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 four of an eight-part series with this first part covering the topic: IFC’s cold chain investments show that sustainability and profitability can reinforce each other when projects are well designed.
Cold chain investments are among the most capital-intensive segments of food logistics. Warehouses, refrigeration systems and backup power require significant upfront investment, while operating costs remain high. IFC’s experience demonstrates that integrating sustainability into project design improves both financial and operational performance.
One key lesson from IFC’s portfolio is that cooling is often embedded within broader logistics or real estate projects. A warehouse may include substantial cold storage capacity, yet cooling is rarely treated as a distinct investment category. This can obscure risks, energy costs and opportunities for efficiency.
Green finance tools help address this gap. IFC’s EDGE Green Buildings programme provides standardised metrics for energy, water and materials efficiency. Cold storage facilities that meet EDGE standards have attracted favourable financing terms and strong tenant demand, particularly from multinational companies with sustainability commitments.
Blended finance has also played a role, especially in early-stage markets. By combining concessional funding with commercial capital, IFC can support innovative technologies while maintaining financial discipline. This approach helps overcome first-mover risks and demonstrates viability to private investors.
Importantly, the panel stressed that sustainability does not come at the expense of profitability. Efficient insulation, optimised layouts and advanced refrigeration systems reduce energy consumption and maintenance costs. Over the life of an asset, these savings often outweigh higher upfront costs.
Another lesson is the importance of local context. Financing structures must reflect local financial sector capacity, risk appetite, and regulatory frameworks. There is no one-size-fits-all solution, particularly in cold chains where actors range from multinational operators to small off-grid entrepreneurs.
Overall, IFC’s experience shows that sustainable cold chain finance is achievable when efficiency, scale and local conditions are considered together.