About

Welcome to the Industrial Efficiency Financing Database (IEFD). This database identifies vehicles and programs that have successfully delivered industrial energy efficiency financing. In particular, it catalogues financial programs, products, and mechanisms that can help leverage public and private funding in support of industrial energy efficiency (EE) and carbon mitigation investments. 

The IEFD contains over 20 financial programs, products, and mechanisms to leverage public and private funding in support of industrial energy efficiency (EE) and carbon mitigation investments.

These include eight “best practices”, which were selected according to the following criteria:

  • The amount of energy savings or emission reduction amount related to investment (e.g. tons of CO2 or GHG emissions saved)
  • The financial performance of projects (payback period, internal rate of return)
  • Monitoring and reporting
  • Information dissemination
  • Regulatory support
  • Private sector participation (a key factor in the industrial EE sector) and, where private sector financing is combined with public sector finance, the catalytic impact (private capital leveraged per public $1 of financing)
  • Tailored programs to industry sectors and local market conditions
  • The effectiveness of the program in producing new investment (additionality)
  • Size
  • The existence of market energy prices and long-term forecast providing viability.

 

IIP has produced a report on these best practice criteria and other issues identified by program developers and implementers. The report synthesizes this information and provides recommendations from the programs at a macro level. It is hoped that the lessons drawn from these experiences will provide valuable input to governments, development financial institutions and other stakeholders as they design and implement future industrial EE programs.

The IEFD also includes a number of other interesting financial mechanisms to support energy efficiency, particularly in India.  The India financial programs are profiled in Financing Industrial Energy Efficiency in India, an IIP report that discusses the history of initiatives to overcome the barriers to financing, reviews current and proposed initiatives, and presents insights from local stakeholders on how the barriers can be overcome. The report was developed with support and input from the banking sector and energy efficiency experts in relevant markets.

 

Acknowledgements

This database was developed by IIP with valued contributions from the following organizations and individuals: Aequero Limited, which prepared the selected best practice factsheets and report Delivery Mechanisms for Financing of Industrial Energy Efficiency: A Collection of Best Practices; Dilip R. Limaye of SRC Global; Dr. Mahesh Patankar of MP Ensystems; B. Anil Kumar of SRC; and IIP staff who drafted factsheets on the India programs.