1. Energy Efficiency: NDF experience The Nordic Development Fund:
A financing institution supporting
Climate Change projects in low-
and middle-income countries
Energy Efficiency:
NDF experience

2. Does not taste as good as it looks?
- EE is not as appetizing for the company as it seems for the external expert.
- The potential for EE is described as huge in most countries
- Advice is given that shows on short payback times and considerable savings
STILL -
- Experience shows that it is not as easy to get companies to invest in EE as expected
- Resistance to take on loans and implement suggested measures

3. Low hanging fruits are most often picked
The easy and obvious measures are implemented, but then it starts to get difficult
Many SME programs directed at both manufacturing and offices can report success in the some types of measures like lighting, cooling, isolation.
In medium large processes recovery of heat – or cool – present common improvements. Air pressure systems may be changed.
Process components or boilers are harder to replace.
Secondary heat is often wasted, even though valuable for many processes

4. Why does our cat not go for the bait?
Fewer than expected loans are applied for
Competition: credit cards are used
Unwillingness to deal with banks – traditional mistrust
Unattractive conditions
Security difficulties
Unwillingness to limit other lending possibilities
Reluctance to let others own the investment inside your productive chain

5. Why the reluctance to make a guaranteed profit?
Fewer than expected measures are implemented
A saving is limited – a potential limitless
Preference to invest in the production chain
Reluctance to disturb the production chain
Lack of focus on energy savings: partly due to different view of aspects

6. A free lunch is always welcome – but only snacks should be given away
Private sector companies should not be offered services for free.
Most companies accept a free assessment but few are willing to pay
Lack of payment means resources are wasted on non-committed companies

7. Know your client
The financial offer must be assessed with the Clients' eyes
EE is not a box: We need to develop tailor-made products
Only light/rapid assessments should be offerered for free

8. Offering a car ride but charging sky-high for the petrol will bring the client nowhere
Companies must be offered attractive and affordable terms. Society must see EE financing as a common good
First loss guarantees can improve terms and ease resistance to take on debt
EE loans should not limit other financing
EE loans could be amortized as the investment is paid back
EE loans should have strict requirements on energy efficiency in absolute and relative terms