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FEES
Financing Energy and Environmental Solutions

The Challenge

Lack of access to finance is the greatest barrier to implementing high-cost cleaner production (CP) and energy efficiency (EE) projects in small and medium enterprises (SMEs) in China. As SMEs make up 97% of all firms, enabling them is critical for transforming the economy to a system of sustainable consumption and production. However, there is a disconnect between SMEs and financial institutions (FIs). On one hand, SMEs have not been able to make compelling financial and economic cases for EE and CP projects to financial institutions while on the other hand, financial institutions possess limited capacity to gauge risks and opportunities associated with CP and EE projects. These problems are relevant in Shaanxi, one of China’s fastest growing economies, where rapid growth led to increased pressure on the environment and natural resources.

To bridge the gap that prevents the widespread adoption of CP and EE, there is a need for competent environment and energy service providers that can provide integrated technical solutions and also prepare credit-worthy EE/CP projects. 

The Objectives

Assist SMEs in Shaanxi achieve significant pollutant discharge reduction and energy saving, carbon emission mitigation by improving their capacity to access green credit as well as implement high and medium-cost energy efficiency and cleaner production measures. Specific objectives include:

  • Enhancing the capacity of Shaanxi SMEs, particularly in eight energy and pollution-intensive sectors, to access green credit and implement high and medium-cost energy-efficient, cleaner production measures;
  • Developing risk-sharing mechanisms between government and financial institutions and improving their risk management capacity, and implementing innovative green credit products for SMEs;
  • Strengthening the ability of government agencies and local energy service entities to engage in effective energy audit, inspection and information management activities.

The Way Forward

  • Building the capacity of SMEs to adopt CP/EE high-cost options;
  • Bridging the gap between SMEs and Financial Institutions;
  • Training of local Environment/Energy Service Providers;
  • Developing policy recommendations for CP/EE promotion.

VIDEO 

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Duration:
2/2013 – 1/2017
Total Budget:
EUR 2,069,861 (EU Contribution: 80%)
Contact Detail:

 

TUV Rheinland Berlin

Brandenburg Pfalz e.V. Ms. Sherin Lin No. 199 Kezhu Road,

Guangzhou Science City, 510663 China

 [email protected]

Lead Partners

Partners

Administrative Committee of Xi’an Hi-tech Industries Development Zone, China

Administrative Committee of Xi’an Hi-tech Industries Development Zone, China

EMCA

EMCA

Shaanxi Engineering Consulting Center, China

Shaanxi Engineering Consulting Center, China

Sustainable Technology Adaptive Research & Implementation Center / Nepal (STARIC/N)

Sustainable Technology Adaptive Research & Implementation Center / Nepal (STARIC/N)

Xi’an Municipal Research Institute of Environmental Protection, China

Xi’an Municipal Research Institute of Environmental Protection, China

Resources

Impact Sheet
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