Ecofridges Green On-Wage Financial Mechanism debuts in CalBank

Ecofridges Green On-Wage Financial Mechanism has debuted in CalBank Plc, Ghana leading commercial bank.

Ecofridges which is environmentally-friendly refrigerators and ACs will soon become widely accessible in Ghana through the Green On-wage financial mechanism.

The ECOWAS Refrigerators and Air Conditioners Initiative,  ECOFRIDGES,  is a tripartite programme. The United Nations Environment Programme’s United for Efficiency initiative and the Governments of Ghana and Senegal are the sakeholders. It birthed through the Energy Commission in collaboration with regional and local partners.

The programme aims at accelerating adoption of energy-efficient and climate-friendly domestic refrigerators and room air conditioners in the residential sector.

FINANCIAL MECHANISM

A cornerstone of ECOFRIDGES is a financial mechanism to ensure these cooling products are affordable.

 Therefore, UNEP U4E brings together leading experts from international organisations, private sector and civil society groups. They are to provide tailored technical assistance to participating governments and stakeholders.

The development of the financial mechanism is led by BASE, a Swiss non-profit organization. It pursues innovative financial mechanisms around the world with U4E and other partners.

Through the no-risk high-potential ECOFRIDGES Green On-Wage financial mechanism, CalBank and local financial institutions would unlock $5 million financing. It would support the purchase of over 10,000 energy-efficient and climate-friendly cooling products to replace old existing equipment by 2022.

 The mechanism also includes complementary components. Amongst them is the proper collection and disposal of used appliances, product testing, policy considerations, and promotion and awareness campaigns.

In addition, Ghanaian financial sector has well received Ecofridges.

 The project team delightedly  announces that CalBank joins ECOFRIDGES Green On-wage (GO) financial mechanism amongst other partner financial institutions.

CalBank aims to support the adoption of energy-efficient and climate-friendly refrigerators and air conditioners in Ghana. In the months ahead, Ecofridges would be commercially available in Ghana homes.

CalBank will offer a credit product through the GO mechanism before the end of 2020. The credit office would finance the up-front cost of a qualifying appliance purchased by eligible customers from participating vendors.

VENDORS

Vendors will deliver the new domestic refrigerator or room air conditioner, facilitate collection and disposal of old products being replaced. Customers are incentivised to turn-in used but operational cooling equipment through a voucher valid for use at vendor stores.

ECOFRIDGES GO will help consumers access cheaper cooling products and operate over their lifetime than models using outdated technology.

It offers a triple win – benefitting consumers, reducing strain on Ghana’s electrical grid, and mitigating key environmental impacts.

Speaking, Philip Owiredu, CalBank Chief Executive intimated “It one thing for individuals to procure domestic items to make life comfortable. But they also need to do so cognizant of the effects those items have on the environment.”

“Our RESPONSIBILITY value requires that we do right by our actions even as we do business profitably. We shall ensure the implementation of this agreement benefits our clients as we assist them in procuring new cooling products. CalBank is a socially responsible organization and will continue to contribute to technology that improves society and the environment.”

“More than ever, energy-efficient and climate-friendly refrigerators can help families cope with the consequences generated by the Covid-19 pandemic. Efficient and clean cooling systems help households to save money on their electricity bills.

“In addition, it has  well-recognized benefits of refrigeration in extending the shelf life and quality of food.

“Access to cooling is a basic need and ECOFRIDGES GO is a great opportunity to cost-effectively address this challenge.”

The ECOFRIDGES Initiative in Ghana is made possible by funding from Kigali Cooling Efficiency Programme.  The possibility also includes in-kind contributions from Ghana’s Energy Commission, the Environmental Protection Agency, and local financial institutions.