client
Agence Française de Développement (AFD)
Fonds français pour l’environnement mondial (FFEM)
PROJECT DESCRIPTION
The Global Innovation Lab for Climate Finance selected a proposal for an energy saving insurance program that it considered as having high potential to support the implementation of energy saving projects in 11 southern countries. The Inter-American Development Bank had already launched a pilot phase on the same concept in many Latin American countries .
The AFD wanted to launch ESI programs based on its experience in three countries, Mauritius, India, and Turkey, by mobilizing existing partner banks and its successful energy efficiency finance activities, notably the Sustainable Use of Natural Resources and Energy Finance (SUNREF) tool whose objective is to mobilize the financial sector in partner countries to reduce global and local pollution and optimize the use of natural resources. The Fonds français pour l’environnement mondial (FFEM), whose aim is to foster innovative solutions, had accepted to finance the subsidies necessary for the implementation of the ESI programs.
Thanks to its experience in energy efficiency financing and knowledge of the target countries, Econoler was selected by the AFD to conduct a feasibility study on the implementation of ESI programs in India, Mauritius and Turkey with the goal of establishing an institutional structure.
HIGHLIGHTS
Econoler conducted the feasibility study and established the ESI program structure for India, Mauritius and Turkey. More specifically, the mandate included:
- An ex-ante assessment of the ESI program, with focus on geographic, technical and financial aspects, as well as the operational mode, institutional structure, and implementation schedule updates of such an initiative;
- Preparation of a project commitment note (note d’engagement de projet, NEP) including the following elements:
- Context and stakes;
- Program objectives;
- Program Content;
- Institutional structure of the FFEM financing;
- Financing duration, cost and plan;
- Monitoring, evaluation and communication measures;
- Justification for FFEM intervention;
- Risk analysis;
- Conditionalities and support measures.
The works carried out by Econoler served to validate the feasibility of the ESI program in the target countries and to design the implementation program.