Scaling Smarter Cooling:
Inside the Cooling-as-a-Service Model

As global demand for cooling accelerates, so does the need for efficient, equitable, and climate-aligned delivery models. On 2 April 2025, the UNEP Cool Coalition hosted its April session of Cool Talks, the Coalition’s webinar series spotlighting innovative solutions, policies, and partnerships across the sustainable cooling landscape. This edition focused on Cooling-as-a-Service (CaaS), a model that is rapidly gaining traction for its potential to scale low-carbon cooling in diverse sectors and geographies. Organized by the Cool Coalition’s Private Sector Working Group, which is co-led by Danfoss, Metrus Energy, and the Carbon Trust, the webinar brought together leaders in project finance, energy efficiency, and on-the-ground implementation.

What Is Cooling-as-a-Service?

Amr Seleem, Country Engagement and Policy Lead at the UNEP Cool Coalition, opened the session by highlighting the urgency of delivering cooling solutions that do not rely on carbon-intensive systems. “CaaS offers a compelling response by removing upfront capital barriers, aligning business incentives with energy efficiency, and enabling a shift from ownership to service delivery,” he noted.

In his keynote address, webinar moderator Bob Hinkle, President and CEO of Metrus Energy, contextualized CaaS within the broader Energy-as-a-Service (EaaS) framework, which enables third-party providers to finance, own, and operate energy assets, while customers pay for results. “CaaS unlocks private capital to scale efficient, low-carbon cooling projects that improve air quality and reduce GHG emissions through performance-based contracts,” Hinkle explained.

Rather than purchasing and maintaining equipment, users pay for the cooling they consume, with charges based on installed capacity, ton-hours delivered, or outcomes like indoor air quality or temperature. The model is typically structured through Sustainable Energy Services Agreements (SESAs), which combine engineering, procurement, construction, operation, and maintenance into one integrated contract. This ensures providers remain accountable for system performance and reliability over time.

Shifting Models, Unlocking Markets

For many organizations under pressure to decarbonize, shifting from capital expenditures (CapEx) to operating expenditures (OpEx) offers strategic advantages. Dimitris Karamitsos, Senior Energy Efficiency Business Developer at the Basel Agency for Sustainable Energy (BASE), emphasized how the CaaS model meets this need. “CaaS allows customers to plan their OpEx with certainty,” he noted. By transferring technical and financial responsibility to service providers, CaaS also mitigates the risks of owning and operating unfamiliar or innovative technologies.

Bringing in the investor’s lens, Shivali Mathur, Associate in Energy Transition at Amberside Advisors, described how the model unlocks both financing and flexibility. “CaaS is like Uber—you don’t own the system, you pay to use it when you need it,” she said. In addition to reducing CapEx burdens for customers, CaaS enables scale, provides predictable revenue streams, and reduces investor risk through standardized long-term contracts. Mathur highlighted key financing structures that are enabling market uptake, including blended finance, joint public-private Special Purpose Vehicles (SPVs), golden-share arrangements, and green bonds. She also cited the International Finance Corporation’s Scaling Cooling Program and Singapore’s infrastructure bond frameworks as real-world examples of how finance can accelerate cooling transitions.

From Supermarkets to Smallholders: CaaS in Action

Case studies presented during the webinar illustrated the breadth of CaaS applications.

Andrea Voigt, Head of Global Public Affairs & Communication at Danfoss Climate Solutions, shared two examples from radically different contexts. In Denmark, Danfoss has partnered with Aneo in a joint venture to deliver high-efficiency CaaS systems to supermarket chains. “These are technologies supermarkets may not otherwise install due to high CapEx,” Voigt said. “With CaaS, deployment becomes viable and sustainable.”

In Kenya, Danfoss is contributing to the Loss to Value project led by Danish Church Aid, which equips farmer cooperatives with cold rooms through a service-based rather than donation-based model. “We want cooperatives to feel responsible for the equipment and see the long-term benefits,” Voigt noted, while also acknowledging financing barriers when cooperatives lack formal credit profiles.

Rhiannon Turner, Senior Manager for Innovation at the Carbon Trust, presented a portfolio of innovative models tested through grant support. One such initiative is SokoFresh, a Kenyan company offering solar-powered mobile cold storage hubs. “Farmers are paid at harvest, and the service fee is deducted after the sale,” Turner explained. The approach has helped increase farmer incomes by 20 to 40 percent and reduce food waste to as low as two percent. However, Turner cautioned that replication is not always straightforward. SokoFresh piloted a similar model in the fish sector, but uptake was limited. “The lesson is clear: if the model doesn’t address a real user problem, it won’t succeed.”

Another Kenyan-led initiative, Drop Access, provides lightweight, solar-powered vaccine refrigeration units called “VaxaBoxes” to health clinics. These are available as a service for just $4 per day, with costs incurred only when in use. “Some clients still view CaaS as a perpetual lease, which makes education and support essential,” Turner said, noting that the early-stage model shows strong promise but also faces structural challenges around pricing and perception.

Financial Structures and Forward Momentum

A robust Q&A segment followed, with high engagement from attendees. Speakers addressed topics including pricing models, capital structuring, and risk mitigation strategies.

Karamitsos explained that many CaaS providers set up SPVs to isolate financial risk and attract investment. These are typically co-owned by the provider and investor, with shared decision-making.

Mathur added that the United Kingdom (UK market) is currently testing several innovative ownership structures, including co-investment SPVs, golden-share models, and concession-based arrangements. She emphasized that regulatory certainty, like the UK’s recent introduction of heat sector regulations, is helping to crowd in capital.

Environmental considerations were also top of mind. Voigt addressed the role of refrigerants, noting that while using low-global warming potential (GWP) refrigerants is the ultimate goal, the immediate priority in many regions is establishing the cold chain infrastructure itself. “If this can be done with low-GWP refrigerants, that’s ideal,” she said. “But our first responsibility is to ensure systems are in place and used responsibly.”

Hinkle reflected on how the CaaS model connects environmental, technical, and business objectives. “You’re not just avoiding CapEx. You’re aligning outcomes with what the customer really needs; reliability, efficiency, and quality.” Karamitsos added that the model also changes the business incentive for providers. “Instead of profiting from selling spare parts, service providers are incentivized to maximize system performance over time. That’s a shift toward the circular economy.”

Closing the event, Amr Seleem thanked the panellists and participants for what he described as “a rich and grounded discussion on a model that is still new to the cooling space but full of potential.” He encouraged stakeholders to continue engaging with the Cool Coalition and its partners to drive progress toward sustainable cooling solutions globally.

Dive Deeper

To explore the CaaS model further or to join the Cool Coalition’s Private Sector Working Group, go here.

To view the webinar recording and access presentation slides, visit the event page.

To watch the March Cool Talk on financing sustainable cooling, go here.