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The Green Climate Fund Approves Multimillion Funding to Boost Energy-Efficient, Resilient Buildings

buildings Buenos Aires Argentina
© Andrea Leopardi/Unsplash

Albania, Argentina, Costa Rica, Djibouti, Indonesia, Mexico, Morocco, Nigeria, North Macedonia, Tunisia and Sri Lanka will benefit from PEEB Cool, a dedicated Programme for Energy Efficiency in Buildings supported by the Green Climate Fund.

The Green Climate Fund (GCF) board has just approved 220 million EUR funding to boost green buildings. The fresh funding will allow a scale up of the Programme for Energy Efficiency in Buildings (PEEB) under the name PEEB Cool. It will be jointly implemented by Agence Française de Développement (AFD) and Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) with a total budget of over 1.3 billion EUR.

In total, 11 countries in Africa, Asia, Eastern Europe and Latin America will benefit from PEEB Cool, whose mission is to transform the buildings and construction sector by advancing resilient and energy-efficient building design, construction and operation. Today, buildings and construction account for almost 40 per cent of energy-related greenhouse gas emissions, and the percentage would increase if it remains unaddressed as energy demand for space cooling is expected to triple by 2050.

Along with the contribution from the GCF, the Agence Française de Dévelopment (AFD) will disburse 1.1 billion EUR in loans and 4 million EUR as project assistance grants, while the German Federal Ministry for Economic Affairs and Climate Action (BMWK) will contribute 2.5 million EUR as grants for policy support and international awareness.

Albania, Argentina, Costa Rica, Djibouti, Indonesia, Mexico, Morocco, Nigeria, North Macedonia, Tunisia, and Sri Lanka will participate. Over 1.13 million people will see their living conditions improved from buildings that are energy-efficient and adapted to the effects of rising temperatures.

PEEB Cool will primarily support the development of new constructions, but it will also address the refurbishment of existing buildings. It is planned that 35,000 refurbished and new buildings will benefit from the programme’s direct support to become more resilient and efficient. Around 1.563 million tons CO2 equivalent will be reduced or avoided thanks to the impact of the programme.

CO2 emissions will be reduced at all phases of the construction and operation, and a strong emphasis will be put on reducing emissions from cooling through the development of bioclimatic buildings whilst also improving the users’ thermal comfort and security.

Together with cutting greenhouse gas emissions, PEEB Cool aims to increase buildings’ resilience to extreme climate events, but also to economic crises and energy scarcity. On the other hand, it is expected that PEEB Cool also helps create around 27,000 jobs, primarily in construction activities.

  • Manelle Ait-Sahlia, Deputy Head of the Energy Division at the AFD, explained that “through its Investment Facility, PEEB Cool will support local actors in implementing large-scale buildings projects and focus on improving living conditions of low- and middle-income families, which are particularly vulnerable to extreme heat. At the same time, we are also very mindful of closely following the GCF ambitious guidelines in terms of Environmental and Social standards, including gender equality, to make sure PEEB Cool puts people’s wellbeing at the center of its activities”.
  • Mike Enskat, Head of Sector for Energy, Water, Mobility (Global Programmes) at GIZ explained that PEEB Cool’s Enabling Facility “will focus on fostering policy framework for low emissions and climate resilient buildings such as green building codes, labels and incentives mechanisms for leveraging private investments. Capacity building for local actors is also very important for us as we want PEEB Cool to have long-lasting positive impacts in the countries that go beyond the duration of the programme”.
  • Isabel Geppert, Head of the PEEB Secretariat, welcomed the GCF funding approval and expressed that “PEEB and the funding partners look forward to working closely with the eleven countries to rapidly set up PEEB Cool. We are very conscious that with the ongoing global energy and climate crisis, the urgency and need for energy-efficient and resilient buildings has further increased in our partner countries. Indeed, they are critical elements in creating future-proof livelihoods.”

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