Environmental, Social and Economic Review Note (ESERN)
I. Project Overview
Identification | 9496 |
Project Title | Leapfrogging Chilean’s markets to more efficient refrigerator and freezers |
Managing Division | Economy Division |
Type/Location | National |
Region | Latin America and the Caribbean |
List Countries | Chile |
Project Description | The “Leapfrogging Chilean’s markets to more efficient refrigerator and freezers” project seeks to transform Chile’s markets to energy efficient residential refrigerators/freezers providing benefits of climate change mitigation and increased energy access. This Child Project is under the "Leapfrogging Markets to High Efficiency Products (Appliances, including Lighting, and Electrical Equipment)” programmatic approach, which will support the expansion of existing efforts to identify and support countries ready to commit to transforming national and regional markets to energy efficient products as a key step to combat climate change. |
Estimated duration of project: | 36 months |
Estimated cost of the project : | GEF Grant: 1,473,762 Co-finance: 7,411,551 |
| Funding Source: | GEF |
II. Environmental Social and Economic Screening Determination
Summary of the Safeguard Risks Triggered
Safeguard Standard Triggered by the Project | Impact of Risk (1-5) | Probability of Risk (1-5) | Significance of Risk (L, M, H)* |
SS 1: Biodiversity, natural habitat and Sustainable Management of Living Resources | 1 | 1 | L |
SS 2: Resource Efficiency, Pollution Prevention and Management of Chemicals and Wastes | 1 | 3 | L |
SS 3: Safety of Dams | 1 | 1 | L |
SS 4: Involuntary resettlement | 1 | 1 | L |
SS 5: Indigenous peoples | 1 | 1 | L |
SS 6: Labor and working conditions | 1 | 1 | L |
SS 7: Cultural Heritage | 1 | 1 | L |
SS 8: Gender equity | 2 | 2 | L |
SS 9: Economic Sustainability | 1 | 1 | L |
Additional Safeguard questions for projects seeking GCF-funding (Section IV) | NA | NA | NA |
*Refer to the UNEP ESES Framework (Chapter 2) and the UNEP’s ESES Guidelines
ESE Screening Decision
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Development of ESE Review Note and Screening Decision
| ESERN Prepared by: | Name: Tania Daccarett | Date: 16/02/2017 |
| Conforms to ESES Framework | Name: Yunae Yi | Date: 24/08/2017 |
| Accepted by Project Manager: | Name: | Date: |
Recommended further action from the Safeguard Advisor
I agree that the project is in the low safeguard risk category. However, I have following comments.
The project stated that the refrigerants like HCFCs will be replaced with HFCs. HFCs have high Global Warming Potential (GWP) and Kigali Amendment of the Montreal Protocol agreed to slowly replace them with other climate friendly chemicals. With replacement of HCFCs with other than HFCs, the GHG emission reduction effect of the project will be greater than what was estimated in the project. This will also help Chile achieve the Kigali Amendment.
Gender information seems to be weak and not directly relevant to this project. It will be nice to see gender dimension within the socio-economic context--how men and women use the refrigerators and if the designs address their different needs adequately. The energy efficiency can be thought through not only from the purchase of energy efficient refrigerators but also from understanding on how the consumers use the refrigerators. For example, bigger and energy efficient refrigerators in many societies encourage large stocking of vegetables, which increases food waste. Such unexpected consequences can happen if we don’t think through the entire consumption pattern. The project can analyse how they use the refrigerators and what kind of food they shop, cook and eat and keep in the refrigerators. What are the types of food waste? Do designs of the refrigerators meet the consumption patterns of the consumer needs?
The project stated that Chile refrigerators are exported to Andes Region. Therefore, the labeling, related policies and consumer analysis can be perhaps, extended to the larger Latin American consumers.
The project stated that consumers were insufficiently aware of the EE labeling. While EE may be one of the critical factors in consumers’ purchase decisions, it is important to understand consumers from their perspectives. What make consumers to select one product over the others? The prices are higher for EE products. Even with the full understanding of energy efficiency, overall quality, brand awareness, durability, design or prices also play key roles in consumer choices. Would there be any financing schemes that the project can explore to attract consumers to buy energy efficient refrigerators at the affordable prices? These aspects should be considered simultaneously.
Replacement of old models may or may not be successful especially for low income and marginalized communities who are usually less informed of the trends and government initiatives and more likely to use refrigerators for long time. Can the project also consider working with refrigerator technicians who can replace the HCFC refrigerant with less GWP for those who can’t afford to replace the old models? This will bring a quick win for reducing carbon emission.
Recycling programme is estimated to generate more jobs. How about the overall costs of recycling? Is it resource efficient? Is there adequate infrastructure and technology for that?
Consumer representatives or NGOs that advocate consumers should be visible in representing in the project.