AHK-Geschäftsreiseprogramm German Trade Mission to Israel. Financing Options for Energy Efficiency Projects

Transcription

1 AHK-Geschäftsreiseprogramm German Trade Mission to Israel Financing Options for Energy Efficiency Projects Jens Hauser, GFA ENVEST Tel Aviv, November 2011

2 The Financing Advisory Instrument of BMWi s EnEff & RE Export Initiatives BMWi s Financing Advisory Instrument Modul 1: National and International Financing Support Modul 2: Financing Support by German Institutions Modul 3: Carbon Finance Modul 4: Matching and Innovative Financing Concepts Tools and Methods: Report on Financing Mechanisms Presentation Individual Counselling Target Group: German Trade Delegation Members and potential Business Partners in the Host Country

3 Modul 1: National and International EnEff Financing Support

4 National Programmes for GHG Mitigation & EnEff Pilot projects for Green Buildings and GHG mitigation Introduction of energy efficient household appliances Definition of Green Building Standards / Codes Introduction and support of Energy Audits Pilot projects: energy efficient building restoration Energy efficiency in public buildings Replacement of inefficient household appliances

5 Encouragement of Capital Investments Capital grants and tax relief to support private investments and enhance competitiveness Capital Grants Grants for land development and investment in structures, equipment and machinery Amount of grant financing depending on project type and region Maximum grant: 24% of investment costs Additional tax reductions for foreign investors up to 10 years Tax Relief Minimal investment volume: ILS Amount of tax relief depending on geographic location additional relief for foreign direct investments up to 10 years relief: corporate income tax and dividend tax National EnEff Program: special attention to EnEff projects

6 Energy Service Companies - ESCOs Energy efficiency improvement through performance-based contracting Energy Costs prior to Improvement / Year Payment to / Return for Contractor Energy Costs after Improvement Baseline Energy Costs without EnEff Improvement Cost Savings remain with Owner Start of Contracting Investments by Contractor End of Performance Contract

7 EU Competitiveness &Innovation Framework Programme IEE - Intelligent Energy Europe Programme Improvement of EnEff and the rational use of resources in the industry, products and building sectors 730 Mio. EUR disbursement via calls for proposal new calls in early 2012 Support to public, private or non-governmental European organisations Support depending on call of proposal Grant financing of up to 90% Technical assistance (TA) to prepare, mobilise financing and launch investments in sustainable energy projects. Grants DO NOT cover infrastructure costs Projects must deliver tangible, measurable results i.e. energy saved, RES supply increased, GHG reduced and/or local jobs created Contact: entr-cip@ec.europe.eu

8 International Financing Support International organisations provide equity and loan financing for investment projects FEMIP: Facility for Euro-Mediterranean Investment & Partnership Equity investment, loans, guarantees + technical assistance Loans up to 50% of capital costs usually larger projects >25 Mio. EUR Terms and conditions on project basis lower interest rates Projects must be technically, economically and ecologically feasible EuroENPI South II Fund to develop and consolidate promising sectors and industries in the ENPI SOUTH Region Equity financing 5 Mio. US-$ for corporate or institutional investors, and 1 Mio. US-$ for individuals Union for the Mediterranean s InfraMed The Union for the Mediterranean s first financing facility Equity investment in sustainable urban, energy and transport infrastructure projects on the Southern and Eastern shores of the Mediterranean

9 Modul 2: Export Financing Support by German Institutions

10 KFW IPEX Export Financing KfW IPEX-Bank provides project finance and offers trade and export finance. Target Group & Eligibility German Exporters and Foreign Buyers of German Exports Goods and Services Financed are exports insured via HERMES Credit Cover (not conditional) Substantial proportion of German technology and service Terms and Conditions Loan volume up to 25 Mio. EUR / max. up to 85% contract value Individual, case-by-case decision on interest rates Maturity: minimum 4 years Application Application for Supplier Credit at every German Bank Institute Application Buyer Credit turn to KfW IPEX-Bank GmbH info@kfw-ipex-bank.de Internet: Small Ticket Europe Export Finance for Small and Medium Companies Small Export Loans 0.5 to 5 Mio. EUR with maturities ranging from 2 to 5 years Information: kmu_export@kfw.de

11 AKA Export Finance Bank Customized financing and processing of international trade-finance transactions Products: Financing: e.g. export loans Risk participation: e.g. guarantees Provision of services: e.g. debt restructuring Buyer and Supplier Credit: up to 85% of project costs loan volume > EUR Medium to long-term maturity Semi-annual instalment Framework Agreements in Israel: Mizrahi Tefahot Limited, Ramat Gan quick conclusion of loan agreements and disbursement AKA Bank:

12 Export Credit Cover Euler Hermes Export Credit Cover protects German Exports against payment defaults and cash losses, due to: Political Risk and Economic Risks Eligibility Export of goods and services and structure financing / project financing None-marketable, but justifiable risks abroad Special focus on small and medium enterprises No minimum export value Terms and Conditions Variable maturity for energy efficiency, renewable energies up to 18 years Flexible redemption payment possible e.g. annuity Administrative fee + premium

13 Export Credit Cover Instruments: Manufacturing Risk Cover Supplier Credit Cover Buyer Credit Cover Constructional Works Cover Cover of Project Financing and Investments Guarantees Contact: Phone +49 (0)40/

14 Modul 3: Carbon Financing

15 Carbon Financing Clean Development Mechanism Based on the Flexible Mechanisms of the Kyoto Protocol: Instruments to Co-Finance Sustainable Energy Investments (GHG mitigation) CDM Clean Development Mechanism Allowing the Annex I countries to meet part of their GHG reduction commitments using "Certified Emission Reductions (CERs) from GHG reduction projects in Non-Annex I countries CDM allows to realise emission reduction cost effectively - wherever it is cheapest globally CDM stimulates sustainable development and emission reductions, offers industrialized countries flexibility in how they meet their emission reduction targets

16 Host country (e.g. Israel) profits from technology transfer and future emission reductions Project in host country profits from additional revenues (co-financing)

17 CDM Project Cycle During RE Project Running Phase During RE Project Development *UK Department for Environment, Food & Rural Affairs, 2007

18 CDM in Israel An applied co-financing instrument Non-Annex I Country CDM possible 22 projects registered 11 projects under validation 1 EnEff project: Ramia Cement Plant EnEff grinding technology 2007 to 2020: tco 2 (approx EUR) Israel s Grid Emission Factor: 771 CO 2 /GWh co-financing potential for GHG mitigation projects: 1 US-$ cent / KWh Current Kyoto Mechanisms valid till 12/2012 Designated Authority: Ministry of Environmental Protection - Ms. Iris Shemer: iris@sviva.gov.il

19 CDM-Project: EnEff Measures in Technopolis (Kolkata, India) Benefits of energy efficiency technologies in the construction of an IT centre in India as well as Registration as CDM project Additional installation cost compared to baseline standard building = 1.21 Mio. USD Incremental annual operating expenses = 140,000 USD BUT Annual energy cost reductions: approx. 52% USD (based on grid fees) Annual revenues from carbon = USD (8,400*11 USD)

20 CDM Program of Activities Programme of Activities (PoA) A PoA is a voluntary coordinated action implemented via an unlimited number of CDM Project Activities, which is a multitude of GHG reduction activities occurring over time in a single or multiple sites that is defined in the baseline methodology. Development Building Owner Emission rights Payments PoA Manager Registration Management Emission trading EnEff Measures Reduction of: GHG emissions electricity consumption operating costs Potential project type: EnEff in public and residential buildings

21 Summary EnEff support mechanism in the development Existing National support targets private households International financing support and ESCOs for larger investment projects German trade and export financing instruments available CDM as co-financing instrument till end of 2012

22 Thank you for your attention! GFA ENVEST Jens Hauser