Global Climate Partnership Fund (GCFP)
The mission of the Country Specific Technical Assistance Services for the Global Climate Partnership Fund (The Fund) is to contribute to the mitigation of climate change through a reduction of greenhouse gas emissions. The Fund fosters primarily energy efficiency and renewable energy investments for Small and Medium Enterprises (SMEs) and private households in the target countries via qualified Financial Institutions (FI’s), thereby contributing to the reduction of primary energy consumption. The Fund investments are to generate a minimum of 20% energy and carbon savings.
In parallel with the Fund, a Technical Assistance Facility (TA Facility) has been established to provide Technical Assistance (TA), primarily to assist investees of the Fund in their development and growth as well as to facilitate new and protect existing investments of the Fund, if necessary.
The services delivered by the TA Facility are therefore to be seen complementary to the Fund’s objectives. The costs of projects are generally shared between the recipient and the TA Facility.
The Fund aims to provide financing to a local Financial Institution (FI) with little or no prior experience in energy efficiency (EE) / renewable energy (RE) lending. The task therefore consists of enabling FI to develop a sustainable business model allowing it to disburse the available funds according to the purpose of the Fund and further grow its EE/RE lending from there.
In the framework of this program, Deutsche Bank, in its capacity as a fund manager, mandated Econoler to set a strategy, design EE/RE lending products and implement these products on the market of Ecuador, through Banco del Pichincha.
More specifically, Econoler’s team of consultants:
- Assessed the existing energy sector, including energy demand, supply, prices and tariffs, along with the political, legal and institutional framework in effect and the EE/RE activities of other financing institutions.
- Cross-matched the business development strategy of the bank with the market sectors, technologies and client types with investment potential for EE/RE.
- Assessed the demand and the supply of EE/RE financing and identified opportunities for development of new EE/RE credit products. These opportunities were coordinated with the local bank and some of them were selected to be developed into dedicated EE/RE lending products.
As part of the assignment, Econoler is also in a process of development of:
- Product implementation strategy.
- Development and execution of a business plan.
- Training program and deliver training sessions. The training program will revolve entirely around the implementation needs of the EE/RE products.
The main target of the local bank is SME and micro lending in the field of EE and RE, covering sectors that have good potential for scalability and replicability. To respond to this demand, Econoler proposed EE/RE loan products well adapted to the market of Ecuador, that allow for such replicability and scalability. In fact, some of the proposed products are to be marketed through the retail lending of the bank.
The project is ongoing, and it is currently in its implementation phase.