Brazil – Supporting the Market Transformation to a Climate-Friendly and Energy Efficient Air-Conditioning (RAC) Sector in Brazil by Establishing Regulations for Commercial Air-Conditioning to mitigate SLCPs emissions

Overview

This project responds to a request made by the Department of Information, Research and Energy Efficiency, at the Ministry of Mining and Energy, to develop a Cooling Efficiency Strategy to guide the commercial Ar conditioner (AC) sector in Brazil towards sustainable reduction of Short-Lived Climate Pollutants (SLCPs), such as hydrofluorocarbons (HFCs). This will be achieved by developing minimum energy performance standards (MEPS) for the commercial AC sector, promoting energy-efficient practices for AC equipment, and aligning with international climate goals like the Kigali Amendment and the Global Cooling Pledge.

To improve energy performance and reduce emissions of HFCs and other high-GWP refrigerants from the AC sector while supporting Brazil's climate commitments, the project aims to promote cross-sector collaboration with government ministries, industries, academia, and international partners. Brazil ratified the Kigali Amendment in 2022, and their HFC consumption that year peaked at 89.7 million CO2 eq tonnes. Brazil is one of the participants of the Global Cooling Pledge launched at COP28 in Dubai and welcomed by the G7 ministerial meeting in Italy with the commitment to work together with the aim of reducing cooling related emissions across all sectors to at least 68 percent globally relative to 2022 levels by 2050.

Brazil does not have regulated MEPS for equipment whose cooling capacity is above 60,000 BTUs. The project will build on a Regulatory Impact Assessment that has been conducted for commercial air conditioners. The request also covers communication activities to raise awareness and socialize stakeholders to the new MEPS for commercial ACs. This project should build on the CCAC supported national planning project “Enhancing the climate mitigation ambition of Brazil”.

Who to involve

· Ministry of Mining and Energy (MME)

o Department of Information, Research and Energy Efficiency

· Ministry of Development, Industry, Commerce and Services

o National Institute of Metrology, Quality and Technology (INMETRO)

· Ministry of Science, Technology and Innovation

· Ministry of Environment and Climate Change

Expected results

Outcome 1: The Ministry of Mines and Energy (MME) of Brazil improves its capacity to implement and enforce energy efficiency policies and regulations in the commercial AC sector tackling both direct emissions (HFCs) and indirect emissions (energy consumption) by 2028.

Indicator: Number of government entities with a demonstrated improved capacity for SLCP action

• Output 1.1: Policy Working Group established to ensure involvement of all necessary stakeholders to facilitate the identification, pursuit of strategic priorities and endorsement/implementation of policy/technical recommendations.
• Output 1.2: National market assessment and international best practices analysis to support the implementation of policy activities for commercial AC in Brazil.

The assessments shall include at a minimum:

• Information on the current policy status on MEPS, Labels, testing standards, MVE systems in place.
• Incentives for promoting energy efficiency appliances, if any Characteristics of the local cooling market (products available, stock, level of efficiency, etc.).

Outcome 2: The Government of Brazil adopts new MEPs and voluntary labelling programs (e.g., INMETRO and PROCEL) promote market transformation towards climate-friendly and energy-efficient products by the end of the project or soon after.

Indicator: Number of laws, regulations, or other policy mechanisms with SLCP targets or mitigation measures formally adopted, endorsed, and/or implemented

• Output 2.1: MEPS and labels policies regulating the sale of commercial conditioners.

This should include at a minimum:

• MEPS and labels policy for commercial air conditioners and based on the market assessment results (output 1.2), inputs from the PWG (output 1.1), and on the support for the development of Regulatory Impact Assessments, according to requirements of Brazilian regulation,
• Technical workshops with relevant stakeholders (e.g. government, manufacturers, suppliers, consumer groups, environment groups) convened to communicate the results of the market assessment and the implementation of new/updated policies/ regulations.
• Capacity-building for the Ministry of Mining and Energy, Ministry of Development, Industry, Commerce and Services, Ministry of Environment and Climate Change and enforcement officers on the implementation of MEPS and label policies in conjunction with training for Kigali Implementation to prevent the environmental dumping of inefficient cooling appliances with banned or soon to be banned refrigerants.

Outcome 3: The Government of Brazil adopts a Sustainable National Monitoring, Verification and Enforcement (MVE) framework that includes SLCPs for commercial ACs appliances, as well as related tools and resources in line with the recommended MEPS and Labels policy by the end of the project or soon after.

Indicator: Number of monitoring, reporting, and verification (MRV) systems developed or updated that include SLCPs

• Output 3.1: Develop a comprehensive Monitoring, Verification and Enforcement (MVE) framework for cooling appliances, incorporating SLCP monitoring.
• Output 3.2: Training is provided on the Monitoring, Verification and Enforcement (MVE) framework to related stakeholders, such as customs officers, certifying national bodies, supervisory agencies, importers, etc. with the key recommendations for its improvement.

Outcome 4: Stakeholders (government agencies, industry representatives, and academia) demonstrate increased awareness and engagement with HFC mitigation through MEPS by the end of the project or soon after.

Indicator: Number of public events, webinars, or side events hosted

• Output 4.1: Elaboration of outreach materials and carry out communication activities to raise awareness and socialize stakeholders to prepare for a scenario of future MEPS for AC equipment that enables lower SLPCs emissions and lower energy consumption.
• Output 4.2: New MEPS for AC equipment are presented to stakeholders, including government agencies, industry representatives, and academia, for feedback and endorsement. Public consultations are conducted to ensure transparency and buy-in from all relevant parties.

APPLICATION PROCESs

Eligibility requirements

To be eligible for consideration, project proposals must meet the following requirements:

• Complete and submitted before the deadline
• Submitted by a non-governmental organization (NGO), intergovernmental organization (IGO), or other not-for-profit entity.
• Requested funding is within the estimated budget amount, or includes a clear justification for additional expenses
• Project duration is less than 24 months
• Budget criteria are met and spending caps on expenses are respected.
• Please note that entities will be required to provide the last three (3) audited financial statements to be eligible for CCAC funding. These statements may be provided along with the application for funding or at the request of the CCAC Secretariat during the evaluation process.

For-profit entities may only participate in the project as stakeholders, co-funders, or end users. Applicants are encouraged to include for-profit entities in the development of the project proposal and/or during project implementation if their ownership of the proposed solution is key to the project’s success.  

How to apply

Eligible applicants are invited to apply using the Application Form and Excel Budget Form. Specific instructions on completing these forms are available in both documents.

Applicants may choose to follow the cost range proposed above OR propose a different budget supported by a clear justification. However, applicants should note that cost efficiency will play a significant role in the selection process.

The completed Application Form and Excel Budget Form should be submitted to secretariat [at] ccacoalition.org.

Evaluation criteria

Proposals will be evaluated against the following criteria:

• Presents a clear plan to achieve the required outcomes during the lifetime of the project or soon after
• Includes a plan or activities to enable the scaling up of, replication of, or sustained use of project results over time
• Sets out a clear approach for enabling or contributing to SLCP emissions reductions and resulting co-benefits
• Involves relevant stakeholders
• Approach is grounded in a strong understanding of relevant risks
• Complements other relevant initiatives, funding mechanisms, and existing policy processes
• Applicant demonstrates necessary capacity and experience to perform the work
• A realistic, cost-effective, and clearly justified budget and approach is proposed
• Project meets the minimum requirements for the OECD DAC gender equality marker Score 1
   
  Selection process
• A preliminary review of proposals submitted by the deadline will be conducted by members of the CCAC Secretariat, Funding Task Team, and Board, in consultation with relevant CCAC Partners.
• Shortlisted applicants will be invited to present their proposals in further detail and to respond to follow-up questions about their application.
• Successful applicants will be invited to develop a Project Implementation Plan and Detailed Budget in consultation with the CCAC Secretariat and relevant CCAC Partners.
• The selection process may take up to 6 months after the closing date of the call for proposals. Due to the high volume of requests, the CCAC will not respond to requests for updates or feedback during this time.

Due diligence and procurement

Due diligence  

CCAC implementers with UNEP contractual agreements must meet with the following requirements:   

• Have adequate financial resources to perform the contract and meet all existing commitments (financial health)
• Be able to provide proof of registration, proof of not-for-profit status and audited financial statements for the last three completed fiscal years  
• Have a record of satisfactory performance with UNEP/CCAC, when applicable; and  - Not have been suspended or debarred by UNEP/CCAC or another UN agency. UNEP/CCAC also considers entities included in the Security Council Resolution Lists to be ineligible for UNEP/CCAC agreements. 
  * (inter)governmental entities/ United Nations are exempt from this requirement

Contract requirements

If selected for funding, your project will be contracted through the United Nations. Organisation(s) selected to implement the project must meet the following due diligence and procurement rules.

Procurement

As a general rule, Implementation Agreements allow for incidental procurement only.