Countries in the Economic Community of West African States (ECOWAS) are experiencing significant economic and population growth, which is driving ever-greater demand for refrigerators and air conditioners.
Cooling products are essential for the health, well-being and competitiveness of these economies, but they pose critical challenges in terms of energy consumption and impacts on the environment. Outdated products consume two to three times the amount of energy as efficient options available today, and they often contain refrigerant gasses that are harmful to the planet. A lack of information on product performance, inadequate policies, and higher purchase prices often prohibit adoption of efficient models.
BASE is working alongside UN Environment’s United for Efficiency (U4E) initiative and partnering with the governments of Senegal and Ghana, Renewable Energy and Energy Efficiency (ECREEE) and the African Development Bank to conduct ECOFRIDGES. ECOFRIDGES is made possible with funding support from the Kigali Cooling Efficiency Program (K-CEP). The programme was launched in early 2019, and the financial mechanism is expected to begin in 2020.
ECOFRIDGES aims to unlock USD 25 million in potential financing to support the purchase of 50,000 energy-efficient and climate-friendly cooling products to replace old existing equipment. It will build on lessons from Ghana and others’ successful policies and financial mechanisms and link with activities underway by ECREEE to spur the adoption of superior cooling solutions. ECOFRIDGES includes complementary components, notably the proper disposal of used appliances, product testing, policy considerations, and awareness campaigns.
A financial mechanism will be developed for households that wish to replace an operational refrigerator that is at least 10 years old. Different financial mechanism approaches will be explored, such as giving consumers the option to finance the purchase through monthly payments on their electric utility bills, or other channels that meet the country-specific needs. A simple review of bill payment history, income and other basic information will be used to determine eligibility for financing. A financial tracking tool will be used to follow repayment progress and program operations to assure the viability of the mechanism over time.
Building on existing regional efforts on market surveillance and enforcement, ECOFRIDGES will include robust qualification procedures to ensure that only energy-efficient and climate-friendly products are eligible for the financial mechanism. Technical specifications will be defined to indicate minimum performance levels, features and other considerations for product to be eligible for the financial mechanism. A sample of products will be tested to verify compliance. New product sales and the submission of old refrigerators will be regularly checked to evaluate the project’s impacts. Additional policy recommendations that support the use of the financial mechanism will also be provided.
