International Finance Corporation IFC (World Bank)
Driving Innovation in Integrated Utility Services
IFC is the largest global development institution focused on the private sector in developing countries. By encouraging growth, IFC advances economic development, creates jobs and improves the lives of people. IFC works with global, regional, and local infrastructure players to improve the delivery of infrastructure services . As part of its climate change strategy and Smart Cities initiative, IFC is committed to finding opportunities to invest in sustainable cooling solutions in client countries. There are technologies and strategies that can respond to the increasing demand for space cooling in a more efficient manner. In cities specifically, where the scale of buildings includes multiple buildings within an area, district cooling (DC) can be a viable option.
General information
This assignment was to conduct a study in more than twenty emerging markets as well as select new cities currently being constructed or planned, to explore the potential for adopting district cooling, primarily targeting their commercial and mixed-use real estate in cities. In addition to informing IFC’s knowledge in this sector, the findings from this study will highlight business opportunities for IFC including identifying leads to develop DC projects, or where applicable, investment-ready project leads in the next 1-5 years. Some of the findings from this study was also shared as a public report on district cooling and its potential in priority emerging markets at the COP28 in UAE in 2023.
Our role
- Strategic country assessment covering 20+ emerging markets globally, selecting top ten countries for further and deeper assessment.
- Provided detailed descriptions of the current situation with cooling in the sectors of interest
- Assessed technical and economic potential of DC for the next 5-7 years
- Analysed possible conventional and innovative climate-friendly technological solutions
- Mapping of major DC players, including regional and potential international DC providers
- Business development and identification of specific DC investment project leads likely to materialize within 5 years, prioritizing greenfield projects
- Analysis of the enabling environment, including regulatory and financial incentives for DC projects, a DC code, inclusion of DC as part of green buildings standards, preferential electricity and water tariffs, standardized project development process, business model contracting
- Identification of regulatory and other barriers to DC
- Provided detailed recommendations for specific policy actions at the national and local government level to promote DC
Analyzed the climate impact of the proposed DC potential on countries’ GHG emissions, including quantifying energy savings as well as an estimated reduction of the peak power demand, and GHG emissions reductions
Developed of a high-level decision-making tool (DC tool) for real estate developers and local governments to
Benefits from project
- Increase awareness of District Cooling in the emerging markets
