New Air Conditioner Technology Adopted in Thailand: World Bank and The Montreal Protocol Multilateral Fund Support Climate-Friendly Technology

April 20, 2016

Bangkok, April 20, 2016 – Today, in partnership with the World Bank Group and the Montreal Protocol Multilateral Fund (MLF), Saijo Denki, a Thailand manufacturer, has launched a new technology for air conditioners that is friendly to the ozone layer and reduces greenhouse gas emissions and saves energy.

The new refrigerant known as R-32 does not deplete the stratospheric ozone layer and also cuts greenhouse gas impacts in residential air conditioners by one-third. If similar air conditioning technology were widely adopted in other markets, it could help countries to significantly meet their climate goals. 

We welcome the initiative of the Thai private sector in turning the challenges of protecting the global environment into business opportunities," said Ulrich Zachau, World Bank Country Director for Thailand.  "The success of re-designed R-32 air conditioners is testament to the strong policy and leadership of the Thai Government to protect the environment and strengthen private sector innovation.  Countries such as Thailand can consider adopting a procurement policy that demands or favors the use of ozone and climate friendly products, in order to promote the further development and use of such products."

Karin Shepardson, World Bank Montreal Protocol Program Manager, added: The shift by the Thai air conditioning industry to bringing more climate friendly equipment to consumers can provide a model for other businesses and industries."

Redesigned R-32 air-conditioners are 5 to 10 percent more energy efficient and have a cooling capacity that is 10 percent higher than older models, according to Saijo Denki.  With this technology breakthrough, the Thai company is in a good position to develop higher energy efficient and cost competitive products, while consumers will benefit from reduced energy costs when using these new products.  Most importantly, the new models do not consume ozone depleting substances and do not adversely affect the climate.

This air conditioning project which is financed by the Multilateral Fund for Implementation of the Montreal Protocol through the World Bank is consistent with the Government’s policy to promote technical research and development to support the economic development of Thailand,” said H.E. Dr. Atchaka Sibunruang, Minister for Industry. The Ministry of Industry is also advocating a specific policy to support the Thai industry to innovate and assimilate new manufacturing technologies in order to improve productivity, and new technologies that are social and environmental friendly as part of our strategy to strengthen our industry competitiveness in the global market.”

The Ozone Projects Trust Fund Grant Agreement for the Thailand Hydro-chloro-fluorocarbon (HCFC) Phase-out Project of US$ 23.9 million (760 million Baht) was signed by the Thailand Ministry of Finance and the World Bank on November 13, 2014.  The project is being implemented by the Department of Industrial Works, the Ministry of Industry, and the Government Savings Bank.

About the Montreal Protocol and the World Bank

Adopted in 1987, the Montreal Protocol on Substances that Deplete the Ozone Layer legally enforces the phase-out of the production and use of ozone depleting substances - chemicals often used in refrigeration, air-conditioning, foam manufacturing, aerosol production, and fire extinguishing.

The treaty's financial mechanism, the Multilateral Fund for the Implementation of the Montreal Protocol, has funded the incremental costs of compliance in developing countries since 1991. The World Bank is working to implement the Montreal Protocol with seven countries including Argentina, China, Indonesia, Jordan, Philippines, Thailand, and Vietnam. These countries cover more than 70 percent of global production and consumption of HCFCs.


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