By Eamonn Ryan
This series is based on a joint GCCA–IFC webinar on the topic Cold Chain Insights in Emerging Markets, moderated by Amanda Brondy (GCCA), with contributions from Harsh Gupta, Cold Chain Lead, IFC; Rusmir Music, Global Cooling Lead, IFC; Selcuk Tanatar, TechEmerge Lead, IFC; Sunil Nair, Cooling Markets Lead India, GCCA; and Adam Thocher, Senior VP of Global Programs, GCCA.
This is part three of an eight-part series with this first part covering the topic: Cooling is both a major climate risk and a critical adaptation tool, requiring systemic and forward-looking investment strategies.
Cooling demand is rising faster than almost any other energy end-use globally. In emerging markets, this growth is driven by rising temperatures, urbanisation and increasing demand for safe food and healthcare. Yet without intervention, this surge risks locking countries into inefficient, high-emission cooling systems.
Music described cooling as a central climate challenge of the coming decades. On one hand, cooling is essential for adaptation – protecting food systems, medicines and human health in a warming world. On the other, poorly designed cooling systems can dramatically increase energy demand and greenhouse gas emissions.
According to IFC analysis, global cooling-related investment could exceed USD600-billion annually by mid-century. Cold chains represent a significant share of this figure, particularly as food systems modernise. Much of this growth will occur in regions with limited grid capacity and high reliance on fossil fuels.
A major concern highlighted during the webinar is ‘lock-in’. Once inefficient refrigeration equipment is installed, it often remains in use for decades. In emerging markets, affordability constraints can push businesses and households toward low-cost, inefficient technologies that increase long-term emissions and operating costs.
IFC’s approach emphasises systems thinking. Cooling should be considered alongside energy generation, storage, transport and demand management. Technologies such as phase change materials, thermal energy storage and renewable-powered refrigeration can reduce peak electricity demand and improve reliability.
The panel also emphasised that sustainable cooling is not merely an environmental objective – it is a business opportunity. Efficient cooling systems reduce operating costs, protect inventory and enhance resilience against power disruptions. These benefits translate into stronger cash flows and lower risk for investors.
By framing cooling as both a climate risk and an economic opportunity, IFC aims to shift investment patterns toward solutions that support long-term development goals. This requires co-ordinated action across finance, technology and policy – but the payoff is substantial.