This is part three of a three-part series. At the Green Cooling Summit 2026, policy frameworks and financial instruments were identified as decisive levers for accelerating the shift to climate‑friendly cooling. This article explores – as highlighted within the welcoming comments by Dirk Messner, UBA and Ingrid-Gabriela Hoven, GIZ – how international agreements, national policies, and innovative financing can work together to overcome barriers and make green cooling the new standard.
Ingrid-Gabriela Hoven, GIZ. © RACA Journal
Technology alone will not transform the cooling sector. Even with mature natural refrigerant solutions on the market, hydrofluorocarbons (HFCs) still dominate room and building air conditioning worldwide. A central reference point for the summit is the Kigali Amendment to the Montreal Protocol, which celebrates its 10th anniversary. Kigali commits countries to a phasedown of HFCs, sending a clear signal that the availability of these high‑GWP refrigerants will dramatically decline by mid‑century.
This international framework is more than a symbolic gesture. It creates long‑term predictability for manufacturers, investors and policymakers, who can plan around a future where HFCs are increasingly constrained. However, translating this global commitment into concrete national action requires robust domestic policies and market mechanisms.
Minimum energy performance standards and beyond
One of the most powerful tools in the policy toolbox is Minimum Energy Performance Standards (MEPS). By setting baseline efficiency requirements for air conditioning equipment, governments can:
- Reduce overall energy demand from cooling
- Encourage manufacturers to invest in high‑efficiency, low‑GWP technologies
- Align climate and energy policy objectives
In practice, MEPS can work synergistically with refrigerant policies. High efficiency often aligns well with natural refrigerant solutions, enabling regulators to pursue both energy and climate goals simultaneously. Complementary instruments – such as labeling schemes, procurement standards, and targeted rebates – can further steer markets toward climate‑friendly options.
Incentives to accelerate the transition
Beyond standards, financial and regulatory incentives play a crucial role in tilting the market in favor of green cooling:
- Investment subsidies or tax credits can help offset higher upfront costs for climate‑friendly systems.
- Rebate programmes can encourage early adopters and stimulate demand.
- Public procurement policies can create anchor markets for natural refrigerant technologies, demonstrating feasibility at scale.
- These instruments are particularly important in regions where initial capital costs are a major barrier and where awareness of natural refrigerant options remains limited.
Financing green cooling and Cooling‑as‑a‑Service
The summit also highlights financing as a central challenge. Even when life‑cycle cost analyses show that natural refrigerant systems are cost‑effective, access to capital can hold projects back. To address this, stakeholders are exploring:
- Targeted credit lines and green financing facilities tailored to cooling projects
- Risk‑sharing mechanisms that make lenders more comfortable with new technologies
- Cooling‑as‑a‑Service (CaaS) models, where users pay for cooling delivered rather than owning the equipment
CaaS and similar models can remove upfront cost barriers, transfer performance risk to specialised providers, and incentivise long‑term efficiency. By aligning financial structures with climate objectives, such models can accelerate the adoption of green cooling solutions.
From commitments to implementation
The overall message from the Green Cooling Summit 2026 is: to move beyond pilot projects and niche markets, climate‑friendly cooling needs coherent policies, smart incentives and innovative finance. The Kigali Amendment provides the global direction; national and local actions must now turn that vision into reality.
With aligned policy frameworks and financing strategies, natural refrigerants and efficient technologies can rapidly expand their share in the building sector, reducing emissions while meeting the world’s growing need for comfort and safety.
© RACA Journal
