3 June 2010: The World Bank approved a bundle of financial instruments for a project called the “Chillers Energy Efficiency Project,” which will replace around 375 chillers in the Philippines with more climate-friendly technologies.
Chillers are the primary components in refrigeration and air-conditioning systems. Old chillers use chlorofluorocarbons (CFCs) and hydrofluorocarbons (HCFCs) as refrigerants, several of the chemical substances known to cause ozone depletion and global warming. Under the Chillers Energy Efficiency Project, a grant subsidy of 15% of the cost of new non-CFC-based energy efficient chillers will be provided with the alternative of opting for future carbon finance revenues to be generated by energy savings from the replacement of their chillers.
The project will be financed by a US$2.6 million grant from the Global Environment Facility (GEF) Trust Fund, a US$1 million grant from the Multilateral Fund (MLF) for the implementation of the Montreal Protocol, and a US$7.3 million Clean Development Mechanism (CDM) financing with KfW (German Reconstruction Bank) as the carbon buyer. [World Bank Press Release]
