March 2, 2017— Energy Savings Insurance overcomes investment barriers to energy efficiency by providing an insurance product for projected energy savings for efficiency projects undertaken by small and medium sized enterprises. Endorsed by the Global Innovation Lab for Climate Finance in 2015, the Inter-American Development Bank has led the implementation of Energy Savings Insurance, and now has projects in seven countries that will target thousands of businesses.
Colombia – First piloted with BANCOLDEX, thanks to the Clean Technology Fund (CTF), the Energy Savings Insurance program in Colombia aims at promoting investments in energy efficiency in the hospitality and healthcare sectors and was successfully launched on June 1st 2016. It is expected to support about 104 firms (90 hotels and 34 clinics/hospitals) investing in energy efficiency projects and reducing about 13,977 tCO2e/year.
Mexico – With the support of the Clean Technology Fund (CTF), the Danish Government through the Danish Energy Agency and the Inter-American Development Bank, Energy Savings Insurance has gone forward in Mexico with FIRA, a rural development bank, and will target an investment stimulus of USD 25 million in the agro-industry sector with over 190 energy efficiency projects.
El Salvador – In El Salvador, Energy Savings Insurance is being implemented with the support of BANDESAL, the Danish Energy Agency and loan and grant resources from the Green Climate Fund. The program will target 500 firms investing in energy efficiency projects and reducing about 37,500 tCO2e/year.
Nicaragua – In Nicaragua, Energy Savings Insurance is starting to structure its mechanisms with a national development bank for producers in the industrial and agricultural sectors, including forestry.
Brazil – Energy Savings Insurance is being replicated in Brazil through three development banks, Bandes, BRDE and Fomento Goiás and is currently in a market research phase.
Peru – Energy Savings Insurance in Peru is being structured with a national development bank COFIDE, targeting, potentially, hotels, hospitals and clinics, food processing, fisheries, textile, among others.
Other – Energy Savings Insurance is raising interest in other regions such as China and Vietnam, and the French Development Agency (AFD) is considering its replication in Mauritius, Turkey and India. The India Innovation Lab for Green Finance endorsed the concept for application in India in 2016.
For more information on Energy Savings Insurance and latest progress, visit https://www.greenfinancelac.org/esi/
The Global Innovation Lab for Climate Finance identifies, develops, and pilots transformative climate finance instruments that can drive billions of dollars of private investment in climate change mitigation and adaptation in developing countries. Climate Policy Initiative serves as secretariat and analytical provider for the Lab.