Inter-American Development Bank Lab (IDB Lab) and Development Finance Corporation (DFC)
Description of Project
The Caribbean EcoMicro Program is funded by the Government of Canada through Global Affairs Canada and the Inter-American Development Bank Laboratory (IDB Lab). The program objective is to implement green finance projects through microfinance institutions (MFIs) in the Caribbean. The program has been running for several years in Latin America and the Caribbean.
In consortium with Développement international Desjardins (DID), Econoler was selected by the Development Finance Corporation (DFC), one of the FIs admitted to the program by the IDB Lab, to carry out the following two main components: (1) provide assistance in strengthening a green credit product to finance the purchase of energy efficient and renewable energy (EE/RE) equipment for micro, small and medium enterprises (MSMEs) under an energy performance contracting (EPC) approach; and (2) reduce the environmental impact of DFC by providing a diagnosis of their carbon footprint and assisting with the development of internal policies to ensure environmental sustainability through the implementation of EE/RE measures in DFC facilities.
Description of services
To carry out the first component, which is the most important for this assignment, Econoler and DID will assist DFC in carrying out the following tasks.
- Task 1: Carry out a landscape and market analysis including a gender analysis (local EE/RE players and technology providers, IFIs and other donors, other financial institutions, government agencies, relevant business associations, DFC staff and DFC MSME clients);
- Task 2: Analyze DFC capacities and procedures;
- Task 3: Issue improvement recommendations to strengthen the current green finance product offering;
- Task 4: Design a flexible EPC model adapted to the local environment;
- Task 5: Structure a financing vehicle to support the ESCO model;
- Task 6: Develop training and guidelines on adapted EPC for DFC staff;
- Task 7: Deliver capacity building to ESCOs (EE/RE technology providers);
- Task 8: Carry out awareness-raising activities for other stakeholders;
- Task 9: Support the development of EPC demonstration projects;
- Task 10: Create an ESCO certification scheme;
- Task 11: Evaluate the performance of the ESCO business model;
- Task 12: Design a scale strategy for leveraging funds.
To carry out the second component, Econoler will provide DFC with assistance in: (1) establishing a baseline to determine DFC energy consumption and their carbon footprint; (2) identifying energy savings measures in DFC facilities; and (3) revising and recommending improvements to DFC’s greening policy and action plan. Econoler will also support DFC in preparing project dissemination materials throughout the project.