IFC’s TechEmerge is an award-winning matchmaking program that connects innovators from across the globe with private sector businesses and other clients in emerging markets to pilot cutting-edge solutions and build commercial relationships where they are needed most.
As part of its mission to tackle some of the world’s most critical development challenges, TechEmerge is partnering with Indian Hotels Company Limited (IHCL) to accelerate the adoption of energy-efficient, affordable, climate-smart cooling technologies and business models in the growing hospitality sector. TechEmerge offers a total pool of USD500,000 in grant funding for competitively-selected pilot projects. Backed by our expert panel of industry advisors, we help innovators to successfully enter new markets, while adopters receive support to minimize adoption risks for new cooling solutions.
Why cooling and hospitality? Compared to office complexes, hospitals, homes, and other building developments, hotels have the highest average energy intensity, meaning they consume more energy per built area. In IHCL’s case, cooling represents almost 50% of its total energy use, in line with many hotels operating in warm climate countries. India’s hospitality sector is expected to grow from US$7.5 billion in 2019 to US$16.8 billion by 2025, offering significant opportunities to pilot and scale sustainable cooling solutions.
TechEmerge Sustainable Cooling in the Indian Hospitality Sector seeks innovative, climate-smart, cost-effective technologies and business models, including homegrown Indian solutions, that can meet IHCL’s cooling needs. These solutions should have the potential to be scaled across IHCL’s global business, and with other hospitality companies in India and the region more broadly.
Innovations should enable thermal comfort in built environments without compromising the functionality of public areas, guest rooms, banquet halls, kitchens, laundries, and other spaces, including but not limited to:
➡ Read more details on the type of solutions and relevant technologies aligned with IHCL needs.
Indian Hotels Company Limited (IHCL) plays a leading role in India’s hospitality sector and has a global footprint that includes the high-profile Taj brand. IHCL is South Asia's largest hospitality company by market capitalization and has a portfolio of 196 hotels across four continents and twelve countries. It is now building on its strong history of supporting sustainability, by partnering with TechEmerge to pilot and scale energy-efficient, climate-smart cooling innovations across its business. Selected TechEmerge innovators will pilot their innovations at five of IHCL's hotels, with the potential for successful solutions to be replicated across all IHCL's properties.
This program is implemented in partnership with the government of the United Kingdom.
At a global level, the market value of the cooling sector is expected to reach USD 367 billion by 2030, a 40% increase from 2018. India is one of the fastest growing cooling markets in the world, and one of the areas of greatest demand is space cooling. If business as usual continues, energy used for this purpose worldwide is expected to triple by 2050. Furthermore, in tropical countries like India, demand could increase five-fold, driving up costs for businesses and fueling greenhouse gas emissions.
Globally, the hospitality industry expanded by 17.7 per cent from 2008 to 2018. Despite the impact of COVID-19, it is expected to post a compound annual growth rate of 8% from 2021, with its market value reaching $5593 billion in 2023. India possesses a vibrant hotel sector, predicted to grow from around US$7.5 billion in 2019 to US$16.8 billion by 2025.
In the hotel sector, cooling is a major source of energy consumption. In IHCL’s case, cooling represents almost 50% of its total energy use, in line with many hotels operating in warm climate countries. With energy the second largest operating cost for hotels, surpassed only by labor costs, demand is growing throughout the sector for efficient, cost-effective cooling solutions that reduce energy consumption, costs, and greenhouse gas emissions. India’s government, like others around the world, has also mandated energy efficiency improvements and set targets for hotels, further strengthening the need to adopt sustainable cooling solutions. Meanwhile, there is a growing public pressure, including from travelers, for hotels and other businesses to go green and reduce their carbon footprint.
The TechEmerge Sustainable Cooling in the Indian Hospitality Sector Program is supported by a network of advisors with vast experience in assessing cooling and refrigeration technologies across the world and promoting sustainable investments in emerging markets.