IFC China Energy Efficiency Finance Program
EEFC has served as financial advisor to International Finance Corporation, the private sector investment arm of the World Bank Group, on development of an energy efficiency finance program in China. This program has been supported with funding from the Global Environment Facility (GEF) and combines GEF funds with IFC investment to support financing of energy efficiency projects by local Chinese commercial banks. EEFC’s work included market research, program design and preparation of GEF and other bi-lateral donor grant proposals totaling $19.5 million, structuring the energy equipment loan mechanism in consultation with selected Chinese banks, structuring a related IFC risk sharing facility to support bank lending. EEFC was also responsible for the development of the program business plan with first utility partner, related program agreements, program start-up plans and training of staff and program partners.
The program, known as “CHUEE” (for China Utility-based Energy Efficiency program) has been operating successfully since Fall, 2006. CHUEE supports marketing, development and equipment financing services to energy users in the commercial, industrial, institutional and multi-family residential sectors to implement energy efficiency projects in China. CHUEE brings together financial institutions, utility companies, and suppliers of energy efficiency equipment to create a new financing model for the promotion of energy efficiency. CHUEE cooperates with Chinese commercial banks and offers them a facility whereby IFC shares part of the loss for all loans within the GHG emission reduction portfolio. The program also provides advisory services on marketing, engineering, project development, and equipment financing services to banks, project developers, and suppliers of energy efficiency/renewable energy products and services.