The energy transition needs financing to succeed. A news item on the ETEnergyworld.com website from India describes a new fund of up to USD80 million that was announced this week in the US to help developing countries improve energy efficiency and phase out the use of hydrofluorocarbon (HFC) refrigerants.
New energy efficiency fund will help developing nations: Ajay Mathur
The creation of a new fund to improve energy efficiency in developing countries and phase out HFCs will enable them collaborate in achieving climate change goals effectively, a top official in green body today said.
A new fund of up to USD80 million was announced yesterday in the US to help developing countries improve energy efficiency and phase out the use of high Global Warming Potential (GWP) HFC (Hydrofluorocarbon) refrigerants.
The money will be targeted at helping countries that need assistance with the phasedown to be able to improve their energy efficiency and thus expand their economic savings.
“The creation of a new fund specifically for encouraging energy efficiency in developing countries concurrent with the phase-out of HFCs is a very welcome development,” Ajay Mathur, Director General, TERI said.
He said access to such funds bridges gaps in the existing multi-lateral fund under the Montreal Protocol and incentivises manufacturers to use latest energy-efficient technologies.
Mathur said that manufacturers in developing countries have for long sought such funds so that the transition to better refrigerants is complemented with more energy-efficient technologies, fully realizing the benefits of transitioning to low GWP refrigerant gases.
“Increasing the energy efficiency of appliances creates a win-win situation, resulting in the need for fewer additional power plants through lower electricity demand and reduced greenhouse gas emissions associated with both HFC use and with electricity production.
“Innovative approaches like this new fund can enable nations co-operate and collaborate towards achieving climate change mitigation goals more effectively,” he said.
TERI said India’s cooling needs are likely to increase due to increasing urbanization and better standards of living and thus HFC consumption is also likely to increase as more air- conditioners are made and sold.
India’s energy consumption is also going to increase correspondingly as more ACs are installed.
Incentivising energy efficiency is in line with India’s Intended Nationally Determined Contributions (INDCs) towards the Paris Agreement, which commits to reduce the emissions intensity of GDP by 33 to 35 percent by 2030 from the 2005-level.