CHALLENGE
How can lending to energy efficiency projects be increased?
Governments worldwide are raising their climate targets to limit global warming to 1.5C. While these targets provide direction, more financing is needed to drive the action required to create emissions reductions. As it stands, by the end of the decade, investments must increase by 700% to realise global climate goals.
Small and medium-sized enterprises (SMEs) and energy service companies (ESCOs) regularly experience this problem first-hand. Including when they need loans for energy efficiency projects, such as boiler replacement or waste heat capture. Banks, often unfamiliar with the viability of energy efficiency projects, perceive SMEs as risky clients. This can result in SMEs encountering unaffordable loans for these projects, with high interest rates and unachievable collateral demands.
Aware of this…
