New research from Shell Foundation reveals that affordable cooling solutions can significantly boost earnings for low-income workers and micro-entrepreneurs. The findings indicate that cooling interventions directly correlate with increased net income margins and productivity across India, Nigeria, and Ghana.

The report, titled The Cooling Dividend, presents data from the first year of the SPACES programme (Scaling Passive and Affordable Cooling for Economic Resilience and Sustainability). Funded by Shell Foundation and supported by the UK government's Foreign, Commonwealth & Development Office (FCDO), the initiative tested innovative cooling technologies with more than 12,000 participants. The study addresses a critical gap as extreme heat threatens economic resilience in developing economies.

Economic impact of cooling solutions

Evidence from the pilots demonstrates measurable economic benefits for small businesses and gig workers. Delivery riders using cooling jackets reported reduced heat stress, which enabled them to complete more deliveries and increase their earnings. Similarly, vendors using cooling film saw net incomes rise by 13–25% while experiencing reduced spoilage and extended shelf life for perishable goods.

The most significant gains were observed in net income margins for businesses utilizing cooling canvas. These interventions drove margin expansions of 10–38 percentage points, with some of the strongest results recorded among women-led businesses. Users across the programme also reported lower levels of heat fatigue and illness, contributing to sustained productivity.

Global context and market potential

The findings arrive as extreme heat increasingly impacts global labor markets. Approximately 2.4 billion workers worldwide are exposed to excessive heat at work. Productivity losses linked to heat stress are projected to reach $2.4 trillion annually by 2030, equivalent to around 80 million full-time jobs. Populations dependent on outdoor work or handling perishable goods, including farmers, traders, and market vendors, face the greatest risks.

Shell Foundation argues that cooling should be viewed as an economic resilience intervention rather than solely a comfort or health issue. Cooling markets across developing economies could be worth around $600 billion annually by 2050, yet more than a billion people globally still lack access to adequate cooling.

What the Numbers Show

The data highlights a direct correlation between thermal comfort and economic output for the base of the pyramid. While general health improvements are noted, the specific financial metrics reveal that passive cooling technologies (canvas and film) act as capital efficiency tools. By reducing spoilage and extending working hours without active energy consumption, these solutions improve net income margins by up to 38 percentage points. This suggests that for micro-entrepreneurs, access to cooling is not merely a welfare benefit but a direct driver of profitability and business viability in high-temperature environments.

Programme details

SPACES is a partnership between Shell Foundation, Trane Technologies, Intellecap, and Ndarama Works. The initiative seeks to identify, test, and commercialise affordable cooling solutions for workers and micro-entrepreneurs at the base of the economic pyramid. Tanya Kothari, Head of Portfolio, Micro-entrepreneurs at Shell Foundation, stated that expanding access to effective cooling technologies is critical to building economic resilience across Africa and Asia.