In a move to accelerate global energy efficiency in the context of the Montreal Protocol, the Executive Committee approved a revolving fund mechanism at its 95th meeting in December 2024.
Aimed at scaling-up the adoption of energy-efficient, low global-warming-potential (GWP) technologies, a US $40 million funding window was established to support two pilot projects in developing countries, designed to create revolving funds for energy-efficiency end users, such as supermarkets, hotels, cold chain for food and medicines. These funds, to be transferred to the Fund’s implementing agencies, will provide low or zero-interest loans through national financial institutions, enabling those who will benefit from them to invest in energy-efficient, low-GWP technologies. What makes this mechanism particularly important is its self-sustaining nature—repayments from beneficiaries will replenish the funds, ensuring an additional cycle of financial support to other beneficiaries. Set to run over an eight-year period, the pilot projects will eventually return the funds to the Multilateral Fund, maximizing the impact of the initial investment.
At the 96th meeting, in May 2025, the Executive Committee agreed on the operational modalities of the revolving fund mechanism. The Committee also agreed to support project preparation in Grenada, Thailand, and Türkiye through the World Bank, and a global initiative covering Colombia, Ghana, and Jordan through UNDP. These projects proposals are to be considered in 2026.
The revolving fund pilot projects will be guided by an advisory board composed of national stakeholders, and projects will identify targeted sectors, the annual consumption of HFCs in the sector, estimate the number of beneficiaries, as well as assess the energy consumption of relevant applications and estimate energy savings.
The success of these projects is to be supported by national policies, the alignment and complementarity with the country’s Kigali HFC Implementation Plan (KIP), as well as the implementation of Minimum Energy Performance Standards (MEPS) and equipment labelling schemes.
As these pilot projects unfold, they will serve as valuable learning experiences and blueprints for future initiatives.