Consultancy Services for Technical Assistance in Relation to the Study on Identification of Energy-saving Potential of Tractors

The Green for Growth Fund (GGF) offers dedicated energy efficiency (EE) and renewable energy (RE) credit lines in Southeastern and Eastern Europe. To help promote EE and reduce CO2 emissions, the Fund is investing long-term dedicated funds in financial institutions (FIs), which in turn provide medium to long-term loans to SMEs, households and municipalities.   To expand its activities to the agricultural sector in North Africa, GGF hired Econoler to (1) conduct a study and analyze the market potential for implementing EE and CO2 saving measures related to single-axle and double-axle tractors in Egypt, Morocco and Tunisia and (2) assess if the acquisition of such tractors can be financed through GGF as a standardized energy efficiency measure.   Econoler had already conducted two similar studies before conducting this one. The first was commissioned in 2012 and identified 12 standard agricultural EE measures to be financed through the GGF and implemented in 5 countries (Bosnia and Herzegovina, Macedonia, Moldova, Serbia and Ukraine). The second was commissioned in 2013 and identified the existing standard agricultural EE measures and new ones which could be financed through the GGF in the agricultural sector in eight targeted countries, including Albania, Armenia, Azerbaijan, Croatia, Georgia, Kosovo, Montenegro and Turkey.

The overall objective of this assignment was to identify existing standard EE measures related to agricultural single and double-axle tractors which could be financed through the GGF in Egypt, Morocco and Tunisia. The study was conducted into two stages. Stage 1 involved verifying the market potential for single and double-axle tractors by gathering, compiling and analyzing the most recent data about these tractors and assessing the potential for replacing these tractors annually. Stage 2 of the study was focused on assessing the GGF eligibility and potential of energy and CO2 saving measures applicable to single and double-axle tractors.   This study confirmed the eligibility of the EE measures related to agricultural single and double-axle tractors for GGF funding in the three countries because of the existing market potential and these measures’ potential to save more than 22% of primary energy and CO2 emissions.   Upon completion of the assignment, Econoler developed an algorithm for calculating energy savings associated with the EE measures for tractors, by taking into account the information about the farming practices specific to these countries. The GGF’s partner banks in the countries use the algorithm to assess candidate EE projects’ eligibility for GGF loans.