India's Green Finance Initiatives & Energy Efficiency Programs
India has made significant strides in promoting green finance and enhancing energy efficiency to mitigate climate change. With robust financing schemes like National Mission for Enhanced Energy Efficiency (NMEEE), the country aims to achieve ambitious targets in reducing carbon emissions and promoting sustainable practices. Initiatives such as sovereign green bonds and Energy Efficiency Financing Programme (FEEP) demonstrate a strong commitment towards a greener economy. The investment potential in energy efficiency across sectors highlights the growing opportunities for sustainable development. India's proactive approach towards green finance is essential for fostering a sustainable future.
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Presentation Transcript
BEEs FINANCING BEE s FINANCING SCHEMES SCHEMES (11 (11th th July 2023) July 2023) Vineeta Kanwal, Director-BEE
Indian economy and climate change India became world s fifth largest economy. GDP has reached around USD 3.5 trillion. India updated NDCs in Aug 2022 To propagate mass movement for LIFE Lifestyle for Environment To reduce carbon intensity of its GDP by 45% by 2030, from 2005 level India will increase its non-fossil energy capacity to 500 GW by 2030. India will reduce the total projected carbon emissions by one billion tonnes from now to 2030. Important components 2
Huge Investment Potential in Energy Efficiency Investment by 2031 (Rs Crore) Investment by 2031 (USD billion) Sectors Agriculture 89004 10.85 Commercial 105701 12.89 Domestic Municipal Industrial Transport Total 145420 13589 601210 365706 13,20,630 17.73 1.66 73.32 44.60 161.05 3
Green finance ecosystem In January 2023, the RBI issued sovereign green bonds to mobilise resources for the Government for green infrastructural investments. in April 2023, RBI released the framework for mobilising green deposits by SCBs and deposit taking NBFCs with a view to fostering and developing green finance ecosystem in the country. Proceeds raised through green deposits shall be allocated for green activities/projects which encourage energy efficiency in resource utilisation, reduce carbon emissions and greenhouse gases, etc. In energy efficiency following projects could be covered - Design and construction of energy-efficient and energy-saving systems and installations in buildings and properties. Supporting lighting improvements (e.g. replacement with LEDs). Supporting construction of new low-carbon buildings as well as energy-efficiency retrofits to existing buildings. Projects to reduce electricity grid losses. 4
BACKGROUND FINANCING SCHEMES National Action Plan for Climate Change (NAPCC) National Mission for Enhanced Energy Efficiency (NMEEE) Financing Energy Efficiency Programme (FEEP) Perform, Achieve & Trade (PAT) Energy Efficiency Financing Platform (EEFP) Framework for Energy Efficient Economic Development (FEEED) 5
Financing Energy Efficiency Programme (FEEP) Investment Bazaar FIs FIs training programme committees at state level To address Access to financing Grading of EE projects EE financing cells Facilitation centre 6
Institutional Framework of Energy Efficiency Financing Beneficiaries Bureau of Energy Efficiency (BEE) Financial Institutions SIDBI PAT Industries IREDA Bank of India MSMEs Canara Bank ESCOs Bank of Baroda Energy Efficiency cell (PFC) Union Bank of India OEMs Central Bank of India YES Bank Buildings HDFC Bank BEE s Facilitation Centre Other Energy Consuming Sectors Other Scheduled Commercial Banks and NBFCs 7
BEEs online Facilitation Centre Home page Web portal address: https://www.adeetie.beeindia.gov.in/ 8
Role of BEEs Facilitation Centre BEE has set-up online Facilitation Centre (FC) for encouraging Energy Efficiency Financing. Borrowing units are able to fill up online willingness forms and technical details forms for seeking financing from FIs. 241 willingness forms are received till date. Registered 26 Financial institutions for financing EE projects. Till date 9 projects are financed. Industries and Financial institutions can register themselves online. A dashboard is available at online FC to track the status of EE project financing. A login access is provided to FIs, borrowing units and SDAs. It is regularly developing the list of new and existing EE technologies for financing. Till date BEE has released list of 166 EE technologies for financing. 9
Grading fee reimbursement Under a pilot project, BEE shall reimburse grading fee of first 100 EE projects graded and financed BEE has empanelled CRISIL and SMERA as grading agencies for grading of EE projects Till date IREDA, YES Bank and SIDBI have signed MoA with BEE for participating in this grading programme. All banks/NBFCs registered on Facilitation centre can take benefit of this pilot project. 10
MoU signed between BEE and SIDBI UNNATEE tool for energy audit SIDBI s Project GRiT Green InclusiviTy in Kota for 4 clusters MoU signed in Nov 2022 PRSF for EE projects Affordable interest rates in various EE products 11
For more details please contact: Ms. Vineeta Kanwal, Director- BEE: vkanwal@beeindia.gov.in EEFP Help-desk: eefp@beeindia.gov.in 12
