Support framework conditions and implementation of an Air Conditioning replacement programme

The number of air conditioners (ACs) in the Southern African Development Community (SADC) region is projected to increase from 5.4 million to 17.7 million by 2030. SADC members aim to reduce greenhouse gas emissions and enhance energy efficiency in the Refrigeration and Air Conditioning (RAC) sector. However, the high costs and limited availability of ACs with natural refrigerants and low global warming potential hinder progress. Single split-type ACs have high GHG mitigation potential, but low electricity prices and high upfront costs drive consumers toward inefficient options. While South Africa has introduced Minimum Energy Performance Standards (MEPS) for ACs, most other SADC countries lack the necessary regulatory frameworks. The Cooling Program for Southern Africa (CooPSA) aims to establish MEPS, energy labels, an AC replacement program using natural refrigerants, and a sustainable financing instrument under Article 6 (Art. 6) of the Paris Agreement in Botswana, Eswatini, Namibia, and South Africa. The project will develop comprehensive documentation to support energy-efficient cooling initiatives under Art. 6, including baseline setting, monitoring methodologies, and financial recording of GHG emission reductions. It will also draft national frameworks for Internationally Transferred Mitigation Outcomes (ITMO) transfers, ensuring fair distribution of emission reductions and preparing countries for Art. 6 transactions with foreign partners. The program will provide continuous technical advice to the German Federal Ministry of Economic Affairs and Climate Action (BMWK) on implementing RAC-related Art. 6 activities, aiming to significantly reduce GHG emissions through the deployment of R290 Split ACs. This will contribute to the Nationally Determined Contributions (NDCs) of Botswana, Eswatini, Namibia, and South Africa. Additionally, the program will pilot market-based approaches under Art. 6, demonstrating their potential as sustainable financing instruments for GHG mitigation. To address policy barriers, CooPSA will develop policy instruments to support the adoption of Green ACs. MEPS for split ACs will be developed or improved in the four partner countries, combined with an energy labeling scheme. Market surveillance, monitoring, and enforcement processes will be established to ensure compliance. By the project's end, MEPS and labels will be adopted and enforced in at least two partner countries. The program also focuses on increasing demand and supply of Green ACs by operationalizing a replacement program, including end-of-life management for old ACs. The project will connect with Green AC manufacturers and import dealers in partner countries, aiming to establish export channels with at least two manufacturers. Up to 20,000 Green ACs will be installed, and training programs will be implemented to ensure proper installation and maintenance. CooPSA will provide a financing structure aligned with host countries' needs, considering pilot implementation and large-scale rollout phases. The structure will consider carbon/climate finance, concessional finance, subordinated debt, and private sector funding, potentially stimulating the sale of sustainable cooling devices. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, on behalf of the German Federal Ministry for Economic Affairs and Climate Action (BMWK), will coordinate the overall program. The contractor will implement specific activities under the project Outputs, requiring 22 months of expertise.