A U.S. Department of Energy Office of Science Laboratory Operated by The University of Chicago Argonne National Laboratory Office of Science U.S. Department of Energy ENERGY EFFICIENCY AND RENEWABLE FINANCING TASK FORCE EGNRET 25, Chinese Taipei October 31-Noverber 2, 2005 Cary Bloyd

Pioneering Science and Technology Office of Science U.S. Department of Energy 2 ENERGY EFFICIENCY AND RENEWABLE FINANCING TASK FORCE Lead, USA: Larisa Dobriansky, USDOE Objective: Develop New Business Models to Commercialize and Build Self-Sustaining Financing for Energy Efficiency and Renewable Projects that are smaller scale and have different risk profiles and higher investment hurdles than conventional energy projects. Four Functional Areas for Coordination: -Engage Financial Institutions and Private Sector through EBN and Expert Groups; -Promote Supportive Policy and Regulatory Frameworks; -Increase Awareness of Benefits of EE/RE Systems and Expand Database and Information Sharing System Capability; and -Develop Market Capacity and Mechanisms to Commercialize Financing.

Pioneering Science and Technology Office of Science U.S. Department of Energy 3 Task Force Supports APEC Energy Ministers 6th EMM, Energy Ministers directed the EWG: “to implement the recommendations of the ‘Energy Investment Report: Facilitating Energy Investment in the APEC Region....” APEC Economic Leaders called on EWG in October, 2003 “to work with the private sector and financial institutions to facilitate greater investment in clean and more efficient energy infrastructure and technologies.” The Recommendations resulted from 3 financing workshops which carried out the direction of the APEC Economic Leaders. These efforts are part of the Longer-Term Measures to advance APEC’s Energy Security Initiative.

Pioneering Science and Technology Office of Science U.S. Department of Energy 4 Motivation for Finance Task Force By 2020, energy trends indicate that total GDP in APEC expected to double and demand forecast to grow by 60 percent. Need for significant investments in energy infrastructure and an economic and environmental imperative to rationalize energy use through reducing energy demand and energy intensity. Public funds will not be sufficient to meet the region’s energy requirements; Private capital must be mobilized and the risks and costs of investment reduced. Benefits of investment in cleaner, more efficient energy manifold: increased energy security, increased productivity/economic development and decreased energy-related environmental and health impacts. Notwithstanding benefits, workshops revealed that Energy Efficiency and Renewable Energy markets are underdeveloped relative to their market potential; Workshops also recognized that funding is available but is not getting to qualified projects. APEC’s EWG can help to close gap between project development and financing; Entails public-private partnerships to address risks and costs; Focus on building local financial/commercial infrastructure to link private capital with project development.

Pioneering Science and Technology Office of Science U.S. Department of Energy 5 Financing Task Force Activities Eight APEC economies have joined the Task Force: Australia; People’s Republic of China; Republic of Korea; Mexico; New Zealand; the Philippines; Chinese Taipei and the United States, as well as the Chairs of EGNRET and the EGEE&C. Five APEC and self-funded projects are currently underway or have been recently completed. A survey questionnaire was recently circulated to Task Force Members to identify lead APEC economies for each initiative. Mexico has agreed to be a host economy for several Task Force projects. Outcomes from these projects will inform the development of a framework for a technical assistance program (IFAT) to build local commercial capability for financing projects. A case study of Thailand’s Energy Efficiency Revolving Fund and the recently completed (funded by Australia) There are six current projects supporting the taskforce.

Pioneering Science and Technology Office of Science U.S. Department of Energy 6 Financing Task Force Projects Development of Renewable and Energy Efficiency (Small Scale Project) Financing Best Practices and Guidelines for APEC Region Capital Market Development (OA USA lead, $785,600 total/$73,500 APEC) -Status: In progress, project began July Developing Market Capacity to Commercialize Financing of Clean and More Efficient Energy Projects (SF USA lead, $1,300,000 total) -Status: Approved, development in progress Sustainable Financing System for Energy-Efficiency - EWG 05/2003T (USA lead, $143,600 total/$143,000 APEC) -Status: Completed July 2005

Pioneering Science and Technology Office of Science U.S. Department of Energy 7 Financing Task Force Projects (Continued) APEC 21 st Century Renewable Energy Development Initiative (Collaborative V III) Local Banks Training Program for Financing Energy Efficiency and Renewable Energy Projects. (TILF Mexico lead, $100,000 total/$50,000 APEC) -Status: Approved by SOM for implementation in APEC 21 st Century Renewable Energy Development Initiative (Collaborative V III) Information Sharing on Financing Public Sector Energy Efficiency and Renewable Energy Projects. (OA USA lead, $75,000 total/$50,000 APEC) -Status: Approved by SOM for implementation in Financing High Performance Buildings and Communities -Tabled at EWG 30 and submitted as an announceable at EMM7