Energy efficiency financing instruments : a comparative Study

Eredeti közlés: 11826

Abstract

T his paper develops a categorization of financial products supporting small-scale energy efficiency investments in fragmented markets where the end-users are not only capital-constrained, but also face the non-financial limitation of lacking a supportive institutional framework to implement energy efficiency investments. A defining common characteristic of small-scale energy efficiency investments is that they often require a third party that has the capacity to cluster these projects under one portfolio, presenting them as a single package to financiers in return for a share of the profit. In this framework of multiple stakeholders, if the financial incentives are unattractive, energy efficiency investments cannot happen. T his paper explores how policymaking can play an effective role in addressing these non-financial limitations in fragmented markets, where a supportive institutional framework is lacking alongside capital constraints, in order to capture the multiple benefits of energy efficiency investments in the process of achieving global climate goals. The study devises a feasible set of policies for financing in capital-constrained, fragmented energy efficiency markets.