New and more energy efficient cooling technologies can be expensive, so why not provide them on a pay-per-use approach similar to what software companies do? That’s the idea behind CaaS, or cooling-as-a-service, a niche business model in the HVAC&R industry that stepped into the spotlight in January when the BASE Foundation captured the 2026 Zayed Sustainability Prize.
The Zayed Sustainability Prize is awarded by the United Arab Emirates to organizations developing “solutions that are grounded in real-world needs and capable of continued growth” in six categories: health, food, energy, water, climate action and global high schools.
The Switzerland-based BASE Foundation was founded in 2001 and focuses on developing innovative business models to tackle climate change challenges. It founded the SET (Servitisation for Energy Transition) Alliance in 2022 to advance as-a-service business models for applications like cooling, heating, lighting, solar and energy storage. Its work on servitizing cooling was recognized with the Zayed Sustainability Prize in the energy category.
On paper, natural refrigerants seem to be a perfect fit for CaaS given their climate impact and higher upfront costs in certain applications – such as transcritical CO2 (R744) commercial refrigeration systems – compared to synthetics. NaturalRefrigerants.com spoke with Emma Wink, Sustainable Finance Specialist at the BASE Foundation, to see if that is the case in reality, though.
This interview has been edited for length and clarity.
Can you explain more about how CaaS works and what the current state of the sector is?
Emma Wink: CaaS focuses on delivering cooling on a pay-per-use approach. The CaaS provider is responsible for the cooling plant’s design, implementation, operation, repairs and financing and retains its ownership throughout the contract period. The customer has no upfront CAPEX requirement and pays for the cooling consumed following a clear and transparent OPEX charge.
Currently the model is being applied across commercial buildings, pharmaceutical facilities, food processing plants and cold chains, including small-scale cold rooms for agricultural produce. While still an emerging market, in Singapore, CaaS is now often included in requests for tender. CaaS moves beyond equipment financing models (e.g., leasing) and differs from energy performance contracts where providers are typically compensated based on verified energy savings.
What role do natural refrigerants play in CaaS?
EW: In many markets, natural refrigerant systems are characterised by lower operating costs and longer lifespans but also higher system complexity and upfront capital costs. This can make CaaS an attractive option for customers that prefer to outsource system performance rather than invest in and manage complex assets themselves. What we also see is that CaaS providers often integrate complementary services and systems such as solar power or waste heat recovery to further improve overall system efficiency and reduce operating costs.
There are several examples of CaaS solutions featuring natural refrigerant systems. There are transcritical CO2 refrigeration systems deployed by Danfoss and ANEO Retail in Coop Supermarkets in Norway and Sweden, a 1.67MW [475TR] ammonia-based refrigeration in South Africa system for frozen food producer Dr. Oetker and propane [R290]-based chillers used in cold rooms for agricultural produce deployed by ColdHubs in Nigeria.
“Natural refrigerants are already gaining momentum in these segments [food retail and processing, pharmaceuticals, data centers and larger commercial buildings], and a CaaS model can add value by combining efficient technology with long-term performance management.”
Emma Wink,
Sustainable Finance Specialist at the BASE Foundation
Where does the SET Alliance see the most potential for natural refrigerants in CaaS?
EW: We see the strongest potential where cooling loads are high and continuous, particularly in food retail and processing, pharmaceuticals, data centers and larger commercial buildings. Natural refrigerants are already gaining momentum in these segments, and a CaaS model can add value by combining efficient technology with long-term performance management.
At the moment, the market is still largely supplier-driven, with providers using service models to differentiate and build recurring revenue. Stronger customer demand, especially from organizations with ambitious sustainability goals or large refrigeration portfolios could significantly accelerate investment in CaaS offers using natural refrigerants.
We see strong potential in emerging markets where cold chains are expanding and where providers can bundle cooling with services such as solar PV, storage or energy management. More broadly, the opportunity lies where customers want to optimize energy use and costs, outsource performance risk and meet sustainability goals, not just buy equipment.
What is the outlook like for the growth of CaaS, and what will be the main drivers?
EW: The outlook for CaaS is closely tied to the rapid growth in global cooling demand. The opportunity for CaaS is to ensure that this growth happens in a more efficient, sustainable and circular way, shifting the focus from simply installing equipment to delivering optimized cooling performance over time.
Several factors are likely to drive the expansion of the model. Access to finance is gradually improving, with growing interest from commercial banks, infrastructure investors, development finance institutions and specialized energy service investors. However, many lenders are still becoming familiar with performance-based service contracts and the associated risk structures.
Policy and regulatory developments will play an important role. Refrigerant phase-down measures, stronger energy efficiency standards and climate targets are encouraging companies to transition toward more efficient and future-proof cooling systems. Service models like CaaS can help facilitate this transition by reducing upfront investment requirements and transferring technical and operational risk to specialized providers.
What does winning the Zayed Sustainability Prize mean for the BASE Foundation?
EW: The award reflects growing recognition of service-based business models as a practical way to accelerate the energy transition and the importance of addressing the environmental impacts of cooling. The $1 million (€848,000) prize will actively support two initiatives: the SET Alliance and its efforts to scale CaaS and Your Virtual Cold Chain Assistant.
Your Virtual Cold Chain Assistant focuses on the implementation of cold rooms as-a-service and digital solutions for more sustainable agricultural cold chains. The prize also provides global visibility and access to a strong network of sustainability leaders and partners, helping expand the reach and impact of these initiatives.
