Opportunities for Green Finance and Investment through Sustainable Cooling
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Sustainable cooling is not only a pressing need to protect public health, reduce pressure on urban infrastructure, and achieve climate goals, but also a major economic opportunity. According to reports by UNEP and IFC, the cooling market in developing economies is currently valued at around USD 300 billion and is expected to double by 2050. This creates significant potential to mobilize green investment and climate finance for modern, efficient, and environmentally friendly cooling solutions.
Sustainable cooling is not only a pressing need to protect public health, reduce pressure on urban infrastructure, and achieve climate goals, but also a major economic opportunity. According to reports by UNEP and IFC, the cooling market in developing economies is currently valued at around USD 300 billion and is expected to double by 2050. This creates significant potential to mobilize green investment and climate finance for modern, efficient, and environmentally friendly cooling solutions.
Vietnam’s Commitments and Policy Framework
On August 28 in Hanoi, the Department of Climate Change (Ministry of Natural Resources and Environment), in collaboration with the United Nations Environment Programme (UNEP) and the Global Green Growth Institute (GGGI), reviewed their joint efforts to implement sustainable urban cooling solutions and address extreme heat.
Vietnam has demonstrated strong global commitment by joining the “Global Cooling Pledge” in 2023, targeting a 68% reduction in cooling-related emissions by 2050 compared to 2022 levels.
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The policy framework has also been strengthened:
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Decision 496/QĐ-TTg (2024): issued the National Plan to manage and phase out ozone-depleting substances and controlled greenhouse gases.
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Decree 119/2025/NĐ-CP: institutionalized the concept of “sustainable cooling” for the first time, laying the groundwork for long-term policies.
International Cooperation and Local Pilots
Through cooperation with UNEP, GGGI, and other partners, Vietnam has piloted sustainable cooling models in Can Tho, Da Nang, and Quang Tri. Several Urban Cooling Action Plans (UCAPs) have been developed, supported by technical and policy analyses to guide nationwide scaling.
Two standout pilot projects include:
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The Centralized IT Center in Can Tho City.
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The Phu Binh Residential Area (now Quang Phu Ward, Da Nang City).
According to Mr. Le Ngoc Tuan, Deputy Director of the Department of Climate Change, these early results demonstrate both scientific and practical value, while creating opportunities to attract more domestic and international financing for sustainable cooling solutions.
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Climate Challenges Driving the Transition
Climate change is accelerating ice melt, sea-level rise, and extreme weather, with heatwaves becoming increasingly severe. In Vietnam, 110 out of 186 meteorological stations recorded record-breaking temperatures in April 2024. On August 4, 2025, Hanoi hit 40.3°C – the highest on record.
Extreme heat not only threatens public health but also places enormous strain on electricity systems and urban infrastructure. A strong transition toward sustainable cooling is therefore essential, combining:
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Passive cooling: urban planning, green architecture, more trees and water surfaces, natural ventilation.
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Active cooling: high-efficiency appliances, smart energy management, and climate-friendly refrigerants.
A Dual Objective: Health – Climate – Economy
According to Mr. Manjeet Singh, Technical Advisor of the Cooling Efficiency Alliance, without mitigation measures, emissions from cooling could account for 10% of global emissions by 2050 under a BAU scenario.
Mr. Benjamin Hickman (UNEP) emphasized: “Cooling has become an essential demand for Vietnamese households, closely tied to public health and productivity. But relying on inefficient cooling appliances risks a vicious cycle: higher energy use, more emissions, and hotter cities.”
Meanwhile, Ms. Maria Cecilia Pana, Deputy Country Representative of GGGI Vietnam, highlighted Vietnam’s proactive role in integrating cooling into national policies: “We see green growth as the pathway to sustainable and climate-resilient development. GGGI aims to act as a catalyst, connecting policy, planning, and finance to turn climate goals into practical, scalable action.”
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Scaling Up and Unlocking Green Finance
The recent cooperation has laid the groundwork for the next phase: developing urban cooling plans, integrating nature-based solutions, promoting passive design in urban structures, and reducing cooling demand in buildings. These outcomes directly contribute to Vietnam’s NDC 2022 targets and accelerate the Net Zero 2050 pathway.
According to GGGI, the success of pilot projects should not be seen as an endpoint but as a blueprint for national scaling. This requires mobilizing diverse resources, particularly private sector investment and international climate finance, to build a sustainable, climate-resilient, and green cooling system across Vietnam.
???? In short, sustainable cooling is both a climate adaptation and mitigation solution and a green economic opportunity for Vietnam, with the potential to attract billions of USD in investment over the coming decades.
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