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Financing is Major Barrier for PRC to meet its 12th five-year Plan EE Targets
Problem is NOT a lack of available funds! Problem is inability of ESCOs, vendors, developers of Energy Efficiency Projects (EEPs) and industrial facility owners to access available Debt and Equity on commercially-attractive terms
Real Collateral Value of EEPs is the Savings Few China banks interested in EEPs due to small transactions and lack of internal capacity to evaluate and accept the Savings cash flow as collateral ESCOs are optimum solution but are typically small, medium-sized enterprises (SMEs) with limited equity/collateral capacity Few China Investors interested in EEPs versus IPOs
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China Industrial Energy Efficiency Finance (CIEEF) DEBT Solution by: Institute of Industrial Productivity
Create Savings Guarantee (SG) to LFIs that EEP savings will be sufficient to repay the principal plus interest on the EEP loan (separate from credit risk) Build capacity of LFIs to evaluate risks/benefits of EEPs with proven, market-based training workshops Localize existing Global Products and Methods:
(IEEFP) : International Energy Efficiency Finance Protocol (IPMVP): International Performance Measurement &
Verification Protocol
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Equity Investors:
Improves IRRs and reduces Host credit risk
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