LocationsUNDP’s Energy Efficiency Revolving Fund approved to accelerate sustainable cooling transition in Colombia, Ghana and Jordan
July 1, 2026
New York – UNDP has received approval for a landmark Energy Efficiency Revolving Fund (EERF) to accelerate the transition to energy-efficient, low-global warming potential (GWP) cooling technologies in the tourism and commercial sectors of Colombia, Ghana and Jordan.
Capitalized with US$20 million from the Multilateral Fund for the Implementation of the Montreal Protocol (MLF), the EERF will establish innovative and sustainable financing mechanisms, including concessional loans and other financial instruments, to help businesses overcome technical and financial barriers to adopt climate-friendly cooling solutions.
The initiative, implemented by UNDP, supports countries in meeting their commitments under the Kigali Amendment to the Montreal Protocol, which aims to phase down hydrofluorocarbons (HFCs)—powerful greenhouse gases commonly used in refrigeration and air-conditioning systems and improve energy efficiency simultaneously. By mobilizing capacities of local financial institutions and private sector investment, the EERF will support market transformation and enable businesses to replace inefficient cooling equipment with more sustainable alternatives.
“Lack of expertise on low-global warming potential (GWP) alternatives and affordable financing for end-users remain the biggest hurdles to accelerating market transformation toward sustainable cooling. The EERF offers a sustainable financing model, leveraging partnerships and expertise of the MLF, UNDP, governments, local financial institutions and industries to support the transition of numerous SMEs,” said Xiaofang Zhou, Head, UNDP Cooling, Circularity and Pollution Prevention Pillar.
"With an ambitious efficiency target of at least 25% improvement over baseline performance supported by the technical assistance activities, the fund enables beneficiaries to repay most of their loans through energy savings. Its revolving nature multiplies the initial investment, delivering greater and more lasting impacts than conventional approaches."- Xiaofang Zhou, Head of UNDP Cooling, Circularity and Pollution Prevention Pillar
The revolving fund model addresses the high upfront costs associated with sustainable cooling investments by providing concessional financing through national financial institutions. As repayments are reinvested into new projects, the initial capital can be leveraged multiple times, increasing long-term climate impact and supporting continued market transformation.
The combined lifetime impact of the EERF across the three pilot countries is projected to deliver over 1 million tonnes of CO₂-equivalent emissions reductions, combining direct reductions from replacing high-GWP refrigerants with indirect reductions from improved energy efficiency at least 25% over the baseline equipment. The initiative will also strengthen energy security by reducing electricity consumption from cooling systems.
Supporting sustainable cooling solutions across three pilot countries
With US$8 million in financing, the Colombian EERF will be implemented through Bancóldex, Colombia’s business development bank. The initiative will support the transition of commercial cooling systems in sectors including hotels, supermarkets and food distribution centers.
A key focus will be replacing HFC-intensive refrigeration systems, including those using refrigerants such as R-507A and R-410A, with efficient, low-GWP alternatives. The project is expected to deliver approximately 734,000 tonnes of CO₂-equivalent emissions reductions through both direct and indirect emission reductions over the equipment’s lifetime.
In Ghana, the EERF will be capitalized with US$4 million and implemented through participating commercial banks, including Fidelity Bank Ghana and First National Bank Ghana. The fund will support growing tourism and commercial sectors, where demand for cooling is increasing rapidly.
The initiative will help businesses overcome financing constraints and replace aging equipment that relies on high-GWP refrigerants, including R-134a and R-404A. Through improved equipment efficiency and better refrigerant management, the project is expected to generate more than 110,000 tonnes of CO₂-equivalent reductions through both direct and indirect emission reductions over the equipment’s lifetime.
Jordan’s EERF, supported with US$8 million, will be managed by the Central Bank of Jordan and delivered through participating commercial banks.
The fund will target hotels, restaurants, supermarkets, and cold storage facilities—key sectors supporting Jordan’s tourism-driven economy. By financing the replacement of approximately 45 MW of cooling capacity with energy-efficient systems using low-GWP refrigerants, the initiative is expected to deliver more than 250,000 tonnes of CO₂-equivalent emissions reductions through both direct and indirect emission reductions over the equipment’s lifetime.
Beyond emissions reductions, the EERF will provide valuable lessons from three diverse markets, creating a foundation for replication and scaling of innovative cooling finance models in other countries.
The initiative represents a major step toward a sustainable cooling future—protecting the climate, strengthening energy efficiency and supporting countries in achieving their commitments under the Montreal Protocol and Kigali Amendment.
The approval of the EERF forms part of a broader package endorsed at the 98th Meeting of the Executive Committee, where 39 UNDP-supported projects across 31 countries were approved, representing US$56 million in grant financing and US$82 million approved in principle.
Through its Multilateral Fund portfolio, UNDP has now mobilized more than US$1 billion in grant financing to support countries in advancing ozone protection, climate action and sustainable cooling transitions.
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