronyms
APEDA		
APMC
BAU		
BEE
BIS		
BLDC		°C 		CaaS		CAFCS		CAFÉ		CAGR		CREDAI
CSIR-IICTCSISACCSR		DAY-NRLM
DBT		
DCS		
DFI		
DiscomDPIIT		DST		DX		EC ActECBCEDGE		EESL		
ENS		
EPR		
ESCO
FAME		
FI		
FPO		
FSSAI
GDP		
GeM		
GHG		
GRIHA		
GSP		
GWP		
GW		

10

Agricultural and Processed Food Products Export Development Authority
Agricultural Produce Market Committee
Business As Usual
Bureau of Energy Efficiency
Bureau of Indian Standards
Brushless Direct Current
degree centigrade
Cooling as a Service
Corporate Average Fuel Consumption Standards
Corporate Average Fuel Economy
Compound Annual Growth Rate
Confederation of Real Estate Developers Associations of India
Council of Scientific and Industrial Research Indian Institute of Chemical Technology
Central Sector Integrated Scheme on Agricultural Cooperation
Corporate Social Responsibility
Deendayal Antyodaya Yojana – National Rural Livelihoods Mission
Department of Biotechnology
District Cooling System
Doubling Farmers' Income
Distribution Company
Department for Promotion of Industry and Internal Trade
Department of Science & Technology
Direct Expansion
Energy Conservation Act
Energy Conservation Building Code
Excellence in Design for Greater Efficiencies
Energy Efficiency Services Ltd
Eco- Niwas Samhita
Extended Producer Responsibility
Energy Service Company
Faster Adoption and Manufacturing of Electric Vehicles
Financial Institution
Farmer Producer Organization
Food Safety and Standards Authority of India
Gross Domestic ProductGovernment e Marketplace
Greenhouse Gas
Green Rating for Integrated Habitat Assessment
Good Servicing Practice
Global Warming Potential
gigawatt

Climate Investment Opportunities in India’s Cooling Sector

HCFC
HFC		
HFO		
HUDCO
HVAC		
HWD		
HWF		
ICAP
ICAR		IEA		IFC		IGBC		IISc
IITs		IoT		IPCC		
ISHRAEKIP		
KwH		
LEED		MAC		MDB		MEPS		
MIDH		MIS		mm		MNRE		MoAFAHDMoAFWMoCI		
MoEFCCMoFAHD
MoFPI
MoHFW
MoHUA
MoRD
MoRTH
MoUD
MSDE
MT		
mtCO2emtoe

Hydrochlorofluorocarbons
Hydrofluorocarbons
Hydrofluoroolefins
Housing and Urban Development Corporation Ltd.
Heating, Ventilation and Air Conditioning
Heat Wave Duration
Heat Wave Frequency
India Cooling Action Plan
Indian Council of Agricultural ResearchInternational Energy Agency
International Finance Corporation
Indian Green Building Council
Indian Institute of Science
Indian Institutes of Technology
Internet of Things
Intergovernmental Panel on Climate Change
Indian Society of Heating, Refrigerating and Air Conditioning Engineers
Kigali HFC Implementation Plan
Kilowatt-hour
Leadership in Energy and Environmental Design
Mobile Air Conditioning
Multilateral Development Bank
Minimum Energy Performance Standards
Mission for Integrated Development of Horticulture
Management Information System
millimeter
Ministry of New and Renewable Energy
Ministry of Fisheries, Animal Husbandry and Dairying
Ministry of Agriculture and Farmers Welfare
Ministry of Commerce and Industry
Ministry of Environment, Forest and Climate Change
Ministry of Fisheries, Animal Husbandry and Dairying
Ministry of Food Processing Industries
Ministry of Health and Family Welfare
Ministry of Housing and Urban Affairs
Ministry of Rural Development
Ministry of Road Transport & Highways
Ministry of Urban Development
Ministry of Skill Development & Entrepreneurship
metric ton
million ton of carbon dioxide equivalentMillion tons of oil equivalent

Climate Investment Opportunities in India’s Cooling Sector

11

MW		
NbS		
NCCD		
NDMA
NEMMP
NHB		
NHB		
NHM
NIT		
NIUA		NSDC		O&M		PHFI		PM-KUSUM
PMAY
PMFME
PMKSY
PMKVY
PNGRB
PWD		
R&D		
RAC		
RCP		
RE		
S&L		
SAPCC
SDG		
SIDBI		SMAM		
sq km
TCPO		
TR		
TWh		
UDD
UHI		
ULB		
UNEP		UNFCCCURDPFI
VRF		
W		

12

megawatt
Nature-based Solutions
National Centre for Cold-chain Development
National Disaster Management Authority
National Electric Mobility Mission Plan
National Horticulture Board
National Housing Bank
National Horticulture Mission
National Institute of Technology
National Institute of Urban Affairs
National Skill Development Corporation
Operation and MaintenancePublic Health Foundation of India
Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan
Pradhan Mantri Awas Yojana
PM Formalisation of Micro food processing Enterprises
Pradhan Mantri Kisan Sampada Yojna
Pradhan Mantri Kaushal Vikas Yojana
Petroleum and Natural Gas Regulatory Board
Public Works Department
Research and Development
Room Air Conditioner
Representative Concentration Pathway
Renewable EnergyStandards and LabellingState Action Plan on Climate Change
Sustainable Development Goal
Small Industries Development Bank of India
Sub-Mission of Agriculture Mechanizatio
square kilometer
Town and Country Planning Organisation
Ton of Refrigeration
terawatt-hour
Urban Development Department
Urban Heat Island
Urban Local Bodies
United Nations Environment Programme
United Nations Framework Convention on Climate Change
Urban and Regional Development Plans Formulation and Implementation
Variant Refrigerant Flowwatt

Climate Investment Opportunities in India’s Cooling Sector

Executive
Summary

Climate Investment Opportunities in India’s Cooling Sector

13

India’s cooling strategy cansimultaneously
mitigatetheheat related risks on lives
and livelihoods, lower carbon
emissions, and position India asa global hub for green coolingmanufacturing.

fans can help to maintain thermal comfort, but

1.

As a result, many poor and marginalized

Severeheat

waves,

responsibleforthousands of deaths across India over the lastfew decades, are increasing with alarming
frequency. The country is experiencing higher
temperatures that arrive earlier and stay
far longer. In April 2022, India was plunged
into the grip of a punishing early spring heatwave that brought the country to a standstill,with temperatures in the capital, New Delhi,
topping 46 degrees Celsius (oC) (114 degrees
Fahrenheit). The month of March, which
witnessed extraordinary spikes in temperatures,
was the hottest ever recorded.
2. Soon India could become one of the firstplaces in the world to experience heat waves
that break the human survivability limit.1 The
recent heat wave supports what many climate
scientists have long cautioned about withreference to rising temperatures across South
Asia. In August 2021, the Sixth Assessment
Report of the Intergovernmental Panel on
Climate Change (IPCC) warned that the Indian
subcontinent would suffer more frequent andintense heat waves over the coming decade.2
The G20 Climate Risk Atlas also warned in
2021 that heat waves across India were likely
to last 25 times longer by 2036-65 if carbon
emissions remain high, as in the IPCC’s worst-of an air-conditioning unit can vary between
US$260 and US$500, air-cooling systems area luxury available only to a few.4 According toanalysis presented in the India Cooling Action
Plan (ICAP), only 8 percent of Indian households
own air-conditioning units.5 Indoor and electricthese too are expensive to buy and inefficient.
communities across India are more vulnerable toextreme heat, living in inadequately ventilated,
hot, crowded homes without proper access tocooling. Staying cool during extreme heat isabout more than just comfort – it can constitutethe precarious line between life and death. In
a 2021 study by the Lancet Planetary Healthjournal, researchers found that nearly 740,000
excess deaths in India annually can be attributed
to abnormal hot and cold temperatures related
to climate change.6
4. Rising heat across India can jeopardize
economic productivity. Up to 75 percent ofIndia’s workforce, or 380 million people, dependon heat-exposed labor, at times working in
potentially life-threatening temperatures. With
heat-exposed worki contributing to nearly half ofthe country’s Gross Domestic Product (GDP), thecountry is extremely vulnerable to job losses.1
By 2030, India may account for 34 million of
the projected 80 million global job losses fromheat stress associated productivity decline.7
In December 2021, a Nature study found thatIndia showed the largest heat exposure impacts
on heavy labor among South Asian countries,
with more than 101 billion hours lost a year.8
Analysis by global management consulting firm,case emission scenario.3

McKinsey & Company shows that lost labor from

3. As temperatures rise across India, so will

percent of India’s GDP – approximately US$150-

the demand for cooling. However, in a country

rising heat and humidity could put up to 4.5
250 billion – at risk by the end of this decade.

where two-thirds of the population live on lessithan US$2 a day, and where the average cost

sively outdoor sectors such as agriculture, mining and quarrying

As per the McKinsey (2020) study, exposed sectors include exclu-

as well as indoor sectors with poor air-conditioning penetration
including manufacturing, hospitality and transport.
14

Climate Investment Opportunities in India’s Cooling Sector

5. India’s long-term food security and public(PLI) scheme can be further honed to promotehealth security will depend on a reliable

manufacturing of components, refrigerants,

cold chain network. Transporting food andand machinery that form an integral part of thepharmaceutical goods across India requires acooling value chain. Efforts to this end will help

system of cold chain refrigeration that works

the country meet its growing domestic demand

every step of the way. A single temperature

while also enabling it to position itself as alapse in the journey can break the cold chain,manufacturing hub for cooling technologies.

spoiling fresh produce and weakening thepotency of vaccines. With only 4 percent of fresh
produce in India covered by cold chain facilities,
annual estimated food losses total US$13 billion.
The third largest producer of pharmaceuticals in

Making India’s Cooling Action
Plan a Success: Study Findings

the world, India lost approximately 20 percent of

8. Anticipating the complex cooling energy

temperature sensitive medical products and 25

trends and challenges facing India, in 2019,

percent of vaccines due to broken cold chains

the Government of India launched the India

pre-COVID-19, leading to losses of US$313

Cooling Action Plan (ICAP)5 to help provide

million a year.9

sustainable cooling and thermal comfort for all.
In preparing one of the first-ever comprehensive

6. Unlocking opportunities to create a

cooling action country plans, the Government ofsustainable cooling strategy can help India

India has signaled a mature understanding of

in its post-COVID recovery by boosting

the challenge. It recognizes that extreme heat

investments,

is not a future risk and is already employing

creating

jobs,

reducing

emissions, and securing the supply chains ofstrategies to adapt to the heat stress.

medical care products, health infrastructure
as well as food. Priority must be given to

9.

ICAP

recognizes

that

the

coolingtransitioning to energy-efficient, climate-friendly

requirement is cross-sectoral and essential forcooling solutions that do not cause a spike ineconomic growth.11 Released by the Ministry ofelectricity demand. Sustainable cooling is not

Environment, Forests and Climate Change andjust essential for economic growth but is criticalbuilt over a 20-year timeline, ICAP is a multi-

for a country’s health, security and productivity.

stakeholder-driven framework that identifies
diverse sustainable cooling needs and suggests

7.

Leveraging

existing

schemes,therecommendations across key sectors including

government can position India as a global

space cooling in buildings, agriculture andhub for green cooling manufacturing. As per

pharmaceuticalan International Energy Agency analysis, thepassenger

demand for space cooling alone has risen at antransition. It also lists actions, across sectors, toaverage pace of 4 percent per year since 2000,

help reduce India’s cooling demand. The ICAP’s

twice as quickly as for lighting or water heating.

goals include:

10

cold

chains,transportation

andrefrigeration,
refrigerants

This offers a great opportunity for India to foster
future innovation and investment in the sector•

sectors by up to 25 percent by 2037-38;

by providing a conducive policy environment.
Existing government programs such as Make
in India or the Production Linked Incentive

Reduction of cooling demand across•

Reduction of refrigerant demand by up
to 30 percent by 2037-38;

Climate Investment Opportunities in India’s Cooling Sector

15

•
•

Reduction of cooling energy requirements

environmental and climate-solution consulting

by up to 40 percent by 2037-38;

groups, Iora Ecological Solutions, Energese,

Recognition of “cooling and related areas”

Tessol and Vertiver.

as a key sphere of research under India’s•national science and technology program;

13. This study focused on ICAP’s thematicandcross-sectoral areas including space cooling
100,000

in buildings, cold chain and refrigeration,

servicing sector technicians by 2022-23

transport air-conditioning and refrigerants.

and building synergy with the Skill India

The refrigerants sector covers the ICAP thematic

Mission.

areas of Research and Development (R&D),

Training

andcertificationofrefrigerant demand and indigenous production,
10. Cooling demand in India is expected toand the refrigeration and air-conditioning

grow exponentially across all sectors overservicing sector. The authors identified specificthe coming years. According to ICAP, coolingand scalable interventions that can be achieved

demand across India is projected to rise at a

through partnerships with various actors to help

rate of 15-20 percent annually and aggregatedimplement the ICAP goals.

cooling demand will grow to around eighttimes by 2037-38, as compared to the 2017-18

14. For some sectors, the study analysis

baseline.5 Space cooling for buildings has therevealed data for investment opportunities, joblargest current and projected cooling demand,

potential and climate impacts of a sustainablerefrigerant demand, energy consumption andcooling strategy. The analysis showed that aassociated greenhouse gas (GHG) emissions as

well-designed and implemented sustainable

compared to other sectors.

cooling strategy can lead to multiple indirect
benefits for the economy and society including

11. While progress has been made on ICAP’s

improved supply chains, new jobs, better healthshort-term

and increased livelihoods.

recommendations

for

space

cooling, energy standards and policy action,
ICAP has faced some challenges in overall

15. The analysis identifies eight key clusteredimplementation. To realize the ICAP goals, aopportunities where concessional finance canwell-designed, pragmatic implementation plan,

play a significant role in advancing the goals of

supported by a robust institutional framework

ICAP and sustainable cooling in India. The study

and timely access to adequate financial

presents actionable roadmaps for four cooling

resources and technologies, is needed.

sectors and includes prioritizedii opportunities
for concessional financing and private sector

12. There is an unprecedented opportunity

investments. The roadmaps also identify key

for a transformative change in course topolicy actions that are required to jumpstart

implement a sustainable cooling strategy

action in each of the associated sectors. The

that will not only save lives but boost India’s

analysis also recognizes the key stakeholders

economy. To help India achieve this goal, The

required for planning and implementation.

World Bank commissioned this study to develop
an actionable roadmap – comprising policy,
investment and knowledge guidelines – tohelp guide the implementation of India’s ICAP.
The study was conducted in partnership with
16

Climate Investment Opportunities in India’s Cooling Sectorii

A two-step multicriteria prioritization framework was applied to

the longlist of clustered sustainable cooling opportunities. The firststep covered the criteria of climate benefits, development benefits
and ability to implement. The second prioritization step focusedon evaluating the role of concessional financing and private sector
investments.

Key Recommendations
Sector 1: Summary of Space Cooling
Opportunities in space cooling where leveraging ofconcessional finance can deliver results with high climate
and development benefits:• Mainstreaming thermal comfort parameters in affordable
housing policies and programs at the national and statelevels• Enabling market transformation towards super-efficiency
for high energy impact cooling technologies• Supporting the uptake of tri-generation and districtcooling systems• Mainstreaming passive cooling measures in urban
planning

Climate Investment Opportunities in India’s Cooling Sector

1716. Over the next two decades, India will

Global Warming Potential (GWP) refrigerant air-experience significant growth in residentialconditioning units is expected to see a 10-foldand commercial floor space. With 10 million

increase in jobs over the next two decades,

new homes required to be built annually tofrom a base of 0.2 million technicians in 2017

keep up with Indian housing demand , a huge

to 2 million.15 While space cooling has a highopportunity exists to introduce natural coolingpotential to create new jobs in the sector,

techniques into new construction. Policies andestimates for these figures are unavailable as

investments must prioritize climate responsive

the data must encompass the retraining andconstruction to avoid long-term lock-in of

reskilling of workers across all dimensions of theinefficient building stock.

energy-efficiency industry.

17. In India, 45 percent of the country’s peak

20. The provision of thermal comfort throughelectricity demand in 2050 is expected tosustainable space cooling offers an emissions

come from space cooling alone. Space cooling

reduction potential of over 200 million ton ofinterventions across India will need to prioritize

carbon dioxide equivalent (mtCO2e) annually

12

13“thermal comfort for all” while facilitating coolingby 2040. Of this the emission reduction potential

access for 1.4 billion people and reducing theaccruing from the provision of sustainable

impact on an already overburdened electricity

cooling solutions to the residential sector is oversystem. This will require sizable investments in

80 mtCO2e.

creating costly peak generating capacity andresult in a significant increase in GHG emissions,

21. As noted earlier, this study identified fourunless suitable low energy alternatives are

key concessional finance opportunities acrossavailable to meet thermal comfort needs inthe space cooling sector that have strong

buildings.

technical feasibility and can result in highclimate and development benefits.

18. The study estimates that the market
potential and investment opportunity in space

They include:

cooling will be US$1.5 trillion by 2040. Of
this, the green buildings market in India has an•

Mainstreaming

thermalcomfortinvestment potential of about US$1.25 trillion

parameters in affordable housing policies

for residential buildings and US$228 billion forand programs at the national and state

commercial buildings by 2030. It is imperative

levels. Affordable housing policies andfor the government to create an adequate

programs need to recognize thermal comfort

enabling investment framework that can attract

as an essential criterion for current and futurefinancing from the private sector.

programs. Energy costs to achieve comfort

14

must be made affordable for occupants in

18

19. Sustainable cooling can also support India’s

addition to the cost of home ownership. The

development and help in a green COVID-19

government’s flagship housing program,recovery by creating jobs and boosting the

Pradhan Mantri Awas Yojna (PMAY), can be

economy. For example, the servicing of low-leveraged to effectively mainstream passive

Climate Investment Opportunities in India’s Cooling Sector

cooling measures in affordable housing

merchant DCS. In India’s context, DCS canconstruction across India.

consume 20-30 percent less power than themost efficient conventional cooling solution.

•

Enabling market transformation towards

However, savings become higher, about 60-

super efficiency for high energy impact

80 percent, when compared to an averagecooling technologies. There is a need to

3-star RAC.17 It is evident that shifting highalign the Standards and Labelling (S&L)

density cooling requirements in cities toprogram to transition to best available

district energy technologies will lead totechnologies in the market. Enabling market

multiple benefits in terms of significant

transformation for high energy impact

reduction in the growth of space cooling-cooling technologies such as ceiling fansrelated GHG emissions and averted power

and Room Air Conditioners (RACs) is also

generation capacity.

imperative. Higher upfront costs of energyefficient models are a key barrier in the•

Mainstreaming passive cooling measures

price sensitive Indian market. Upstream

in urban planning. Land use planningincentives for manufacturers to reduce

combining passive urban cooling measurescosts and support domestic manufacturing

is key to strengthening heat resilience inof Brushless Direct Current (BLDC) motor

cities. The use of Nature-based Solutions

fans – low-energy consuming fans that

(NbS) can help cities prioritize actions

create less noise and have long lifespans

towards equitable access to cooling for all.18– should be explored. These can leverage

Cities will need guidance across effective

the government’s Make in India program,measures, implementation and private sectoranparticipation. Guidelines for implementation

initiative

toencourage

companies

to develop, manufacture and assembleofproducts made in India. Additionally, themeasures, such as cool roofs and NbS,

government’s

can support urban planning frameworks indomestic

PLI

programmanufacturing

incentivizes
of

local

and

city-wideurban

cooling

multiple

integrating a response to heat stress in city

high value RAC components (such asplanning. There is also a need to develop

compressors, heat exchangers, expansion

business cases for all sizes of NbS andvalves which are key to the efficiency ofespecially for private sector participation

RACs.16

to ensure necessary funding,19,20 as publicfunds are likely to be limited.

•

Supporting the uptake of tri-generation andDistrict Cooling Systems (DCS). Large-scalecooling requirements can be efficiently met
through district energy technologies often
using Cooling as a Service (CaaS) delivery
models. Viable business and implementation
models need to be established in the Indian
context to support the uptake of large

Climate Investment Opportunities in India’s Cooling Sector

19Key Policy Approaches
Needed to Scale-Up Action inSpace Cooling
Update affordable housing policies andprograms at the national and state levels
to include thermal comfort as an essential
criterion

Align the S&L program strategy to achieve
ICAP goals­–stringent standards and market
transformation initiatives

Enact a national policy for district cooling:
Mandate feasibility of DCS in high density
cooling greenfield developments

Guidelines for cities to integrate urban
passive cooling measures in planning
frameworks

20

Climate Investment Opportunities in India’s Cooling Sector

Key Recommendations
Sector 2: Summary of Cold Chain
and Refrigeration
Opportunities in the cold chain and refrigeration sector
where leveraging concessional finance can deliver
results with high climate and development benefits:• Supporting the development of sustainable and energyefficient end-to-end cold chain networks, including
refrigerated transport• Promoting better operations and servicing throughcapacity building of all stakeholders and incorporating
effective monitoring systems

Climate Investment Opportunities in India’s Cooling Sector2122. Across India, major gaps exist in its•

Supporting the development of sustainableagricultural and pharmaceutical cold chain

and energy-efficient end-to-end cold chain

infrastructure. While cold storage capacity

networks, including refrigerated transport.

in the country has grown steadily, in 2015 theCombined

National Centre for Cold-chain Development

environment and administrative structure to(NCCD) identified a gap of 3.27 million metrichelp support implementation, this opportunity

tons for long-term holding of fresh produce.21

has high technical feasibility. To ensure that

The integrated development of the cold supply

development is carried out in a sustainablechain across India is severely lacking, with majormanner, the opportunity requires large

essential components inadequately developed.

investments. NCCD estimates that close to

with

a

conducive

policy

US$11.75 billion is required to develop the
23. Major barriers to addressing these

physical infrastructure and transport-related

gaps include a lack of investment, enabling

elements of the agriculture cold chain,infrastructure, such as roads and power, andwith the biggest investment designated forthe highly fragmented nature of the industry.22

building modern packhouses (about US$8.5

To address these gaps, a multi-dimensionalbillion). In addition, there is also a need toapproach is required that includes technology,

modernize the retail end of the cold chain,policy support and training to meet supply

requiring US$1.3-1.9 billion.24 Decentralized

requirements in a sustainable manner, along withcold chains need to be developed throughbetter demand management and forecasting,support provided to farmer groups andand inventory planning.

agri-entrepreneurs. Business models forthe decentralized adoption of renewable

24. The study estimates that the market

energy-based

potential and investment opportunity in thethe farm or village levels – that can becold chain and refrigeration sector will be

implemented by individual farmers or

US$29 billion by 2038. The agricultural cold

farmer groups – should be developed. It

chain sector alone has the potential to createis also important to support R&D for the

1.7 million jobs,

development of low-cost renewable energy

23

helping boost post-COVID

recovery efforts.

cold

chain

solutionsat(RE) solutions that can be implemented at
the farm gate and in the rural healthcare

22

25. Gaps in cold chain storage must be filled

sector. There is a large gap in the availability

to minimize environmental impacts. This couldof refrigerated vehicles to meet demandlead to an emissions reduction potential of 77

in the country too. The study explores the

mtCO2e annually by 2038.

efficacy of using new business models and

26. This study identified two key concessional

Domestic and commercial refrigeration, thefinance opportunities across the cold chain andend of a cold chain, is a rapidly growing

refrigeration sector that have strong technicalsector in India and it is important that thisfeasibility and can result in high climate andgrowth is sustainable. Incentives and market

development benefits. These include:transformation initiatives can help promote

Climate Investment Opportunities in India’s Cooling Sector

multimodal systems to overcome this gap.

Setting

the form of grants for capacity building as

up target-based programs, such as thewell as subsidies and loans for incorporatingstate-operated Energy Efficiency Services

monitoring systems. These interventions canLimited’s (EESL’s) UJALA

for light emitting

be implemented in partnership with national

diode (LED) bulbs, can lead to an increase inand state governments. Use of Internet

market share of 5-star refrigerators.

of Things (IOT) based monitoring and an

higherefficiency

refrigerators.

25

understanding of temperature requirements•

Promoting better operations and servicingof different crops are necessary for a robust

through the capacity building of all

cold chain network. There is a need to

stakeholders and incorporating effective

promote the uptake of these systems in cold

monitoring systems. The capacity building

chains. With the incorporation of advancedof farmers and other users in post-harvest

technologies in cold chain, the skill levels

management and equipment handling is aof technicians to service newer equipment

requisite, offering development benefits foralso needs to be enhanced. The creationa trained workforce. Improved monitoringof a certification program coupled with anat different stages of the cold chain willawareness program on benefits of hiringalso help reduce food and pharmaceuticalcertified technicians could spur demand forlosses.

trained technicians.

These

interventions

have

the

potential to attract concessional finance in

Climate Investment Opportunities in India’s Cooling Sector

23

Key Policy Approaches Needed to
Scale-Up Action in Cold Chain andRefrigeration

Action plan for setting up small-scaledecentralized cold chain links
Committee to identify challenges in
the implementation of “Integrated Cold
Chain, Value Addition and Preservation
Infrastructure” scheme. Implement findingsof the committee
Incentives and policies to jumpstart a market
transformation program for improvementsin equipment efficiency (domestic refrigeratorsand commercial deep freezers)
Incentives to promote fuel free or electricreefer systems

Policy and regulation to promote IoT
for monitoring in cold chains andrefrigeration

Training and certification program for cold
chain and refrigerator operators

24

Climate Investment Opportunities in India’s Cooling Sector

Key Recommendations
Sector 3: Summary of Passenger
Transport Air Conditioning
Opportunity in Passenger Transport Air Conditioning
where leveraging concessional finance can deliver
results with high climate and development benefits:• Improving the efficiency of Mobile Air Conditioning(MAC) systems in passenger transport systems

Climate Investment Opportunities in India’s Cooling Sector2527. Transport air conditioning, also known as

as well as developmental benefits in the form

MAC, has grown considerably in India. Overof new jobs for servicing, maintenance andthe last 15 years, an overall growth of over 12

recovery at end of life.

percent and 2.5 percent Compound Annual
Growth Rate (CAGR) has been observed in the

30. The passenger transport sector in India

road and rail transport sectors, respectively.

provides5

considerable

opportunityfor

The India automotive heating, ventilation andemissions reduction given the country’s needs

air conditioning market size comprised US$822

for sustainable cooling in the future. This could

million in 2018 and is projected to reachlead to an emissions reduction potential of 14

US$2,033 million by 2026, registering a CAGR

mtCO2e annually by 2038.

of 11.6 percent.

26

31. As noted earlier, this study identified
28. The Indian passenger car air-conditioners

one concessional finance opportunity formarket alone is forecasted to surpass US$1

passenger transport that has a strong technicalbillion by 2023.

An analysis of the transportfeasibility and can result in high climate andthatdevelopment benefits. It includes:

sector27

suggeststheMAC

segment

is projected to double in terms of energy
consumption as well as total emissions within•

Improving the efficiency of MAC systems

the next decade. ICAP has estimated that MAC

in passenger transport systems. This study

is responsible for 15 to 18 percent of energy

analysis found that a sustainable cooling

consumption in passenger vehicles, thereby

pathway for passenger transport in India is

projecting the highest energy demand forpossible through the large-scale adoption

passenger cars followed by buses and thenof efficient MAC systems. It will also require

railways. In line with this, under a Business-As-

optimization of the demand by shifting to

Usual (BAU) scenario, refrigerant demand for

public transport systems and new vehicle

the MAC sector is expected to increase by overdesigns which help reduce cooling load.

four times, from an average of 5,172 metric ton

The technical and administrative feasibility(MT) in 2017-18 to 22,142 MT in 2037-38.

of this opportunity are high given thatproven efficient MAC systems are available

29. This study estimates that the market

globally and in India and through a series ofpotential and investment opportunity insupportive regulations. This can be achieved

passenger transport is US$8 billion. Improving

by building demand for energy-efficientthe efficiency of MAC systems in passenger

MAC systems through S&L programs fortransport vehicles (passenger cars, busesvehicles and by leveraging R&D to supportand rail) can result in an estimated 20 percent

the improvement of MAC systems.

energy savings between BAU and improved
efficiency scenarios. A further 29 percent
carbon savings are possible by the mitigation of
direct emissions through better MAC servicing
and maintenance practices, and recovery at endof life. This opportunity will lead to direct climate
benefits in the form of GHG emission reductions

26

Climate Investment Opportunities in India’s Cooling Sector

Key Policy Approaches
Needed to Scale-Up Actionin Passenger Transport Air
Conditioning
Labelling system for cars to build
public awareness on energy efficiency
and emission savings
Policy to promote private sector R&D
on energy efficiency and low-GWP
refrigerant based MAC systems

Climate Investment Opportunities in India’s Cooling Sector

27Key Recommendations
Sector 4: Summary of Refrigerants

Opportunity in refrigerants where leveraging
concessional finance can deliver results with highclimate and development benefits:• Improving servicing, maintenance, and disposal toreduce refrigerant demand across India

28

Climate Investment Opportunities in India’s Cooling Sector

32. Refrigerant demand is expected to grow

35. As noted earlier, this study identified

more than six times over two decades.

one concessional finance opportunity for the

In 2015, the air conditioning sector had therefrigerants sector that has a strong technicallargest market share of all the sectors, estimatedfeasibility and can result in high climate andat 62 percent of refrigerant consumption in India.

development benefits. It includes improving

India’s commercial refrigeration sector was theservicing, maintenance, and disposal to reduce

highest consumer of hydrochlorofluorocarbons

refrigerant demand across India. This can beat 22 million ton of refrigeration (TR), followed

achieved by:

by mobile air-conditioning at 20 million TR.

5

•

The

uptakeoftrainedservice33. Under a BAU scenario, annual refrigerant

technicians to ensure proper servicing

demand for cooling across all sectors in India

and maintenance of refrigerant-basedis expected to grow more than six times fromequipment to reduce refrigerant leakage;

22,522 MT in 2017-18 to 149,392 MT in 2037-

and38.5 The demand for refrigerant-based vapor
compression technologies to meet the cooling•

Measures to support the recovery,
recycling and reclamation of refrigerants.

requirements of buildings will primarily drive theprojected refrigerant demand.
34. The analysis in this study showed that aneffective phase down of hydrofluorocarbons(HFC) across India requires a two-pronged
approach of ensuring a reliable low/zero
GWP

refrigerants

refrigerant

demandsupplyandefficientmanagement.

While

several alternatives to HFCs exist and are used
across the world, these are yet to be put intolarge scale commercial use in India with theintention of replacing HFCs. However, India’s
RAC industry has exemplified leadership in the
adoption of the latest technologies. Studies
have estimated that annual refrigerant demandin India could be reduced by 31 percent from a
BAU scenario by 2038. This HFC phasedown
could be supported through roadmaps, policies
and public procurement to enable deploymentof low-GWP refrigerants and technologies withlower refrigerant demand.

Climate Investment Opportunities in India’s Cooling Sector

29Key Policy Approaches
Needed to Scale-Up Action in
Refrigerants
Policy and training programs to support
recovery, recycling and reclamation or theeffective destruction of refrigerants
Refrigerant disposal guidelines
embedded within the Extended Producer
Responsibility and e-waste guidelines forreclaiming electronic components at endof life, particularly for RACs
Technician training on the recovery andtransport of refrigerants to reclamation
centers; mandatory public sector utilizationof licensed service technicians only30

Climate Investment Opportunities in India’s Cooling Sector

Conclusion:
Equitable Sustainable Cooling for All
36. Sustainable cooling is not just essential for

sector investment alone will not enable theeconomic growth but is critical for a country’s

growth, scale and speed that is required

health, security, and productivity. In a post-

without significant and robust government

COVID world with rising global temperatures,

action. A coalition of public and private actors

familiar ways of doing business will not pay

is required, one where government action candividends. Creating a sustainable coolingcreate the necessary regulatory and institutional

strategy for India will require government andframework to foster innovation and investment.

business leaders to transform their mindset
and adapt to a new low-carbon landscape. It

39. Across India, precedents for cross-will necessitate new policies and actions acrosssectoral transformative change on such amultiple sectors to support sustainable coolinglarge scale already exist. Take, for example,

growth. It is both an enormous challenge and an

India’s recent uptake of LED lighting, one of theunprecedented opportunity. But it can be done.

most remarkable energy-efficient transitions
seen anywhere in the world. Thanks to a policy

37. As the analysis in this study shows, eight

initiative known as Unnat Jyoti by Affordable

key clustered opportunities can be leveraged

LEDs for All or UJALA,25 the Indian government

by concessional financing to advance ICAP

procured LED bulbs for the national market,

goals and to implement sustainable coolinglowering prices through competitive bidding.

across India. Our analysis presents actionable

A state-owned company, EESL, was createdroadmaps for four cooling sectors – space

to distribute LED bulbs to citizens. Sincecooling, cold chain, refrigeration and passenger

beginning in 2014, EESL has distributed millions

transport air-conditioning – and identifies

of LED bulbs and energy-efficient fans with analigned national and state policies to enableestimated energy savings of nearly 48 billion

convergence as well as the key stakeholders

kilowatt hour (kWh) per year and estimatedrequired for planning and implementation.

annual GHG emission reduction of nearly 39

Unlocking these opportunities can help India

million metric ton carbon dioxide (mtCO2).29

boost sustainable cooling investments, create
jobs, reduce emissions and secure the supply

40. India’s LED bulb transition offers a roadmap

chains of food, medical care products and healthto develop a similar model at scale to support

infrastructure.

the uptake of affordable energy-efficientfans for low-income households across India.

38. Building a conducive policy, business andGiven rising temperatures, ICAP estimates aninstitutional sustainable cooling ecosystem

explosive, nearly two-fold, growth in the stock

will require the support of governmentof fans from 450 million units in 2017 to 950

alongside partnerships between the public

million by 2038.5 By offering energy-efficientand private sectors and civil society. Private

fans to the market, this offers a potential to save

Climate Investment Opportunities in India’s Cooling Sector

31

20 terawatt hours by 2038,5 the equivalent ofwater-stressed countries in the world. However,nearly 2.5 million tons of coal. With adequate

Jal Jeevan’s success has been grounded in a

incentives, strategic and multifaceted policy

solid regulatory framework that allocated funds

initiatives, and an appropriate policy ecosystem,

under individual State Action Plans, approved

the Government of India can jumpstart theby the Department of Drinking Water andcreation of a market for energy-efficient cooling

Sanitation. In 2019, at the outset of Jal Jeevan,technologies such as BLDC fans – low-energy

about one-sixth of households in India had aconsuming fans that create less noise and haveclean water tap. Now, almost half have one.30

long lifespans. Initiatives such as India’s PMAY
– a government scheme to provide 20 million

42. Building a conducive policy environment

affordable homes to India’s rural and urban poor

will also help spur action and investments byby 2022 – could be galvanized to distributethe private sector toward sustainable cooling.

energy-efficient BLDCs. Government supported

As the results in this study show, concessionalmodels such as PMAY could be also explored tofinance by multilateral development banks,

enhance the uptake of efficient RACs in middle-

financial institutions and the private sector will

income households.

play a key role in helping India develop financial
instruments and innovative models to accelerate

41. To turn ICAP’s vision into a reality, a flagshipthe adoption of sustainable cooling measures.

Indian government mission to galvanize

These innovative financial instruments will be‘Thermal Comfort and Sustainable Cooling

crucial to develop and transform the coolingfor All’ should be established. This can bemarket in India. Leveraging the power ofachieved by enabling resource flow from bothconcessional finance constituted a key step inpublic and private sectors as well as promoting

the creation of India’s giant 750 megawatt (MW)convergence across central, state and local

Rewa solar park, an ambitious attempt by thelevels.

includingstate government of Madhya Pradesh to push

Smart Cities, Swachh Bharat, Jal Jeevan andthe boundaries of India’s private renewable

Make in India provide applicable roadmaps forenergy market. Driven in part by prescient long-decentralizing objectives across India’s complex

term planning, capital availability and market-

federal structure and inspire target-based

based solutions, in the past decade, India hasinterventions for different sectors. Streamlining

purposefully transformed its energy sector,

budgetary allocations and financial flows could

emerging as a global champion of solar power.

India’snational

missions

also help provide the institutional framework

32

for continuous monitoring and evaluation of

43. India stands at historic crossroads.

ICAP implementation to inform planning across

Providing sustainable cooling and thermal

sectors. India’s Jal Jeevan mission to provide

comfort for all will require investment, ingenuity

clean tap water to every union territory andand innovation. The good news is that there isstate by 2024 provides an excellent budgetaryno shortage of commitment and enthusiasm toallocation roadmap. A tap in every home may

take India’s cooling advances into a new era ofseem like an ambitious aim for one of the mostopportunity. Thanks to the policies laid out in the

Climate Investment Opportunities in India’s Cooling Sector

ICAP, new technologies and scientific findings,
India is already on a path to rapidly scale up
policies and practices to enable the market
transformation for high-impact space coolingtechnologies. Deploying ‘living laboratories’
for thermal comfort – spaces where users andresearchers can collaborate and create energyefficient solutions for affordable cooling – will
enable the government to pilot multi-stakeholder
engagement and new technologies. So too will
supporting the development of sustainable
and energy-efficient cold chains, incorporating
effective monitoring systems, and promoting
better operations and servicing through thecapacity building of all stakeholders.

44. As India’s brutal spring of 2022 has alreadyshown, the poor bear a disproportionate
burden of a hotter planet. Thermal comfort is nota luxury but a human right for all. Implementing
a sustainable cooling strategy for India presents
a multi-sectoral opportunity for the country tomeet its development and climate goals, and for
those at the bottom of the economic ladder toavoid one of climate change’s most destructive
human hazards. Thanks to the eight investment
opportunities outlined in this study, India’s
government, multilateral development banks,financiers, the private sector and civil society
now have a chance to make ICAP an actionablereality.

What is Concessional Finance?
Concessional finance is below market rate finance provided by major
financial institutions, such as development banks and multilateral funds,
to developing countries to accelerate development objectives. The term
concessional finance does not represent a single mechanism or type offinancial support but comprises a range of below market rate products
used to accelerate a climate or development objective.

Climate Investment Opportunities in India’s Cooling Sector

33

Chapter 1:
Introduction

34

Climate Investment Opportunities in India’s Cooling Sector

1.1

Cooling India: Development Prerogatives andNeed for Sustainable Cooling

1.2 Study Objectives and Methodology

Climate Investment Opportunities in India’s Cooling Sector351.1 Cooling India: Development
Prerogatives and Need for
Sustainable Cooling
45. India will witness rising temperaturesand heat stress due to climate change andwill require massive cooling infrastructure
to mitigate negative impacts on health andiproductivity. India, with its predominantly
tropical climate, is experiencing escalating
temperatures along with population growth
and rapid urbanization, contributing to a steep
increase in cooling demand for which India
will require massive cooling infrastructure
across sectors.31 Currently, in India, the wetbulb temperatureiii during the worst heat waves
rarely, if ever, exceed 32°C (degree centigrade).1

Figure 1: Rising temperatures across India

Wet-bulb temperature is an indicator that combines air temperature and relative humidity. It provides a more accurate measure of heatstress on the human body than air temperature alone.
iii

36

Climate Investment Opportunities in India’s Cooling Sector

However, climate models project that theseaccess to sustainable cooling, around 160-

temperatures could exceed the survivability

200 million people could be exposed to lethal

threshold (that is, 35°C) at a few locations inheat waves as early as 2030 in India annually.

the Chota Nagpur Plateau and North-Eastern

Under a Business As Usual (BAU) scenario for

India under future climate scenarios of the

air-conditioning growth till 2030, only about

Intergovernmental Panel on Climate Change’s

half of the population will have access to air-

(IPCC’s) Fifth Assessment Report, known as

conditioning.1 Access to cooling for the rest ofRepresentative Concentration Pathway (RCP)

the population will require the implementation

scenarios. Wet-bulb temperatures are projectedof other measures. As of 2017, heat-exposed

to approach the 35°C threshold under RCP8.5

workiv contributed to about 50 percent of India’s

scenario by the end of the 21st century over the

Gross Domestic Product (GDP), drove about

Ganges River valley, North-Eastern India, eastern

30 percent of the country’s GDP growth, and32

coast of India, and Chota Nagpur Plateau.

employed about 75 percent of its workforce, i.e.,

Under the RCP4.5 scenario, vast regions of

380 million people.1 Ensuring thermal comfort forSouth Asia are projected to experience episodes

all will be critical to mitigate negative impacts on

exceeding 31°C, which is considered extremely

health and productivity.

dangerous for most humans. Urban heat-islandeffect may amplify the effects in urban or peri-

46. Sustainable cooling can support India’s

urban centers exposed to these temperatures.1

development and help in a green recovery

Without targeted adaptation actions that provide

from COVID-19. Cooling is a developmentali
As per the McKinsey (2020) study, exposed sectors include exclusively outdoor sectors such as agriculture, mining and quarrying as wellas indoor sectors with poor air-conditioning penetration including manufacturing, hospitality and transport.
iv

Climate Investment Opportunities in India’s Cooling Sector

37

38

Climate Investment Opportunities in India’s Cooling Sector• Basha, G., Kishore, P., Ratnam, M. V., Jayaraman, A., Kouchak, A. A., Ouarda, T. B., & Velicogna , I. (2017). Historical and Projected Surface
Temperature over India during the 20th and 21st century. Scientific Reports, Vol. 7 (Article No. 2987).
• Rohini, P., Rajeevan, M., & Mukhopadhay, P. (2019). Future projections of heat waves over India from CMIP5 models. Climate Dynamics,53, Pages 975–988.
• Kumar, S. (2020, December 21). Sustainable Cooling is a Super Cool Idea for India.
• McKinsey. (2020). Climate risk and response: Physical hazards and socioeconomic impacts. Will India get too hot to work? . McKinsey
Global Institute.
• IEA. (2019). Cooling on the Move: The future of air conditioning in vehicles. Paris: International Energy Agency.
• IEA. (2018, May). The Future of Cooling: Opportunities for energy-efficient air conditioning.
• Maithel, S., Chandiwala, S., Bhanware, P., Rawal, R., Kumar, S., Gupta, V., & Jain, M. (2020). Developing cost-effective and low-carbon
options to meet India’s space cooling demand in urban residential buildings through 2050. India Energy Transformation Platform.
• Dearman. (2015). Cold chains and the demographic dividend. Dearman.
• MoEFCC ICAP. (2019). India Action Cooling Plan. New Delhi: Ministry of Environment, Forest and Climate Change (MoEFCC), Governmentof India.
Climate Investment Opportunities in India’s Cooling Sector

39necessity and will contribute to the achievement

47. Cooling will contribute to the increaseof several Sustainable Development Goals

in refrigerant and energy consumption and(SDGs) including no poverty (SDG 1), zero

Greenhouse Gas (GHG) emissions with space

hunger (SDG 2), good health and wellbeing

cooling having the largest share amongst all(SDG 3), affordable and clean energy (SDG 7),

sectors. Annual carbon emissions from spacedecent work and economic growth (SDG 8),

cooling in buildings, Mobile Air Conditioning

sustainable cities and communities (SDG 11) and(MAC)

climate action (SDG 13). A sustainable coolingrefrigeration (domestic and commercial), cold

strategy for India will also help in post-COVID

chains (agriculture and pharmaceuticals) andrecovery by creating jobs, securing the supply

industrial process cooling in India stood atchains of medical care products and food, and208.7 metric ton of carbon dioxide equivalent

boosting the economy.

The development of(mtCO2e) in 2017,28 which was 8 percent of

the agriculture cold chain sector alone has the

India’s total GHG emissions in 2016 (i.e., 2,531

potential of creating 1.7 million jobs.

Further,

mtCO2e).34 Figure 2 shows that space cooling inthe servicing of low-Global Warming Potentialbuildings has the largest current and projected(GWP) refrigerant air-conditioning units is

cooling demand, refrigerant demand, energy

expected to see a 10-fold increase in jobs overconsumption and associated GHG emissions as

the next two decades from a base of 0.2 million

compared to other sectors, namely cold chain

technicians in 2017 to 2 million.15

and refrigeration and passenger transport air-

33

23

(i.e.,

forpassenger

transportation),conditioning.

M TR: Million Tonnes of Refrigeration MT: Million Tonnes mtoe: Million Tonnes of Oil Equivalent mtCO2e: Million
Tonnes of Carbon Dioxide Equivalent (↑XX): Indicates the increased value in 2037

Figure 2: Annual growth in cooling demand, refrigerant demand,energy consumption and GHG emissions28, 5

40

Climate Investment Opportunities in India’s Cooling Sector

1.2 Study Objectives
Methodology

andsustainable cooling and thermal comfort
for all while securing environmental andbenefitsforthebuildings, cold chains for agriculture andpharmaceuticals,

48. The ICAP was launched to provide

socioeconomic

sectors, covering residential and commercial

society.

Anticipating the multifaceted cooling energy
trends and challenges that India would haveto confront, the Government of India launched
ICAP in 2019. It presents a multistakeholder
driven comprehensive framework for achievinga sustainable cooling roadmap across various

refrigeration,passenger

transport and industries. The plan provides “anintegrated vision towards cooling across sectors
encompassing, inter alia, reduction of coolingdemand,refrigeranttransition,enhancingenergy efficiency and better technology options
with a 20-year time horizon (2017-18 to 203738)”, covering short-, medium- and long-term
recommendations.11 ICAP highlights synergies of
its recommendation with existing governmental
schemes and programs. Figure 3 presents its
thematic areas and goals.

Thematic Area••••

Space Cooling in Buildings
Air Conditioning Technology
Cold-chain and Refrigeration
Transport Air Conditioning•

Refrigeration and Air-Conditioning
Servicing Sector
Refrigerant Demand andIndigenous Production
Research & development

•
•

Goals
•
•
•

Reduce cooling demand across sectors •by 20% to 25% by 2037-38
Reduce refrigerant demand by 25% to
30% by 2037-38•
Reduce cooling energy requirementsby 25% to 40% by 2037-38

Recognize “cooling and related areas”
as a thrust area of research undernational Science & Technology Program
Training and Certification of 100,000
servicing sector technicians by 2022-23,
synergizing with Skill India Mission

Figure 3: Thematic areas and goals of ICAP5

49. The World Bank study aims to develop• Identify additional opportunity areasan actionable roadmap comprising policy,

which have not been covered in theinvestment and knowledge interventions to

ICAP but are critical to a sustainable

help achieve ICAP goals. The study has taken

cooling pathway for India, such as

forward the ICAP analysis and recommendations

demand side interventions in space 		by:cooling, heat stress in cities, etc.; and• Proposing short-term (2022-24), mediumterm (2025-30) and long-term (2031-38)
interventions in each cooling sector to:• Implement the ICAP recommendations;•

Prioritize sustainable cooling opportunities
for concessional financing and private
sector investments.

Climate Investment Opportunities in India’s Cooling Sector

4150. The study undertook extensive literature

as job creation potential, and so on). The key

review and stakeholder consultations to arrive

barriers for unlocking each opportunity area

at prioritized opportunities in the coolingwere identified through literature review andsector. A series of interconnected steps wereextensive consultations with government andfollowed to identify holistic, inclusive, viable,

private sector stakeholders. This included

specific and scalable interventions that canidentification of the associated institutional,

operate through partnerships with various

financing,actors and add impetus to the implementation

and required interventions. The study hasof ICAP goals. The study focused on all

followed a highly consultative process to help

identified thematic areas under ICAP including

identify and prioritize opportunities and theirspace cooling in buildings, cold chain andassociated interventions which are pragmatic,refrigeration, transport air-conditioning andimplementable and have the desired interest

refrigerants

and buy-in of the key stakeholders in all cooling(covering

the

ICAP

thematic

areas of Research and Development (R&D),

regulatory

andmarketbarriers

sectors and across their value chains.

refrigerant demand & indigenous production,42

and refrigeration & air-conditioning servicing

51. This World Bank study identifies eightsector). As a result, it presents actionable

sustainableroadmaps for each of the cooling sectors as wellmultilateral development banks and financial

as prioritized opportunities for concessional

institutions can play a significant role infinancing and private sector investments. The

advancing the goals of ICAP in India. The study

roadmaps have also identified aligned nationalbegan by analyzing the landscape of sustainable

and state policies for convergence as well as

cooling interventions which were clustered based

key stakeholders required for planning andon institutional set up, ease of implementation

implementation. To begin with, an extensive

and complementarity of actions. This clustering

literature review was carried out under thisresulted in a total of 10 opportunities in space

study, with a detailed analysis of the existingcooling, four in cold chain and refrigeration,

policies, programs and initiatives in India that are

two in passenger transport air-conditioning

directly or indirectly relevant to the multisectoral

and three in refrigerant sectors. Following

actions recommended under ICAP. This analysis

this, a multi-criteria prioritization framework

covered the existing governmental schemes andwas applied. The criteria assess climate andprograms mapped in ICAP and went beyond todevelopment benefits and implementability for

identify any other relevant policies and programs

all clustered opportunities. The analysis has

to identify areas for strengthening existing

been presented as part of the sectoral chapters

policies and formulating new ones in each of thein this report. Further the role of concessionalcooling sectors. Building on the ICAP sectoral

financing and private sector investments wasanalysis for cooling demand, energy savings

evaluated leading to prioritization of eight key

and emission reduction, the study identified key

clusteredopportunity areas for cooling in each sector andDevelopment Banks (MDBs) and Financial

collected data on their investment potential orInstitutions (FIs) can play a significant role inmarket size and developmental benefits (suchadvancing the goals of ICAP and sustainable

Climate Investment Opportunities in India’s Cooling Sector

cooling

opportunities

opportunities

where

where

Multilateralcooling in India. The multicriteria framework

short, medium, and long-term interventions. The

is explained in detail in Annex 1. The sectoral

roadmaps for the remaining opportunities arechapters present actionable roadmaps for theprovided in Annexes 2 to 5.

prioritized clustered opportunities covering

Climate Investment Opportunities in India’s Cooling Sector

43Chapter 2:
Space
Cooling

44

Climate Investment Opportunities in India’s Cooling Sector

2.1

Summary

2.2 Sectoral Overview
2.3 Landscape of Cooling Opportunities in the Sector

2.3.1 Reduce Demand by Integrating Passive Measures in Buildings
2.3.2 Improve Efficiency of Cooling Technologies
2.3.3 Shift Demand to District Cooling Technologies
2.3.4 Adapt Cities to Manage Heat Stress

2.4 Prioritized Opportunities for Concessional Finance2.4.1 Mainstream thermal comfort parameters in affordable		housing policies and programs at the national and state levels
2.4.2 Enable market transformation towards super-efficiency
		for high energy impact cooling technologies
2.4.3 Support uptake of tri-generation and district cooling systems
2.4.4 Mainstream passive cooling measures in urban planning
Climate Investment Opportunities in India’s Cooling Sector45

2.1 Summary

55. Together these four key impact areas detail

52. Exponential growth is projected in spacerequirements

a holistic approach to meeting space cooling

cooling demand over the next two decades,
making it the largest opportunity for achieving
ICAP goals. India will witness 2-2.5x growth insustainablybyprioritizing‘thermal comfort for all’ and facilitating coolingaccess, while reducing the impact on theelectricity system.

floor area across residential and commercial
buildings

between

2018-38.5,35

Climatebenefits in this upcoming building stock can be

2.2 Sectoral Overview

maximized if passive measures are combined
56. Sustainable space cooling interventions

with efficient technology adoption.

need to prioritize ‘thermal comfort for all’ and
53. Integrating passive cooling strategies

facilitate cooling access while reducing impact

in buildings can achieve a 20-30 percent

on the electricity system. Space cooling is the

reduction in projected energy use in 2038.35

fastest growing energy use in buildings globally.

This has significant potential to improve

At least 45 percent of India’s peak electricity

thermal comfort, especially for vulnerable

demand in 2050 is expected to come from

communities in affordable housing with limited

space cooling alone.13 This will require sizable

access to space cooling technologies. Similarly,

investments in creating costly peak generating

integration of passive measures such as blue-

capacity and result in a significant increase ingreen infrastructure in city planning can reduce

GHG emissions, unless suitable low energy

urban

energyalternatives are available to meet thermal

demand. Each 1°C drop in air temperature has

comfort needs in buildings. Access to space

been found to lower peak electricity demand forcooling is also a development need, crucial

cooling by 2-4 percent.

for wellbeing and productivity in hot climate

temperaturesandcooling36

countries such as India. Within this context, the54. Efficient cooling technologies have thespace cooling strategy lists four key impact

potential to achieve 30 percent energy savings

areas detailing an approach to meeting spacefrom projected demand by 2038.

cooling requirements sustainably:37

5

Robustefficiency standards and market transformation
initiatives that address higher upfront costs,i.

Reduce demand by integrating passive

especially for high impact cooling technologies

measures in buildings;

such as ceiling fans, room air-conditioners

ii. Improve efficiency of coolingand chillers can support the transition to best
available technologies sooner. In areas withsignificant cooling demand, shifting to highly		

technologies;iii. Shift demand to district cooling 		technologies; andefficient District Cooling Systems (DCS) is

iv. Aid cities’ adaptation into managing 		

recommended. 30 percent of the commercial

heat stress.

space cooling demand in 2038 can bepotentially met through DCS, if viable business

57. Climate benefits can be maximized whenand implementation models are established inpassive measures are combined with efficientthe Indian context.

technology

17

46

Climate Investment Opportunities in India’s Cooling Sector

adoption.

The

four

strategic

interventions focus on demand reduction

and health impacts, especially in urban areas

through passive measures in buildings anddue to heat absorption by built-up area, further

cities as well as supply-side solutions throughreiterate the need for passive cooling measuresefficient cooling technologies. The interventions

in buildings and urban development.

are closely interlinked and provide a holistic
response for achieving sustainable spacecooling. Passive cooling measures limit heat gain
inside buildings and improve thermal comfort.
These measures are the first step towards
meeting cooling requirements sustainably andare especially important as a large section of the
population might have limited access to coolingtechnologies for meeting thermal comfort
requirements. They also help in reducing overall
demand for cooling and associated energy
consumption and GHG emissions, even whencooling technologies, such as air-conditioning,are used. Meeting this cooling demand throughefficient cooling technologies in buildings,
and through district cooling technologies that
aggregate cooling demand across multiple
buildings, can further significantly reduce
cooling energy requirement, including peakpower

demand.

Finally,theinterlinkages

between overheating and adverse productivity

2.3 Landscape of Cooling
Opportunities in the Sector
2.3.1
ReduceDemand byIntegrating Passive Measures in
Buildings
58. India will witness significant growthin floor space; hence, it is imperative toconstruct efficient buildings. Figure 4
shows the projected growth in residential
and commercial floor area over the next two
decades. Passive cooling measures help in
improving thermal comfort and reduce theneed for active cooling in buildings. Policies
and investments must prioritize climate
responsive construction to avoid long-term
lock-in of inefficient building stock. As per

Figure 4: Projected growth in commercial and urban and rural residential floor space5, 35

Climate Investment Opportunities in India’s Cooling Sector

47

International Finance Corporation (IFC), thea market instrument can significantly help

green buildings market in India will havein limiting energy use and GHG emissions

an investment potential of about US$1.25

from space cooling. The residential building

trillion for residential buildings and US$228

energy code – Eco Niwas Samhita (ENS)40 –billion for commercial buildings by 2030.14

is currently voluntary, as it is not supportedby the Energy Conservation Act 2001 in its

59. Electricity use in the residential

current form. It is, however, expected that

sector is nearly three times that of thethe Act will be modified soon to includecommercial

residential

residential buildings as a key sector withsector is responsible for 24 percent of thepotential for energy efficiency measures.

total electricity use in the country

whichThis amendment will enable states tois projected to increase to 39 percent inmandate the adoption and enforcement

2047, overtaking industry to be the highestof ENS. Energy and cost-benefit analyses

electricity consuming sector. Space coolingshow that the implementation of ENS

is expected to contribute a significant share

Part 1 (building envelope) is cost-effectiveof this electricity use. As per a recent study

andthat evaluated the long-term space cooling

additional construction cost for integrating

demandpassive

sector.

India’s

38

39

for

meeting

thermalcomfortrequiresaroundbuilding

1-2

percent

envelopeofmeasures.35

requirements for all urban households

Though first costs are low, developers

in India, close to 30 percent reduction inwill need a business case combined withprojected

effective

coolingenergyrequirement

enforcement

mechanisms

forcan be achieved in 2050 through efficientcode

building envelope measures alone. A

building materials and technologies easily

combination of successively stringent codes

accessible and bridging the additional costin new buildings and retrofitting of existing

through market transformation approaches

buildings can save almost 100 terawatt-

combinedhour (TWh)/year of electricity by 2040 andand skill-based training can significantly

180 (TWh)/year by 2050. Additionally, thehelp with code implementation in the

study estimated that the reduction potential

initial phase. Code implementation can

increases to over 50 percent, if both passive

substantially reduce the projected growthmeasures and efficient cooling technologies

of GHG emissions from space coolingare prioritized.35

demand in the residential sector. It also has

implementation.

with

Makingconstruction

efficientguidance

high potential for development benefits

48

60. Residential building energy codein terms of health and productivity gains

implementation can significantly reducefor occupants due to improved thermal

the projected growth in space cooling

comfort as well as creation of new jobs indemand. In new residential buildings,

the sector. This opportunity also scores highimplementationbuilding

on technical feasibility as solutions exist;

energy codes and green building ratings as

however, large-scale implementation willofmandatory

Climate Investment Opportunities in India’s Cooling Sector

depend on effective enforcement by urban

comfort parameters and space coolinglocal bodies.

requirements of occupants. Housing built
since 2000 will still be around till 2050.

61. The Pradhan Mantri Awas Yojana (PMAY)

This, as well as housing to be built in thecan be leveraged to effectively mainstream

near future, will need to adapt to respondpassive cooling measures in government-

to a changing climate with higher average

supported housing construction. PMAY

summerwas launched in 2015 by the Government of

more intense heat waves and increasing

India. It aims to construct 11.2 million houses

temperatures due to Urban Heat Island

under the PMAY-Urban mission and around(UHI) effect in urban areas. There is, hence,

29.5 million rural houses as part of the PMAY-an urgent need to also focus on identifying

Rural

Government-supported

retrofitting solutions that are suited toaffordable housing programs hence provide

India’s construction context, especially fora significant opportunity for integratingsocial housing. While significant climate

passive measures in a large segment of new

and development benefits are envisaged

residential construction leading to directfrom housing retrofits, there are challenges

climate benefits. Additionally, improving

due to lack of appropriate technicalthermal comfort in social housing is criticalsolutions and policy support. Fuel poverty

for

and

v

vi

mission.

equitable

andsustainablecooling

temperatures,

weatherization

frequent

andassistance-related

access in low-income households, resulting

retrofit programs in the U.S. and Europe,in significant development benefits.

respectively, provide vital entry points
to assess various programs, including

62. Retrofitting houses and upgrading

governance and financing instruments thatthem to meet energy efficiency and thermal

can be adapted to India’s context.41

comfort standards will become crucial in
the near future. India’s residential sector

63. The Energy Conservation Building

has been growing rapidly and building

Code (ECBC)vii is a key policy for newenergy policies have rightly focused on newcommercial buildings to integrate energy

buildings first, as it is easier and relatively

efficiency

measures.

more cost-effective to integrate passivebuildings

aremeasures in new buildings than retrofitting

India’s ECBC. Commercial buildings arelater. However, in another decade, India’s

responsible for nearly 8 percent of the total

rate of construction is likely to start declining.

electricity use in the country currently.38

Experts also point out that current housing

Commercial

construction is not accounting for thermalcooling energy demand as the adoption andAlladdressedbuildings

non-domestic
togetherhaveinsignificant

iPMAY: Government of India’s affordable housing mission provides direct monetary assistance or subsidised credit towards construction oflow- and middle-income housing. https://pmaymis.gov.in/
vi
https://pmayg.nic.in/netiay/home.aspx
vii
ECBC was released in 2007 and revised for stringency in 2017. The code includes guidance on building envelope, heating, ventilation andair-conditioning, other building services, and also renewable energy integration in commercial buildings. It is applicable to all new commercial buildings that have a connected load of 100 kW or greater, or a contract demand of 120 kVA or greater.
v

Climate Investment Opportunities in India’s Cooling Sector

49intensity of air-conditioning is high. As per

to cities where construction rates of large

ICAP, approximately 50 percent of the total

commercial buildings are higher. Voluntarycommercial floor space in 2038 is likely to begreen building ratings systems (for example,

air conditioned. ECBC is a key policy for new

Leadership in Energy and Environmental

commercial buildings to integrate energy

Design (LEED), Green Rating for Integrated

efficiency measures and is applicable to

Habitat Assessment (GRIHA), Indian Green

all large nondomestic buildings including

Building Council (IGBC), Excellence in

offices, malls, hotels, hospitals, airports,

Design for Greater Efficiencies (EDGE)) haveeducational institutions, and so on. ICAP

been more successful in the commercial

estimates that rigorous implementation ofbuilding segment than residential buildings,

ECBC can reduce around 32 million Ton

especially driven by first movers in theof Refrigeration (TR), nearly 23 percent ofmarket, and supported by organizational

the total projected cooling demand of 140

policies of large corporations requiring

million TR in new commercial buildings bygreen buildings. These are a useful market

2037-38. While around 20 states and union

mechanism to drive the construction of

territories have notified adoption of ECBC,

energy efficient commercial buildings.

and a further 48 urban local bodies acrosseightstates have also included them inmodified building by-laws,42 implementationneed

by urban authorities is still limited and varies

solutions. Retrofitting of commercial buildings

considerably across cities.

Multiplicity ofin India has largely focused on replacing

government departments, lack of capacity

cooling technologies and other appliances,

within these to enforce, and reluctance on

including lighting, with limited building

the part of building developers and theenvelope upgradation. Similarly, retrofitting

absence of a strong enforcement frameworkhas not been a focus of commercial building

are key reasons for the slow implementationenergy policies. There is a need for R&D

process.44 A recent report by the Ministry

for building envelope solutions as well as aofroadmap for retrofitting commercial buildings

Environment,

Change(MoEFCC)

Foreston

43

and

Climateoperationalizing

ICAP recommendations for space coolinglists actions to be taken by a number ofgovernment ministries and departments tointegrate ECBC within their construction

50

64. Commercial building retrofit programs
tointegratebuilding

envelope

in the near term.

2.3.2 Improve Efficiency
Cooling Technologies

ofactivities.42 This will help facilitate ECBC

65. ICAP classifies building-level coolingimplementation across a large segment

technologies

of government-led construction. However,

ICAP discusses three types of coolingimplementation by the private sector istechnologies: refrigerant based (room air

also needed. This requires a renewed

conditioners and central air-conditioning

focus on plugging in implementation gaps,

systems), non-refrigerant based (fans andespecially by providing focused support

air coolers) and not-in-kind technologies

Climate Investment Opportunities in India’s Cooling Sector

into

three

categories.

(such as radiant cooling,viii indirect direct

and in urban and rural areas. Ceiling fansevaporative cooling, etc.).

are the most used type of fan, representingix

nearly two-thirds of the annual sales.45 ICAP
66. Nearly 52 percent of the total spaceestimates a growth in the stock of fans fromcooling electricity consumption is attributed

450 million units (2017-18) to 950 million units

to the adoption of a single technology –(2037-38), with a potential to save 20 TWh

Room Air Conditioners (RACs) – largely

by 2038 through efficiency improvements.

used in residential buildings. Hence, theresidential sector is likely to drive space

68.

Centralair-conditioning

systems

cooling demand in the next 20 years. RACs

[chillers, Variant Refrigerant Flow (VRFx) andwill also account for 88 percent of the total

packaged Direct Expansion (DXxi)systems]

refrigerant-based technology stock in 2037-

are used in large commercial buildings

28. RAC stock is projected to increase fromand will account for 24 percent of the total

about 55 million TR (2017-18) to 633.5 million

space cooling electricity consumption inTR (2037-38), with a potential to save 100 TWh

2038. Amongst these, the larger savings

5

by 2038 through efficiency improvements.

potential is envisaged in chiller-based

Currently, less than 10 percent of Indian

applications, representing nearly 72 percent

households has access to air-conditioning.

of the total savings potential of 45 TWh fromICAP estimates that, by 2037-38, access will

the three technologies in 2037-38.5

increase to about 40 percent households,
with much higher adoption in urban areas as

69. Enable market transformation towards

compared to rural households.

super-efficiency for high energy impact
cooling technologies. Figure 5 summarizes

67. Most Indian households will continue

the energy savings opportunity for the six

to rely on non-refrigerant-based cooling

key cooling technologies discussed above,

technologies such as fans and air coolers.

across the reference and intervention

Air conditioner access is likely to be limited

scenarios as estimated by ICAP. In the 2037-

due to high upfront and operational costs

38 intervention scenario, efficiency savingsand the requirement of reliable electricityof RACs are the most significant, followed bysupply, especially in rural areas. Hence, inchillers and fans. Interventions are needed

the next two decades, a significantly higher

to align the market to super-efficient/best

percentage of households will rely on non-available technology standards along withrefrigerant-basedsuitable incentives to increase their adoption

coolingtechnologies.

Fans and air coolers are low-energy and low-amongstcost

technologies

transformation towards super efficiency

that are widely used across building types

represents a key priority opportunity for

non-refrigerant-based

consumers.

Hence,

marketi
viii
Radiant cooling provides cooling by circulating cooled water through pipes embedded in floors, ceilings, etc., to absorb heat from theroom.
ix
In indirect/direct evaporative cooling, the primary air stream is cooled first with indirect evaporative cooling and then cooled further withdirect evaporative cooling. This does not increase the humidity of the supply air.
x
Variable refrigerant flow.
xi
Packaged DX (Direct Expansion).

Climate Investment Opportunities in India’s Cooling Sector

51

reducing the growth in space coolingadministrative feasibility of energy efficiency

related GHG emissions. Technical feasibility

standards. Additionally, the opportunity canfor achieving super efficiency alreadyalso lead to significant development benefits

exists, and the opportunity scores high onin the form of new jobs within the coolingpotential for both large-scale adoption andtechnology industry.

Figure 5: Projected annual energy consumption for key space cooling technologies
in reference and intervention scenarios5

52

70. The efficient performance of central air-performance data for HVAC systems toconditioning systems is highly dependent

improve operational energy use in centrally

on not just selecting efficient components,

air-conditioned

but also on the Heating, Ventilation and

Additionally, the current pandemic has also

Air Conditioning (HVAC) system design,

highlighted the issue of ventilation within

operational and maintenance practices.

centrally air-conditioned buildings. The

Cooling energy performance of commercial

possibility of increased transmission of thebuildings varies greatly, as commercial

Coronavirus and infection rates promptedbuildings comprise a large range of building

a worldwide discussion on ventilation

types from offices, malls, hotels, hospitals,

standards and building design. Guidanceand so on. The HVAC design, operational

for adequate ventilation rates in central air-and maintenance practices are hence

conditioning systems along with change inclosely linked to the type and use of thestandards to efficiently cool and dehumidify

building. There is a need for a national

air, retrofitting guidance for existing HVAC

benchmarking and disclosure policy forsystems, and checks for indoor air qualitycommercial buildings, with a focus on energy

monitoring should be established. These,

Climate Investment Opportunities in India’s Cooling Sector

commercial

buildings.

along with integration of adaptive thermal

comfort cooling therefore exists in these

comfort standards in the operation of

sectors which will lead to high climate

commercial buildings, have the potential

andto significantly alter the way commercial

large-scalebuildings are cooled, leading to both direct

efforts to match technologies to building

climate benefits and development benefits

types/cooling requirements and support

due to improved indoor air quality. Mixed-

demonstration projects. There is also amode buildings with their reliance on naturalneed to develop business models to enable

ventilation, when weather conditions permit,

affordable comfort for productivity in thesecan also greatly reduce the need for air

sectors to spur investment in supply chain

conditioning and allow for adoption of low-development. Due to limited adoption ofEnergy, not-in-kind technologies.

not-in-kind technologies, data about growthdevelopment
adoptionbenefits.

However,needs

concerted

potential and resultant energy savings
71. Not-in-kind technologies can play aimpact are not available. Further research in

key role in increasing cooling access tothis area is needed to look at solutions for

multiple sectors with low levels of comfort

meeting thermal comfort and cooling needs

cooling penetration. There has been limitedof the vast, labor-intensive manufacturing

adoption of not-in-kind technologies in

sectors.

commercial buildings as they need carefulassessment for applicability dependingon the climate, comfort requirements andbuilding use. However, these technologies

2.3.3 Shift Demand to District
Cooling Technologies

can play a key role in increasing cooling

72. Large-scale cooling requirements canaccessasbe efficiently met through district energy

manufacturing, public spaces such astechnologies often using Cooling as arailway and bus stations, courts, and soService (CaaS) delivery models. District

on, with low levels of comfort coolingenergypenetration currently. Studies carried out

cooling or combined cooling, heating andin several Indian manufacturing facilities

power (tri-generationxiii) have the potential

with no or limited access to comfort coolingto reduce cooling energy requirement,

found that worker productivity reduced byincluding

2-4 percent per˚C above threshold comfort

refrigerant requirements considerably. Due

temperature.

The study also found thatto this, the role of distribution utilities also

air-conditioning was not an economicallyneeds to be considered in enabling thisviable solution in these sectors. A strongtransition towards district cooling and CaaS

case for access to affordable, low-energy

delivery approaches.

tomultiple46

sectorssuch

technologies

such

as

district

xii

peak

power

demand,andiDistrict Cooling Systems generate chilled water in a central plant which is then distributed to multiple buildings via underground insulated pipes for space and process cooling. Individual buildings benefit as they do not need to install their own chillers or cooling towers andinstead purchase chilled water from the DCS operator.
xiii
Tri-generation (also known as Combined Cooling, Heating and Power),an extension of cogeneration, is a process that provides cooling, heat and power generation from a single generator or process. Tri-generation can use a range of fuels such as natural gas, liquefied
petroleum gas and biofuels to produce electricity and utilizes a part of the waste heat from the process to generate chilled water for air
conditioning or refrigeration using an absorption chiller.
xii

Climate Investment Opportunities in India’s Cooling Sector5373. Tri-generation has been a relatively un-need to be established in the Indian context

explored technology in India. While there

to support uptake of large merchant district

is some experience on tri-generation, es-cooling systems. In India’s context, DCS

pecially in large hospitals, high capex has

can consume 20-30 percent lesser power

been a challenge for larger uptake. Addi-

than the most efficient conventional coolingtionally, there is limited awareness about thesolution, but savings become higher, about

associated lower energy cost benefits and

60-80 percent, if compared to an averageincreased reliability due to captive genera-

3-star RAC. DCS potential for India has beention. Tri-generation can reduce the primaryestimated to be nearly 12.57 million TR (≈315

energy demand of a consumer by 60-70

DCS plants) with an emissions reduction

percent, increase overall efficiency by al-potential of 6.6 mtCO2e per year by 2037-38

most 75 percent, and cut GHG emissions

under an optimistic scenarioxiv with a strong

by up to 30 percent.47 With the increase

policy push as a city-led initiative. This would

in commercial real estate, the market forrequire an additional investment of US$35.9

tri-generation technology has been estimat-billion.17

ed at 20 gigawatt (GW) in India while currently installed capacity is 1,000 megawatt

75. CaaS models can enable significant(MW).

Tri-generation plants are highly

efficiency gains in operational energy

reliant on natural gas currently; however,cooling through better Operation andneither gas supply nor its pricing structure

Maintenance (O&M) practices. CaaS is a

is established, which is also another signifi-

model where consumers pay for the service

cant challenge in scaling up the technology

rather than the cooling equipment. The mostunless alternate fuels like bio-fuels are also

widely known model for this is the merchantconsidered.

district cooling system; however, CaaS

48,49

models can utilize a range of other cooling
74. DCS that aggregate different demand

technologies, beyond district cooling. CaaS

groups in a CaaS model are still at a very

models save the customer the significant

nascent stage in India. DCS that aggregate

upfront cost of selecting, procuring anddifferent demand groups such as mixed-use

installing air-conditioning technology as welldevelopment, special economic zones, large

as O&M costs, leaving the task of coolingcommercial business districts, etc., in a CaaS

provision to technology experts. As a result,model [also referred to as merchant district

CaaS removes a key energy efficiency

cooling by the United Nations Environment

barrier of split incentivexv in buildings. This isProgramme’s (UNEP’s) study for India] arealso a likely opportunity for Energy Service

still at a very nascent stage in India with GIFT

Companies (ESCOs) to provide sustainable

17

city in Gujarat as a prominent example.

and efficient cooling to businesses throughViable business and implementation models

innovative pay-per-use financing models.

ixiv
An optimistic scenario with strong policy push: assumptions include 30 percent of total air-conditioning demand from new commercial
buildings and 7 percent of total air-conditioning demand from new residential buildings in 2037-38.
xv
Split incentive: the developer or building owner has no incentive to invest in efficient equipment as eventual buyers or tenants get thebenefit of reduced energy bills.

54

Climate Investment Opportunities in India’s Cooling Sectorhuge

aggregation can provide an opportunity toefficiencies just through better O&M, data

discoms to manage their rising peak load andgathering and fine tuning systems to meetfurther use it as a reliable revenue generator.

cooling requirements.

Hence, adoption of DCS in areas with highCaaS

modelscan

also

extract

density cooling requirements can reduce
76. The uptake of tri-generation and DCS

impact on the electricity grid, including peakby cities will need business models andload and power procurement requirements.

supporting policies with clear direction

To understand the benefits of this transition,and vision. Based on the above analysis, itutilities should be engaged to evaluate

is evident that shifting high density coolingthese impacts, including the role of off-peakrequirements in cities to district energy

tariff structures, large-scale integration oftechnologies will lead to multiple benefits inthermal storage and renewables in DCS.

terms of significant reduction in the growthof space cooling related GHG emissions
and averted power generation capacity.
While these technologies have been proven

2.3.4 Adapt Cities to Manage
Heat Stressin India and globally, high capex and low

78. Design of open spaces and blue-green

awareness of the benefits are key barriers

infrastructure can significantly reducefor scaling up DCS and CaaS models.

heat exposure in cities. Overheating canbe evaluated with respect to three criteria:

77. Engaging with electric utilities will

Thermal Comfort in Building Design; Lossbe beneficial for the transition to CaaSof Productivity Linked to Heat Stress; andand district-energy infrastructure. The

HealthInternational Energy Agency (IEA) estimates

Illnesses And Increase In Mortality.51 Alongthat 28 percent of the total electricity

with appropriate passive measures in

consumption and 45 percent of India’sbuilding design, construction and use ofpeak electricity demand in 2050 will beefficient cooling technologies to provide

from space cooling alone. Peak demand

thermal comfort (as discussed in earlier

necessitates the need for higher capacity

sections), design of open spaces andand infrastructure requirements and has

blue-green infrastructure can significantly

significant

choiceimpact microclimates by reducing urbanof generators, Renewable Energy (RE)temperatures to increase urban resilience

integration, load factors and GHG emissions,to future heat wave incidents. Cities withwhich

Distribution

populations greater than 1 million may

Companies (discoms) economics.50 It is aexperience an annual mean air temperatureserious concern because of its impact on the

difference ranging anywhere from 1-3°C tofinancial viability of the already debt-laden

12°C more than their surroundings due todiscoms due to the high cost of marginal

the UHI effect.xvi,52 Higher temperatures also

powerincrease the demand for cooling and use of

13

inimplications

turn

drive

generation.

for

the

the

Large-scalecooling

Impacts

IncludingHeat-Relatedi
UHI refers to the increase in microclimatic temperatures of city regions compared to the surrounding landscape due to an increase inbuilt-up area and impermeable materials, reduced vegetation cover and fewer water bodies, leading to higher heat absorption in cities.

xvi

Climate Investment Opportunities in India’s Cooling Sector

55

air-conditioning, while adversely impacting

level green roofs and walls; urban green

the efficiency of cooling technologies. An

areas such as street trees, house gardens;

increase of every 0.6°C in air temperature

public parks; semi natural urban areas andleads to around 0.25–2.5 percent increaseurban forests; blue areas such as rivers,in peak electricity demand. Additionally, air-lakes, wetlands, etc.; green areas for waterconditioning, along with other combustion

management such as sustainable urban

processes such as in industries and motorizeddrainage systems; and all other green

transport, further adds to the heat balance inareas in the city.59 Mainstreaming passivea city (through waste heat), creating a vicious

cooling measures such as NbS in land use

cycle. Global warming is likely to exacerbate

planning will have direct climate benefits,

this increase in urban temperatures andas well as significant development benefits

heat wave incidents. Further, the urban

related to health and productivity of people

poor are disproportionately affected byin urban areas. However, implementation is

UHI impacts and heat stress in cities due tolikely to be a challenge. Rapidly urbanizing

poor quality housing with limited access to

Indian cities face challenges in assigning

cooling technologies often located in highland for green spaces, urban forests anddensity neighborhoods with few open green

green corridors due to competing claims

spaces.

from construction of housing, industry and53

54

commercial areas that generate revenue as
cooling

well as public infrastructure such as roads

measures in urban planning is key toand water works, which drive land use

strengthening heat resilience in cities.

planning in cities.60

79.

Mainstreaming

passive

Buildings and surface characteristics such as
paving and greenery have maximum impact

80. Disaster management plans in India

36

on urban temperatures at local scale.

also recognize the need to adopt long-

While cool roof programs for existing public

term heat resilience measures in cities.

buildings and low-income housing have

Effective management of heat waves has

been piloted by cities in India for almost acome into focus due to the development of

decadeto achieve multiple benefits

urban heat action plans in India. Ahmedabadof thermal comfort in buildings and reduction

was the first city in India to come up withof UHI impacts in cities, the recent interest

a dedicated Heat Action Plan in 2016.61

in the potential of Nature-based Solutions

The Heat Action Plan comprises four key(NbS) provides a much larger framework

strategies: operationalizing an early warning

to design and embed adaptation solutions

system, building public awareness on heat-in urban planning. NbS are essentially an

related health risks and recommended

umbrella concept for ecosystem-related

actions, building capacity of health workers,

approaches and can include a range ofand implementing measures to reduce heatmeasures within cities such as building

exposure such as building cooling shelters

55,56,57,58

56

Climate Investment Opportunities in India’s Cooling Sector

while also building adaptive capacity throughclimate change, as part of India’s Nationallyinitiatives such as the Ahmedabad cool

Determined Contributions also provide

roofsxvii program, especially for low-income

avenues for addressing heat-related risks

households. The focus, hence, is largely on

and prioritizing key action areas.

effective disaster response in the event ofan extreme heat wave incident. However,improvement of urban resilience to heatstress requires long-term measures, suchas integration of NbSxviii in urban design andplanning. The National Disaster Management
Authority also recommends that long-termplans to manage heat stress need to include
other sectors, and recommendations should
be integrated with Disaster Management
Plans at all administrative levels in urban
and rural areas, based on hazard risk andvulnerability assessment.62 This requires
actions at two key levels: first, climate change
impacts necessitate prediction of future risk
using climate science, especially for heatwave incidents, which are likely to be more
intense, frequent and of longer duration than
before. Since this measure impacts manyurban

residents,

development

benefitsfrom integration of long-term measures
are high. However, implementation in thecurrent framework of disaster response
is likely to be challenging. To address
institutional ambiguity in implementationof these long-term adaptation measures,such as coordination with urban planningandhousing

departments,

governanceframeworks and dedicated finance sources
will need to be identified as a second critical

2.4 Prioritized Opportunities forConcessional Finance
81.

Space

cooling

opportunitiesforpresents

concessional

four

key

financing.

Amongst all the opportunities discussed in
the section above, the following opportunities
have significant potential to leverage largescale financing by MDBs, FIs and the private
sector.

These

opportunities

havestrongtechnical feasibility and can be unlocked toresult in high climate and development benefits
through concessional financing and effective
convergence with public finance.
Opportunity 1: Mainstream thermal comfort
parameters in affordable housing policies
and programs at the national and state level
including in the PMAY Urban Mission and
PMAY-Rural Mission
Opportunity 2: Enable market transformation
towards super-efficiency for high energy
impact cooling technologies
Opportunity 3: Support uptake of trigeneration and DCS
Opportunity 4: Mainstream passive coolingmeasures in urban planningmeasure. State and city action plans fori

Cool roofs reflect incident solar radiation and also efficiently emit some of the absorbed radiation back into the atmosphere, instead oftransferring the heat to the building below (ENS, BEE 2018). Cool roofs can reduce indoor temperatures by 2 to 5°C as compared to standard construction and hence help improve thermal comfort, reduce cooling energy, and strengthen heat resilience in buildings

xvii

xviii
IUCN pioneered ‘Nature-based Solutions’ in the late 2000s and defines it as “actions to protect, sustainably manage, and restore natural
or modified ecosystems, that address societal challenges effectively and adaptively, simultaneously providing human well-being and biodiversity benefits”

Climate Investment Opportunities in India’s Cooling Sector

572.4.1 Mainstream thermal comfort
parameters in affordable housing
policies and programs at thenational and state levels

solutions (building blocks, reflective and

82.

and

to impart technical know-how of passive

programs need to recognize thermal

design and construction materials throughcomfort as an essential criterion for current

local skilling centers as well as national-leveland future programs such that energy costs

skill development programs. There is also a(to achieve comfort) are also affordable forneed for sensitizing decision makers aboutoccupants, in addition to the cost of home

improving thermal comfort in affordable

ownership.

housing

Affordable

housing

policies

insulating roof tiles, shading solutions,and so on). These can be embedded in
procurement tenders to increase adoption.
Skill development programs are required

through

Additionally,
83.

PMAY-Urban

toeffectively

PMAY-Urban,

beneficiary-led

measures.
throughconstruction

itscomponent,beleveraged

mainstream

passive

provides direct monetary assistance tocooling measures in affordable housing

beneficiaries for constructing or expanding

construction in urban areas. Low-income

houses. These self-built houses are outside

households are highly vulnerable to impacts

the purview of the residential buildingof heat stress due to poor quality housing andenergy code due to the smaller size of thelimited access to cooling technologies. In the

housing units. Experts believe that more thanabsence of a mandatory residential building

half of the urban housing shortage is likely

energy code, there is currently no guidance

to be met through self-build housing. Statefor integrating thermal comfort parameters

governments can be directly supported

andenvelope-related

through technical assistance grants tomeasures in affordable housing programs.

develop a contextual strategy for self-build

Ensuring that applicable developer-built,

housing within their affordable housing

multi-family housing projects within PMAY

programs. This should include embedding

adopt

energydesign guidance on passive measures suchcode (ENS) is of critical urgency due to theas ventilation, shading, cool (reflective)

large number of houses being constructedroofs, and so on, and improving the accessthrough the affordable housing program.

and availability of low-cost, efficient building

Green credit lines can be provided tomaterials for these houses. This guidance

support states towards technical assistancecan be disseminated through self-help

along with bridging the additional costs ofgroups, community participation approaches,

residential building energy code compliancelocal training centers, and so on.

efficient

the

can

passivebuilding

residentialbuilding

in demonstration projects. Additionally,58

market barriers such as affordability and

84. Guidance on passive cooling measures

accessibility need to be addressed forneeds to be integrated within the PMAY-

high

Rural

performancebuilding

envelope

Climate Investment Opportunities in India’s Cooling Sector

housing

mission.

PMAY-Rural

provides financial and technical assistancefans and chillers, there is a need to align theto build houses in difficult areas (defined

S&L program to transition to best available

by poor availability of materials, poor

technologies in the market. This requires

connectivity, and areas with harsh terrain

identification of pathways and timelines

and climate), hill regions and integrated

for increasing stringency of standards,

action plan areas. Like self-build housing

combined with periodic impact assessmentsin the PMAY-Urban mission, guidance forto understand the program’s impact onrural housing should include low-cost,energy savings, upfront costs and market

efficient, and simple solutions to integrateshare of efficient cooling technologies.

passive cooling measures, allowing for theuse of local building materials and designs.

86. Increasing adoption of super-efficient

These can be supported through local

technologies requires interventions toskilling centers. This knowledge and skills

address higher upfront costs. Beyond

transfer can also be linked to institutional

standards, enabling market transformation

funding

PMAY-Ruralfor high energy impact cooling technologies

mission to include nonbanking financial

such as ceiling fans and RACs is also

companies, microfinance lending, disaster

imperative. Higher upfront costs of energy-

reconstruction funds, and so on.

efficient models are key barriers in the pricesourcesbeyond2.4.2
Enablemarkettransformation towards superefficiency for high energy impact
cooling technologies

sensitive Indian market. Most consumers
tend to focus on mid-segment 3-star-rated
air conditioners, which accounted for a 66
percent market share in 2018-19.63 Similarly,
efficient fans with Brushless Direct Cool
(BLDC)

motorsdrasticallyreducethe85. Robust energy efficiency standards

energy required for a regular fan from 70-

are needed to transition to best available

80 watt (W) to 30-35 W but are priced at

technologies in the market. Bureau of

US$57 which is nearly two or three times

EnergyStandards

the cost of economy and standard fansand Labelling (S&L) Program provides(US$20-33) and have an 80 percent market

energy ratings (1-to-5-star ratings, one starshare.45,64 Interventions are, hence, needed

represents minimum efficiency level) forto align the market to super-efficient/besta number of cooling technologies. Thisavailable technology standards. Upstream

includes mandatory standards for RACs

incentives to manufacturers to reduce costs

and voluntary ones for chillers and fansand support domestic manufacturing of(beestarlabels.com). Energy standards are

BLDC fans should be explored. These canbeing developed for packaged DX whileleverage the government’s Make in India

VRF systems are also being considered. To

program. Additionally, the government’s

achieve ICAP goals for energy reduction

Production Linked Incentive (PLI) programfrom key impact technologies such as RACs,

incentivizes domestic manufacturing of

Efficiency’s(BEE’s)Climate Investment Opportunities in India’s Cooling Sector

59multiple high value RAC components (suchproviding high-end furniture and white goods

as compressors, heat exchangers, expansion

on rent to urban consumers. These provide

valves) which are key to the efficiency ofopportunities to increase adoption of super-

RACs.

Setting up of new manufacturing

efficient air conditioners. Collaborating with

infrastructure provides a critical opportunity

utilities as part of demand-side management

for inclusion of climate-friendly standards.

programs can also help in reaching out to

The program can be leveraged to achievea larger number of consumers. EESL has

overall higher system efficiencies in RACs.

also initiated a national chiller replacement

The industry expects a boost in domestic

program to increase the market penetration

manufacturing

thisof energy-efficient chillers. The program will

cost-competitivenesscreate viable implementation frameworks

will be crucial in determining the successfor ESCOs through innovative investment

the success of the program. The program

and repayment models66 to enable market

has a budget outlay of US$830 million fortransformation for this key refrigerant-based

five years, with the possibility of incremental

cooling technology.

16

initiative;

capacities

however,due

toinvestment of US$1 billion, and is expected
to create 400,000 additional jobs [including
RAC and light-emitting diode (LED).65 Energy
Efficiency Services Limited’s (EESL’s) bulk
procurement program for fans and theSuper-Efficient AC program xix –which reduce

2.4.3 Support uptake of trigeneration and district coolingsystems

upfront costs for consumers, should be

87. District cooling technologies will

scaled up, with a targeted outreach strategy.

benefit from a national roadmap and

For example, affordable energy efficient

policy, outlining the applicability of DCS

fans can be provided through the earlier

for greenfield developments. Development

discussed PMAY scheme to low-income

zones with large-scale cooling requirements

households. Program outreach to domestic[minimum 8,000 TR per square kilometerconsumers has been a challenge for the(sq km)] such as mixed-use developments,

Super-Efficient AC program. Opportunities

specialfor aggregating demand for efficient ACs

business districts, and so on, should

should be evaluated. For example, mid-mandatorily be required to carry out

to high-income housing apartments arefeasibility assessments for DCS. The policy

increasingly sold with fitted-in air conditioners

should also encourage the use of alternativeby developers, which are likely to be low

energy sources in DCS such as waste

efficiency. A significant segment of high-heat streams, free cooling through lakes,

income consumers is, hence, designed out

integration of biofuels, treated wastewaterof choosing air conditioners. Similarly, the air

and integration of large-scale renewables

conditioner rental market has aggregatorsand thermal storage to assess the impacts

economiczones,

commercialixix

EESL’s Super-Efficient AC Program[1] (ESEAP) aims to deploy RACs that are at least 20 percent higher in performance than the best available
5-star rated air conditioner in the market. This amounted to a 5.4 ISEER[1] as compared to the 4.5 ISEER 5 star-rated air conditioners along witha refrigerant specification of low global warming potential of 675

60

Climate Investment Opportunities in India’s Cooling Sector

on efficiency and resource use of the DCS

depending on the value of incentives theysystem, as compared to conventional central

provideair-conditioning systems.

sources, access to city-owned wastewatersuch as land, access to energy

utilities and connections, creating a revenue
88. Viable business and implementation

stream for the city.68 In the Indian context,

models for tri-generation and district

there is a need for an implementation

cooling need to be established in theagency, amongst the many stakeholders –Indian context. Pilot projects, especially for

urban local bodies, distribution utility or amerchant district cooling systems need to

special purpose vehicle – that will need tobe supported as this will help in establishingdevelop institutional expertise of managing

and standardizing project development

the process of tendering, financing andprocesses, business models and contracting.

setting up a district cooling network, along

IFC has recently announced its first direct

with other public and private stakeholders.

investment in district cooling through a

Tri-generation plants currently are highly

strategic partnership with Tabreed, targeting

reliant on natural gas; however, neither

a portfolio of about 100,000 refrigeration

gas supply nor its pricing structure aretons servicing industrial, commercial andestablished.

retail developments, with a mandate toplants in the country are underutilized due

invest up to US$400 million in projects forto poor indigenous gas availability and highthe next five years in India.

Worldwide,

prices of natural gas in India. Clarity about

district cooling projects are developed

gas prices was, hence, mentioned as a key

under a wide variety of business models.

factor in the uptake of tri-generation plants

These business models are categorized

by private sector technology providers inby the organizations owning the DCS andthe country. Further, though natural gas is

operating it. A variety of stakeholdersa much cleaner fossil fuel than coal, withsuch as municipal corporations, national

the declining prices of hybrid RExx alongand state governments, utilities, building

with lowering storage costs, it is worthwhiledevelopers, international finance providers,

to explore if new investments in fossil-fuelESCOs, Smart City special purpose vehicles,

based sources compare from a viability as

and so on, can invest in such a project. For

well as environmental and energy security

example, in Dubai, building developers

perspective for the uptake of gas-based

become multi-utility operators providing

tri-generation plants. In March 2021, EESL

services such as water, waste, power, coolingsigned a memorandum of understanding

in integrated townships. Other models inwith GAIL (India) Limited to develop tri-cities such as London, Paris and Toronto

generation projects in India.69 EESL is also

are based on public utilities either making

introducing an integrated turnkey solution

a direct investment or having a partial stake,for tri-generation and combined heat and67

Current

gas-based

power

i
xx
Hybrid RE systems are becoming popular as standalone systems that usually consist of two or more RE sources used together to provide
increased system efficiency and round the clock power supply

Climate Investment Opportunities in India’s Cooling Sector

61

power technology on a zero-capex model.
EESL will be responsible for the upfront
capital costs and risks, including installation,
O&M services and will provide meteredheating, cooling and power through a 10-15year cooling, heating and power purchaseagreement. Costs will be recovered throughsavings in consumers’ operating expenses.47
This will support the development of amuch-needed ecosystem for tri-generation
projects

andfinancialmodelsalong

with standard contractual and operatingprocesses for ESCOs to develop cooling asa service model. Finally, scaling up of thesetechnologies will require that cities become
engaged in a longer-term outlook towards
meeting space cooling demand as wellas their energy and climate commitments
sustainably. Cities need clear incentive
structures to become active stakeholders
in DCS adoption as, currently, energy
planning is not a core responsibility for
cities. Infrastructure development programs
such as the Smart Cities Mission can also beleveraged for DCS adoption.

Several forward-looking global cities havestarted to target or incorporate issues
related to overheating or cooling;54 however,multiple challenges remain in achieving thefull potential of NbS.
90. Cities will need guidance acrosseffective measures, implementation andprivate sector participation. Guidelines
for implementation of local and city-wide
urban cooling measures, such as coolroofs and NbS, can support urban planning
frameworks in integrating a response to heatstress in city planning. There is also a needfor developing business cases for all sizesof NbS and especially for private sector
participation to ensure necessary funding,18,19
as public funds are likely to be limited.
Additionally, integration of NbS acrosspublic and private land is also a challenge
for city authorities. Hence, public-private
sector partnerships will be critical. Examples
of innovative business models exist in
India and globally that need to be adapted
to quantify and communicate benefits,
identify beneficiaries and develop revenue
streams.20 For example, Maharashtra’s first

2.4.4 Mainstream passive coolingmeasures in urban planning

ever urban forestry project, Warje urban

89. Land use planning that combines

private partnership model as a Corporate

passive urban cooling measures is key tostrengthening heat resilience in cities. NbS
are amongst actions that cities can prioritize
towards equitable access to cooling for all.70
They provide additional benefits of reducing
air pollution and protecting biodiversity.

62

Climate Investment Opportunities in India’s Cooling Sector

forest in Pune, was developed by a nonprofit along with Tata Motors under a publicSocial Responsibility (CSR) initiative.71 In
Melbourne, the municipality has createdan urban forest fund, pooling finances fromdifferent government departments and realestate firms, to encourage private greening
in the city. Communities and businessescan propose projects and have to meetglobal city-to-city partnerships to exchange

50 percent of the costs while the fundbest practices can also support cities inprovides the remaining costs. In Malmö,

implementing urban cooling measures anda business improvement district program

NbS Funding through CSR and philanthropic

has been developed through partnerships

grants can also be accessed to demonstrate

between the city housing associations,pilot solutions and collaboration models.

property owners, businesses and civilsociety to develop solutions to upgrade theTable 1 provides the roadmap for theneighborhood with a focus on developing

prioritized opportunities in the space

blue-green

Knowledge

cooling sector. More details on these andalliances through collaboration with local

all other opportunities and their proposed

academic institutions, civil society andinterventions can be found in Annex 2.

infrastructure.

59

Table 1: Roadmap for prioritizedopportunities in the spacecooling sector

Climate Investment Opportunities in India’s Cooling Sector

63

64

Climate Investment Opportunities in India’s Cooling Sector

DPIIT: Department for Promotion of Industry and Internal Trade; EC: Energy Conservation; EIA: Environmental
Impact Assessment; HUDCO: Housing and Urban Development Corporation Ltd.; MoCI: Ministry of Commerceand Industry; MoHUA: Ministry of Housing and Urban Affairs; MoRD: Ministry of Rural Development; NDMA:
National Disaster Management Authority; NGO: Nongovernmental Organization; NHB: National Horticulture
Board; NIUA: National Institute of Urban Affairs; PHFI: Public Health Foundation of India; PNGRB: Petroleum
and Natural Gas Regulatory Board; PWD: Public Works Department; SAPCC: State Action Plan on Climate
Change; TCPO: Town and Country Planning Organisation; UDD: Urban Development Department; ULB: Urban
Local Body; URDPFI: Urban and Regional Development Plans Formulation and Development Department;
ULB: Urban Local Body; URDPFI: Urban and Regional Development Plans Formulation and Implementation

Climate Investment Opportunities in India’s Cooling Sector

65Chapter 3:
Cold Chain
andRefrigeration

66

Climate Investment Opportunities in India’s Cooling Sector

3.1 Summary
3.2 Sectoral Overview
3.3 Landscape of Cooling Opportunities in the Sector
3.3.1 Development of new energy efficient and		sustainable cold chain networks
3.3.2 Improve energy efficiency, integrate RE in existing cold
chain infrastructure and strengthen systems

3.4 Prioritized Opportunities for Concessional Finance3.4.1 Support development of sustainable and energy		efficient end-to-end cold chain networks, including		refrigerated transport
3.4.2 Promote better operations and servicing through		
capacity building of all stakeholders and incorporation of		
effective monitoring systems

Climate Investment Opportunities in India’s Cooling Sector

673.1 Summary
91. Presently there exist major gaps in thecold chain in India and only 4 percent of fresh
produce is covered by it.9 While the holding
capacity for agriculture produce has grown overthe past few years, integrated developmentof the entire cold chain has been inadequate,
resulting in major food and pharmaceuticallosses. This not only contributes substantiallyto GHG emissions but also negatively impacts
India’s food and nutritional security as well as
health and well-being. Gaps in the cold chain
infrastructure will need to be filled over the
coming decades which is projected to increase
the demand for cooling and refrigerant by this
sector as well as energy consumption, leading tohigher carbon emissions. The implementation of
proposed interventions to develop an integrated
cold chain network can lead to a reduction in
refrigerant demand by 10 percent5 and thisstudy estimates a potential emissions reduction

identified within this offer multiple developmental
as well as climate benefits and have policy andadministrative support at both the state andnational levels. Based on a current estimationof need, studies show that an investment ofclose to US$11.75 billion is required to develop
the physical infrastructure and transport-related
elements of the cold chain, and modernizing
its retail end will require US$1.3-1.9 billion.24
While the NCCD has identified the required
capacity of different cold chain components,
our stakeholder consultations highlighted thisto likely be an underestimation of actual need.
Further, there is a lack of accurate and reliable
information on food and pharmaceutical losses.
There is a need tocarry out a nation-wide

needs assessment, along with a study to identify
region and subsector-wise losses due to thelack of cold chains. These data will help in thedevelopment of a region-specific action planfor the development of a sustainable cold chainof 77 mtCO2e annually by 2038. Additionally,

network.

and investment opportunity in the cold chain

93. The second opportunity, ‘improving energy

the study estimates that the market potential
and refrigeration sector will be US$29 billion
by 2038, and the sector has the potential tocreate 1.7 million23 jobs. To achieve this potential
growth in a sustainable manner, it will benecessary to address the barriers of current lackof major investment and inadequate supporting
infrastructure such as roads and power supply.22
Additionally, the highly fragmented nature of thesector is also a major challenge in developing
a sustainable integrated cold chain network;
interventions would need to be designed toefficiency and integrating RE in existingcold chain infrastructure, and strengthening
systems’ is important to carry out; however,given its implementation challenges, it has notbeen prioritized. India has the largest footprintof cold stores in the world. A majority of thesecold stores use zero GWP ammonia refrigerant
which makes them energy inefficient andhigh GHG emitters due to the use of obsolete
technologies.

Modernizationofexisting

infrastructure, while required, poses a major

ensure participation of all key stakeholders.

challenge of implementation as the sector is

92. This

Additionally, low electricity tariffs across thestudy has identified two key

opportunity areas; ‘development of newenergy efficient and sustainable cold chain
networks’ is the key opportunity for this sector

68

and has been prioritized. The sub-opportunities

Climate Investment Opportunities in India’s Cooling Sector

highly fragmented and largely unorganized.
country for this sector act as a disincentive forowners to invest in energy efficiency measures.
Similarly, while there is a need for developingstandards and certifications for integration of RE

handling and transportation requirements, andand energy efficient design and technologies

storage needs. While cold storage capacity

in the cold chain, the unorganized nature of thein the country has steadily grown, the NCCD

sector poses an implementation challenge for thisidentified a gap of 3.27 million metric ton (MT)intervention as well.

in 2015 for long-term holding of fresh produce.21
This has been somewhat filled in the last few

3.2 Sectoral Overview
94.

Major

infrastructure

gaps

exist

acrossintheyears and, as of August 2020, the total cold
storage capacity in India was 37.4 million MT
cold

chain

country.

Theagriculture cold supply chain network consistsof three important pillars: static infrastructure,primarily used for aggregating and storing
readied goods for onward logistics connectivity;
mobile infrastructure, as connecting links forpost-production and premarket stages; andinformation flow for regular and dynamic
information on ready capacity and accessibilityof requisite infrastructure.21 The pharmaceuticalindustry also relies on a cold supply chain
which, for the sector, is extremely complex
and consists of strict parameters for holding
temperatures,deliverytimewith 8,186 cold stores, compared to 5,387 cold
storages with a capacity of 24.9 million MT in2010.72, 73 However, integrated development of
the cold chain has been severely deficient, withmajor essential components not adequately
developed. In this regard, the largest gap
can be noted in modern packhouses, with arequirement of 70,080, indicating an averageneed for one packhouse for every 10 villages(Table 2).5, 21, 23 While main barriers to addressingthese gaps are a lack of initial investment andan enabling infrastructure, such as roads andpower, the highly fragmented nature of theindustry is also a major shortcoming.22

restrictions,

Table 2: Gaps in cold chain infrastructure in India in 2014-155

95. Gaps in the cold chain result in food and20-25 percent and 10-15 percent of losses,

pharmaceutical losses. The current absence ofrespectively.21, 24 This has a negative

an integrated cold chain results in major foodnot just on the environment, contributing 8-10

loss. The total fruit and vegetable loss primarily

percent towards annual global GHG emissions,occurs between farms and mandis, where a

but also on food security including wasted labor,lack of packhouses with precooling capacity,water, energy, land and other inputs. Food loss

inadequate transport facilities and breakages

can result in doubling of fruit and vegetablein cold chain each account for 10-20 percent,prices and a 50 percent price rise of milk.74, 75

impactClimate Investment Opportunities in India’s Cooling Sector

69

The fragmented nature of the cold chain also

to meet supply requirements in a sustainable

impacts the healthcare sector where a vast

manner, along with better demand management

proportion of cold storages available are used

and forecasting as well as inventory planning.

only for agricultural produce. Additionally,In the ICAP, recommendations for this sector are

logistics for healthcare is also unevenly

outlined for short- and medium-terms and range

distributed, being concentrated mainly nearacross policy, investment, and capacity building.

manufacturing hubs.76,77 To fill the gaps outlined

The implementation of all interventions can help

above, a large amount of mobile and static

reduce refrigerant demand in this sector by up to

infrastructure needs to be developed; this is

10 percent (Figure 6)5 and an estimated potential

projected to increase cooling and refrigerant

emissions reduction of 77 mtCO2e annually bydemand as well as energy consumption in this2038. To achieve this goal, we identified two key

sector, leading to higher carbon emissions.

opportunity areas: (1) support development of

5

3.3 Landscape of Cooling
Opportunities in the Sector
96. The bridging of gaps in the cold chain andminimization of impacts on the environment
require a multi-dimensional approach thatnew energy efficient and sustainable cold chain
networks; and (2) improve energy efficiency andintegrate RE in existing cold chain infrastructure
while strengthening systems. Within these,
multiple sub-opportunities were identified (referto graphic ‘sectoral pathways for impact’) and are
discussed in the following sections.

MT

includes technology, policy support and training

Figure 6: Refrigerant demand in cold chain and refrigeration5

70

Climate Investment Opportunities in India’s Cooling Sector

3.3.1 Development of new energy
efficient and sustainable cold
chain networks
97. Development of sustainable and energy
efficient end-to-end cold chain networks,
including refrigerated transport, is a key
opportunity for this sector, offering highclimate and development benefits. The
huge infrastructure development required
to fill the gaps identified in the cold chain,
when carried out in a sustainable manner, will
help reduce projected energy consumption
as well as cooling and refrigerant demands
for this sector. Additionally, interventions
proposed within this sub-opportunity will
help reduce food loss, as studies show thatinvesting in precooling and refrigerated
transport in India can help reduce food loss,

efficient and sustainable cold chain networkis also high, as the equipment, technologies
and expertise required are available in India
and globally.
98. The promotion of better operations
and servicing through capacity building
and effective monitoring systems can help
bring in efficiency in the cold chain andprovide significant developmental benefits.
Currently,

storagefacilities

are

often

managed by inexperienced staff unawareof the latest technology and techniquesin handling and storing fresh perishable
produce.75 Building their capacity can help
reduce both food loss and emissions. A
sustainable agriculture cold chain has thepotential of creating 1.7 million jobs, both
directly and indirectly, for the management

leading to a reduction of CO2e emissionsof physical infrastructure and refrigerated

chain also has national and state policy

offers climate benefits as an important aspectby 16 percent.78 The development of a cold
support as there are presently a number ofschemes by different national government
agencies such as the National Horticulture
Board(NHB),

Missionfor

Integrated

Development of Horticulture (MIDH) andAgricultural and Processed Food Products
Export Development Authority (APEDA),
that support development of the cold chain.
However, these schemes have all focusedon individual elements of the cold chain,providing subsidies for the development
of different components.79 While subsidies
offered under MIDH were created to fillgaps identified by NCCD, there are still hugeholes in the cold chain infrastructure. Thus,
it is necessary to modify these schemes
to ensure integrated development. The
technical feasibility of developing an energy

transport systems.23 This opportunity also
for reducing losses faced by agriculture andhealthcare industries is capacity building ofusers at different levels of the supply chain.
Food loss can be reduced through improved
postharvest handling of produce, andvaccine and medical loss through improved
handling at the last mile. The technical andadministrative feasibility of this opportunity
is also high as the NCCD and NHB
already carry out training on postharvest
management for agri-entrepreneurs thatcan be tailored towards farmers and otherstakeholders.

3.3.2 Improve energy efficiency,
integrate RE in existing cold chain
infrastructure and strengthen
systems

Climate Investment Opportunities in India’s Cooling Sector7199. Given the large amount of existingcold storages and refrigeration systems
in the country, there is a need to retrofit
them to reduce cooling and refrigerant
demand as well as energy consumption.
India has the largest footprint of cold storesin the world, and majority of these use
natural refrigerant gas ammonia (R-717),with zero GWP. Despite this, these cold
storages are high GHG emitters due to theuse of obsolete technologies. Presently,
the sector is highly fragmented and largely
unorganized with more than 3,500 small andbig players,80, 81 posing a major challenge forthe implementation of a retrofitting program.
Additionally, most states across the country
have very low electricity tariffs which results
in a lack of incentive for private cold storage
owners to invest in energy efficiency
measures.82 While retrofitting interventions
have the necessary technology accessfor upgradation and can provide climate
benefits, there are multiple challenge with
its implementation.
100.

Development

3.4.1 Support development ofsustainable and energy efficient
end-to-end cold chain networks,
including refrigerated transport
101. A sustainable and integrated cold
chain network offers multiple development
and climate benefits. This opportunity
has high technical feasibility; the presenceof a conducive policy environment andadministrative

structure

will

all

help

support its implementation. To ensure thatdevelopment is carried out in a sustainable
manner, the opportunity requires large
investments. NCCD estimates that close
to US$11.75 billion is required to develop
the physical infrastructure and transportrelated elements of the agriculture cold
chain, with the biggest investment needed
for building modern packhouses (about
US$8.5 billion).24 In addition, there is alsoofstandards

andcertification for RE integration and inclusionof energy efficient design and technologies
is an important aspect in developing
a sustainable cold chain. Though thisopportunity has high technical feasibility withseveral such standards existing across theworld which can be adapted for India, it does
not offer significant development benefits as
it has limited job creation potential or direct
beneficiaries. Additionally, the opportunity
has low GHG mitigation potential comparedto other opportunities in this sector and poseschallenges with large-scale implementation
due to the unorganized nature of the cold
chain.

72

3.4 Prioritized Opportunities
for Concessional Finance

Climate Investment Opportunities in India’s Cooling Sector

a need to modernize the retail end of thecold chain, requiring US$1.3-1.9 billion tostrengthen the last mile.24 Though most of
the cold chain in India is privately owned,
it has been developed with the support ofsubsidies, grants and incentives provided
by the public sector. Assuming that a similar
model will be followed for the developmentofnewinfrastructureandtransportelements, this opportunity offers significant
avenues for concessional finance. This canbe met through grants, loans, credit lines
and subsidies, where the potential sourceof funding will vary based on the type ofintervention, likelihood of returns, scale ofinvestment needed, etc.

102. It is important to first identify

Group Development Scheme that supports

infrastructure gaps and assess sector-wise

farmers in building integrated packhouses.

losses to build a sustainable large-scale

The government will develop 200 suchand decentralized cold chain network. An

packhouses at a budget of US$6.5 million.84

accessible, affordable, scalable, reliable,
climate-friendly and safe cold chain requires a103. Decentralized cold chains need to besystems thinking approach that considers all

developed through support provided toelements, such as temperature requirements

farmer groups and agri-entrepreneurs. Toof different products, refrigerants, space

understand the potential of producer-owned

cooling, reefer transport, servicing, capacity

supply chains, pilots should be carried out

building, RE sources, and so on, with its

for different subsectors where an end-to-end

application at centralized and decentralized

model is demonstrated. In addition to this,levels, depending on requirements.

To

there is a need to incentivize and support

achieve this, it is important to first identify

Agricultural Produce Market Committees

region-wise infrastructure gaps in cold

(APMCs) in developing cold chain links at

chain and the losses occurring due to thismandis, particularly for crops that currently dofor each subsector. While ICAP outlines

not find space in the existing infrastructure. In

infrastructure gaps, which are discussed

2018-19, the Government of India proposed

above,

consultations

to upgrade 22,000 existing rural haatshighlighted that these numbers mightand develop them into Gramin Agricultural

be an underestimation of actual need.

Markets

Additionally, accurate numbers regarding

infrastructure. However, till December 2021,

food and pharmaceutical losses are not

only 6 percent of haats (local markets) acrossavailable and various studies, using different

the country were upgraded.85, 86 To ensure

methodologies, present differing data. It isthat existing mandis and haats are developed

also important to know geographic andas integrated cold chain systems, synergies

subsector-wise requirements. This needs

should be explored with this scheme. It isassessment should lead to the development

also necessary to identify alternate businessof regional action plans for building large-

models for these cold chain links as they would

and small-scale sustainable cold supply

mainly be used for short-term storage, thus

chains, which can be implemented with state

requiring different types of investment andgovernments, private players and farmer

ownership models. To develop an effective

groups. To support this at a decentralized

decentralized cold chain network, there isscale, it is necessary to develop businessalso a need to explore the potential of leasing

models that promote producer-owned cold

and renting of cold chain components. Underchains. Additionally, incentives should be

the Sub-Mission of Agriculture Mechanization

created for Farmer Producer Organizations(SMAM), the government supports renting(FPOs) to become a part of this systemof farm equipment and establishment of

where they are not just users of cold chain

Custom Hiring Centers.87 This scheme canbut also owners, thus promoting awarenessbe expanded to include elements of theof the need for energy efficiency. A

cold chain as a pay-per-use renting model

similar scheme has been initiated by thewhere the burden of developing cold chain

Government of Haryana called the Crop

infrastructure is not on the users and they

ourstakeholder

83

with

strengthened

physicalClimate Investment Opportunities in India’s Cooling Sector

73pay only for use of cold chains. Further, toestablish, building plan, power connection,

scale up this opportunity, it would be useful

Food Safety and Standards Authority of

to develop synergies with initiatives such as

India (FSSAI) license, final sanction of term

CaaS and implement pilot projects to assessloans, and so on.89 To identify challenges

the feasibility of such a system in India.

leading to these delays and suggest policy88

and regulatory measures for effective andidentify

large-scale implementation, there is a need

implementation challenges of cold chain

to set up a committee. It is important todevelopment schemes and enhance these

ensure that this committee comprises all

to support development of an end-to end

key stakeholders, including farmer groups

energy efficient cold chain network. Until

and those responsible for implementation.

recently, the focus was on developing single

Along with bringing in measures for effective

commodity cold storages, as these are

implementation of this scheme, it is also

usually the first point of storage for farmers.

necessary to modify existing schemes that

Cold stores have also become concentrated

support development of individual elements

around a few products and in a few regionsof the cold chain (by NHB, MIDH and APEDA)

in India. Potato or potato seed storage

and use an end-to-end approach, ensuringdominates cold store usage, using aboutthat essential elements are not left wanting

85-90 percent of total capacity across theduring development.

104.

There

is

a

need

to

country. Meat, fish, milk and milk products,
and other commodities such as chilies,

105.

22

account for only 1 percent of total capacity.

new cold chain infrastructure will be an

While subsidies offered under MIDH were

important aspect to ensure that the next

developed to fill lacuna identified by NCCD,

phase of growth is carried out in a holistic

huge gaps in major components still exist

manner, not resulting in large gaps, while(Table 2). The Integrated Cold Chain, Value

having minimal impact on the environment.

Addition and Preservation Infrastructure

ICAP recommends the development ofscheme, under the Pradhan Mantri Kisan

a Management Information System (MIS)

Sampada Yojna (PMKSY), aims to provide

through inter-ministerial collaboration to

cold

infrastructure

help track relevant data on infrastructure

facilities from farm to fork and promotes

development and e-performance monitoring

development of all components of theto improve efficiency, along with capacity

cold chain for different sub-sectors in thebuilding of key stakeholders for proper

agriculture supply chain. While this scheme

handling and maintenance of the cold

was introduced in 2008, there have been

chain. The nodal ministry for development

thchallenges in its implementation. The 17

and implementation of the MIS, and for

Report of the Lok Sabha Standing Committee

decision making based on it, could be theon Agriculture, Animal Husbandry, and Food

Ministry of Agriculture and Farmers Welfare

Processing (2020-21) noted that several(MoAFW), with support from other key

approved projects were stalled due tonational ministries and state governments

delays in obtaining statutory approvals

representatives. To encourage transparency

such as change in land use, consent toand knowledge sharing, the MIS can also haveandpreservation

89

Monitoringthepublic facing elements.

74

Climate Investment Opportunities in India’s Cooling Sector

developmentofemissions

farm gate and in the rural healthcare sector.

reduction in this sector, an important

This can be carried out through an incubation

aspect in development is RE integration.

center, offering support to start-ups andThis offers not only an opportunity for climate

researchers. To understand the potentialchange mitigation but also a reduction inscalability of proven technologies, such as

the system’s dependence on an unreliable

those offered by Ecozen, Inficold and Bharat

electricity supply while offering long-term

Refrigerations, it is important to assess theireconomic benefits due to lower O&M

application in different regions and support

costs. It is important to identify scalable

scaling up of promising solutions.

106.

To

achievepotential

technologies that are easily implemented
in Indian conditions in both large on-grid as107. In addition to the agriculture sector, itwell as off-grid cold chain links. Feasibility

is important to ensure that healthcare alsostudies should be carried out in collaboration

has a well-established and sustainable cold

with research institutes and private sector

supply chain. This industry currently faces

start-ups to understand the potential ofgaps in last mile delivery of vaccines anddifferent technologies, such as solar, wind,temperature sensitive medicines, especiallybiomass, and so on, in different regions inin remote areas.91 During the COVID-19

the country. Presently MIDH offers subsidies

pandemic, funds under CSR were deployed

for the use of RE and other alternatetotechnologies in the cold chain (100 percent

with organizations providing equipmentof invoice cost, maximum INR 3.5 million per

to support the vaccination programs.92 To

project). However, there has not been large-

ensure end-to-end development of thescale adoption, one of the major barriers

healthcare cold chain, CSR funds can bebeing high initial capital cost of installation90

further accessed as a source of investment.

and lack of the ability to access existing

These can help support R&D projects andschemes. To overcome these deterrents,

establishment of a center of excellence tobusiness models for decentralized adoption

develop and scale up domestic low-costof RE-based cold chain solutions at the farmsolutions for last mile delivery of vaccinesor village levels, that can be implemented byand temperature-sensitive medicines. This

individual farmers or farmer groups, should

center of excellence could also explore

be developed. These can be linked to low

other aspects of the cold chain where low-interest loans that should be introduced forcost solutions can help scale up energy

farmers/users. To scale up adoption of these

efficiency. Additionally, there is also a needtechnologies, there is also a need to create

to establish linkages between the health andawareness amongst farmers on their lower

food cold chains where multi-commodity

O&M costs, along with other benefits, such as

cold storages can service both sectors.

energy security and availability of subsidies.

These can help build last-mile storage andLife cycle costs of alternate technologies

delivery solutions for healthcare, especiallyshould also be considered when calculatingin remote locations.

strengthen

healthcare

coldchains,O&M costs. It is also important to support
R&D for the development of low-cost RE

108.

Domestic

andcommercial

solutions that can be implemented at therefrigeration, the end of a cold chain, is

Climate Investment Opportunities in India’s Cooling Sector75

a rapidly growing sector in India and it isefficiency

important that this growth is sustainable.

programs, such as to EESL’s UJALA for LED

Increasing urbanization and improving living

bulbs,25 can lead to an increase in market

standards are projected to drive refrigerator

share of 5-star refrigerators. For replacement

ownership from 0.18 per household in 2012of inefficient refrigerators, there is a need to

to 0.64 in 2030. This will have a major

develop a similar initiative where incentives

impact in terms of energy consumption

such as subsidy, on-bill financing andand refrigerant and cooling demands, anddifferential tax rates are given on purchase

it is important that this growth occurs in aof 5-star refrigerators. If a program likesustainable manner. Presently, the market

UJALA is developed for refrigerators, it willis dominated by single- and double-door,

be important that high costs, installation and

1- to 3-star rated domestic refrigerators.

maintenance as well as disposal challenges

While 5-star refrigerators consume 30-

are addressed. Additionally, the program

35 percent less energy compared to ashould be carried out alongside building

3-star refrigerator, their higher cost is a

public awareness on purchase cost versus

major deterrent to adoption. Till there isequipment life cycle (operational) costs.

a substantial price difference, the market

This can be tied to retrofitting and recycling

will continue to be dominated with sale ofprograms for the replacement of inefficient

lower efficiency refrigerators. It is necessary

appliances, where consumers are provided

to bring in market transformation programs

additionalthat help reduce costs of higher efficiency

old refrigerators. Adoption of inverter

refrigerators.

domestic

technology in RACs in Japan and China

refrigeration manufacturing industry includes

has been extremely successful with 100

major global players, with well-establishedpercent and 50 percent market adoption,

R&D. While the sector is price sensitive

respectively. Models followed in theseand competitive, there might be potential

countries can be studied and adapted forfor developing incentives and tax breaks

replication in the Indian refrigerator market.93

for upstream manufacturers of component

Further, R&D for the development of low-technologies. To support these measures,

cost alternate energy refrigerators that cansynergies with initiatives under Make in

be used in rural areas should be supported,

India need to be identified to help reducealong with exploring the potential of scaling

component costs. Additionally, there is also

up existing technologies such as ChotuKoola need to support R&D for those component

and MittiCool. Currently, there is a wide

technologies currently not being produced

difference in refrigerator ownership in urban

in the country or where cost of production

and rural households. In rural areas, even in

is too high. Research and market support

the highest income category, less than 50

can help in bringing down costs of thesepercent of households own refrigeratorscomponents, driving down prices of higher

whereas, in urban areas, even in the lowest

efficiency appliances.

income group, refrigerator ownership is

45

In

India,

therefrigerators.

incentives

Targetwhen

setting

replacing

above 50 percent.94 It is important that76

109. Incentives and market transformation

growth of the rural refrigerator market

initiatives

occurs along with adoption of higher

can

help

promotehigherClimate Investment Opportunities in India’s Cooling Sector

efficiency appliances. To ensure uptake of111. It is necessary to ensure that thislow-cost solutions, manufacturing should besector’s growth occurs in a sustainablesupplemented with marketing support, as

manner. There is a need to extend policy

appliances such as refrigerators are seen as

support for adoption of alternate coolingan aspirational purchase and the tag of low-technologies

cost can be a deterrent to acceptance.

especially for proven and commercially95

inrefrigerated

transport,

viable technologies, such as phase change
110. There is a large gap in availability ofmaterialandthermalrefrigerated vehicles to meet the demandThis should include extending the recent

in the country. An important component ofdraft Automotive Industry Standard (2021)

the cold chain is refrigerated vehicles. An

under consideration on “Constructional

NCCD study estimated that, in 2015, there

and Functional Requirements for Insulated

were about 7,000-9,000 reefer (refrigerated)

Vehicles” to incorporate energy efficiency

vehicles in India, catering to only aboutparameters,

12-15 percent of the country’s storage

parameters of design and performance of

capacity; the number was projected to rise

refrigerated transport systems.97 Further,to 13,000 in 2017-18.5,96 The reefers mostly

creating linkages with the Faster Adoption

cater to frozen processed foods, imported

and Manufacturing of Electric Vehicles

products and the pharmaceutical sector, not(FAME) scheme to incorporate adoption

to domestic supply of fruits and vegetables.

of fuel-free technologies for refrigeration

This is partly due to lack of packhouses,of reefers, as part of the subsidies offered

which results in these commodities notunder it, will help in promoting adoption. It

being part of the cold chain in the first place.

is also important to develop infrastructure

The dairy industry uses about 30,000-

support for the reefers by leveraging

40,000 vehicles to transport milk; however,schemes such as FAME II and National

these are insulated not refrigerated trucks.

Electric Mobility Mission Plan (NEMMP)

Though there exists a gap in this section ofthat are developing charging stations forthe market as well, with not enough trucks

e-vehicles to also include infrastructure forbeing available to fulfil demand. A majority

charging of refrigeration equipment.

apartenergyfromstorage.

theexistingof cold stores, up to 79 percent, also do not
own transport systems and, as a result, there

112. The unorganized nature of the sector

is a growing disconnect between transport

requires the development of incentives

and storage units.

Though, by 2025,

and alternate business models to bring in

the number of reefer vehicles is forecast toenergy efficiency. As cold chain logistics

increase to 246,000, feasibility projections

are presently operated by a fragmented and(based on affordability) show a demand of

informal sector, it is important that owners

755,953 units, and aspirational projections

are incentivized to move their fleets to(assuming cold chain capacity reaches theelectric and non-fossil fuel-based cooling.

same per capita level as the UK) show a

These incentives can be fiscal in nature or be

demand of

2,415,947 units, highlighting

implement through replacement programs,

the gap that will still remain in this segment

along with the provision of low-interest loans.

despite significant growth.

In the long term, it should be mandatory to

9, 24

9

use only electric and non-fossil fuel-based

Climate Investment Opportunities in India’s Cooling Sector

77cooling in all refrigerated transport. Therechain links developed through rail andis also a need to provide support to carry

highways can help establish robust transport

out R&D with both public research institutes

linkages for the movement of bulk produce.

and private logistics companies for theThis should be linked with the development

development and piloting of alternate newof a fast-track green corridor for perishables,

energy efficient technologies for reefers.

and linkages established with the Ministry

Proven technologies should be scaled up

of New and Renewable Energy’s (MNRE’s)

through grants and subsidies and service

Green Energy Corridor Project. Given policy

providers given support to adopt these

support, the development of railway links for

new technologies. There is also potential

perishables faces few challenges, whereas

for developing linkages with the Aajeevika

establishing road links and sustainable road

Grameen Express Yojana that supports thefreight can be difficult. This is due to thedevelopment of public transport links infragmented nature of the trucking industry

rural areas,

supporting movement of bothand poor road connectivity, particularly inpeople and produce. To assess the potential

remote areas.102 It is important to carry outof cold chain logistics as a public transport

the development of these multimodal links

model, it is necessary to carry out feasibility

in a holistic manner by first understanding

studies. An Uber-like system where mobility

needs

companies can invest in this idea can also

refrigerated rail and highway links will havebe explored. If found to be a viable option,

the biggest advantages, in terms of bothbusiness models for small-scale, publicenergy efficiency and reducing food loss.

98

99

and

identify

regions

wheretransport-based links in remote areas should
be developed.
113. Developing multimodal cold chain
links can help establish a green corridor
for perishables. Railways can also be a very
important element in the development of asustainable cold chain, not only help speed
up logistics connectivity, necessary for114. Improved operations and servicing

perishables, but also cover large distancesin the cold chain offers climate benefits

in an energy efficient manner. While major

throughfood grains are regularly transported throughemissions due to averted food loss andrailways, the lack of refrigerated containers

improved equipment efficiency. Capacity

has meant that perishables are not moved

building of farmers and other users inthrough this mode.

The ‘Kisan Rail’ scheme

postharvest management and equipment

was introduced in the Union Budget 2020-

handling is a requisite, offering development

21 to move perishables including fruits,

benefits of a trained workforce. Additionally,vegetables, meat, poultry, fishery and dairy

improved monitoring at different stages of

products from production or surplus regions

the cold chain will also help reduce food andto consumption or deficient regions as wellpharmaceutical losses. These interventions

as for speedy movement to ensure minimum

have the potential for attracting concessional

damage during transit.101 Multimodal cold

finance in the form of grants for capacity

100

78

3.4.2 Promote better operations
and servicing through capacity
building of all stakeholders
and incorporation of effective
monitoring systems

Climate Investment Opportunities in India’s Cooling Sector

potential

reductioninGHG

building as well as subsidies and loansof these systems in cold chains. Subsidies

for incorporation of monitoring systems.

offered by MIDH for inclusion of monitoring

These interventions can be implemented

controllers that help optimize functioningin partnership with national and stateof machinery need to be leveraged for this.

governments.

Pilot projects can help assess the feasibilityof these controllers in the unorganized

115. Monitoring standards and guidelines

cold chain in India. These can be carried

are needed to bring operational efficiency

out through partnerships with technology

and quality control in the cold chain. NCCD

and logistics service providers along withhas developed guidelines for building

government

energy efficient cold chains; however,developing the cold chain. To promote thestandards and guidelines for effective

incorporation of strict monitoring in supply

monitoring are lacking in India. Certain

chains and adherence to safety standards,

food products may become spoiled if they

there is a need to develop schemes thatreach a certain temperature for even an

provide incentives to service providers.

hour or two, and India currently does not

In the long-term, policy measures forhave food safety standards that specify

mandatory adherence to safety standards

cooling requirements. Additionally, in thefor perishables, vaccine and medicine

health sector as well, there is a lack ofhandling and implementation of temperature

uniform implementation of standards andmonitoring, with checks in place to address

accreditations, where the maintenanceany faults identified, need to be brought in.

and monitoring of temperature-controlled

In addition to lack of monitoring, there is also

environments

challenge.77

minimal understanding of temperature andThose developed by other countries andcooling requirements of different crops ininternational organizations should inform theIndian conditions. Most studies only look atdevelopment of guidelines and standards forbenefits and effects of cooling postharvest

India. Monitoring is necessary at every stage

produce, not specific requirements forto ensure maintenance of temperature anda crop. The biggest fallout of the lack of

humidity, as fluctuation in storage conditions

this understanding is the build-up of heatcan lead to product quality deterioration or(more than 5°C), which promotes growth of

spoilage.

microorganisms and pathogens, impacting

can

be

a

agencies

responsibleforfood quality. There is a need for research
116. Use of IoT-based monitoring andon this subject to build an understanding ofantemperaturetemperature and cooling requirements for

crops

major perishables and to incorporate theseunderstanding

requirementsofof

differentarenecessary for a robust cold chain network.

guidelines in food safety standards.

Currently, most cold stores have manual
monitoring

117. Capacity building of users at different

and skilled labor; they do not allow forlevels of the supply chain is an important

precautionary measures to avoid accidents.

aspect for reducing losses. Food loss can

IoT-based technologies play a huge role inbe reduced through improved postharvest

monitoring of perishables and healthcare

management, and vaccine and medical loss

products. There is a need to promote uptake

through improved handling at the last mile.

systems

that

need

timelyClimate Investment Opportunities in India’s Cooling Sector79ICAP recommends specialized training forand blogs were also adopted to convey

cold chain professionals and technicians to

information.104 Additionally, the Africa Centre

promote proper O&M of technology as wellof Excellence for Sustainable Cooling andas energy efficiency, along with training ofCold Chain, established in 2020, aims tofarmers on postharvest management oftrain trainers from across Africa on new

produce. NCCD, recognizing that servicing

technologies and business models forand maintenance of cold chain was notsustainable cooling, along with capacity

being carried out by trained technicians,building of academicians, technicians andbegan training in 2013 with four programs

practitioners by engaging them in R&D

which were converted to online courses

projects. Both examples can be adapted for

during the pandemic.103 The NHB has also

India and implemented across the country.

developed training courses on post-harvest
awareness-building

118. With the incorporation of advanced

and outreach by both NHB and NCCD

technologies in cold chain, skill levels of

are aimed at farmers, training courses aretechnicians to service newer equipment

tailored towards agri-entrepreneurs only.

also need to be enhanced. In addition to

It is important to develop the capacity offarmers, capacity building should also be

individual smallholder farmers and othercarried out for operators and technicians inusers of the cold chain, particularly in proper

both agriculture and healthcare on proper

handling and temperature requirements offunctioning and maintenance of energy

produce as that will help not just reduce

efficient and clean energy technologies infood loss but also enhance livelihoods.

cold chains and refrigeration systems. In 2018,

Such courses and training programs thatthe government set aside US$5.25 million

outline important elements for handlingfor skill development of 100,000 RAC serviceof perishables should be developed intechnicians under the Pradhan Mantri Kaushal

regional languages and can leverage

Vikas Yojna (PMKVY), to be implemented bypublic-private partnerships to extend their

the Electronic Sector Skill Council of India

reach. The African Affordable Storage

and Ozone Cell, MoEFCC.105 It is important to

Solutions model consists of awareness,leverage these resources and include them

acceptance, accessibility and affordability asin training and skilling of technicians for cold

its core principles and has carried out many

chain O&M. There is a need to create training

outreach methods, including partnering

programs along with an academic institutewith companies such as Ergos and Tessol

and agency such as American/Indian Society

to conduct outreach programs such asof Heating, Refrigerating and Air-conditioning

exhibitions, demonstrations and roadshows

Engineers and an Edtech platform withto showcase solutions. The model also

expertise in curating and producing content

consists of farm level engagements, where

for semi- and un-skilled personnel. These

face-to-face interactions help build trust

training programs could be along the lines ofand create a bank of local knowledge.

programs that provide a license to practice

Conventional

informationand service specific grade of cold chain

dissemination such as newspaper articles

equipment.106 As certification would result in a

management.

80

While

channelsofClimate Investment Opportunities in India’s Cooling Sector

premium price attached to these technicians, it

all technicians working on cold chain elements

is important to also ensure demand for certified

should be made mandatory.

technicians. This can be achieved throughawareness programs on the benefits of hiring

Table 3 provides a roadmap for the prioritizedcertified technicians, along with incentives foropportunities outlined above for the cold chain

customers in the early phase of certification.

and refrigeration sector. A detailed roadmap

To encourage demand, higher costs of trainedof these two opportunities, along with thosetechnicians might need to be subsidized in thethat were not prioritized, can be found inearly stages. In the long term, certification ofAnnex 3.

Table 3: Roadmap for prioritizedopportunities for the cold chain
and refrigeration sector

Climate Investment Opportunities in India’s Cooling Sector

81

82

Climate Investment Opportunities in India’s Cooling SectorDAY-NRLM: Deendayal Antyodaya Yojana – National Rural Livelihoods Mission; DBT: Department of
Biotechnology; DFI: Doubling Farmers' Income; DST: Department of Science & Technology; ICAR: IndianCouncil of Agricultural Research; MoCI: Ministry of Commerce and Industry; MoFPI: Ministry of Food
Processing Industries; MoHFW: Ministry of Health and Family Welfare MoRTH: Ministry of Road Transport &Highways; MSDE: Ministry of Skill Development & Entrepreneurship; NHM: National Horticulture Mission;
PMFME: PM Formalisation of Micro food processing Enterprises; PM KUSUM: Pradhan Mantri Kisan Urja
Suraksha evem Utthan Mahabhiyan

Climate Investment Opportunities in India’s Cooling Sector

83Chapter 4:
Passenger
Transport Air
Conditioning

84

Climate Investment Opportunities in India’s Cooling Sector

4.1 Summary
4.2 Sectoral Overview
4.3 Landscape of Cooling Opportunities
in the Sector
4.4 Prioritized Opportunities forConcessional Finance

Climate Investment Opportunities in India’s Cooling Sector854.1 Summary
119. Transport air conditioning, also known
as Mobile Air Conditioning (MAC), has grownconsiderably in India. The India automotive
HVAC market size was US$822 million in 2018
and is projected to reach US$2,033 million by
2026, registering a Compound Annual Growth
Rate (CAGR) of 11.6 percent.26 The Indianpassenger car air conditioners market alone isforecasted to surpass US$1 billion by 2023.27
Analysis of the transport sector suggests that
the MAC segment is projected to double interms of energy consumption as well as total
emissions within the next decade. In line with
this, under a BAU scenario, refrigerant demand
for the MAC segment is expected to increase by
over four times, from an average of 5,172 MT in
2017-18 to 22,142 MT in 2037-38.5 In India, thehighest energy demand has been projected
for passenger cars followed by buses andthen railways.5 The World Bank study analysis
estimates that, in 2038, the market size andinvestment potential of passenger transportin India could be US$8 billion and providing
sustainable MAC solutions could lead to annual

and recovery at end of life.28
121. In India, fuel economy ‘mileage’ is themost important consideration for consumers
while purchasing a vehicle. MAC systems
have an impact on vehicle mileage as they
are responsible for 15 to 18 percent of energy
consumption in passenger vehicles.5 Within
MAC systems, compressors act as the energy
guzzlers by consuming about 77 to 89 percentof the energy supplied to them.107 Currently,
air conditioning is not included while testingvehiclesforcompliancewithCorporate

Average

Fuel

Economy(CAFÉ)

inIndia,and the air conditioner is switched off. The
incorporation of MAC into vehicle fuel emissions
testingalongside

mandatory

equipment/

vehicle labelling programs across transportmodes could help create a clear incentive
for manufacturers to pursue air conditioning
efficiency improvements.108
122. Further, dedicated domestic R&D isneededtodevelopefficienttechnology

solutions to reduce direct and indirectemissions reduction potential of 14 mtCO2e.

emissions associated with the MAC sector,

120. A sustainable cooling pathway for

India’s transition to e-mobility into consideration

passenger transport in India will entail
promotion of large-scale adoption of efficient
MAC systems and optimization of demand byshifting to public transport systems and new
vehicle designs which help reduce coolingload. Improving the efficiency of MAC systems
in passenger transport vehicles can result in an
estimated 20 percent energy savings between
BAU and improved efficiency scenarios. Further
29 percent carbon savings are possible, mostly
from mitigation of direct emissions through86

better MAC servicing and maintenance practices

Climate Investment Opportunities in India’s Cooling Sector

with a special focus on passenger cars, taking
as well. As India is promoting e-mobility(covering both electric and hybrid vehicles)
through its FAME India scheme, the energy
consumption by batteries for air conditioning
purposes in e-vehicles should be recognized asa major issue and potential R&D focus area. Air
conditioners in e-vehicles can consume up to
40 percent of battery energy.
123. Another opportunity in this area ispresented by the exploration of measures toincentivize the commercialization of provenbuses, goods vehicles and other vehicles while

MAC technologies which are energy efficient.

rail transport includes railways and metro rail

MAC baseline scenarios show that the current

networks. Under the passenger transport air

R134a system in India suffers from high system

conditioning sector, ICAP focuses on passenger

leakage and fuel consumption. With thelight duty vehicles (cars, jeeps, taxis for public

introduction of enhanced R134a systems, there

and private use), passenger heavy duty vehicles

has been steady progress in improving the leak(air-conditioned buses) and the railway sector

lightness, resulting in a 50 percent reduction(air-conditioned

in leakage and 40-44 percent lower emissions

aviation sector does not use refrigerant gases

compared to the non-enhanced systems.

for cooling purposes, rather air is used as a

However, the associated cost deters automakers

refrigerant for air conditioning and refrigerationfrom upgrading their systems in more price-

purposes. The shipping sector has data gaps as

sensitive vehicle markets.

information on refrigerant use in the sector is

109

There are efficient

MAC systems that are being developed andpassenger

coaches).

The

not widely available.5

piloted in the country. Measures which cansupport their scale up would help ensure energy

126. The market size of MAC has been growing

efficiency and emission reductions.

in the country. MAC has grown considerably in
India. Over the last 15 years, an overall growth124. Therefore, improving the efficiency ofof over 12 percent and 2.5 percent CAGR has

MAC systems in passenger transport vehicles

been observed in the road and rail transport

is a key opportunity for concessional financing.

sectors, respectively.5 The India automotive

Supported with a conducive policy environment,

HVAC market size was US$822 million in 2018

this opportunity can unlock private sector

and is projected to reach US$2,033 million by

investments to shift passenger transportation

2026, registering a CAGR of 11.6 percent.26 The

systems towards energy efficiency and low

Indian passenger car air conditioners market

GHG emissions. This can be achieved byalone is forecasted to surpass US$1 billion

building demand for energy-efficient MAC

by 2023.27 Analysis of the transport sector

systems through S&L programs for vehicles andsuggests that the MAC segment is projected toby leveraging R&D to support the improvement

double in terms of energy consumption as wellof MAC systems.

as total emissions within the next decade. ICAP
has estimated that MAC is responsible for 15 to

4.2 Sectoral Overview
125. Passenger transport air conditioning
largely focuses on cars and buses in India.
Cooling in the passenger transport sector
is majorly covered by road and rail in India.
Road transport comprises passenger cars,

18 percent of energy consumption in passenger
vehicles, thereby projecting the highest energy
demand for passenger cars followed by buses
and then railways (Figure 7).5 In line with this,under a BAU scenario, refrigerant demand for
the MAC segment is expected to increase by
over four times, from an average of 5,172 MT in
2017-18 to 22,142 MT in 2037-38.5

Climate Investment Opportunities in India’s Cooling Sector

87Figure 7: Energy demand projection due to MAC in passenger cars, buses and railways under two
scenarios (MAC shares being 15 percent and 18 percent of the total energy consumption)588

4.3 Landscape of Cooling
Opportunities in the Sector

This opportunity will therefore lead to direct

127. Improving the efficiency of MAC systems

the form of new jobs for servicing, maintenancein passenger transport vehicles presents

and recovery at end of life. The technicala key cooling opportunity which will leadfeasibility of this opportunity is high given thatto significant energy savings and emission

proven efficient MAC systems are available

reduction. A sustainable cooling pathway

globally and in India. Further the administrative

for passenger transport in India will entail

feasibility is high as well for this opportunity

promotion of a large-scale adoption of efficient

given that supportive regulations, i.e., CAFÉ

MAC systems and optimization of demand bystandards are in place in the country along withshifting to public transport systems and new

relevant ongoing programs and schemes suchvehicle designs which help reduce coolingas the S&L program, FAME scheme and Mission

load. Improving the efficiency of MAC systems

Innovation for convergence. The opportunity

in passenger transport vehicles (passenger

requires a limited number of stakeholders forcar, buses and rail) can result in an estimateddecision-making, primarily the Ministry of Road

20 percent energy savings between BAU andTransport and Highways (MoRTH), thereby

improved efficiency scenarios and a further 29

ensuring a relative ease of implementation. The

percent carbon savings are possible, which will

likelihood of large-scale adoption of efficient

mostly come from mitigation of direct emissions

MAC systems would require concerted efforts

through better MAC servicing and maintenanceon R&D and commercialization which arepractices and recovery at end of life (Table 4).

supported by a conducive policy environment.

Climate Investment Opportunities in India’s Cooling Sector

climate benefits in the form of GHG emission
reductions as well as developmental benefits in28

Table 4: Projected results for MAC energy consumption andemissions under BAU and improved scenarios28

128. Building efficient and convenient public

can unlock private sector investments to shifttransport infrastructure is a key focus area

passenger

for the transport sector in India and can help

energy efficiency and low GHG emissions. The

reduce cooling demand. The modal shift to

key interventions to be undertaken within thispublic transportation systems and towards

opportunity are:transportation

systems

towards

better designed vehicles which reduce coolingload presents a key opportunity which can•

Measures which build demand for energy

significantly reduce refrigerant and energy

efficient MAC systems such as S&L programs

demand. However, given the status of public

for vehicles; andtransport infrastructure in India, there is a long•

R&D to support improvements in energy

road ahead for the sector. Building efficient andefficiency of MAC systems while ensuring

convenient public transport infrastructure is acost competitiveness, performance andkey focus area for the sector which can help solve

durability.

the twin problems of pollution and congestion.

110

This transition will require removal of barriers

130. S&L needed to support efficiency

and capitalization of sectoral-level opportunities

improvements in MAC systems. In India,

which are beyond the scope of the sustainable

fuel economy ‘mileage’ is the most importantcooling agenda alone.

consideration for consumers while purchasing avehicle. MAC systems have an impact on vehicle

4.4 Prioritized Opportunities forConcessional Finance129. Improving the efficiency of MAC systems
in passenger transport vehicles is the priority
opportunity for this sector given its potential
climate and development benefits, high technicalfeasibility, presence of a policy environment
and administrative structure that can ensure
implementation in the short term. Supported bya conducive policy environment, this opportunity

mileage, and within MAC systems, compressors
act as the energy guzzlers by consuming about
77 to 89 percent of the energy supplied tothem.107 Currently, air conditioning is not included
while testing vehicles for compliance with CAFÉin India, and the air conditioner is switched
off. The incorporation of MAC into vehicle
fuel emissions testing alongside mandatory
equipment/vehicle labelling programs acrosstransport modes could help create a clear
incentive for manufacturers to pursue air
conditioning efficiency improvements.108 The

Climate Investment Opportunities in India’s Cooling Sector

89

first-ever fuel efficiency standards for passenger

focus area. Air conditioners in e-vehicles cancars in India, termed Corporate Average Fuelconsume up to 40 percent of battery energy.

Consumption Standards, were implemented in
2017-18 and Stage 2 standards are scheduled

132.

for implementation in 2022–23. The Fuel

MAC technologies can help accelerate theirConsumption Standards provide a mandate

adoption in the country. Another opportunity

to manufacturers to continuously reduce thein this area is presented by the exploration of

average fuel consumption of cars sold by them.

measures to incentivize the commercialization

Moving forward, India should consider theof proven MAC technologies which are energy

process of tightening the next round of targets

efficient. MAC baseline scenarios show that theunder Fuel Consumption Standards for 2026

current R134a system in India suffers from highand 2030.

system leakage and fuel consumption. With the111

Incentivizationofprovenefficient

introduction of enhanced R134a systems, there
131. R&D to support further improvements in

has been steady progress in improving the leakenergy efficiency of MAC systems, particularly

lightness, resulting in a 50 percent reduction

for e-mobility, is needed. ICAP provides anin leakage and 40-44 percent lower emissions

overview of the R&D being carried out in thecompared to the non-enhanced systems.

MAC industry and mentions that the focus has

However, the associated cost deters automakers

been on improvement of energy efficiency

from upgrading their systems in more price-

as well as on making the system more costsensitive vehicle markets.109 There are efficientcompetitive and durable. This can be augmented

MAC systems that are being developed andby improving other components of the vehicle,

piloted in the country. Measures which canfor instance, the use of reflective windows,

support their scale up would help ensure energy

thermal insulation, heat load reducing bodyefficiency and emission reductions. Examples ofpaint, as well as optimizing power trains. Suchsuch efficient technologies include:measures, in combination with other best-inclass technologies, could help in the reduction

90•

For the passenger car segment: TATA Motorsof MAC energy demand by up to 67 percent

Limited along with German automotive supplier112

and halve the energy-related MAC emissions.

Mahle and the Institute for Governance &Dedicated domestic R&D is needed to develop

Sustainable Development has developed aefficient technology solutions to reduce direct

new MAC system known as Secondary Loopand indirect emissions associated with the

MAC. It uses the HFC-152a, which has one-

MAC sector, with a special focus on passenger

10th the GWP of the common refrigerant, HFC-

cars, taking India’s transition to e-mobility into

134a, and is more fuel-efficient as well. The

consideration as well. As India is promoting

Secondary Loop MAC system was piloted in

e-mobility (covering both electric and hybrida TATA SUV which showed overall vehicle fuelvehicles) through its FAME India scheme,

savings of 1.9 to 2.6 percent. This would savethe energy consumption by batteries for air

23-31 liters per year for a typical SUV driver inconditioning purposes in e-vehicles should be

India with the vehicle being driven 15,000 km

recognized as a major issue and potential R&D

per year;113 andClimate Investment Opportunities in India’s Cooling Sector•

For metro rail: Danfoss’ Variable Frequency

Variable Frequency Drives has contributed to

Drives have been installed at the air handling

15-25 percent energy savings across various

units and track way exhaust fans at Delhi Metroapplications.114

which have helped achieve energy efficiencyof up to 20 percent. This has resulted in an

Table 5 provides a roadmap for the above

estimated cost savings of over INR 400,000

mentioned prioritized opportunity in the(over US$5,000) per annum per Metro station.

passenger transport air conditioning sector.

Similarly, in Kolkata Metro Rail Corporation andMore details on the opportunity and its proposed

Chennai Metro Rail, installation of Danfoss

interventions can be found in Annex 4.

Table 5: Roadmap for prioritizedopportunities in passenger
transport air conditioning sector

Climate Investment Opportunities in India’s Cooling Sector

91Chapter 5:
Refrigerants

92

Climate Investment Opportunities in India’s Cooling Sector

5.1 Summary
5.2 Sectoral Overview
5.3 Landscape of Cooling Opportunities
in the Sector

5.3.1 Support HFC phase down through roadmaps,
		
policies and public procurement
5.3.2 Promote domestic R&D and indigenous		
production of low GWP refrigerants
5.3.3 Improve servicing, maintenance and disposal to		
reduce refrigerant demand

5.4 Prioritized Opportunities forConcessional Finance

Climate Investment Opportunities in India’s Cooling Sector

935.1 Summary

19, R-32 and R-410 (with GWP 1,924) RACs had a133. In India, refrigerant demand is expected to(with GWP 3), an HFC alternative, had only a 2

grow more than six times under a BAU scenario,
from 22,522 MT in 2017-18 to 1,49,392 MT in
2037-38.5 The demand for refrigerant-based
vapor compression technologies to meetcooling requirements of buildings will primarily
drive the projected refrigerant demand. After
successfully implementing the first phase of
the Hydrochlorofluorocarbons (HCFC) Phaseout Management Plan under the Montreal
Protocol on Substances that Deplete the Ozone
Layer, India is now implementing its Stage
II. Under this, HCFCs with Ozone Depletion
Potential will be phased out in India by 2030.
India recently approved the ratification of theKigali Amendment to the Montreal Protocol,and now the focus will shift to phase-down ofHydrofluorocarbons (HFCs). The baseline years
for this have been set as 2024-25-26, and India
will phase down HFCs in four steps starting in
2032, with a cumulative reduction of 10 percent
in 2032, 20 percent in 2037, 30 percent in
2042 and 85 percent in 2047. India has also
committed to freezing its HFC production andpercent market share.63
135. Annual refrigerant demand in India could
be reduced by 31 percent from a BAU scenario
by 2038 with key interventions such as
refrigerant transitions away from HCFC-22 andR-410A to low-GWP refrigerants, reduced tube
diameter in heat exchangers from 7 millimeter(mm) to 5 mm, large-scale introduction of microchannel heat exchangers (resulting in significant
reduction in refrigerant charge per unit), anduse of good servicing practices.116 The largest
estimated reduction potential for refrigerant
demand is shown by the space cooling in thebuildings sector, with a 33 percent reduction over
BAU scenario. The cold chain and refrigeration
sector can also contribute to a reduction in
refrigerant demand, with a 11 percent potential
reduction over BAU scenario.5
136. Achievement of India’s HFC phase down
strategy requires robust and practicablesector-wise action plans, technology roadmaps

consumption in 2028.115

and a conducive policy environment. To this134. The analysis in this study showed thatfor phase down of HFCs as per the applicablean effective phase down of HFC across India
requires a two-pronged approach of ensuring
reliable supply of low/zero GWP refrigerants
and efficient refrigerant demand management.
Several alternatives to HFCs are in use acrossthe world, but these are not used at large scalein India, apart from the RAC industry that has
adopted the latest technologies. The RAC sector
in India is phasing out HCFC-22 (with GWP 1,760)
by deploying the comparatively lower-GWP R-32
(with GWP 677), however there is potential for
adopting even lower GWP refrigerants. In 2018-94

market share of 80 percent in India, while R-290

Climate Investment Opportunities in India’s Cooling Sector

end, India plans to develop a ‘National strategy
phase down schedule for India’ based on
consultations with all industry stakeholders
by 2023. Further, the country can benefit
from domestic innovation and production ofalternative low-GWP refrigerants that are costeffective and best suited to Indian climaticconditions. The ammonia refrigeration industry
alone is estimated to be worth around US$200
million, with an average growth rate estimatedto be 10 percent.117 India’s collaborative R&D
program for low-GWP refrigerants should be
supported by necessary policy frameworks

and reliable supply chain development of the

manufacturing sector (1 January 2020) by

identified affordable alternative refrigerants anddeploying low-GWP refrigerants without moving

compatible equipment.

to HFCs, as has been done in the USA andseveral other developed countries. With the137. Effective servicing and maintenance will

recent government approval for the ratification

be critical in reducing refrigerant leakage,of Kigali Amendment to the Montreal Protocol,

minimizing indirect emissions from energy

the focus now will shift to phase-down of HFCs.

inefficient equipment and creating significant

India has committed to freeze its HFC production

employment

servicingand consumption in 2028. With 2024-2025-

sector consumes more than 40 percent of the2026 as the baseline years, India will complete

total refrigerant currently used in the country.5

its phase down of HFCs in four steps from 2032

ICAP recognizes that with the growth in cooling

onwards with cumulative reduction of 10 percent

demand, there will be increased demand forin 2032, 20 percent in 2037, 30 percent in 2042

servicing. Therefore, this study concludes thatand 85 percent in 2047.115

opportunities.

The

in the refrigerants sector, the key opportunity
for concessional financing is in improving

139. Annual refrigerant demand is expected toservicing, maintenance and disposal to reduce

grow more than six times over two decades.

refrigerant demand across India. This can be

In 2015, the air-conditioning sector had theachieved by ensuring a minimum threshold forlargest market share of all sectors, estimatedtraining, certifications for service techniciansat 62 percent of refrigerant consumption in

and appropriate policy mandates that help

India.118 With respect to HFC consumption, theformalize the service sector in India. India alsocommercial refrigeration sector was the highest

needs to develop a conducive policy frameworkat 22 million TR, followed by MAC at 20 million

and infrastructure for recovery, recycling and

TR. Under the BAU scenario, annual refrigerant

reclamation at disposal.

demand for cooling across all sectors in India
is expected to grow more than six times from

5.2 Sectoral Overview

22,522 MT in 2017-18 to 1,49,392 MT in 203738.5 Figure 8 presents the sector-wise growth inrefrigerant demand between 2017-18 and 2037-

138. India will be phasing down HFC

38 as shown in ICAP. The demand for refrigerant-

production and consumption as per the Kigali

based vapor compression technologies to meet

Amendment to the Montreal Protocol. India

cooling requirements of buildings will primarily

is currently implementing Stage II of HCFC

drive the projected refrigerant demand.

Phase-out Management Plan after successful
implementation of its first phase under theMontreal Protocol on Substances that Deplete
the Ozone Layer. Under this, the phase out of
HCFCs that have Ozone Depletion Potential
in India will be completed by 2030. India isthe first Article 5 country to completely phaseout consumption of HCFC-141b in the foam

5.3 Landscape of Cooling
Opportunities in the Sector
140. Effective HFC phase down requires a twopronged approach of ensuring reliable low/

Climate Investment Opportunities in India’s Cooling Sector

95

Figure 8: Annual refrigerant demand under the BAU scenario5

zero GWP refrigerants supply and efficient

key opportunities as presented in the sectoral

refrigerant

pathways for impact in Chapter 1 include:

demandmanagement.

While

several alternatives to HFCs exist and are used

1. Support HFC phase down throughacross the world, including in India, these areroadmaps,

yet to be put into large-scale commercial use

procurement to enable deployment ofin the country with an intention of replacing

low-GWP refrigerants and technologies

HFCs. However, particularly the RAC industry

with lower refrigerant demand;in India has been quite ahead in adoption of

2. Promote domestic R&D and indigenous

the latest technologies. India is phasing out

production of low-GWP refrigerants; andHCFC-22 (with GWP 1,760) in the RAC sector

3. Improve servicing, maintenance andby deploying the comparatively lower-GWP

disposal to reduce refrigerant demand.

policiesandpublicR-32 (with GWP 677), while several developed
countries go with high-GWP R-410A. In 201819, R-32 (with GWP 677) and R-410 (with GWP
1,924) RACs had a market share of 80 percent
in 2018-19 in India while R-290 (with GWP 3), an
HFC alternative, had 2 percent market share96

5.3.1 Support HFC phase down
through roadmaps, policies andpublic procurementin the same year.63 An effective phase down of141. Studies have estimated that the

HFC would require a two-pronged approach ofannual refrigerant demand in India could

ensuring reliable supply of alternative low/zero

be reduced by 31 percent from the BAU

GWP refrigerants and managing the demand for

scenario in 2038. This reduction has been

refrigerants across all sectors. To this end, theestimated based on key interventions such

Climate Investment Opportunities in India’s Cooling Sector

as refrigerant transitions away from HCFC-

inform the prioritization exercise required for

22 and R-410A to low-GWP refrigerants,

phasing down HFCs, including assessment

reduced tube diameter in heat exchangersof the economic importance of the sector andfrom 7 mm to 5 mm, large-scale introduction

market trends. In India, information relevantof micro channel heat exchangers (resulting

to the development, testing and approval ofinrefrigerant

new refrigerants is often scattered amongcharge per unit), and use of good servicing

various industry entities that each conduct

practices.

Amongst sectors, the space

their own investigations. A single repository

cooling in buildings sector shows the largest

or system which can consolidate knowledge

estimated reduction potential in refrigerant

on various alternative refrigerants in terms

demand in 2037-38 of 38,500 MT, whichofis a 33 percent reduction over the BAU

performance, availability and affordability

scenario, and the cold chain & refrigeration

could be beneficial in guiding industry

sector which shows an estimated reduction

transitions. Finally, public procurement in

potential in refrigerant demand of 1,100 MT

India is estimated to be 15-20 percent ofin 2037-38, a 11 percent reduction over theits GDP120 and can provide direction and

BAU scenario.5

help influence consumers and market

significant
116

reduction

in

their

application,

safetystandards,

behavior towards the adoption of low-GWP
142.

AchievementofIndia’s

HFC

refrigerant-basedandenergyefficientphasedown strategy requires robust andtechnologies. India will be making concerted

practicableplans,

efforts in implementing this opportunity

technology roadmaps and a conducive

given the country’s commitment to the Kigali

policy environment. India plans to develop

Amendment of the Montreal Protocol. Thea ‘National strategy for phase down oftargeted HFC phase down will lead to direct

HFCs as per the applicable phase down

and indirect climate benefits such as reduced

schedule for India’ based on consultations

GHG emissions from HFCs and green jobs

with all industry stakeholders by 2023. The

which promote low-GWP refrigerant-based

Executive Committee of the Multilateralequipment across all cooling sectors.

sector-wise

actionFund for the Implementation of the Montreal
Protocol has highlighted the need for HFC
phase-down plans known as Kigali HFC
implementation plans (KIPs).

119

Effective

implementation of the national strategy for
HFC phase down or India’s KIP will require

5.3.2 Promote domestic R&D andindigenous production of lowGWP refrigerants

sector-wise action plans which provide

143. India can benefit from domestic

technology

innovation and production of alternativeroadmaps

combinedwithmodeling phase down requirements. This

low-GWP

would help India identify the availability ofeffective and best suited to Indian climatic

viable technologies for each sector andconditions. Currently, most of the low

refrigerants

that

are

cost-

Climate Investment Opportunities in India’s Cooling Sector

97

GWP alternative refrigerants are heavily

driver for domestic R&D pertains to thepatented and costlier than the existing

aspect of Intellectual Property Rights. The

refrigerants in use. ICAP highlights the need

ICAP notes that low-GWP alternatives

for sustained R&D efforts in both public andareprivate sector to reduce India’s reliancecompanies. Particularly those pertaining

on imported refrigerant-based equipment

to Hydrofluoroolefins (HFOs) are a key

and parts. This also requires a greater

challenge for HFC phase down. HFO-1234yf

push for a domestic manufacturing baseis a substitute for HFC-134a (GWP 1,430) thatthat can produce refrigerants, equipment

is widely used in commercial refrigerationand components specifically for the Indianand MAC currently. HFO patents can bemarket. The ammonia refrigeration industry

classified under two major categories

alone is estimated to be worth aroundof

US$200 million, with an average growth

application patents.

rate estimated to be 10 percent.

can be a barrier in early adoption of lower-

117

heavilypatented

production

processxxii

bymultinational

patentsxxi

andApplication patents

GWP technologies. The Montreal Protocol’s144. India’s collaborative R&D program

Multilateral Fund,xxiii

for

be

compensated for the cost of licenses andsupported by necessary policy frameworks

access to patented technologies. However,and reliable supply chain development

further evaluation is needed to assess if aof the identified affordable alternative

licensing arrangement supported by therefrigerants and compatible equipment.

Multilateral Fund can be used as a way to

The lack of industry awareness, particularly

address the application patent barrier123

in smaller enterprises, on the viability andthat exists today. A World Bank study notes

availability of alternatives to high-GWP

that a significant share of HFO process and121

HFCs can be a key barrier to investments.

application patents will become off-patent

The need for a government-initiated R&D(available to the public) by 2025.124 An Indian

program to identify, measure and test

refrigerant manufacturer has developed

alternatives could greatly contribute to fillinga process to produce lower-GWP HFC-32

this information gap. As a first step, MoEFCC

refrigerant and there is already production

launched a collaborative R&D program toof this refrigerant not only to meet thedevelop cost-effective low-GWP sustainable

domestic market but also cater to the needs

refrigerant technologies as an alternative toof other countries. Also, in the case of low-

HFCs in 2016.

This R&D initiative brings

GWP HFO, while there are a large number oftogether government, research institutes,

production process patents filed, chemicalindustry and civil society. Another key

producers in China and India have invented

low-GWP

122

refrigerants

shouldto some extent, hasiProduction process patents cover a specific process or use of raw materials and/or other inputs to manufacture the products.
Application patents covering new product design to work with the substances or use of the substances in a particular equipment type.
xxiii
The Multilateral Fund for the Implementation of the Montreal Protocol, in operation since 1991, aims to assist developing country
parties to the Montreal Protocol whose annual level of consumption of the ozone depleting substances chlorofluorocarbons and halonsis less than 0.3 kilograms per capita to comply with the control measures of the Protocol. Currently, 147 of the 197 Parties to the Montreal
Protocol meet these criteria and are referred to as Article 5 countries. As at December 2021, the contributions received by the MultilateralFund from developed countries, or non-Article 5 countries, totaled over US$4.37 billion. The Fund has also received additional voluntary
contributions amounting to US$25.5 million from a group of donor countries to finance fast-start activities for the implementation of the
HFC phase down. To facilitate phase-out by Article 5 countries, the Executive Committee has approved 144 country programs, 144 HCFC
phase-out management plans and has funded the establishment and operating costs of ozone offices in 145 Article 5 countries.
xxi

xxii

98

Climate Investment Opportunities in India’s Cooling Sector

new production processes that were notenergy inefficient equipment and creating

covered by these patents.

significant

124This Indian

employment

opportunities.

producer is awaiting the expiration of the

The servicing sector consumes more thanapplication patent for commercial production

40 percent of the total refrigerant currently

which will happen in 2024. Finally, reliable

used in the country.5 ICAP recognizes that,

supply of affordable alternative refrigerants

with the growth in cooling demand, there

can act as a barrier to adoption by industry.

will be increased demand for servicing.

In the past, the refrigerant transition in India

Servicing can help reduce direct carbon

had caused a dramatic rise in prices andemissions from refrigerants by:an accompanying shortage in refrigerants•

Ensuring operational efficiency throughin smaller cities and towns. This further

proper installation and maintenanceled to unorganized black markets sellingof refrigerant-based equipment acrossrefrigerants, many of them uncertified

cooling sectors; andblends, at an even higher price.

121

A strong•

Carrying out proper end-of-life recovery

domestic manufacturing base for refrigerant(for recycling and reuse) and disposal of

production could help address this barrier

refrigerants across cooling sectors.

in India’s HFC phase down pathway. In
addition to this, a shift towards new low-

India is estimated to have more than

GWP refrigerants will require the availability

200,000 RAC service technicians, most ofof the requisite infrastructure to ensure

them being in the informal sector.115 Servicing

their adoption, including the availability ofof low-GWP refrigerant air conditioning

compatible equipment, adequate supply ofunits is expected to see a 10-fold increase

the refrigerants to ensure low downtime ofin jobs over the next two decades fromequipment, and so on. This opportunity ofa base of 0.2 million technicians in 2017

domestic R&D and indigenous production of

to 2 million.15 Similarly other refrigeration

low-GWP refrigerants will require significant

and air conditioning sectors will also haveefforts to implement and scale up, thereby

requirements of skilled service technicians.

offering limited direct and indirect climate
benefits.

146. Quality and safety of servicing practices
need to be ensured through minimum

5.3.3
Improve
servicing,
maintenance and disposal toreduce refrigerant demand

threshold for training, certifications forservice technicians and appropriate policy
mandates that help formalize the service
sector in India. A sustainable cooling
pathway for India will require quality and145. Effective servicing and maintenancesafety of servicing practices to remain

will be critical in reducing refrigerant

intact by ensuring a minimum thresholdleakage, minimizing indirect emissions fromfor training through updated and well-

Climate Investment Opportunities in India’s Cooling Sector

99designed curricula and, more importantly,
certifications for service technicians. Several
countries prohibit non-licensed or noncertified service technicians from installing,
servicing, or repairing refrigeration andair-conditioning equipment, or handlingrefrigerants. These measures also allow forsocial welfare and security systems to be
put in place for service technicians throughtargeted insurance and repeated training
sessions. India will need to move towards
such a model of formalization of the service
sector to create an ecosystem in which
several refrigerant gases can exist in the
Indian market.121 This process will need to be

5.4 Prioritized Opportunities
for Concessional Finance147. Improving servicing, maintenance anddisposal to reduce refrigerant demand is thepriority opportunity for this sector given that it
will result in significant climate and development
benefits. It is implementable and has high needand potential for leveraging concessional
finance and private sector investment towards
the creation of skilled service technicians andrequired infrastructure. The key interventions to
be undertaken under this opportunity are:•technicians to ensure proper servicing

complemented by policy instruments suchandas mandating leak tests (in large and mobile
professional

servicingpractices. Good policy-directed practices
which have been introduced in India, suchas the banning of disposable cylinders, alsoneed to be implemented effectively.121 This
opportunity will result in significant climate
mitigation and development benefits while
also presenting a high potential for scaling
up. India has relevant policies and ongoingprograms

which

ensureadministrative

feasibility of this opportunity. Particularly the
Ozone Cell at the MoEFCC in partnershipwith the Electronic Sector Skill Council of
India is implementing a project for upskillingandcertifying

100,000

RAC

servicetechnicians under the Skill India MissionPMKVY of the Ministry of Skill Development& Entrepreneurship (MSDE).115

maintenanceof

refrigerant-based

equipment to reduce refrigerant leakage;

applications, especially) and establishingstandardized

Creation and uptake of trained service

and•Measures to support recovery, recycling andreclamation of refrigerants.

148. A well-designed program to support
skilling of technicians along with measures toensure their employment will help mainstream
properservicingrefrigerant-basedandmaintenanceequipment.

This

of

would

include training and certification programs forservice technicians on Good Service Practices(GSP) across sectors to better manage andreduce refrigerant losses during recharge andend-of-life. Amongst sectors, priority should begiven to the RAC sector which has tremendous
market share and growth potential. MoEFCC
recently released the book on ‘Good Servicing
Practices for Energy Efficient Operations ofRoom Air Conditioners’ which should be taken
forward through a dedicated training program.
Further, state-level engagement to understandthe status and need of trained service

100

Climate Investment Opportunities in India’s Cooling Sector

technicians as well as availability and quality of

regulatory framework is driving the recovery

training institutions would be critical to ensureof refrigerants. The analysis of regulations

effective implementation across the country.

in the U.S., UK, Germany and Singapore to

To this end, it is important to engage industry

understand how recovery and disposal of

to participate in training delivery and commit

refrigerants is managed (US EPA, 2011,2020; GIZ

to employing trained candidates to facilitate

GmbH,2015; NEA 2020; IOR UK,2018) showedlarge-scale adoption of this intervention. The

that refrigerants are either recovered on-sitetraining programs should be complemented

by a qualified technician or the final person inwith a central voluntary certification scheme

the disposal chain such as e-waste recyclers.

through a single government entity under a

India does not have any mandate in place tosingle framework. Finally, customer awarenessrecover, reclaim or destroy refrigerant gases

programs which help create demand for certified

effectively.121 Even where disposal facilities exist

technicians across sectors will be beneficial infor gases, the recovery and transportation costs

the long run.

are high and act as a huge disincentive.121 For
India to meet its HFC phase down targets, end-

149. India needs to develop a conducive policy

of-life disposal of refrigerants is important, as

framework and infrastructure for recovery,is reducing emissions during the operational

recycling and reclamation at disposal. ICAP

life cycle. Given the lack of infrastructure,

identifies recovery, recycling, and reclamation

policy and business action in India on this front,

at disposal as a weak link in the judicious use

there is a need to identify and understandof currently employed high-GWP refrigerants.

different business cases for effective policy

There are significant refrigerant leaks in

implementation to minimize operational andresidential and commercial air conditioners,

end-of-life emissions.121 A key intervention forand in MAC used in cars. Recovery, recycling

end-of-life recovery in the case of RACs is thatand reclamation are expensive processes andthese are covered under the Extended Producer

the servicing industry in India is not aligned

Responsibility (EPR) and e-waste guidelines for

toward affordable and requisite skills neededreclaiming electronic components at end of life.

for these. Moreover, there is lack of credible

This provides a possible opportunity to embed

data on the refilling requirements of refrigerants

refrigerant disposal guidelines within existing

due to leakage in the Indian context. Refrigerant

regulatory mechanisms of end-of-life disposal

recoveryavailable,of RACs. Both EPR and e-waste rules are yet

including in India. Recovery of refrigerant,

to be implemented and are likely in the early

especially from systems with relatively large

stages of the implementation process. Currently

quantities, has become a conventional part incentral air conditioners are not included in theservicing practices in most countries, the main

E-waste Policy. EPR specifies the responsibility

incentive being the cost of refrigerants, besidesof the manufacturer/producer to make sure thatenvironmental protection. In non-A5 countries

the product at the end of its life is collected and(developed countries that have ratified theeither recycled, reused, or disposed in a climate

protocol) under the Montreal Protocol, theresponsible way.

systemsarereadily

Climate Investment Opportunities in India’s Cooling Sector

101

Table 6 provides a roadmap for the prioritizedopportunities in the refrigerants sector. Moredetails on the opportunities and their proposedinterventions can be found in Annex 5.

Table 6: Roadmap for prioritizedopportunities in refrigerants sector

GeM: Government eMarketplace; MoHUA: Ministry of Housing and Urban Affairs

102

Climate Investment Opportunities in India’s Cooling Sector

Chapter 6:

Conclusion
and Way
Forward

Climate Investment Opportunities in India’s Cooling Sector103150. India is experiencing severe heat waves

increasing from 8 percent (2018) to 40 percent

with higher temperatures arriving earlier in the(2038), and 50 percent of commercial buildings

summer season and for longer durations. While

becoming air conditioned. It will be important

April 2022 saw temperatures in the capital, New

to integrate passive cooling measures in these

Delhi, reaching above 46 C, the month of Marchbuildings to not just improve thermal comfort

was the hottest ever recorded. The majority ofbut also achieve 20 percent energy savings bypoor and marginalized communities across India

2037-38. Another avenue for energy savings

without proper access to cooling are extremelyis improved efficiency of cooling technologies

vulnerable to this heat. This rising heat canthrough implementing stringent standards andalso jeopardize economic productivity as up

supporting domestic manufacturing. This willto 75 percent of India’s workforce depends on

help reduce costs and promote their uptake.

heat-exposed labor. One of the consequences

Social housing offers a huge opportunityof this rise in temperatures will be an increase

for both integrating passive measures andin demand for cooling. India’s long-term foodpromoting the use of high efficiency appliances,and health security also depends on a reliableand developing linkages with the PMAY

cold chain as transport of fresh produce

scheme offers an opportunity to influence theand pharmaceuticals needs an end-to-end

rural and urban social housing sectors. It is

refrigerated system. Recognizing the risks ofalso necessary to reduce demand, along withextreme heat, in 2019 the Government of India

shifting it to low carbon cooling technologies

launched the ICAP to provide sustainable cooling

service delivery models. District cooling offers

and thermal comfort for all. This current study

such an opportunity that can not only increasepresents an overview of the opportunity in each

efficiency, but also reduce refrigerant and peakof the cooling sectors, along with actionable

power demand. Demand for cooling, along withroadmaps comprising policy, investment, anda reduction in urban temperatures can also

knowledge interventions to help achieve ICAP

be achieved by incorporating NbS in urban

goals through short-, medium- and long-termplanning.

o1

actions. The sustainable cooling opportunities
have also been prioritized for concessional

152. Growth of the cold chain and refrigeration

financing and private sector investments, andis projected to double cooling and refrigerant

eight key clustered opportunities have been

demands, and triple the energy consumption

identified as being key to advancing ICAP goals.

for the sector by 2027.5 To be able to implement
energy efficiency measures and reduce the104151. In the space cooling sector, the demand

projected cooling, refrigerant and energy

for cooling in buildings is likely to increasedemands, it is important to first understand coldby 11x (in TR) by 2037-38, mainly due to thechain infrastructure needs across the country,

projected increase of two-and-a-half to threealong with getting accurate data on food andtimes in commercial and residential floor

pharmaceutical losses. As technologies forarea. The majority of this projected spacebringing in energy efficiency and renewablecooling demand (52 percent) will be due to anenergy into the cold chain already exist, there

increase in household air conditioner ownershipis a need to now strengthen existing policies

Climate Investment Opportunities in India’s Cooling Sector

theiradoption,andexploreservicing and maintenance practices, along withbusinessmodelsthat

supportrecovery at end of life can result in 29 percent

different stakeholders at a decentralized level.

GHG emissions reduction. This can be achieved

Refrigerated transport also needs directedby supporting R&D in energy efficiency of MAC

policy support to promote uptake of alternate

systems and building demand for these byclean cooling technologies in reefers, and fordeveloping and implementing a S&L program

the development of multimodal cold chain

for vehicles. A key means of reducing demand

links through rail and highways. One of thefor transport air conditions is implementing

key req uirements of the sector, providing bothbehavior change programs that help shift load

climate and developmental benefits, is capacity

towards public transportation systems.

topromoteinnovativebuilding of key stakeholders such as operatorsand technicians on proper functioning and154. Given the growth of each of the coolingmaintenance of energy efficient technologies

sectors discussed, annual refrigerant demandand farmers on better management of produce.

for cooling across sectors is expected to growAs refrigerator ownership is projected to growby more than six times by 2038 compared tofrom 0.18 per household in 2012 to 0.64 in

2018.5 In view of India’s approval for ratification

2030, the retailer and consumer end of theof the Kigali Amendment of the Montreal

chain also needs support with implementation

Protocol, effective phase down of HFCs isof energy efficiency measures. This offers

needed. This requires a two-pronged approach

the second largest opportunity (after spacethat ensures reliable supply of low/zero GWP

cooling) in terms of growth in cooling demand

refrigerants and management of demand forand energy consumption. In this sector as

refrigerants across sectors. India has been aheadwell, implementing stringent standards andin phasing out HCFC-22 in the RAC sector bysupporting domestic manufacturing can help

deploying the lower-GWP R-32 and introducing

reduce costs of high efficiency domestic and

R-290 (with a very low GWP of 3) based RACs

commercial refrigeration systems, increasingin the market, and this experience will be highly

their uptake.

beneficial during phase out of HFCs. The RAC
industry’s example can be followed for phasing

153. Vehicle population in India is projectedout HFCs by promoting domestic supply of low-

to grow more than five times for cars and

GWP refrigerants. This will require provision

more than twice for buses over the nextof support to R&D and domestic production

two decades. As MAC is responsible for 15-18

of such refrigerants. There is also potential

percent of energy consumption in passenger

for reducing demand by bringing in GSP andcars and buses, refrigerant demand is expectedmaintenance of refrigerant-based equipment toto increase by over four times in this period.

reduce refrigerant leakage, along with recovery,

This sector is also projected to double its

recycling and reclamation of refrigerants.

energy consumption as well as total emissions
between 2017 to 2027. Improving the efficiency

155.

of MAC systems and fuel use can help achieve

capacity building will help enable adoption of

20 percent energy savings, and better MAC

new business models and sustainable coolingMultistakeholder

engagement

andClimate Investment Opportunities in India’s Cooling Sector

105

technologies across sectors. The private

for concessional financing in this area. These

sector will need to play a key role in mobilizing

opportunities will need to be studied in greater

investments toward sustainable cooling. To

detail through deep-dive assessments to unlock

this end, India will need to adopt a systematictheir potential for meeting India’s cooling needs

approach for engaging industry and otherin a sustainable manner. This should include

relevant stakeholders in piloting and scaling

detailed financing plans for these opportunities,

up successful business models and sustainable

which cover their cost-benefit analyses andcooling technologies across sectors. There areprobable financing sources beyond MDBs.

several global success stories of platforms andframeworks that have accelerated the uptake

157. Innovative financing models can supportof sustainable cooling solutions, which canscale up measures for ensuring Thermal

be adapted for India. For instance, the Africa

Comfort for All in India. India’s transition to LED

Centre of Excellence for Sustainable Coolinglightbulbs is a successful example of uptake ofand Cold Chain discussed in Chapter 3 –energy efficient technology at scale that can bethat deploys ‘Living Laboratories’ in strategic

replicated for the cooling sector. Government oflocations in rural areas to conduct research andIndia’s bulk procurement and distribution of LED

offers technical assistance, demonstrations andbulbs through EESLs UJALA program has led toknowledge transfer to rural communities – canan estimated annual energy savings of about

be an excellent means for building capacities

48 billion kWh and estimated GHG emission

and scientific knowledge and developing the

reduction of 39 million metric ton of CO2 pernecessary infrastructure for a decentralized

year.29 Similar opportunities can be explored forsustainable agriculture cold chain in India. On

scaling up adoption of higher efficiency fans andthe end-user side, effective communications

refrigerators as well. However, for a higher value

campaigns that are informed by robust data andproduct such as refrigerators, it will be importantanalytics across cooling sectors will be essential,

to first address challenges of high costs, theand a key step for reducing and shifting demand.

need for installation and maintenance, and endof life disposal, before such a bulk procurement

106

156. Concessional financing can play a key role

program can be developed. Funds can also be

for sustainable cooling in India. Concessionalraised for sustainable cooling through Coolingfinance by multilaterals such as The World Bank

Bonds along the lines of the recently issued

will need to play a key role in helping India

Rhino Bond by The World Bank. This bond –develop financial instruments and innovative

Wildlife Conservation Bond – was rolled out

modelsofin South Africa for protecting the endangeredsustainable cooling measures. This will ensure

black Rhinos and closing the biodiversitythat sustainable cooling solutions are accessible

funding gap in the country. The first of a kindand affordable for consumers and help build

US$150 million five-year bond offers investors

demand for these. Therefore, these innovative

a return on their investments if the black Rhino

financial instruments will be crucial to develop

population rises in two protected areas. Thisand transform the cooling market in India. The

bond also includes a potential performance

study identifies eight prioritized opportunities

related payment from the Global Environment

that

acceleratetheadoption

Climate Investment Opportunities in India’s Cooling Sector

Facility (GEF).125 Similar bonds can be exploredbudgetary allocations and financial flows.

for the cooling sectors as well, where investors

This could also help provide the institutional

get a return on their investment based on theframework for continuous monitoring andenergy savings and GHG emission reduction,

evaluation of ICAP implementation to informalong with reduction for cooling and refrigerant

planning across sectors. Building a conducive

demands. Another opportunity that can help

policy environment will help spur action andraise finance for energy efficiency interventions

investments by the private sector as wellin the sector is through the carbon market which

towards sustainable cooling. Under this mission,

can provide funding based on the potential

The World Bank and Government of India

avoided GHG emissions and energy savings due

partnership on sustainable cooling on the eightto the interventions. Currently in the agriculture

prioritized opportunities identified in this study

sector, carbon credits can be earned from a

could be developed to:range of activities such as agroforestry, biogas
production, and low tillage farming, all of which(i) deploy ‘living laboratories’ to pilot

reduce CO2 emissions. Similarly, the potential

multistakeholder engagement and newof earning carbon credits for activities carried

technologies;out to develop and implement a sustainable(ii) enable market transformation for highcold chain can be explored. This can help

impact space cooling technologies;

raise additional funding for farmer groups to(iii) support development of sustainable

implement decentralized solutions.

and energy efficient cold chains; and,(iv)

promotebetterthroughoperations
capacity

and158. Launch “Sustainable Cooling and Thermal

servicingbuilding

Comfort for All” as a national mission. ICAPof stakeholders, and incorporation ofprovides the guiding framework for building theeffective monitoring systems.

cooling infrastructure in a sustainable, climatefriendly manner in India. To achieve ICAP’s
objectives, there is a need to enable resource
flow from both public and private sectors as wellas promote convergence across central, state,
and local levels. This could possibly be achieved
through a mission mode by establishing“Sustainable Cooling and Thermal Comfort
for All” as one of the government’s flagshipmissions. India has experience in achieving suchdecentralized objectives through missions suchas Smart Cities Mission, Swachh Bharat and Jal
Jeevan Mission, amongst others. Similarly, theobjective of providing sustainable cooling andthermal comfort for all can be pursued througha mission mode as well as by streamlining

Climate Investment Opportunities in India’s Cooling Sector

107References
McKinsey. (2020). Climate risk and response:
Physical hazards and socioeconomic impacts.
Will India get too hot to work? McKinsey Global
Institute.

1

IPCC, 2021: Climate Change 2021: The
Physical Science Basis. Contribution of Working
Group I to the Sixth Assessment Report of theIntergovernmental Panel on Climate Change[Masson-Delmotte, V., P. Zhai, A. Pirani, S.L.
Connors, C. Péan, S. Berger, N. Caud, Y. Chen,
L. Goldfarb, M.I. Gomis, M. Huang, K. Leitzell,
E. Lonnoy, J.B.R. Matthews, T.K. Maycock, T.
Waterfield, O. Yelekçi, R. Yu, and B. Zhou (eds.)].
Cambridge University Press, Cambridge, United
Kingdom and New York, NY, USA, 2391 pp.

to 2019: a three-stage modelling study. The
Lancet Planetary Health, 5(7), E415-E425.
7
ILO. (2019). Working on a warmer planet: The
impact of heat stress on labour productivity anddecent work. International Labour Office (ILO).

2

Spano D., Armiento M., Aslam M.F., Bacciu V.,
Bigano A., Bosello F., Breil M., Buonocore M.,
Butenschön M., Cadau M., Cogo E., Colelli F. P.,
Costa Saura J.M., Dasgupta S., De Cian E.,
Debolini M., Didevarasl A., Ellena M., Galluccio
G., Harris R., Johnson K., Libert A., Lo Cascio M.,
Lovato T., Marras S., Masina S., Mercogliano P.,
Mereu V., Mysiak J., Noce S., Papa C., Phelan
A.S., Pregagnoli C., Reder A., Ribotta C., Sano
M., Santini A., Santini M., Sartori N., Sini E., Sirca
C., Tharmananthan R., Torresan S., Trabucco A.,“G20 Climate Risk Atlas. Impacts, policy andeconomics in the G20”, 2021, DOI: 10.25424/
cmcc/g20_climaterisk
3Singh, C. (2022, May 22). Spring Never Came
to India This Year. The New York Times.

4

MoEFCC ICAP. (2019). India Cooling Action
Plan. New Delhi: Ministry of Environment, Forest
and Climate Change (MoEFCC), Government ofIndia.
6
Zhao, Q., Guo, Y., Ye, T., Gasparrini, A., Tong,
S., & Overcenco, A. (2021, July). Global, regional,
and national burden of mortality associated with
non-optimal ambient temperatures from 2000
5

108

Climate Investment Opportunities in India’s Cooling Sector

Parsons, L. A., Shindell, D., Tigchelaar, M.,
Zhang, Y., & Spector, J. T. (2021). Increased laborlosses and decreased adaptation potential ina warmer world. Nature Communications, 12,7286.
8Dearman. (2015). Cold chains and thedemographic dividend. Dearman.
9

IEA (2022), Space Cooling, IEA, Paris https://www.iea.org/reports/space-cooling,
License:CC BY 4.0

10

PIB. (2019, March 8). India Cooling Action Plan
Launched: Press Release by Ministry ofEnvironment, Forest and Climate Change.
Retrieved from Press Information Bureau,
GovernmentofIndia:
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1568328

11

Mishra, N. (2021, December 23). India Must
Build 10 Million Houses A Year. Retrieved from
rediff.com:https://www.rediff.com/business/column/neelkanth-mishra-india-must-build-10millionhouses-a-year/20211223.htm

12

IEA. (2018, May). The Future of Cooling:
Opportunities
forenergy-efficientairconditioning. Retrieved from International
Energy Agency (IEA): https://www.iea.org/
reports/the-future-of-cooling

13

IFC. (2017). Climate Investment Opportunities
in South Asia: An IFC Analysis. International
Finance Corporation.
14

15

CEEW-NIPFP. (2020). Jobs, Growth andSustainability: A New Social Contract for India’s
Recovery.

ASSOCHAM..
NCCD. (2016). Strategy Document: discussion
on Cold-chain Development. New Delhi:
National Center for Cold Chain Development.

24

PIB. (2020). Cabinet approves PLI Scheme
to 10 key Sectors for Enhancing - India’s
Manufacturing Capabilities and Enhancing
Exports – Atmanirbhar Bharat. Retrieved March 8,
2021, from Press Information Bureau: https://pib.
gov.in/PressReleasePage.aspx?PRID=1671912

16

EESL. (n.d). India’s UJALLA Story. Energy
Efficiency Services Limited.
25

Allied Market Research. (2019, September).
Allied Market Research. Retrieved from India
Automotive HVAC Market by Technology(Manual and Automatic) and Vehicle Type
(Passenger Cars, Light Commercial Vehicle,
and Heavy Commercial Vehicle): Opportunity
Analysis and Industry Forecast, 2019-2026:
https://www.alliedmarketresearch.com/indiaautomotive-hvac-market

26

EESL, UNEP, PwC. (2021). District Energy
in Cities Initiative: National District Cooling
Potential Study for India.
17

Cohen-Shacham E., e. a. (2019). Core principles
for successfully implementing and upscaling
Nature-based Solutions. Volume 98, 2019, pp
20-29, ISSN 1462-9011,https://doi.org/10.1016/j.
envsci.2019.04.014.

18

TechSci Research. (2018). India Passenger Car
Air Conditioners Market By Vehicle Type
(Hatchback, MUV, Sedan & CUV), By Technology(Automatic & Manual/Semi-Automatic), By
Compressor Type (Variable Displacement &Fixed Displacement), Competition Forecast &Opportunities, 2023. TechSci Research.

27

Cohen-Shacham, E. W. (2016). Nature-based
Solutions to address global societal challenges.
20 Toxopeus, H. (2019). Taking Action for Urban
Nature: Business Model Catalogue,
NATURVATION Guide.

19

NCCD. (2015). All India Cold-chain
Infrastructure (Capacity Assessment of Status& Gap). Delhi: National Centre for Cold-chain
Development (NCCD). Retrieved fromhttps://www.nccd.gov.in/PDF/CCSG_Final%20
Report_Web.pdf

21

Yes Bank. (2018). Cold Chain Opportunities inIndia: The Perishables Sector Perspective. YES
BANK. Retrieved from https://aspirecircle.org/
wp-content/uploads/2022/01/Cold-ChainICEAGRI.pdf
22

Kumar, S., Sachar, S., Kachhawa, S., Goenka, A.,
Kasamsetty, S. and George, G. (2018). Demand
Analysis for Cooling by Sector in India in 2027.
New Delhi: Alliance for an Energy Efficient
Economy.
28

EESL. (n.d). Unnat Jyoti by Affordable LED forAll. Retrieved from EESL:
https://eeslindia.org/en/ourujala/NewDelhi:
Alliance for an Energy Efficient Economy.

29

Haq, Z. (2022, August 19). Jal Jeevan Mission:
52% rural households covered, tap water
mission in key phase. Hindustan Times.
30

Chintada, V. G., K.V., S., Manyam, S. C., Srilaya,
N. K., & Swati, H. (2017). Cold Chain Technologies- Transforming Food Supply Chains. New Delhi:

23

Climate Investment Opportunities in India’s Cooling Sector

109

Kumar, S. (2020, December 21). Sustainable
Cooling is a Super Cool Idea for India. Retrieved
from Cool Coalition: https://coolcoalition.org/
sustainable-cooling-is-a-super-cool-idea-forindia/

31

NITI Aayog. (2015). India Energy Security
Scenarios Version 2.0. New Delhi: Governmentof India.

39

BEE. (2017). Energy Conservation Building
Code. New Delhi: BEE.

40

Im, E.-S., Pal, J. and Eltahir, E. (2017). Deadly
heat waves projected in the densely populated
agricultural regions of South Asia. Science
Advances.
32

K-CEP. (2020). Building back better: Howclimate-friendly cooling can support a clean,resilientCOVID-19 recovery. Kigali Cooling
Efficiency Program (K-CEP).

33

MoEFCC. (2021). India Third Biennial Update
Report to The United Nations Framework
Convention on Climate Change. Ministry ofEnvironment, Forest and Climate Change(MoEFCC), Government of India.

US Department of Energy. (n.d.). Weatherisation
Assistance Program. Retrieved from Energy.
gov:
https://www.energy.gov/eere/wap/
weatherization-assistance-program
41

MoEFCC. (2021). India Cooling Action
Plan:
Operationalizing
Space
Cooling
Recommendations.

42

34

Maithel, S., Chandiwala, S., Bhanware, P.,
Rawal, R., Kumar, S., Gupta, V. and Jain, M.
(2020). Developing cost-effective and lowcarbon options to meet India’s space coolingdemand in urban residential buildings through2050. India Energy Transformation Platform.
35

BEE, AEEE. (2021). State Energy Efficiency
Index 2020. New Delhi: Bureau of Energy
Efficiency, Alliance for an Energy Efficient
Economy.

43

AEEE, NITI Aayog, BEE, UNDP-GEF. (2017).
Roadmap to fast track adoption andimplementation of Energy Conservation
Building Code (ECBC) at the urban and local
level. Alliance for an Energy Efficient Economy.
44

AEEE. (2019). Mainstreaming Super-Efficient
Appliances in India. New Delhi: Alliance for an
Energy Efficient Economy.
45

Wong, N. H. (2011). Evaluation of the impact of
the surrounding urban morphology on building
energy consumption. Solar Energy, 85(1), 57-71.

36

Somanathan, E., Somanathan, R., Sudarshan,
A. and Tewari, M. (2018). The Impact ofTemperature on Productivity and Labor Supply:
Evidence from Indian Manufacturing. Becker
Friedman Institute 1-68.
46

Cool Coalition, K-Cep, SE4ALL, CEA
Consulting. (2021). Not passing on passive
cooling: how philanthropy can help acceleratepassive cooling solutions and their climate
benefits. Passive cooling knowledge brief.
37

Powerline. (2018). Interview with Mr. Saurabh
Kumar, Managing Director, EESL. Retrieved fromhttps://powerline.net.in/2018/10/19/interviewsaurabh-kumar-2/
47

CEA. (2020). Growth of Electricity Sector in
India from 1947-2020. New Delhi: Ministry ofPower, Central Electricity Authority. Retrieved
September 22, 2021, from Central Electricity
Authority.
38

110

Climate Investment Opportunities in India’s Cooling Sector

48

PowergenIndia.

(2020).

Trigeneration:

Catalysing Decarbonisation & Energy Efficiency.
Retrieved from Powergen India: https://www.
powergen-india.com/live-webinar-trigenerationcatalysingdecarbonisation-energy-efficiency
Hindu Business Line. (2019). The promise oftrigeneration. Retrieved from Hindu BusinessL i n e : h t t p s : / / w w w.t h e h i n d u b u s i n e s s l i n e.
com/specials/clean-tech/the-promiseoftrigeneration/ article30150971.ece
49

Waite, M., Cohen, E., Torbey, H., Piccirilli, M.,
Tian, Y. and Modi, V. (2017). Global trends inurban electricity demands for cooling andheating. Energy, 127, 786-802.
50

Zero Carbon Hub. (2015). Defining Overheating
Evidence Review. CIBSE, Institute forEnvironmental Design and Engineering (IEDE),
The Bartlett, University College London (UCL),
London School of Hygiene and Tropical
Medicine (LSHTM).
51

EPA. (2008). Reducing Urban Heat Islands:
Compendium of Strategies, United States
Environmental
Protection
Agency.
US
Environmental Protection Agency.
52

Santamouris, M. (2014). Cooling the cities—areview of reflective and green roof mitigation
technologies to fight heat island and improvecomfort in urban environments. Solar Energy,
103: 682–703.

New Delhi: Bureau of Energy Efficiency,
Environmental Design Solutions (EDS), Shakti
Sustainable Energy Foundation.
57 NRDC. (2018). India-Keeping it cool, Models
for city cool roof programs. Retrieved from
UNDRR
Prevention Web: https://www.preventionweb.
net/news/india-keeping-it-cool-models-citycool-roofprograms
58 NRDC. (2019). New Cool Roof Programs in
India – Hyderabad (Part 1). Natural Resources
Defense Council.
59 Mccormick, K. (2020). Cities, Nature andInnovation: New Directions. International
Institute for Industrial Environmental Economics(IIIEE), Lund University.
60 60 Lal, N. (2020). India’s programme
to create 200 urban forests has seen no
progress in four years: https://scroll.in/article/967946/indias-programme-to-create200-urban-forests-has-seen-no-progress
infouryears#:~:text=During%20the%20virtual%20
celebration%20of,in%20the%20next%20
five%20years

53

54 UNEP. (2021). Beating the Heat: A Sustainable
Cooling Handbook for Cities. Nairobi: United
Nations Environment Programme.
55 The Rockefeller Foundation. (2014). To
Reduce Heat Stress, Indore Develops Cool RoofTechnology. Retrieved from https://www.
rockefellerfoundation.org/blog/reduce-heatstress-indoredevelops-cool/
56 BEE. (2011). Cool Roofs for Cool Delhi, 2011.

NRDC. (2016). Ahmedabad Heat Action Plan:
Guide to extreme heat planning in Ahmedabad,
India. Natural Resources Defense Council.
https://www.nrdc.org/sites/default/files/
ahmedabad-heataction-plan-2018.pdf

61

NDMA. (2019). National Workshop on“Preparedness, Mitigation & Management ofHeat Wave 2020”. Retrieved from National
Disaster Management Authority: https://ndma.
gov.in/sites/default/files/2020-08/heatwavereport-dec2019.pdf

62

EESL India. (2021). Market Assessment forSuper-Efficient Air Conditioners. EESL India.

63

Climate Investment Opportunities in India’s Cooling Sector

111

Frost & Sullivan. (2018). Dynamics of the Indian
Fan Market. Retrieved from https://www.frost.
com/wp-content/uploads/2018/09/Dynamicsof-the-Indian-Fan-Market_EDT.pdf
64

BusinessToday. (2021). 4 lakh jobs, Rs 7,920
crore investment: The perks of PLI for white
goods. Retrieved from BusinessToday.in: https://www.businesstoday.in/latest/corporate/story/4lakh-jobs-rs-7920-crore-investment-the-perksof-pli-for-white-goods-292827-2021-04-07

and Management of Cold Chain Infrastructure for
Agriculture & Allied Sectors. New Delhi: Ministry ofAgriculture and Farmers Welfare. Retrieved
from http://nccd.gov.in/PDF/ComprehensiveNote.
pdf

65

EESL. (2021). NCEEP will help EESL in building
a strong ESCO market. Retrieved from https://eeslindia.org/wp-content/uploads/2021/04/
Newsletter-March-2021-Edition-26-1.pdf

66

Tabreed. (2021). Tabreed Partners with IFC for
Expansion in India. Retrieved fromhttps://www.tabreed.ae/news/tabreed-partnersifc-expansion-india/
67

C2E2, ICLEI and UNEP. (2017). Rapid
Assessment of five Indian Cities, Thane.

68

The Hindu. (2020). EESL, GAIL ink trigeneration
project MoU. Retrieved from The Hindu:
https://www.thehindu.com/business/eesl-gailink-trigeneration-project-mou/article31742394.
ece

69

IPCC. (2019). Special Report on Climate Change
and Land. Geneva: lntergovernmental Panel on
Climate Change.
74

Emerson Climate Technologies. (2015). The Food
Wastage & Cold Storage Infrastructure
Relationship in India: Developing Realistic Solutions.
Pune: Emerson Climate Technologies.

75

Medical Buyer. (2020). India begins augmenting
its cold chain capacity. Retrieved fromhttps://www.medicalbuyer.co.in/india-beginsaugmenting-its-cold-chain-capacity/
76

Kurian, L. (2021). Building agile and scalable
pharma cold chain. Retrieved from Indian Transport& Logistics News: https://www.itln.in/building-agileand-scalable-pharma-cold-chain-logistics

77

Sodhi, M., Singh, S. and Agnihotri, C. (2016). Cold
Chain Development for Fruits & Vegetables inIndia. Kinnow cold chain study. National Centre for
Cold-chain Development.
78

NCCD. (n.d). Awareness Program on Cold-chain
Schemes. New Delhi: Ministry of Agriculture andFarmers Welfare.
79

Cool Coalition. (2019). Cities Action on Efficient,
Climate Friendly Cooling. United Nation
Secretary General Summit.

70

Rawat, V. S. (2019, March 23). Cold storage
capacity expands, Rs 21,000 crore investment
lined up by 2023. Retrieved from BusinessStandard:
https://www.business-standard.com/
article/economypolicy/cold-storage-capacityexpands-rs-21-000-crore-investment-lined-upby-2023-119032200623_1.html
80

Terre Policy Centre. (n.d.). Warje Urban Forestry.
Retrieved from https://terrepolicycentre.com/
Warje-Urban-Forestry.asp
71

PIB. (2020, September 23). Cold Storage
Facilities in the Country. Retrieved from PIB
Press
Releases: https://pib.gov.in/PressReleasePage.
aspx?PRID=1658114#:~:text=Currently%2C%20
there%20is%20374.25%20Lakh,is%20
available%20in%20the%20country
73
NCCD (n.d). Comprehensive Note on Creation
72

112

Climate Investment Opportunities in India’s Cooling Sector

NCCD and E&Y. (2013). Refrigerated transportation:bottlenecks and solutions. New Delhi: E&Y.
Retrieved from: https://www.nccd.gov.in/PDF/E&YReport-Reefer-Transport.pdf

81World Bank. (2022). Cold Chain Energy
Efficiency in India: Analysis of Energy Efficiency
Opportunities in Packhouses. World Bank.
82

MP Ensystems, et al. (2019). Promoting Clean
and Energy Efficient Cold-Chain in India. MP
Ensystems,
Shakti
Sustainable
EnergyFoundation and University of Birmingham.
Retrieved from https://shaktifoundation.in/wpcontent/uploads/2019/04/Cold-chain-in-IndiaReport.pdf

83

ET Bureau. (2020, January 25). Haryana to set
up 200 pack-houses for vegetables and fruits.
Retrieved from Economic Times: https://
economictimes.indiatimes.com/news/
economy/agriculture/haryana-to-set-up200-pack-housesfor-vegetables-and-fruits/
articleshow/73619482.cms

84

PIB. (2020, March 20). Development ofAgricultural Marketing Infrastructure. Retrieved
from Press
Information
Bureau:https://pib.gov.in/PressReleseDetailm.aspx?PRID=1607344
85

Shagun. (2021, December 7). Gramin
Agricultural Markets: Two years on, just 6% haats
upgraded. Retrieved from DownToEarth: https://www.downtoearth.org.in/news/governance/gramin-agriculturalmarkets-two-years-on-just-6haats-upgraded-80588

MoFPI. (2021). Seventeenth Report of theStanding Committee on Agriculture, Animal
Husbandry, and Food Processing. New Delhi:
Ministry of Food Processing Industries. Retrived
from:http://164.100.47.193/lsscommittee/
Agriculture,%20Animal%20Husbandry%20
and%20Food%20Processing/17_Agriculture_
Animal_Husbandry_and_Food_Processing_33.
pdf

89

Kumar, C. and Majid, M. (2020, June 26).
Renewable energy for sustainable development
in India:current status, future prospects,
challenges, employment, and investment
opportunities. Energy,Sustainability and Society.

90

PIB. (2021, July 18). DBT-BIRAC supported
start up Blackfrog Technologies: Supporting theLastmile Delivery of Vaccines. Retrieved fromh t t p s : / / p i b . g o v. i n / P r e s s Re l e s e D e t a i l m .
aspx?PRID=1733754

91

India CSR Network. (2021). IRCON’s CSR
initiative under COVID-19 Vaccination Programby providing Cold Chain equipments. Retrieved
from IndiaCSR.

92

86

MoAFW. (2020). Sub-Mission on Agricultural
Mechanisation: Operational Guidelines. New
Delhi:Ministry of Agriculture and Farmers
Welfare.
87

CaaS. (2020, October 22). Cooling as aService facilitating resilient agriculture andcrops in India.
Retrieved from CaaS Initiative: https://www.
caas-initiative.org/news/cooling-as-a-servicefacilitatingresilient-agriculture-and-crops-inindia/

88

AEEE. (2015). Evaluating Market Response to
the Appliance Standards and Labelling. New
Delhi:Shakti Sustainability Energy Foundation.

93

Dhanraj, S., Mahambre, V. and Munjal, P.
(2020). From income to household welfare:Lessons from refrigerator ownership in India.
Chennai: Madras School of Economics.
94

K@W. (2016, October 20). How to Avoid the
Pitfalls of Innovation in Emerging Markets.
Retrieved from The Wharton School: https://knowledge.wharton.upenn.edu/article/howto-avoid-thepitfalls-of-emerging-marketinnovation/
95

Ozone Cell. (2021). Study on Cold Chain Sector
in India for Promoting Non-ODS and Low-GWP
refrigerants. New Delhi: Ministry of Environment,

96

Climate Investment Opportunities in India’s Cooling Sector

113Forest & Climate Change.
MoRTH. (2021). Constructional and Functional
Requirements for Insulated Vehicles. New Delhi:
Ministry of Road Transport and Highways.
97

MoRD. (2017). Guidelines of Aajeevika
Grameen Express Yojana. New Delhi: Ministry of
Rural Development.

98

World Bank Group. (2021). The Cold Road toParis: Mapping Pathways Toward Sustainable
Cooling for Resilient People by 2050.
Washington DC: The World Bank.

99

NCCD. (2017). Railways mode of Transport
for Cross-regional Trade of Perishable Agriproduce. New Delhi: National Centre for Coldchain Development.
101
Ministry of Railways. (2021). Kisan Rail a Boonfor Farmers. New Delhi: Ministry of Railways.
100

TCI. (2015). Multimodal Logistics. Transport
Corporation of India Ltd.

102

NCCD. (2021, March). NCCD Entrepreneur
Development and Skill Training for Ripening
Chamber Training Calendar. Retrieved from
NCCD:https://nccd.gov.in/PDF/NCCD%20
training%20-%20March%202021.pdf(2020). Safety, Upskilling, and Good Servicing
Practices for Cooling: Standardising Training
for Refrigeration and Air-Condition Technicians.
New Delhi: Council on Energy, Environment
and Water (CEEW). Retrieved from https://www.
ceew.in/publications/safety-upskilling-andgood-servicing-practices-cooling-0
TERI. (2020). Mobile Air Conditioning (MAC):
A Technology Landscape, Challenges andOpportunities for Sustainable Cooling. Retrieved
from ENVIS Resource Partner on Renewable
Energy and Climate Change: https://www.teriin.
org/sites/default/files/2020-12/MAC-pb.pdf
107

Ayres, M., Stankevich, N. and Diehl, A. (2020).
Mobile Cooling: Assessment of Challenges andOptions. The World Bank.
109
Blumberg, K., Isenstadt, A., Taddonio, K.
N., Andersen, S. O. and Sherman, N. J. (2019).
Mobile Air Conditioning: The Life-Cycle costs
and greenhouse-gas benefits of switching toalternative refrigerants and improving systemefficiencies. The International Council of Clean
Transportation.
108

103

World Bank Group. (2017). Inclusive
Innovations: Providing Affordable Storage
Solutions. World Bank Group. Retrieved fromhttps://www.innovationpolicyplatform.org/www.
innovationpolicyplatform.org/system/files/8Storage%20Solutions_Agri_2pg_Aug/index.pdf
105
National Skill Network. (2018, August 3).
National Skill Network. Retrieved from National
Skill Network: https://www.nationalskillsnetwork.
in/rac-service-technician-skills-training/
104

106

114

Gorthi, A., Bhasin, S. and Chaturvedi, V.

Climate Investment Opportunities in India’s Cooling Sector

NITI Aayog. (2018). Transforming India’s
Mobility: A Perspective. NITI Aayog.

110

Roychowdhury, A. and Chattopadhyaya, V.
(2021). India’s Fuel Economy Benchmarks: Howto make them work for an energy-efficient andclimate-secure world. Centre for Science andEnvironment.
111

IEA. (2019). Cooling on the Move: The future of
air conditioning in vehicles. Paris: International
Energy Agency. Retrieved from https://iea.blob.
core.windows.net/assets/425608f4-4368-42ca8faa-568d241ce7ea/Cooling_on_the_Move.pdf
113
CCAC. (2019, March 25). Green Automobile
Air Conditioner Technology Demonstration
Project .Retrieved from Climate and Clean Air
112

Coalition:https://www.ccacoalition.org/en/news/
greenautomobile-air-conditioner-technologydemonstration-project
Purushothaman, R. (2021, September 27).
Optimizing Quality of Indoor Air in Metro Trains.
Retrieved from Rail Analysis India: https://news.
railanalysis.com/optimizing-quality-of-indoorair-inmetrotrains/
114

Ozone Cell. (2021). The Montreal Protocol:
India’s Success Story. Ozone Cell, Ministry ofEnvironment, Forest and Climate Change(MoEFCC), Government of India.

115

AEEE. (2019). India Cooling Action Plan - A
Guided Graphical Tour. Retrieved from Alliancefor an Energy Efficient Economy (AEEE): https://aeee.in/data-analysis/india-cooling-action-planaguided- graphical-tour/
116

Industry ARC. (2021). India Ammonia
Refrigerant Market - Forecast (2021 - 2026).
Retrieved from IndustryARC: https://www.
industryarc.com/Report/18273/india-ammoniarefrigerantmarket.html

Equipment Using Non-ODS Based Refrigerants.
New Delhi: Ministry of Environment, Forest andClimate Change (MoEFCC), Government ofIndia.
Bhasin, S., Gorthi, A., Chaturvedi, V. andAsphjell, T. (2019). Acting on many fronts:
Incentives and Regulations to Phase-down
HFCs in India. CEEW. Retrieved fromh t t p : / / w w w. m o n t r e a l 3 0. i o 3 c . o r g / s i t e s /montreal30.io3c.org/files/pictures/20%20matin/
Velders_30MP_Symposium_Paris_Sept2017.
pdf

121

MoEFCC. (2016, September 16). Environment
Ministry announces major initiative for R&D into
next generation HFC refrigerant alternatives.
Retrieved from Press Information Bureau,
Government of India. Ministry of Environment,
Forest and Climate Change (MoEFCC):https://pib.
gov.in/newsite/printrelease.aspx?relid=149825

122

117

123

Balance Solutions Hub. (2016). Mapping
Natural Refrigerant Technology Uptake in India:
Current State and Future Narratives. cBalance
Solutions Hub.

World Bank. (2016). HFO Intellectual Property
Rights and Technology Transfer. The World Bank
Group.

118

UNEP. (2021). Report of the Executive
Committee of the Multilateral Fund for the
Implementation of the Montreal Protocol to
the Thirty-Third Meeting of the Parties to.
Online (23–29 October 2021): United Nations
Environment Programme (UNEP).
119

MoEFCC. (2021). Study on Public Procurement
Policies for Refrigeration and Air-Conditioning

120

Chaturvedi, V., Deol, B., Seidel, S.,
Jaiswal, A., Sah, A., Sharma, M., Kaur, N. andAndersen, S.O. (2016). Cooling India with Less
Warming: Examining Patents for Alternatives
to Hydrofluorocarbons. Council on Energy,
Environment and Water (CEEW).

124

The World Bank. (2022, March). South Africa
Pioneers Innovative Wildlife Conservation Bondto Protect Black Rhinos and Support Local
Communities. Retrieved from The World Bank:h t t p s : / / w w w.w o r l d b a n k . o r g / e n / n e w s /feature/2022/03/23/south-africa-pioneersinnovative-wildlifeconservationbond-to-protect-black-rhinos-and-support-localcommunitie

125

Climate Investment Opportunities in India’s Cooling Sector

115Annexes
Annex
1:
Prioritizationof
Sustainable
Cooling
Opportunities
The study focuses on all identified thematic
areas under ICAP including space cooling inbuildings, cold chain and refrigeration, transport
air conditioning and refrigerants (covering the
ICAP thematic areas of R&D, refrigerant demand& indigenous production, and refrigeration &air-conditioning servicing sector). It presents
actionable roadmaps for each of the cooling
sectors as well as prioritized opportunities
for concessional financing and private sector
investments. A series of interconnected steps
were followed to identify holistic, inclusive,
viable, specific, and scalable interventions thatcan operate through partnerships with various
actors and add impetus to the implementation of
ICAP goals. These steps are presented below:
Step 1 – Literature Review: The study beganwith an extensive literature review and covereda detailed analysis of the existing policies,
programs and initiatives in India that are directly
or indirectly relevant to the multisectoral actions
recommended

under

ICAP.

This

analysiscovered existing governmental schemes andprograms mapped under ICAP and went beyond
to identify other relevant cooling policies andprograms to strengthen India’s cooling policy
strategy. Building on the ICAP sectoral analysis
for cooling demand, energy savings andemissions reduction, the study identified various
areas and actions for sustainable cooling in

116

Climate Investment Opportunities in India’s Cooling Sector

each sector and collected data on investment
potential and developmental benefits, including
job creation potential for some sectors.
Step 2 – Multistakeholder Consultations:
The study authors undertook stakeholder
consultations with government, private sector
and sectoral experts to identify and assess the
key barriers for sustainable cooling in each of
the sectors. This included identifying associatedinstitutional, financing, regulatory and market
barriers and the required sustainable coolinginterventions. The study followed a highly
consultative process to help identify and prioritize
opportunities and associated interventions thatwere pragmatic, implementable and have thebuy-in of key stakeholders in all cooling sectors
and across value chains.
Step 3 – Clustering of Sustainable Cooling
Opportunities:

The

identified

sustainablecooling interventions were clustered basedon institutional set up, ease of implementationand complementarity of actions. This clusteringresultedinalonglistof

19

sustainable

opportunities with 10 opportunities in spacecooling, four opportunities in cold chain andrefrigeration, two opportunities in passenger
transport air conditioning and three opportunities
in the refrigerant sector.
Step 4 – Prioritization of Sustainable Cooling
Opportunities:

A

two-step

multicriteria

prioritization framework was applied to thelonglistofclusteredsustainablecoolingopportunities. The first step covered the criteria

scoring scale of 1 to 3 (from low to high potentialof climate benefits, development benefits andfor accessing concessional and private finance).

ability to implement.
The potential of an opportunity to leverage
Table A 1.1 provides details of these three criteria,

different financing instruments is an important

their sub-criteria, weightage, scoring scale andcriterion for understanding the role and scoperationale used in the first step prioritization. The

of involvement of financing institutions andsecond step prioritization focused on evaluating

MDBs in implementation. Given the importancethe role of concessional financing and privateof this criterion in selecting opportunities wheresector investments. Notably, the criteria covered

concessional finance instruments or privatein this step, that is, the need and potential for

sector investment can enable implementation,leveraging concessional finance or private

financing has been given double weightage

sector investment, has been given higher

compared to the other criteria.

weightage as compared to other criteria with a

Prioritization Criteria for Concessional Financing•

Study adopted two-part prioritization to identify key areas whereconcessional finance can bring about significant impact.

•

Multi-criteria assessment approach:

Climate Investment Opportunities in India’s Cooling Sector

117

Table A 1.1: Method used to prioritize sector opportunities
Criteria

Sub-criteria
Climatemitigation
benefits

Description
GHG mitigation potential
for the cooling opportunity

Criteria/
Sub-criteria
Weightage

1.00

Benefits
Development
benefitsw

Implementation

118

Technical
feasibility

Job creation potential,
SDGs, number ofbeneficiaries covered by
the opportunity

1.00

Ease of technology
access which covers easy
access to the associatedtechnology knowledge withno restrictions in terms ofIntellectual Property Rights;
market preparedness andadaptability of technologies

0.33

Climate Investment Opportunities in India’s Cooling Sector

Scoring Scale

Rationale

0: No GHG mitigation fromcooling
1: Low GHG mitigation fromcooling
2: Medium GHG
mitigation from cooling
3: High GHG mitigationfrom cooling

Providing sustainable cooling and thermal
comfort for all, along with delivering
environmental and socioeconomic benefits
is the overarching goal of ICAP

To identify opportunities that can help
achieve this goal, climate mitigation
benefits, assessment of GHG mitigation
potential, and development benefits,
0: No development benefits accounting for job creation potential, SDG
linkages, etc., have been selected as
1: Low development
criteria for prioritization
benefits
2: Medium development
Given the key role that prioritized
benefits
opportunities can play in fulfilling the main
3: High development
ICAP goal, each benefit criterion has been
benefits
given a weightage of 1
0: No technical feasibility
To identify opportunities that have high
1: Low technical feasibility & ease of implementation, it is important
market preparedness
to assess them on their technology and
2: Medium technicalknowledge access, scalability, presence offeasibility & market
an enabling policy environment, and level
preparednessof stakeholder complexity. Additionally, it is
3: High technical feasibility also important to ensure that opportunities& market preparedness
identified are driven by a sustainablecooling agenda

Criteria

Implementation

Sub-criteria

Description

Likelihood of •large-scale
adoption

Sustainable coolingis a key driver inensuring adoption of theopportunity

Administrative
feasibility•

Potential for scalability
and replicability ofopportunity•

Policy feasibility:
Supportive laws,
regulations and policies inplace for the opportunity;
ongoing programs &schemes in place forconvergence
Level of stakeholder
participation needed toplan & implement theopportunity, e.g., multiple
ministries or centralstate-local government
coordination or only
central government
action, etc.)•

Criteria/
Sub-criteria
Weightage

0.33

0.33

Scoring Scale

Rationale

0: Not implementable from To develop an actionable roadmap fora cooling perspective
ICAP, technical feasibility, likelihood of
1: Low implementability &large-scale adoption and administrative
scalability
feasibility were identified as the key criteria
2: Medium implementability encompassing the factors outlined above,& scalability
and were thus selected for prioritization
3: High implementability &scalability
Each of these criteria together indicate
1: Low policy feasibility and/ the implementability of an opportunity andhave been given a total weightage of 1.
or several stakeholders
across different governancelevels required for planning& implementation
2: Policy feasibility
and few stakeholders
required for planning andimplementation
3: Policy feasibility and one
key decision-maker forplanning for the opportunity

Climate Investment Opportunities in India’s Cooling Sector

119

120

Criteria

Sub-criteria

Financing-

Description

Need and potential
for leveraging various
concessional financeinstruments and/or private
sector investment toimplement the opportunity

Climate Investment Opportunities in India’s Cooling Sector

Criteria/
Sub-criteria
Weightage

2.00

Scoring Scale

1: Low potential foraccessing concessional/
private finance
2: Medium potential foraccessing concessional/
private finance
3: High potential foraccessing concessional/
private financeRationale

The potential of an opportunity to leverage
different financing instruments is an
important criterion for understanding therole and scope of involvement of financing
institutions/MDBs in implementation
Given the importance of this criterion in
selecting opportunities where concessional
finance instruments or private sector
investment can enable implementation,
financing has been given double
weightage compared to the other criteria.

Annex 2: Detailed Roadmap for Space Cooling Sector
Note: Prioritized opportunity and its roadmap has been highlighted

Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term (2031-38)

Instrument

Key
Stakeholders

National &State Policy
Alignment

1. Reduce demand by integrating passive measures in buildings
1.1 Support implementation of residential and commercial building energy codes in new buildings
Amend EC Act to support
mandatory implementation of
ENS

Mandate ENS adoption
across states:• Integrate in by-laws• Integrate in building
approval processes

Support states and cities to adopt and implement theresidential building energy code – ENS:
• Develop demonstration projects• Update central and state schedules of rates toincorporate building materials and construction
solutions• Facilitate technical assistance to private andgovernment projects to implement the code
Provide green credit lines to catalyze energy efficienthousing:• Increase housing supply through preferential terms
for developers, state and city housing departments,
combined with technical assistance• Increase housing demand through benefits forhomeowners such as preferential loans combined withawareness about the benefits of thermally comfortablehousing

Review ENS
implementation status
and impact to inform
stringency
revision of the code

PolicyBEE, Ministry of EC Act,
Power
ENS

PolicyBEE, ULBs
SDAs, state
UDD, CPWD,
state PWD

Investment: public MDBs, FIsand private finance

Climate Investment Opportunities in India’s Cooling Sector

121Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term (2031-38)

Instrument

Key
Stakeholders

National & State
Policy Alignment

Develop market transformation programs (such as supporting
manufacturing, developing standards, providing tax rebates, etc.)
to address affordability and accessibility of high-performancebuilding envelope solutions (high performance windows, reflective and insulating roof tiles, shading solutions, etc.) for ENS
implementation•

Create awareness among private sector design andconstruction professionals about passive cooling measuresand ENS adoption
Create awareness campaigns for end users about thermal
comfort and energy efficiency benefits in homes to create ademand pull from homeowners

Knowledge

BEE, MoHUA,
state UDD

Capture learnings from thisDevelop a streamlined strategy program to inform ECBC
for ECBC implementation
implementation in other cities
assistance (technical andfinancial) in 8-10 large cities and
ULBs with the technical potential
and implementation capacity

PolicyState UDD,ULBs, BEE,
SDAs

EnergyConservation
Building CodeAssess skill requirements andTraining and support fortraining specific to energy
inclusion in the work force
efficient/green building
construction, new materials inclose collaboration with industry

Knowledge

National Skill
Development
Council, Skill
Council forGreen Jobs,
CREDAI

National Skill
Development
Mission•Create knowledge packs for
identified skill sets.

122

Climate Investment Opportunities in India’s Cooling Sector

Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term (2031-38)

Instrument

Key
Stakeholders

National &State Policy
Alignment

1.2 Mainstream thermal comfort parameters across affordable housing programs and policies at the national and state levels
Advocate for inclusion ofthermal comfort as an essential
criterion in national, state andcity level affordable housing
policies and programs:• Sensitize relevant
government departmentson thermal comfort benefits
in affordable housing
design and construction
through awareness andtraining programs

Update affordable housing
policies and programs at thenational and state level to include
thermal comfort as an essential
criterion for housing construction

Policy,knowledge

MoHUA, MoRD PMAY- Urban;
state UDD
PMAY- Rural;
state-level
affordable housing policies

Support demonstration
projects for affordable Support
demonstration projects foraffordable housing:• Integrate residential energy
code, ENS, provisions inlarge (applicable) housing
projects

Support states and cities ininstitutionalizing the integrationof passive cooling measuresthrough their procurement
mechanisms:• Update tenders withapplicable construction
materials, technologies
and costs, ENS compliancecriteria

Policy, publicfinanceState UDD,
departments,
ULBs, state
PWD, MDBs

Climate Investment Opportunities in India’s Cooling Sector

123Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Key
Stakeholders

Provide green credit lines to state and city housing departments
to catalyze construction of thermally comfortable affordable
housing

Investment:
public finance

MDBs, FIs•

Knowledge

NHB, HUDCO,MoHUA, MoRD,
state UDD,
NDMA•

Develop and disseminate guidance for self-build housing(outside the purview of ENS energy code) including low cost,
efficient and simple building solutions.
Support self-build housing with local skilling centersproviding technical know-how of construction techniques,
new materials, design guidance and possibly supply ofmaterials.

Leverage institutional finance streams to disseminate guidance
and provide technical assistance to homeowners of self-build
affordable housing. Avenues could include:• Government’s housing programs such as PMAY-Urban’s
beneficiary linked component, PMAY-Rural• Development finance streams to state and city housing
departments; financial intermediaries such as banks,affordable housing finance companies, private sector
developers, etc., and post disaster housing reconstruction

124

Long Term (2031-38)

Instrument

Climate Investment Opportunities in India’s Cooling Sector

MDBs, FIs
Investment:
public &private finance

National &State Policy
Alignment

PMAY- Urban;
PMAY- Rural;
state-level
affordable
housing
policies,
DisasterManagement
ActProposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term (2031-38)

Instrument

Key
Stakeholders

National &State Policy
Alignment

1.3 Retrofit existing buildings to improve thermal comfort through efficient building envelope and cooling technologies
Develop an industry led R&D program for India-specific retrofitting Support
solutions (insulating plasters/renders, roof insulation tiles, radiative commercialization offilms, smart windows, etc.)
retrofitting solutions
and products•••

SupportDevelop a retrofitting policy
implementation ofroadmap and economic
retrofitting roadmap
viability assessment fordifferent building types
Develop a retrofitting
program for low-income
households, referringto the global energy
poverty/ weatherization
assistance
Support demonstration
projects across social housing
and public sector buildings

Policy,BEE, DST,
investment:
MDBs, FIs
public andprivate finance
Policy,investment:
public finance

EnergyConservation
Act

BEE, MDBs, FIs

Climate Investment Opportunities in India’s Cooling Sector

125Proposed Interventions
Short Term (2022-24)

Medium Term
(2025-30)

Long Term(2031-38)

Instrument

Key Stakeholders

National &State Policy
Alignment

2. Improve efficiency of cooling technologies
2.1 Enable market transformation towards super-efficiency for high impact cooling technologies
Implement the S&L pathways
Assess pathways for aligning thefor key impact appliances
S&L program to achieve ICAP
such as RACs, fans, chillers,
goals:
etc.
• Set targets for ratcheting up
standards (MEPS, best available • Large-scale industry
consultations to identify
technologies available) andbottlenecks, gaps
timelines for key appliances• Supporting analysis for• Assess supporting market
ratcheting up MEPS
transformation initiatives• Setting up testing capacity
and incentives to achieve
and protocols
acceleration/adoption of key
Awareness and behavior
super-efficient technologies.
change programs to support
This could include upstream
creation of consumer demand
incentives to manufacturers,
synergies with initiatives under
the Make in India program,
addressing higher upfront costs
for consumers, etc.
• Assess supporting
infrastructure requirements,
especially testing capacity
through test labs and protocols

126

Climate Investment Opportunities in India’s Cooling Sector

Review and revise the
S&L strategy:• Monitor impact
of S&L on energy
savings• Appliance costs• Market share ofhigher efficiency
models• Consumer uptake
and feedback

PolicyBEE

EnergyConservation
Act, S&L
Program, Make
in IndiaProposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term(2031-38)

Instrument

Key Stakeholders

Develop an upstream incentive
program for BLDC fan/motor
manufacturers:• Set market transformation
targets to be achieved inconsultation with industry• Finance the program• Devise a monitoring andimpact assessment strategy• Develop a communications
strategy for end users

Implement the program,including effective outreachMonitor impact on costs andenergy savings, uptake by
consumers

Policy,BEE, EESL,
investment:
MDBs
public finance

Leverage the PLI program for
manufacturing RAC components:• Integrate environmental
performance standards forhigh efficiency impact RAC
components (compressors,heat exchangers andexpansion valves) to achieve
higher system efficiencies in
RACs• Assess the impact on costs ofhigher efficiency RACs due todomestic manufacturing• Develop financial mechanisms
to bridge any additional costs,
and nudge manufacturing
towards high system efficiency
components

Impact assessment of the
program:• Impacts on theperformance, costs of eachcomponent

Investment:
public andprivatefinance

MDBs, FIs
BEE, DPIIT –MoCINational &State
Policy Alignment

PLI program,
S&L program

Impacts on RAC system design
and performance

Climate Investment Opportunities in India’s Cooling Sector

127Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term(2031-38)

Instrument

Key Stakeholders

Investment:
EESL
public finance(preferential
procurement)

Support the scaling up of EESL’s
Super-Efficient Air Conditioner
bulk procurement program:• Revise the outreach andbeneficiary strategy, looking
at demand aggregation
across large residential
projects, RAC rental markets
through suppliers, etc.
• Develop a framework forassessing energy savings
impact and consumer
feedback• Support the development of
a voluntary label for superefficient air conditioners

National &State Policy
Alignment
S&L program

2.2 Accelerate uptake of not-in-kind technologies, especially to enable access in sectors with low adoption of comfort cooling
Assessments of not-in-kind
technologies, applications andbenefits:• Feasibility for specifictechnologies for particularbuilding types basedon energy consumption
requirements, including
potential for hybrid
technology applications

128

Enable uptake of not-in-kind
technologies:• Evaluate impacts on
productivity of workers,
energy system costs andperformance of demonstration
projects• Develop business models
for affordable comfort
for productivity to spur
investment in developing
supply chain andClimate Investment Opportunities in India’s Cooling Sector

Enable accelerated
uptake of not-inkind technologies:• Investments for
supply chain
integration,
component
manufacturing
Innovative financing
models, fortechnology

Policy,investment:
public andprivatefinance

BEE, MDBs, FIs, National Mission
SIDBI
on Enhanced
EnergyEfficiency

Proposed Interventions
Short Term (2022-24)••

Support demonstration
projects in manufacturingsectors and other publicbuildings with limited accessto comfort cooling
Create a roadmap on
enabling productivity
across sectors (with low
access to comfort cooling),
including consultations withmicro, small and medium
enterprises and MoCI

Medium Term (2025-30)

and building expertise for
2-3 promising not-in-kind
technologies.

Long Term (2031-38)

Instrument

Key
Stakeholders

National &State Policy
Alignment

adoption including via
pay as per use, andCaaS models

Awareness and capacity
building programs forarchitects, mechanicalengineers and building owners

2.3 Optimize operational cooling energy use in commercial buildings through energy performance data, disclosureand benchmarking, and review of ventilation standards in view of COVID-19 guidanceInstitutionalize theDevelop a framework fordisclosure and benchmarking for benchmarking and disclosure
program:commercial buildings, including• Identification of anspace cooling performanceorganization to anchor• Consult with government andthis process and program
building industry
funding• Explore synergies with
BEE’s designated consumer
notification, mandating energy
audits for energy intensive
buildings
Increased adoption of digitization
and IoT applications to aid
availability of energy use data

Carry out periodic
assessments tounderstand theimpact of energy
efficiency intervention
such as codes andequipment standards
on operational energyuse
Use this data to
inform energy
efficiency and spacecooling policies

Knowledge

BEE, ISHRAE

PAT, ECBC

Climate Investment Opportunities in India’s Cooling Sector

129Proposed Interventions
Medium Term
(2025-30)

Short Term (2022-24)
Detailed technical assessmentof change in ventilation
requirements in centrally airconditioned buildings in viewof the health-related guidanceissued due to COVID-19• Assessment of impacts on
system design,performanceand costs
Large scale industry
consultations to inform theprocess

Implementation guidance fornew buildings and retrofitting ofexisting systems:• Develop case examples
for good practices, use ofalternative building designand cooling technologies thatcan meet criteria• Monitoring of buildings tocollect data on indoor air
qualityLong Term(2031-38)

Instrument

Key
Stakeholders

Mainstream
guidance onindoor air quality
in air conditioned
and mixed modebuildings
Inform changes
in standards fordesign, O&M
of central airconditioning
systems

Knowledge

BEE, ISHRAE

National & State
Policy Alignment

3. Shift demand to district cooling
3.1 Support uptake of DCS and tri-generation, including development of business models and policy roadmap
Convene stakeholders to assess policy outlook on natural gas
allocation and pricing for tri-generation projects

PolicyClarity on the role of gas to meet thermal requirements versus
limiting it as a transition fuel to meet peak power requirements andbalancing intermittent and variable RE technologies
Support CaaS business models for ESCOs.
Example: EESL’s tri-generation program (comprising total upfront
investment and ‘Pay as you Save’ model) to enable private sector
financing.

130

Climate Investment Opportunities in India’s Cooling Sector

Scale up DCS
implementation,
establish andPolicy,investment:

EESL, PNGRB,GAIL India Ltd.,
EESL

PNGRB
Regulations

MDBs, FIs,
EESL, State

Smart Cities
MissionProposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Support feasibility assessments and pilot projects to assess
commercial viability of merchant DCS model across greenfield/
brownfield developments
Develop models for long-term benefits for cities to adopt DCS
infrastructure (equity/revenue models)Assess techno-economic
Support demonstration projects
feasibility and promote R&D
for alternate fuels, waste heatstreams, treated wastewater,
free cooling through natural
water bodies, etc.
Develop direct cool roadmap, focusing on the value chain of
projects and applicability in upcoming sectors such as cold chain,warehouses, industrial applications, etc.

Long Term (2031-38)

Instrument

Key
Stakeholders

National &State Policy
Alignment

standardize project
public &UDD, State
development process, private finance TCPO
business models andcontracting.

National Policy for
DCS defining a codeof practice, cooling
service agreements,
Integrate feasibility evaluation of DCS for greenfield developments customer protection
for high density cooling requirements (minimum 8,000 TR per sq
measures, tariffs,
km) through:applicable taxes, etc.
• “Connect unless” policies integrated in urban planning, zoning,or building codes, green building rating systems whereby
developers of buildings in priority zones are required toconnect to a DCS system• Environmental clearances for major real estate and industrial
projects issued by MoEFCC• Special Economic Zones allow CaaS models to provide
cooling for buildings by third parties

Policy,investment:
public &private finance

MDBs, FIs
MoHUA, state
UDD, state
TCPO

PolicyURDPFI
BEE, EESL,
guidelines; city
MoHUA,
masterplans;State UDD,
environmental
State TCPOMoEFCC, MoCI, impact
Green building assessment;
rating agencies Energy
Conservation
Act

Climate Investment Opportunities in India’s Cooling Sector

131Proposed Interventions
Short Term (2022-24)

Medium Term
(2025-30)

Long Term(2031-38)

Instrument

Key Stakeholders

National & State
PolicyAlignment

3.2 Assess the role of discoms in space cooling transition to district energy and cooling as a service models
Assess the role discoms can play in the space coolingtransition to district energy technologies and CaaS
models:• Impact on the grid from rapid additional space coolingdemand in the next 20 years, including peak load,
power procurement, and excess power export to thegrid• Leveraging data from smart meters• Role of off-peak tariff structures, large-scale
integration of thermal storage and renewables
Design of targeted space cooling DSM programs throughperiodical load research, understanding consumer-wiseload curves, etc.

Knowledge

Discoms,
DSM Regulations
BEE, Ministryof Power

4. Adapt cities to manage heat stress
4.1 Integrate climate data and long-term measures to increase resilience of at-risk communities,
as part of disaster risk reduction and preparedness planning in cities
Mapping future climate risk to design
disaster response:• Assess long-term heat wave risk
incorporating climate modelling topredict impacts (likely frequency,
intensity and duration of heatwaves)• Map risks for vulnerable
communities and city-wide impacts

132

Climate Investment Opportunities in India’s Cooling Sector

Support states and cities in developing
and implementing an integrated disaster
response framework including:• Systematic long-term data collection andassessment of likely heat risk
• Cooling action plans of heat related
impacts for vulnerable communities,
including coordination frameworks withother departments such as housing andurban planning

Knowledge,
policy

NDMA, IMD,DST

National Mission on
Strategic Knowledge
for Climate Change,
National Disaster Management Act, Urban
Heat Action Plans

Proposed Interventions
Medium Term
(2025-30)

Short Term (2022-24)•

Assess critical infrastructure’s(electricity grids, healthinfrastructure, etc.) ability torespond in a heat wave incident
and resilience measures needed•Long Term(2031-38)

Instrument

National & State
PolicyAlignment

Key Stakeholders

Guidance on impacts and resilience of
critical infrastructure services for relevant
ministries and departments

4.2 Mainstream passive cooling measures in urban planning, enable private sector participation andknowledge alliances to aid implementation in cities
Develop guidelines for cities to
Mainstream urban passive cooling measures Policy
integrate and implement urban passive across local and urban planning policies andcooling measures in local and city
frameworks in cities.
level planning frameworks. This should • Technical and financial support for pilot
include:projects such as upgrading of pavements,• Passive cooling measures,street design, urban parks, etc.
application and costs• Capacity building of relevant city
Guidance on how to integrate in new
officials/ planners about the need fordesign and retrofits
passive urban cooling measures andimplementation guidance• Leveraging trigger points for costAssess synergies with existing urban
effectively dovetailing specific urban
regulations and funding streams forcooling interventions
implementing urban cooling measures,
Inclusionof design requirements andsuch as state and city level climate
materials
in standard contracting processeschange action plans/ adaptation plans

MoHUA,NIUA, state
UDD, ULBs,
state environment departments

Local area plans,
urban masterplansstate/ city action planson climate change/
adaptation plans

Climate Investment Opportunities in India’s Cooling Sector

133Proposed Interventions
Short Term (2022-24)

Medium Term
(2025-30)

Create knowledge alliances to support cities throughcollaboration with local academic institutions, civil society
and global city-to-city partnerships to exchange bestpractices.

Long Term(2031-38)

Instrument

Assess impact of
successful models to
inform replication andscaling up of solutions incities.

Knowledge,
policyCreate awareness about pilots, best practices andassessment of multiple benefits (public health, urban
resiliency and climate change) for the city and thecommunity.
Develop and pilot innovative models for states and cities
to enable private sector participation in implementing
urban cooling measures such as NbS:
• Earmark CSR funding for urban climate adaptation
measures including passive cooling measures.
• Access CSR, philanthropy-based grants todemonstrate pilot solutions
Develop assessment methods for value creation forcommunities combined with community participatorymodels for local level solutions
Support cities in implementation of urban
Develop guidelines to address heatcooling action plans for vulnerable
stress for vulnerable communities incommunities
urban areas.
• Integrating long-term measures for• Identifying short- and longincreasing resilience in urban heat action
term measures such as accessplans
to cooling shelters, cool roof
programs for publicand privatebuildings, retrofitting informal andother social housing, integratingtargeted NbS

134

Climate Investment Opportunities in India’s Cooling Sector

Key Stakeholders

National & State
PolicyAlignment

NIUA,
ULBs, state
government,
academic andcivil society
institutions

State UDD,
Policy,ULBs, CSR,
investment:
public and pri- grants
vate finance,
knowledge

CSR, State Action
Plans for Climate
ChangePolicyNational Disaster
Management Act,
Urban Heat Action
Plans, State Action
Plans for Climate
ChangeNational &state disastermanagement
agencies,
ULBs, state
environment
departments

Proposed Interventions
Medium Term
(2025-30)

Short Term (2022-24)•

Enabling community participationin developing action plansincluding creation of awarenessabout heat-related impacts,
response during a heat wave
incident, communicating tangible
benefits
Frameworks for inter-sectoral
coordination and budgets foradaptation measures in urban
planning and heat related disaster
response•

Long Term(2031-38)

Inter-departmental governancemechanisms for implementation of thesemeasures

Instrument

Key Stakeholders

National & State
PolicyAlignment

PHFI, MoHUA, NIUA

Identifying and accessing funding sources
including municipal, climate adaptation, publichealth and disaster response budgets

CPWD: Central Public Works Department; CREDAI: Confederation of Real Estate Developers’ Associations of India; DSM:
Demand Side Management; HUDCO: Housing and Urban Development Corporation Ltd.; NHB: National Housing Bank;NIUA: National Institute of Urban Affairs; PAT: Perform Achieve and Trade; PNGRB: Petroleum and Natural Gas Regulatory
Board; SDA: State Designated Agency; SIDBI: Small Industries Development Bank of India; TCPO: Town and Country Planning
Organisation; UDD: Urban Development Department; URDPFI: Urban and Regional Development Plans Formulation and
Implementation

Climate Investment Opportunities in India’s Cooling Sector

135

Annexure 3: Detailed Roadmap for Cold Chain and Refrigeration Sector
Note: Prioritized opportunity and its roadmap has been highlighted

Proposed Interventions
Short Term (2022-24)

Medium Term
(2025-30)

Long Term(2031-38)

Instruments

Key
Stakeholders

National & State
Policy Alignment

1. Support development of new energy efficient and sustainable cold chain networks
1.1 Supporting development of sustainable and energy efficient end-to-end cold chain networks,
including refrigerated transport

136

Conduct nation-wide assessment to
identify infrastructure gaps for eachcold chain subsector (i.e., horticulture
produce, fish, meat, dairy, healthcare)that results in losses

Establishing sustainable large-scale cold chain
infrastructure where gaps identified throughmodels similar to Mega Food Parks

Knowledge

MoFPI, MoFAHD, PMKSY, MIDH
MoAFW
, NHM

Develop action plan for setting up smallscale decentralized cold chain throughcooperatives/FPOs at village/clusterlevel• Develop business models for
producer owned cold supply chains• Explore potential of rural cold chain
corridors through e-logistics online
platforms that connect growers with
consumers using a sustainable endto-end cold chain

Create incentives for FPOs to develop direct
market linkages with end-to-end decentralized
sustainable cold chains

Knowledge,
policy,investment
privatefinance,
MDBs/FIs

MoFPI, MoFAHD, DFI, PMFME
MoAFWDevelop leasing and renting models forsmall-scale cold storages, similar to pay
per use models for for farm equipment

Modify existing
schemes to include
cold chain components
as rental options

Policy,knowledge

CaaS, MoAFW,
MoHFWClimate Investment Opportunities in India’s Cooling Sector

Support APMCs to develop cold chain links at
mandis to reduce food loss at market

Scale up of
successful renting
and leasing models
across the country

SMAM, CSISAC

Proposed Interventions
Instruments

Key
Stakeholders

Develop linkages with initiatives
Implement pilot
such as CaaS to assess feasibility of projects for cold chain
such models in India
components in a CaaS,
pay as you go, leasing
model CaaS, pay as yougo, leasing model
Enforce measures
Implement measures
Set up inter-ministerial committee,
proposed by committee proposed bywith MoFPI as nodal entity, to identify
committee
to bring in ease ofchallenges in implementation andpropose policy/regulatory measures for implementation of anlarge-scale effective implementation of integrated cold supply“Integrated Cold Chain, Value Addition
chain
and Preservation Infrastructure”

PolicyMoFPI, MoAFW, PMKSYFSSAI, MoFAHD

Modify existing schemes (MIDH, etc.)
to provide preference for developmentof multi-commodity cold chain (rather
than single commodity cold chain as has
been the case thus far)Bring in schemes/ incentives to ensure that
construction of all new cold chain components
is carried out in a holistic manner, ensuring
end-to-end linkages

Policy,investment
publicfinance,
MDBs/FIs

MoFPI, NCCD,
MoAFW, APEDAPMKSY, MIDH,
NHM

Develop MIS through inter-ministerial
collaboration, to track infrastructuredevelopment and e-performancemonitoring to improve overall efficiency
of cold-chain systems:• Can be built along lines of MoHFWs
eVIN portal

Ensure that all decision making and monitoring Knowledge
for cold chain infrastructure development
is carried out with the support of the MIS,
ensuring sustainable development• Regularly upgrade MIS in line with new
research and technology advancements

MoFPI, MoAFW,
MoHFW,MoRTH, MNRE

PMKSY

Short Term (2022-24)

Medium Term
(2025-30)

Long Term(2031-38)

National & State
Policy Alignment•

Climate Investment Opportunities in India’s Cooling Sector

137Proposed Interventions
Short Term (2022-24)

Policy,investment
public andprivatefinance,
MDBs/FIs

MNRE, MoFPI,MoAFW,MoFAHD,
MoHFW, MIDH

Support R&D for development of Promote scale up of proven technologies throughgrants and loans
domestic low-cost solutions forlast mile delivery of vaccines andtemperature sensitive medicines

Knowledge,
investment
public andprivatefinance

MoHFW, DST

Support market growth ofsuper-efficient domestic andcommercial refrigeration
systems• Support target setting formarket transformation/
adoption of energy efficient

Support demonstration projects
to showcase scalable RE
technologies – both at farm gate
and at scale.

Instruments

Key
Stakeholders

Support scale
up of proventechnologies

Identify technologies for RE
integration• Conduct feasibility studies
for different componentsof cold chain, in different
regions across the country• Assess feasibility of scaling
up existing RE solutions(Ecozen, Inficold, Bharat
Refrigerations, etc.)• Support domestic R&D on
decentralized RE-based
cold chain solutions for both
agriculture and healthcare

138

Medium Term (2025-30)

Long Term(2031-38)

National & State
PolicyAlignment
PM KUSUM,
Make in India,
PMKSY

Develop incubation center for
research on low cost RE solutions
for cold chain

Support scale up/ manufacturing of low-cost alternate
energy refrigerators developed, including providing
support with marketing

Climate Investment Opportunities in India’s Cooling Sector

Policy,BEE, MoCI, DBT
investments,
knowledge
public finance(incentive/

Make in India,
Atmanirbhar
Bharat Abhiyan

Make inIndia, Energy
Conservation
Act, Atmanirbhar
Bharat Abhiyan

Proposed Interventions
Short Term (2022-24)

•
•

•
•

Medium Term (2025-30)

refrigeration systems
Create incentives for
consumers on higher
efficiency refrigeration systems
Build public awareness on
usage and operation efficiency,
along with lifetime costs ofhigher efficiency refrigeration
systems
Introduce retrofit/upcycle
program for replacement of
inefficient refrigeration systems
Support R&D for developmentof low-cost, alternate energy
supply-based refrigerators forrural areas

Initiate market transformation
Create programs for giving
program for driving
incentives to upstream
improvements in equipment
manufacturers to reduce costs ofefficiency (domestic refrigerators components such as BLDC fansand commercial deep freezers)
Support R&D for domestic• Assess potential for upstream
production of technologies notincentives, and explore
currently being produced in thesynergies with initiatives
country/cost of manufacturing
under Make in India programis too high, e.g., energy-efficient(for refrigeration components
heat exchanger technology,
such as highly efficient
super-efficient design technology
compressors, fan motors,
for small compressors andvacuum insulation panels,
motors, insulation, etc.
etc.)

Long Term(2031-38)

Instruments

Key
Stakeholders

National & State
Policy Alignment

BEE, MoCI, DST
Policy,investments,
knowledge
public finance(incentive/
subsidy/preferential
procurement)

Make inIndia, Energy
Conservation
Act, Atmanirbhar
Bharat Abhiyan

subsidy/preferential
procurement)

Climate Investment Opportunities in India’s Cooling Sector

139Proposed Interventions
Medium Term
(2025-30)

Short Term(2022-24)
Introduce policy to support
adoption of commercially
viable alternative clean coolingtechnologies for refrigerated
transport

Support development of infrastructure needed toscale up application of alternative clean coolingtechnologies across the country, e.g., development ofcharging stations for PCM based reefer trucks• Develop linkages with schemes (e.g., FAME II,
NEMPP2) that are developing charging stations for
e-vehicles to also include infrastructure for reefers

Design policy that incentivizes refrigerated transport service
providers to increasingly move their fleets to electric and non-fossil
fuel-based cooling

Develop linkages with Aajeevika
Grameen Express Yojana that
supports development of public
transport links in rural areas,
supporting movement of people
and produce• Feasibility studies to assess
possibility of developing
refrigerated transport as apublic transport/ sharingmodel• Develop business models
for refrigerated transport asa public transport/ sharing
model

140

Long Term(2031-38)

Support pilot projects with selfhelp groups/FPOs to develop
small-scale refrigerated public
transport systems

Climate Investment Opportunities in India’s Cooling Sector

Make it mandatory
to use electric andnon-fossil fuelbased cooling in
all refrigerated
transport
Support scale
up of successfulmodels, withpriority given to
remote regions

Key
Stakeholders

National & State
Policy Alignment

Policy,investment
National
Automotive
Board, EESLMoRTH,
Ministry ofPower, MoFPI,MoAFW,MoFAHD,
MoHFW,NCCD

Automotive
IndustryStandard, FAME,
NEMMP

PolicyMoFPI, MoAFW, DAY-NRLM
MoHFW,MoRTH,
MoRD

Instrument

MoFPI, MoAFW,
Knowledge,
MoHFW,
investment
public finance, MoRTH, MoRD
MDBs/FIs

Proposed Interventions
Short Term (2022-24)

Support state-wisedemonstration projects
to showcase use of newtechnology in reefer systems

Medium Term
(2025-30)

Long Term(2031-38)

Support scale up of proventechnologies in energy efficient
reefers through grants andsubsidies

Introduce low interest loans
on fuel free or electric reefersystems based on thermal
battery/PCM technology, etc.
Develop multimodal cold chain
links through rail and highways,
aiming at a fast-track green
corridor for perishables• Identify linkages with Kisan
Rail scheme and Green
Energy Corridor Project• Needs assessment tounderstand critical regions
where development ofrefrigerated rail and highway
links will have biggest
advantage, in terms ofboth energy efficiency andreducing food loss
• Prioritize regions with highproduction of perishables

Instruments

Key
Stakeholders

National & State
Policy Alignment

Knowledge,
investment
privatefinance,
MDBs/FIs

MoRTH, Ministryof Power,
DST, research
institutes,
private logistics
companies
MoRTH, Ministryof Power

Make in India

Investment
privatefinance,
MDBs/FIs
Scale up development of green corridor/ better
railway and highway linkages to other regions in the
country

Priority Sector
Lending, SMAM

Investment
Ministry of
Kisan Rail, Green
public finance Railways,
Energy Corridor
MoRTH, MoAFW,
MNRE

Climate Investment Opportunities in India’s Cooling Sector

141

Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term(2031-38)

Instrument

Key
Stakeholders

National & State
PolicyAlignment

1.2 Promote better operations and servicing through capacity building of all stakeholders, and incorporation ofeffective monitoring systems
Incorporate IoT in cold chains
and refrigeration energy
efficiency codes with minimum
reporting standards on efficiency
and O&M
Promote use of IoT in coldchain logistics (similar to eVIN)
for maintenance and remotemonitoring of temperaturecontrolled refrigeration systems
to adhere to standards-Support pilot demonstration
projects for IoT implementation
and reporting norms in different
components of the cold chain
Promote scale up of low-cost
solutions for monitoring andreporting to increase energy
efficiency and maintain safety
standards
Support research to understandtemperature and coolingrequirements of different crops

142

Incentivize service providers andlogistics owners to incorporate
IoT-based monitoring in cold
supply chain and to adhere tosafety standards

Incorporate crop specifictemperature requirements into
food safety standards

Climate Investment Opportunities in India’s Cooling Sector

Introduce
legislation/
policy to maketemperaturemonitoring/
logging mandatory
for perishable,
vaccine andmedicine handling

public andprivatefinance,
MDBs/
FIs Policy,
investment

FSSAI, MoHFW,
MoAFW,MoFAHD, MoFPI,ICAR

The Food Safety
and Standards
Act, 2006,
National Vaccine
PolicyProposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term(2031-38)

Ensure successful implementation of Introduce
universal
skill development program:• Establish training centers/ centers mandatory
certification for allof excellence across India andtechnicians
upgrade training centers• Promote online refresher
courses on new andupcoming technologies as
skill enhancement support fortechnicians• Design programs for building
customer awareness on needand benefits of hiring only
certified technicians• Develop incentives for customers
to engage certified technicians inearly phase of certification
Ensure updating
Develop training/ awareness programs for:• Farmers, middlemen, traders, etc., on better post-harvestof training
moduleshandling and management of produce• To be in line
• Medical staff, who handle vaccines and temperature-controlled
medicines, on optimal functioning of cold chain equipmentwith latest
research andtechnologies• Carry out
regularawareness
programs
Develop and promote training
and certification courses for cold
chain and refrigerator operatorsand technicians on GSP• Limited validity programswith regular license renewal
every 2-3 years

Instrument

Policy,knowledge

Key
Stakeholders

MSDE, NCCD

National & State
PolicyAlignment

Skill India
Mission - PMKVYClimate Investment Opportunities in India’s Cooling Sector

143Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term(2031-38)

Instrument

Key
Stakeholders

National & State
PolicyAlignment

2. Improve energy efficiency and integrating RE in existing cold chain infrastructure, and strengthen systems
2.1 Retrofitting of existing static cold-chain infrastructure and refrigeration systems
Develop specific program for
retrofitting of existing cold storages
to improve efficiency and integrate
renewables• Identify convergences withexisting ongoing programs• Develop guidelines that outline
requirements for retrofitting ofdifferent cold chain infrastructurecomponents• Assign targets to state levelhorticulture departments forachieving retrofits• Develop guidelines for safe
disposal of old and obsolete
equipment, including provisions
for enforcing EPR and e-waste
guidelines

Bring incentives for private
owners to retrofit• Enhance existing schemesfor energy efficiency(CSISAC) to include
retrofitting of existing cold
chain infrastructure• Develop awarenessamongst owners onenergy savings achieved
with retrofitting

Make retrofittingof old cold
storages
mandatory

Policy,NCCD, MoFPI, PMKSY, MIHD,
investment
MoAFW,
NHM, CSISAC
public finance, MoHFW
MDBs/FIs

2.2 Developing standards and certification for RE integration, and inclusion of energy efficientdesign and technologies in cold chain and refrigeration
Notify standards for energy efficientdesign of cold chain infrastructure
and RE integration, along withrecommended efficient technologies:

144

Climate Investment Opportunities in India’s Cooling Sector

Create incentives forvoluntary adoption of energy
efficient design standards,
and RE integration

Make mandatory
the inclusion ofenergy efficientdesign standards

PolicyBEE, NCCD,MoFPI,MoAFW,MoFAHD,MoHFW

PMKSY, PMKUSUM, Capital
Investment

Proposed Interventions
Short Term (2022-24)••

Enhance existing standards
for promoting adoption ofenergy efficient technologies,
including RE technologies
under “Guidelines & Minimum
System Standards for
Implementation in Cold-chain
Components” (published by
NCCD75)Integrate with guidelines
outlined in “The Design
Guide Energy Efficiency
Improvements in Commercial
Buildings” by BEE, to include
elements relevant fordevelopment of cold chain
infrastructure

Introduce dedicated credit lines
for small-scale and large projects
integrating criteria for energy
efficient cold chain design

Medium Term (2025Long Term
30)
(2031-38)
when constructing any new cold
• Link with existing
chain infrastructure components
schemes (Capital
Investment Subsidy
Scheme of NHB) thatprovide subsidies forconstruction of cold
chain infrastructure
to include incentives
for adoption ofenergy efficiency
design standards
and technologies,
and RE integration• Introduce lowinterest loans forenergy efficientdesign integration incold chain

Develop an efficiency rating/
Bring in guidelines forcertification system for measuring mandatory annual energy
energy efficiency in new andaudits of cold chain
retrofitted cold chain infrastructure infrastructure to getbenefits of schemes andsubsidiesKey

Instrument Stakeholders

National &State Policy
Alignment

Subsidy Scheme(NHB), MIDH,
NHM

Investment
MDBs/FIs

NCCD,
MoFPI,
MoAFW

Priority Sector
Lending, Make in
India

Mandatory energy efficiency
Policy,certification of all new cold chain knowledge
components• Certification linked to annual
energy audits• Provide incentives formaintaining high energy
efficiency rating

BEE,
NCCD,
MoAFW

PMKSY, MIDH,
NHM, Make in
India

Climate Investment Opportunities in India’s Cooling Sector

145Proposed Interventions
Short Term (2022-24)

146

Medium Term
(2025-30)

Long Term(2031-38)

Instrument

Key
Stakeholders

National & State
PolicyAlignment

Upgrade star rating for frost-free and Ensure regular upgradation of star rating
district cooling refrigerators every 2-3
years• Needs to follow pace ofbest available technologies
in international markets tobring about energy efficiency
improvements in appliances• Include multi-door and side-byside refrigerators in mandatorystar rating label

PolicyBEE

EnergyConservation Act,
S&L Program

Shift from voluntary BEE star rating(2020) to mandatory star label forcommercial deep freezers andchillers
Design voluntary star ratings for other Shift from voluntary tocommercial refrigeration technologies mandatory star labels
such as drinking water coolers, etc.

PolicyBEE

EnergyConservation Act,
S&L Program

Climate Investment Opportunities in India’s Cooling Sector

Ensure regularupgradation ofstar rating

Annex 4: Detailed Roadmap for Passenger Transport Air Conditioning Sector
Note: Prioritized opportunity and its roadmap has been highlighted

Proposed Interventions
Short Term (2022-24)

Medium Term
(2025-30)

Long Term(2031-38)

Instrument

Key
Stakeholders

National & State
PolicyAlignment

PolicyMoRTHCAFÉ a norms

PolicyMoRTHCAFÉ norms

1. Improve efficiency of MAC systems in passenger transport vehicles
1.1 S&L for vehicles
Implement and continuously improve thefuel efficiency standards for vehicles:• Introduce Standard 2 of fuel efficiency
norms for passenger cars in 2022-23• Fast track implementation of fuelefficiency standards for passenger
buses which will drive manufacturers
to improve fuel efficiency. Per ICCT,
20-25% fuel reduction is possible
by improving rolling resistance andauxiliary loads, optimizing driver
behavior, improved engine andtransmission efficiencies and reducing
vehicle weight.

Develop more stringent
targets of fuel efficiency for2026 and 2030

Enforce targets
and periodically
update the same

Enforce amendment in testing methodology
Notify mandatory testing of all new
manufactured air-conditioned passenger cars effectively
with air conditioner ‘ON’ condition to provide
realistic fuel efficiency and emissions profile
to encourage improved MAC efficiency.
Revise testing methodology for CAFÉ
standard compliance to include switching onof air conditioner while testing to give a more
realistic fuel consumption scenario.

Climate Investment Opportunities in India’s Cooling Sector

147

Proposed Interventions
Short Term (2022-24)

Medium Term
(2025-30)

Long Term(2031-38)

Implement incentive mechanisms for
Encourage compliance of revised CAFÉ
standard by:
manufacturers to adopt efficient MAC systems• Developing an incentive mechanism(such as a certification and trading
system) for manufacturers to increase
compliance with CAFÉ standards andpromote usage of energy efficient MAC
system.
• Designing a carbon finance program tosupport compliance
Introduce a labelling system for cars to build Introduce and periodically update labels for cars
public awareness on energy efficiency ofvehicles. Explore incorporation of emission
intensity in the label by integrating low-GWP
refrigerants into the equation

Instrument
Policy,investment(carbonfinance)

PolicyKey
Stakeholders

National & State
PolicyAlignment

MoRTH

CAFÉ norms

MoRTH,BEE

S&L program

1.2 R&D and commercialization of efficient MAC systems
Support R&D to improve energy efficiencyof air conditioners in hybrid and electricvehicles and reduce battery energy
consumption. Energy consumption bybatteries for AC purposes in e-vehicles
is a major issue, especially in hot climate
countries such as India. Air conditioners in
e-vehicles tend to consume up to 40% ofbattery energy

148

Climate Investment Opportunities in India’s Cooling Sector

Policies to support adoption of energy efficiency
and low-GWP refrigerant-based MAC systems in
hybrid and electric vehicles

Knowledge, DST,
policyMinistryof Heavy
Industries,
R&D
institutes,
electric
vehiclemanufacturers

FAME Scheme

Proposed Interventions
Medium Term
(2025-30)

Short Term (2022-24)
Develop a program which encourages
private sector R&D on technologies thathave high energy efficiency and use lowGWP refrigerants.

Long Term(2031-38)

Create incentives and policy guidance tosupport commercialization/scale up of proventechnologies, particularly those which haveapplication in public transportation systems

Instrument

Key
Stakeholders

Knowledge, DST,
policyMoRTH,
manufacturers

National & State
PolicyAlignment
MissionInnovation

2. Optimize demand for transport air conditioning
2.1 Modal shift to public transportation
Develop guidelines for appropriate thermal
comfort and heat stress management
approaches in public transport systems,
particularly for vehicle operators in cities
with higher ambient temperature climatesand prone to heat waves

Build integrated and high-quality public transportsystems to shift passenger traffic from private
vehiclesPolicyMoRTHAtal Mission for
Rejuvenationand Urban
Transformation– Public
Transportation
National Mission
on Sustainable
HabitatSmart Cities
Mission, 2015
Green Urban
Mobility Scheme,
2017
Metro Rail Policy
2017
National
E-Mobility
Program, 2018

Climate Investment Opportunities in India’s Cooling Sector

149Proposed Interventions
Short Term (2022-24)

Medium Term
(2025-30)

Long Term(2031-38)

Instrument

Key
Stakeholders

2.2 Load reduction
Develop vehicle design specifications/guidelines which support load reduction
through: (a) improving ventilation/insulationof vehicles; and (b) using targetedcooling that directly cools a passenger
without having to cool the entire vehicle.
Combined, the two strategies can reduce
air conditioner energy consumption by 2231%, depending on the climate123

Implement and periodically update vehicle
design specifications based on latest technology
developments

CSISAC: Central Sector Integrated Scheme on Agricultural Cooperation

150

Climate Investment Opportunities in India’s Cooling Sector

PolicyMoRTH,MoHUA

National & State
PolicyAlignmentAnnex 5: Detailed Roadmap for Refrigerants
Note: Prioritized opportunity and its roadmap has been highlighted

Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term(2031-38)

Instrument

Key
Stakeholders

National & State
PolicyAlignment

MoEFCC,MoCI, MoFPI,MoAFW, MoHUA, MoUD,
MoRTH

India’s ratification of Kigali
Amendment to
the Montreal
ProtocolBIS,
BEE

Standards by BIS(for safety) andBEE (for buildingcode)

1. Support HFC phase down through roadmaps, policies and public procurement
1.1 Roadmaps, standards and guidelines for low-GWP refrigerants
Develop India’s KIP. The GovSupport implementation of India’s
ernment of India has announced KIP by:that a 'National strategy for• Developing technology
phase down of Hydrofluororoadmaps combined withcarbons' is to be developed bymodelling phasedown
2023
requirements• Amending Ozone Depleting
Substances (Regulation andDevelop safety standards andControl) Rules 2000 and its
appropriate building codes foramendment to align with Kigali
flammable and toxic refrigerants
Amendment to the Montreal
across all sectors. In line with
Protocolthis, develop safety regulations•
Introducing a licensing system
particularly for ammonia-basedfor controlling the import andcooling and ensure its strict
export of HFCs
implementation in industrial
process cooling and cold chainas ammonia is cost effective andzero GWP refrigerant with abundant usage in India.

Conduct periodic mon- Policy
itoring and evaluationof the implementationof India’s KIP

PolicyImplement and update safety standards building codes periodically toreflect latest developments in lowGWP refrigerants

Climate Investment Opportunities in India’s Cooling Sector

151

Proposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Promote adoption of low-GWP
refrigerants and technologies
with lower refrigerant demand(i.e., clean technologies) by:i) Creating a rating system toprovide preference to low-GWP
refrigerants and clean technologies in codes and standards.
ii) Supporting pilots to demonstrate performance and viability

Key
Instrument
Stakeholders

Long Term(2031-38)

National & State
PolicyAlignment

PolicyMoEFCC, BEE,
BIS

MissionInnovation,
Start-up India

PolicyMoEFCC, MoCI

India’s ratification of Kigali
Amendment to
the Montreal
Protocol

1.2 Incentives for adoption of low-GWP refrigerants
Conduct assessment and industry-wise dialogs to design pragmatic regulations for HFC phasedown across each sector. The
assessment should explore thefeasibility of various regulatory
options such as quota/cap andphase-down, tax and refund, limits on GWPs and incentives for
low-GWP products, environmental cess, subsidies for using low
GWP refrigerants and products

152

Introduce regulatory
mechanisms for HFC
phase down which
consider sector-specific technology
access and economic viability aspects.
These should bealigned to support
achievement of India’s KIP

Climate Investment Opportunities in India’s Cooling Sector

Proposed Interventions
Short Term (2022-24)

Long Term(2031-38)

Medium Term
(2025-30)

Expanding the 'green category',
currently assigned only for RACs, toall refrigerant based products under
GeM portal
Mandating the procurement of refrigeration and air-conditioning productswith low-GWP refrigerants in government offices

Instrument

Key
Stakeholders

National & State Policy
Alignment

PolicyMoCI

GeM

PolicyMinistry of
Finance, state
governments

General Financial Rules

2. Promote domestic R&D and indigenous production of low-GWP refrigerants
2.1 Research & Development of low-GWP refrigerants
Establish a domestic R&D programby:• Instituting a government
operated steering committeewith representation from relevant
ministries, R&D institutes, experts
and private sector companies to
identify and map the knowledge,
expertise and capabilities
available both in terms of
manpower and lab facilities, whiledeveloping a R&D roadmap for
low-GWP refrigerants• Operationalizing an R&D program
to identify and pilot test low
GWP alternative and naturalrefrigerants which are

Create businessmodels and value
chain development
for commercializationof low-GWP
alternatives identified
through indigenous
R&D
Support new
molecule research,
possibly from two
R&D institutions
with clear review
mechanism andincentives forcorporates forKnowledge DST; MoEFCC; Mission Innovation,
prominent R&D Start-Up India
institutes suchas CSIR-IICT,
IITs, IISC, andNITs; MoCISupport further
development anddeployment of newmolecule research:• Review molecule
research and,application lab
effectivenessKnowledge, DST, MoEFCC, Mission Innovation
policyprominent R&D
institutes suchas CSIR-IICT,
IITs, IISC, andNITs

Climate Investment Opportunities in India’s Cooling Sector

153Proposed Interventions
Long Term(2031-38)

Medium Term
(2025-30)

Short Term (2022-24)

suited to the Indian market needs molecule research
and ambient conditions while
ensuring achievement of safety
standards and energy efficiency••

Instrument

Key
Stakeholders

National & State Policy
Alignment

effectiveness progress and further
strengthening of
infrastructure
Review regulatory/
policy framework
for launching the
newly developed
molecules

2.2 Indigenous production of low-GWP refrigerants
Support indigenous production ofhydrocarbon (R600A and R290)
refrigerants

Develop low-GWP
alternative production
process and setting
up of production
facility for themwhich are based on
indigenous R&D

Develop knowledge/training
centers for enhancing capabilities ofrefrigerant manufacturers for energyefficient and low-GWP refrigerants

154

Climate Investment Opportunities in India’s Cooling Sector••

Support
Policy,commercial scale
investment
production of HFOs (private
Demonstration offinance)bench and pilot
production of
newly developed
molecules basedon indigenous R&D

MoEFCC, MoCI, Make in India
MDBs, FIs

Knowledge MoEFCC, MSDE Skill India Mission PMKVYProposed Interventions
Short Term (2022-24)

Medium Term (2025-30)

Long Term(2031-38)

Instrument

Key
Stakeholders

National &State Policy
Alignment

3. Improve servicing, maintenance and disposal to reduce refrigerant demand
3.1 Proper servicing and maintenance of refrigerant-based equipment to reduce refrigerant leakage
Design a program to support skilling oftechnicians and supporting their employment by:i) Designing training and certification programsfor service technicians on GSP across sectors
to better manage and reduce refrigerant losses
during recharge and end-of-life. Amongst
sectors, priority should be given to RAC sector
which has tremendous market share and growthpotential. MoEFCC recently released the bookon ‘Good Servicing Practices for Energy Efficient
Operations of Room Air Conditioners’ whichshould be taken forward through dedicatedtraining programsii) Conducting a state-wise assessment of thedemand and availability of trained service
technicians as well as availability and quality of
training institutionsiii) Conducting dialog with industry to encourage
participation in training delivery and seeking its
commitment to employ a fixed number of trained
candidatesiv) Operationalizing central voluntary certification
scheme through a single government entity
under a single framework

Introduce
Policy,Ensure successful
universal
knowledge
implementation of the skill
mandatory
development program ofcertifications fortechnicians by:
all techniciansi) Establishing training
centers/centers of
excellence across India
and upgradation of training
centersii) Promoting online refresher
training courses on new andupcoming technologies as
skill enhancement support
for techniciansiii) Designing programs tobuild customer awarenesson the need and benefitsof hiring only certified
techniciansiv)Developing a system tomandate the hiring of only
certified technicians by large
facilities

MSDE,
MoEFCC,MoHUA,MoCI,MoFPI,MoRTH

Skill India
Mission PMKVYClimate Investment Opportunities in India’s Cooling Sector

155Proposed Interventions

Key
Instrument
Stakeholders

National &State Policy
Alignment

PolicyMoCIGeM

Design policy and training program to support
the recovery, recycling and reclamation oreffective destruction of refrigerants

PolicyMSDE, MoEF- Skill India
CC, Sector
Mission Skill Councils PMKVYIntroduce subsidies to bring down cost of
recovery equipment

Policy,investment(public/
privatefinance)
Policy,investment(public/
privatefinance)
PolicyMoEFCC,
MDBs, FIs,
private companies

Short Term (2022-24)

Medium Term (2025-30)

Listing of empaneled certified or ITI-trained
servicing personnel on GeM portal to ensurecompetitive cost and reliable servicing forzero ozone-depleting substances /lower GWP
products.

Long Term(2031-38)

3.2 Recovery, recycling and reclamation of refrigerants

Support infrastructure development andincentivize recycling and reclamation ofrefrigerants and for safe and effective end-of-life
management of gases
•
•

156

Training of technicians to support recovery
and transport of refrigerants to reclamation
centers
Mandate public sector to utilize licensed
service technicians only

Climate Investment Opportunities in India’s Cooling Sector

MoEFCC,
MDBs, FIs,
Private Companies
MSDE,
MoEFCC,
Sector Skill
Councils

Skill India
Mission-PMKVY

Proposed Interventions
Short Term (2022-24)
Embed refrigerant disposal guidelines within
existing regulatory mechanisms of end-oflife disposal of RACs, i.e., EPR and e-waste
guidelines for reclaiming electronic components
at end of life

Medium Term (2025-30)

Long Term(2031-38)

Key
Instrument
Stakeholders
PolicyMoEFCC

National &State Policy
Alignment
EPR ande-wasteguidelines

CSIR-IICT: Council of Scientific and Industrial Research Indian Institute of Chemical Technology; IIT: Indian Institute ofTechnology; IISC: Indian Institute of Science; NIT: National Institute of Technology

Climate Investment Opportunities in India’s Cooling Sector

157

158

Climate Investment Opportunities in India’s Cooling Sector

Climate Investment Opportunities in India’s Cooling Sector

159

Designed by:160

Climate Investment Opportunities in India’s Cooling Sector