The IEA estimates that $1.6 trillion will need to be spent on improving heating and cooling efficiency in buildings from 2014-2035 to implement new policy commitments announced at COP21. Many industrial, commercial, and residential cooling consumers will be capital constrained when faced with meeting these investments. A substantial proportion (the IEA estimates 40%) of the efficient, clean cooling investment requirement will need to come from external sources.

For consumers needing external funding, climate finance – whether from governments, development banks, philanthropic foundations, or in partnership with the private sector – can play a vital role in unlocking and providing the capital needed for efficient, clean cooling.

This briefing paper examines seven examples of finance schemes either exclusively targeting greater cooling efficiency or including cooling efficiency as part of a broader energy efficiency remit.