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Thailand Celebrates the RAC NAMA Fund’s Push Towards Natural Refrigerant Technologies in the Cooling Sector

April 15, 2020
Thumbnail Green Cooling Revolution Thailand

Press Release: EGAT, MoNRE and GIZ hail achievements of the RAC NAMA Fund, push for Thai refrigeration and air conditioner energy savings to reduce global warming

Bangkok/17 February 2020 The Electricity Generating Authority of Thailand (EGAT), Office of Natural Resources and Environmental Policy and Planning (ONEP) under the Ministry of Natural Resources and Environment and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH hail the achievements of the RAC NAMA Fund in initiating a transformation in the Thai refrigeration and air conditioning (RAC) sector towards the use of climate-friendly and energy-efficient cooling technologies through the use of natural refrigerants. As a result, a total of nine Thai manufacturers have begun using natural refrigerants in the production process, eight training centers have been established nationwide and 150 trainers have been trained.

The event, titled “Green Cooling Revolution: RAC NAMA Fund and the Future of Thai Industry” was presided over by H. E. Mr. Varawut Silpa-archa, Minister of Natural Resources and Environment. Attending the event were Mr. Thepparat Theppitak, Deputy Governor – Power Plant Development and Renewable Energy of EGAT, Mr. Patana Sangsriroujana, Deputy Governor – Strategy of EGAT, H. E. Mr. Georg Schmidt, German Ambassador to Thailand and Ms. Margaret Tongue, Chargé d’Affaires of the British Embassy in Bangkok, along with a number of RAC manufacturers. The event washeld at the Anantara Siam Bangkok Hotel.

H. E. Mr. Varawut Silpaarcha, Minister of Natural Resources and Environment of Thailand, underscored the importance of the phase down of climate-warming substances in his keynote address entitled “Greenhouse Gas Emission Reduction in the Refrigeration and Air Conditioning Industry”. He highlighted the significant contribution of the phasing down to Thailand’s Nationally Determined Contribution (NDC), which aims to reduce 20-25 per cent of emissions by 2030. The Thai Government is grateful for the active cooperation from all parties, both at the national and international levels, which has led to the success of the RAC NAMA Fund.

The Government of Thailand is therefore placing great emphasis on the promotion of energy-efficient and climate-friendly cooling technologies due to their ultra-low Global Warming Potential (GWP) while strongly promoting new business opportunities, R&D and knowledge transfer. I would especially like to thank the German and British Governments for their continuous support in the financing of the RAC NAMA Fund, transferring knowhow and fostering international cooperation,” Mr. Varawut added.

In his statement, Mr. Thepparat Theppitak, Deputy Governor – Power Plant Development and Renewable Energy, EGAT, stated: “In December 2017, EGAT assumed responsibility for managing the Fund, with a total budget of EUR 8.3 million (approximately 300 million baht), to promote the production and use of energyefficient and climatefriendly cooling technologies on behalf of the Thai Government. Over the past two years, a number of financial instruments have been holistically defined for the whole demand and supply chain, as well as the service sector. These measures include: 1) 10 million baht in consumer finance to promote the purchase of green cooling products on the market, a scheme that has boosted the purchase of over 15,000 domestic fridges and led to energy saving of 1.1 giga watts per year; 2) a 52-million-baht credit line with a zero interest rate for a duration of one year for the conversion of production lines to natural refrigerants for Thai manufacturers; 3) sub-grant for production line conversion to natural refrigerants for Thai manufacturers, and resulted in 90 million baht private contribution 4) a 15-million-baht sub-grant for training equipment for the setting up of 8 training centres across Thailand and 5) a 155-million-baht credit line with zero interest rate for market introduction of green cooling products.”

Finally, approximately 100,000 green cooling products are expected to be on the Thai market this year while this number is projected to increase to 50 per cent of market share in the next three years. Moreover, we plan to export more of these products to the European and Japanese markets. By the end of 2030, we expect this initiative to save up to 3,500 million units of energy per year,added Mr. Thepparat.

In his statement, H. E. Mr. Georg Schmidt, German Ambassador to Thailand said: “Germany is a global industrial leader in engineering and technology. To tackle the impacts of climate change, Germany is committed to working with countries around the world and to coming up with innovations such as technologies that are climate friendly. For more than 10 years, Thailand and Germany have worked together on various climate and environment issues, notably in the cooling industry where Thailand is an important manufacturing and export hub of RAC equipment. Today, Germany is proud to have played a part in the transition towards the adoption of green cooling technologies. The experience and knowledge gained from the implementation of the RAC NAMA Fund should be extended to other countries.”

In her remarks, Ms. Margaret Tongue, Chargé d’Affaires,the British Embassy Bangkok said: “The RAC NAMA Fund is the pioneer climate finance fund in Thailand. It is funded by the NAMA Facility, a partnership of the Federal Republic of Germany and the UK, to implement the project to develop the Thai refrigeration and air conditioning sector and move towards a low-carbon society through the use of climate-friendly and energy-efficient cooling technologies. We believe the improved technology is central to Thailand’s mitigation efforts. The achievements of the RAC NAMA Fund clearly demonstrate a strong commitment of the Thai Government in reaching the national climate targets.”

Watch the YouTube video about the event “Green Cooling Revolution: RAC NAMA Fund and the Future of Thai Industry” on 17th February 2020.

Learn more about the Thailand – Refrigeration and Air Conditioning (Thai RAC) project.

For more information, please contact:
Ms. Anusara Tanpitak, Communication Officer, GIZ Thailand

Ms. Thanya Sirichanyanon, Administrative Officer Level 6
Corporate Communication and Public Relations Division, Electricity Generating Authority of Thailand (EGAT)

GIZ person speaking
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setup technology cooling sector
graphics EGAT's Greenhouse Gas Reduction Projects
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information desk Thailand RAC project
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Background Information

The ‘RAC NAMA Fund’ comes under the Thailand Refrigeration and Air Conditioning Nationally Appropriate Mitigation Actions (RAC NAMA) project. GIZ is commissioned to implement the project in partnership with the Office of Natural Resources and Environmental Policy and Planning (ONEP), the Department of Alternative Energy Development and Efficiency (DEDE) and the Electricity Generating Authority of Thailand (EGAT) to provide technical, policy and financial assistance. The project runs until March 2021.

One critical component of the project is to build the capacity of the service sector for the safe use of natural refrigerants. For this, the RAC NAMA Fund has financed the establishment of eight training centres across Thailand, namely King Mongkut’s University of Technology North Bangkok (KMUTNB), Rajamangala University of Technology Isan, Yasothon Technical College, Krabi Technical College, Uttaradit Technical College, Lampang Regional Institute for Skill Development, Suphanburi Regional Institute for Skill Development and Rayong Regional Institute for Skill Development, as well as the roll-out of a training of trainers programme on the use of natural refrigerants in refrigeration and air conditioners. A total of 150 senior technicians, vocational teachers and chief trainers from skill development institutes have been trained, who will then assume the role of knowledge carriers in informing their students and peers about green cooling. Discussion is also ongoing to develop new curricula to further build the capacity of Thai trainers and technicians on the safe handling of natural refrigerants. This will help them prepare for the changing requirements driven by new technology and market trends towards the production and consumption of green products.