Context
Refrigeration and air conditioning (RAC) accounted for approximately 20% of Thailand’s total greenhouse gas (GHG) emissions. Emissions from this sector were forecast to triple by 2030. The surge of emissions arose from the use of refrigerants with high global warming potential and from energy consumption in an order of 10 and 90%, respectively.
Goals and approach to transformational change
The project, “Thailand – Refrigeration and Air Conditioning,” or “Thai RAC” for short, was designed under a situation where refrigerants were not subject to restrictions on global warming potential, and energy efficiency standards could be tightened. Therefore, the project was set to focus on four areas of activity: 1) production and sale of green refrigeration and air conditioning (GreenRAC) equipment; 2) capacity building on servicing and use; 3) revisions to the policy and financial framework; and 4) awareness raising of benefits and the need for behavioural change.
The project supported the transformation of the production and use of RAC appliances for both the domestic and commercial sectors. Key stakeholders benefitted from and supported this reform: manufacturers were able to produce technically advanced, sustainable, and competitive products for the domestic and export markets. This entailed the creation of new jobs and training for technicians in the service sector, while consumers were set to receive lower energy bills. Private sector manufacturers and large end-users were and continue to be a key driving force behind the project.
Components and support mechanisms
The project bundled and leveraged existing financial mechanisms to promote energy efficient RAC devices through the RAC NAMA Fund. The RAC NAMA Fund was able to leverage over EUR 143 million, the equivalent of more than 7 times the project seed funding. Through the RAC NAMA Fund, financial support was provided in the form of concessional loans, which the manufacturers created financial benefits for their end-users, e.g., in the form of credit card financing, extended payment terms, or one-time discounts.
Long-term impact
The project resulted in 1.05 MtCO2e of GHG emission reduction and directly benefitted 270,900 people. The potential for transformational change, measured by the degree to which the supported activities catalyse impacts, was rated 3. Additionally, the project mobilised EUR 143 million of private finance.
In total, the project attracted 10 manufacturers of residential air-conditioners, commercial refrigeration appliances and chillers, which had a market share of more than 20% in Thailand.
The project is envisaged to directly avoid emissions 3 MtCO2e over the technology lifetime and additional 4 MtCO2e will be avoided indirectly by the 2030 through the policy changes supported by the project
Visit the project’s official website (available in English) to learn more.
