1. © European Bank for Reconstruction and Development 2011 | www.ebrd.com EBRD Financing for Sustainable Energy Investments Remon Zakaria Business Development Manager Energy Efficiency and Climate Change European Bank for Reconstruction and Development (EBRD)

2. 2 EBRD’s SEI Investments: Sectoral and Regional Distribution Launched in 2006 to mainstream renewable energy and energy efficiency in EBRD’s operations. Its achievements from 2006 to 2012 were: - €11.1 billion invested, for total project value of €61 billion in 602 projects in 31 countries; - Annual savings of 55 million tonnes CO 2-eq per year (~ 14% of CA emissions) and 49.5 million toe per year (~ 35 % of CA primary energy production)

3. 3 SEI Operational Strategy A Successful Holistic Approach Working with governments to support development of strong institutional and regulatory frameworks that incentivise sustainable energy Technical assistance to overcome barriers: market analysis, energy audits, training, awareness raising; grant co-financing to provide appropriate incentives and address affordability constraints Projects with numerous clients, public and private, with a range of financing instruments Via these three parallel activities SEI accounted for 26% of EBRD’s Annual Business Volume in 2012

4. 4 Financing Sustainable Energy Investments  Direct EBRD lending to Corporate and Municipal Clients  Sustainable Energy Financing Facilities: On-lending through Partner Financial Institutions  Co-Financing with the private financial sector, public sources such as multilateral donor funds and other IFIs

5. 5 Direct EBRD Lending to Corporate Clients: what do we do? identification of investment opportunities  Assist Industrial, Commercial and Agribusiness (ICA) Clients with identification of investment opportunities related to sustainable energy and resource efficiency (REI) including in the built environment technical assistance  Provide technical assistance including:  Energy and water audits, feasibility studies, technical assessments, cost-benefit analysis of Energy Efficiency (EE) measures and specific REI opportunities;  Review of technical design and procurement documentation;  Corporate policies support, capacity building on specific aspects (e.g. ISO 50001 Energy Management);  International Sustainability Certification;  Comparison with national and international energy and water benchmarks;  Assessment of market penetration rates of specific advanced technologies;  Lender supervision assistance;  Investment incentives under the Energy Efficiency Management System Program

6. 6 Sustainable Energy Financing Facilities (SEFFs) Structure  SEFFs are effective in reaching a wide range of industrial and residential clients  SEFFs are effective in supporting commercial banks in providing finance in new areas such as residential energy efficiency and small scale renewables Verification Consultant Commercial banks Sub-borrowers EBRD Project Consultant Donor-funded contract Credit line Grant incentives Sub-loans Technical support (project assessment) Technical support (project verification) Support

7. 7 Case Study

8. 8 KyrSEFF – EU funded project planned to be launched in Q2 2013  USD 20 M facility, approved in December 2012 by the EBRD Board;  Dedicated EE credit line promoting improvements in private housing sector as well as SME/industries/renewables with max sub-loan size up to USD 1.0 M;  Eligible are individual home owners/associations/private HMCs, housing cooperatives, ESCO and service providers refurbishing the premises on behalf of the residents;  The project combined Policy dialogue, Technical Assistance, Financing and grant support;  Incentives 10 to 30%  Incentives between 10 to 30% from the principal sub-loan amount specifically for energy efficiency projects including technologies with performance indicators exceeding the level of national regulation and depending on complexity of the projects.

9. 9 Remon Zakaria Business Development Manager, Energy Efficiency and Climate Change zakariar@ebrd.com For more information contact: Aleksandar Hadzhiivanov Principal Manager Energy Efficiency & Climate Change hadzhiia@ebrd.com