Representatives from government agencies, financial institutions, industry associations, energy service companies (ESCOs), and commercial and industrial (C&I) facilities came together in Makati City to launch the Detailed Preparation Phase (DPP) of the GreenCool Philippines: Energy Efficient Solutions for Commercial and Industrial Facilities (GreenCool Philippines) project.
Hosted by GIZ Philippines in partnership with the Department of Energy (DOE), the inception workshop marked an important milestone in the Mitigation Action Facility’s project development process. The event provided a platform for stakeholders to align on a shared vision, exchange perspectives, and jointly shape the project’s design and implementation approach.
GreenCool Philippines was selected to enter the Mitigation Action Facility’s DPP under the Call for Projects 2025. The DPP is designed to strengthen partnerships, refine implementation approaches, and ensure country ownership before full implementation. The workshop marked a key step toward developing the full Project Proposal, which is targeted for submission in early 2027 ahead of a planned five-year implementation phase beginning in 2028.
Addressing rising cooling demand through collaborative climate action
The Philippines is among the countries most affected by rising cooling demand. Emissions from the refrigeration and air-conditioning (RAC) sector are projected to reach 35.5 MtCO₂e in 2025, representing an 81% increase since 2010. At the same time, the country’s growing commercial and industrial sectors continue to drive demand for cooling services and electricity consumption.
Against this backdrop, GreenCool Philippines aims to transform the market for energy-efficient cooling solutions and renewable energy integration within the Philippines’ commercial and industrial sectors. The project supports the country’s Nationally Determined Contributions (NDCs), which identify the energy sector as a key contributor to national greenhouse gas emission reductions.
Designed as a market transformation initiative, the project seeks to address technical, financial, institutional, and policy barriers that currently limit investments in energy-efficeint cooling technologies. The project is expected to mitigate 850,000 tCO₂e over its lifetime, while improving competitiveness and energy performance across participating facilities.
Partnerships at the centre of project design
The inception workshop demonstrated the broad coalition of partners required to accelerate climate action in the cooling sector.
In her welcome remarks, Dr Nicole Kranz, Cluster Coordinator and Head of Climate Action and Disaster Resilience at GIZ Philippines, was joined by Ms Lana Rose Manaligod, Assistant Director of the DOE Energy Utilization Management Bureau, in framing GreenCool Philippines, in highlighting the importance of collaboration across public and private sector stakeholders to advance the Philippine’s energy transition.
Presentations by the project team introduced participants to the Mitigation Action Facility, the DPP process, and the proposed GreenCool intervention. These were followed by an open exchange with stakeholders representing the Development Bank of the Philippines (DBP), PhilGuarantee, the Climate Change Commission (CCC), the Department of Environment and Natural Resources (DENR), and the Philippine Energy Efficiency Alliance (PE2), and other key partners.
Throughout the day, participants shared insights on opportunities and challenges to scaling energy-efficient cooling solutions and expanding access to finance for climate-friendly investments. Stakeholders also formally signaled their commitment to the project through a partnership commitment exercise.
The afternoon workshop sessions brought together authorities, financial institutions, ESCOs, industry representatives, and technical experts to identify barriers, map opportunities, and assess market needs. The discussions generated valuable inputs that will inform the project’s detailed design during the coming months.
The workshop highlighted how GreenCool’s success will depend on coordinated action across government institutions, financial sector actors, technical partners, industry associations, and private sector stakeholders, reflecting the Mitigation Action Facility’s partnership-driven approach to climate action.
Unlocking finance for energy-efficient cooling
GreenCool combines technical assistance and financial mechanisms to create enabling conditions for investment in energy-efficient cooling technologies and renewable energy solutions:
improves capacities to identify, develop, and implement energy efficiency projects; enhances the use of energy service business models such as those of ESCOs; and supports the enabling policy framework through standards, MRV (monitoring, reporting and verification) systems, and curriculum review.
Enhances accessibility of finance for EE+ investments through three complementary instruments delivered via the Development Bank of the Philippines (DBP) E2Save Credit Line and PhilGuarantee:
- Investment Grade Audit (IGA) repayable grants, supporting around 433 C&I facilities;
- Concessional loans with conditions tailored to potential borrowers, including criteria to support women-led enterprises; and
- A credit guarantee facility that lowers risk for lenders and enables more lenient lending requirements.
The investment basket prioritises low-carbon RAC equipment, renewable energy sources integrated with energy efficiency measures, and the use of natural refrigerants where applicable.
What comes next?
With the DPP officially underway since 1 March 2026, project partners will now focus on developing the full project design, conducting feasibility studies, refining the financial mechanism, and securing stakeholder endorsements.
Key milestones over the coming year include market studies, business case analyses, continued stakeholder consultations, and an interim progress workshop with the Mitigation Action Facility’s Technical Support Unit (TSU). The final Proposal submission is expected in spring 2027.
GreenCool Philippines is implemented by GIZ in partnership with the Department of Energy, the Climate Change Commission, the Department of Environment and Natural Resources, the Development Bank of the Philippines, PhilGuarantee, the Philippine Energy Efficiency Alliance, the Philippine Institute of Energy Management Professionals, the UNEP Copenhagen Climate Centre, and representatives from the commercial and industrial sectors.
By bringing together government agencies, financial institutions, technical experts, industry associations, and private sector stakeholders, GreenCool demonstrates how partnerships can accelerate climate action while creating the conditions for long-term market transformation.
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