Seventy financial institutions from over 20 countries have committed to step up financing for energy efficiency investments and develop business strategies that save energy and reduce carbon emissions.
The financial institutions, ranging from regional and microfinance institutions to national and global banks, met during an event, titled ‘Building a Global Energy Efficiency Financing Alliance,' where they were encouraged to share experiences about successful business strategies for developing and marketing energy efficiency finance products.
17 September 2015: Seventy financial institutions from over 20 countries have committed to step up financing for energy efficiency investments and develop business strategies that save energy and reduce carbon emissions. The financial institutions, ranging from regional and microfinance institutions to national and global banks, met during an event, titled ‘Building a Global Energy Efficiency Financing Alliance,’ where they were encouraged to share experiences about successful business strategies for developing and marketing energy efficiency finance products.
Speaking at the event, held in Istanbul, Turkey from 16-17 September 2015, Josué Tanaka, Managing Director for Energy Efficiency and Climate Change, European Bank for Reconstruction and Development (EBRD), said that the financial sector is uniquely placed to channel finance to energy-saving opportunities and address the current investment gap. Eric Usher, acting Head, UN Environment Programme Finance Initiative (UNEP FI), added that mobilizing the private finance sector means working with financial institutions not only to address internal barriers but also to involve policymakers in a dialogue on how to overcome external barriers.
During the event, participating financial institutions pledged to: further integrate energy efficiency finance into their operations; guide clients towards enhanced energy savings; track investment in the sector; and intensify cooperation with development institutions, including the EBRD and UNEP FI, in financing measures that help to combat climate change.
The International Energy Agency (IEA) estimates that more than 40% of the emission reductions required to limit temperature increase to below 2°C must come from increased energy efficiency. However, financing for energy efficiency at scale remains a major challenge, with a need for energy efficiency investments to increase four-fold from current levels, according to the Global Tracking Framework.
The event was jointly organized by the EBRD and the UNEP FI, with support from Turkey’s Garanti Bank, the Climate Investment Funds (CIF) and MWH Global, a water and natural resources firm. [Event Website] [UNEP FI Press Release] [EBRD News Story]