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Clean Energy Toolkit

Responding to clean energy market opportunities: practical tools for financial institutions


YEARS

2013

CLIENT DESCRIPTION

The USAID Bureau for Economic Growth, Education and Environment (E3) provides technical leadership, research, and field support for worldwide activities in the areas of Economic Growth and Trade; Infrastructure and Engineering; Education; Environment and Global Climate Change; Water; and Gender Equality and Women’s Empowerment.

CLIENT'S OBJECTIVE

To assist financial institutions in developing viable new products to finance energy efficiency and renewable energy projects.

Results

BUSINESS RESULTS

In partnership with Abt Associates, Enclude created the Clean Energy Toolkit for USAID to use with client institutions around the world as a practical guide to launching a clean energy lending line of business. It was written by bankers for bankers and provides a framework for assessing the clean energy market opportunity and building the business case for clean energy finance. The Toolkit can be adapted to multiple markets and geographies. It includes five modules to guide financial institutions through the entire process of designing and implementing clean energy products, as well as a number of resource materials.

SOCIAL & ENVIRONMENTAL OUTCOMES:

Nearly 1.3 billion people do not have access to electricity and 2.6 billion people do not have access to clean cooking fuel. Many of them live in remote or rural areas that are expensive to reach by extending the national electric transmission grids. Clean energy technologies (renewable energy and energy efficiency improvements) can help provide electricity and clean cooking fuel at a much lower cost.

Activities

Developed a strategy for increasing financial institutions’ awareness and capacity to capitalise on clean energy market opportunities.

Authored five modules to guide financial institutions through the process of identifying market opportunities, assessing their internal readiness, and developing clean energy products. The toolkit includes a user’s guide, a clean energy technology handbook, five case studies, and resource lists and links.

The Toolkit will be piloted in selected countries in partnership with local financial institutions.

LEARNINGS

Clean energy finance can improve access to clean energy as well as reduce energy costs for households and businesses. Clean energy finance products can range from retail customers seeking low cost access to electricity in remote areas, to corporate customers looking to save on their monthly electric bills. The Toolkit can be adapted widely depending on the regional energy market characteristics and provides commercial banks with a new product offering for their existing customer base. Sustainable banking, as demonstrated by the Global Alliance for Banking on Values, offers a promising future.