Green technology transfer: a key ingredient for a sustainable growth

Transcription

1 Green technology transfer: a key ingredient for a sustainable growth

2 Introduction to the EBRD The EBRD is a triple-a rated* bank with a capital base of 30 billion. The EBRD s annual business volume (cumulative, EUR in billion) Operating in 35 countries from central Europe to central Asia, the EBRD: Promotes transition to market economies Mobilises foreign direct investment Improves people s lives through enhancing municipal services Encourages sustainable development The EBRD is owned by 67** countries and two inter-governmental institutions. Billion * From all three main rating agencies (S&P, Moody s and Fitch) ** Libya is yet to become a fully ratified member of the EBRD 0 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 2

3 Mainstreaming green financing: EBRD strategies environmental. protection tech transfer water & materials adaptation energy efficiency renewable energy 3

4 Mainstreaming green financing: The business model direct & indirect financing investment grant support blended concessional finance develop sustainable energy lending climate vulnerability risk assessments transition gaps & market scoping address sustainability & environmental market failures strengthen the institutional & regulatory context 4

5 Mainstreaming green financing: Financing results 19.5 billion cumulative EBRD green financing 2006 Q ,080 projects with green components 30% of 2015 business 5

6 Mainstreaming green financing: Physical impacts REDUCED 77 million tonnes of CO 2 /year SAVED 43 million m 3 of water /year REDUCED 1 million tonnes of waste /year In More than the annual energy use related CO 2 emissions of Romania or twice those of Sweden In from 70 water efficiency projects Equivalent to a third of the annual water consumption of the population of Prague In from 40 waste efficiency projects Various streams of waste: metals, minerals, agricultural waste 6

7 CLIMATE TECHNOLOGY TRANSFER PROGRAMMES AT THE EBRD Two examples: SEFFs and FINTECC 7

8 Climate technology transfer is a priority for the EBRD The EBRD has put climate technology transfer at the very centre of its activities and has developed specific products and processes to achieve this objective. Financial products SEFFs FINTECC Technical assistance Resource efficiency audits Support to the local banks to identify a pipeline of opportunities Policy dialogue Energy labelling Eco-design 8

9 Key drivers for the EBRD in promoting Climate Technology Transfer Acceleration of green investments to tackle climate change Green economy establishment in the Country of Operations, as an engine for growth Create markets that work with sustainability at their core Support companies in improving their business competitiveness 9

10 EBRD Sustainable Energy Financing Facilities SEFFs Through Sustainable Energy Financing Facilities (SEFF) the EBRD extends credit lines to local financial institutions. Local financial institutions on-lend funds to small and medium-sized businesses, corporate and residential borrowers. Finance is provided for energy efficiency and small-scale renewable energy projects. SEFFs establish project implementation teams who support local financial institutions and their clients. SEFFs are effective in reaching a wide range of small and medium-sized business and residential clients 10

11 Results of EBRD SEFFs SEFFs 35 integrated programmes developed in 24 countries More than 100 financial institutions participating in the energy efficiency financing business Over 100,000 investments implemented Worth almost 4 billion Saving over 14 million MWh equivalent each year Avoiding over 5 million tonnes CO 2 /y emissions 11

12 Examples of Technology Categories SEFFs Green economy focus Agriculture and food production Commercial equipment Water management Waste management Equipment examples Harvesters, tractors, working trailers Refrigeration technologies Food processing equipment Plastic injection machines, packaging equipment, etc. Printing machines Forklifts Construction machines Metal processing and machine building equipment Water pumps, pump controllers Trenchers, boring machines, underground boring equipment, etc. Containerised water treatment systems Specialised waste collection vehicles, compactors, separate waste collection containers Waste sorting equipment, trammel and disc screens Examples of SEFFs implemented in the different countries are reported in the annex. 12

13 FINTECC Finance and Technology Transfer Centre for Climate Change Part of a global technology transfer initiative created at COPs 13 and 14. Aims to improve deployment rates of the best available climate technologies in markets where deployment is very slow compared to others. 13

14 FINTECC business model Financial support for projects: Needs based incentives for demonstration projects financed by the EBRD, incentivizing implementation of best available technologies in the specific sector and country. PROJECTS AND INVESTMENTS Policy Dialogue: Working with governments to support development of a strong institutional and regulatory framework that incentivises technology transfer and climate technology deployment Technical Assistance (TA) : TECHNICAL ASSISTANCE POLICY DIALOGUE Networks, Insights, Capacity Building and Market-Building: Development of market monitoring tools and techniques, project assessment tools and methodologies together with a needs-based technical assistance for individual projects. Establishment or support to networks promoting technology transfer, organization of stakeholder events and sharing information on climate technology markets. 14

15 FINTECC addresses some key barriers to climate technology deployment Lack of reliable baseline information on market penetration Lack of knowledge, awareness and absorption capacity of businesses Lack of adequate regulatory framework to incentivize technology transfer Limited availability of financial instruments suitable for financing technology transfer Underdeveloped supply chains with limited competition There is limited availability of reliable information on technology baseline in individual countries and sectors, limiting the ability of both private sectors and policy makers to make well informed decisions. Often results in perception of high risk, low profitability, and high transaction costs. The companies lack in-house capacity to develop bankable projects and may not have possibility to acquire such expertise in the market. Regulatory frameworks not conductive to technology transfer, e.g. no labelling of products available in most of the cases. There is a limited number of financing instruments available to support technology transfer, in particular those instruments working alongside standard financing. Underdeveloped supply chains with lack of competition among suppliers, limited availability of technology solutions, and limited market for engineering / maintenance service providers

16 Case Studies Non-TC grants: Case Studies, and status 17 signed transactions, incentives worth USD 3.1m, supporting USD 39m of GET investments. Transactions benefiting were in Agribusiness (7), M&S (7), Natural Resources (1), Corporate (1), and Property and Tourism (1) Workshop and showroom, ETC Bear Beer, Kyrgyz Republic Manufacturing facility, SEMED Technologies considered: tri-generation, clean burn boiler, water recovery and re-use, variable refrigerant flow cooling system complemented with BEMS, LED lighting. Grant: USD 360,000 SEI investment: USD 6.3 mil EBRD transaction: USD 13 mil Technologies supported: CO 2 recovery system in fermentation and EMS. Grant: EUR 127,327 SEI investment: USD 1.1 mil EBRD transaction: USD 9.5 mil Technologies supported: Rooftop PV, Energy Storage, Heat Recovery, Building Insulation, EMS, ISO Grant: EUR 380,000 SEI investment: EUR 2.2 mil EBRD investment: EUR 4.6 mil 16

17 Contacts Terry McCallion Director Energy Efficiency and Climate Change Astrid Motta Principal Energy Efficiency and Climate Change EBRD, One Exchange Square London, EC2A 2JN United Kingdom