OECD-CEFIM Energy Savings Insurance: international focus group discussion, 14 March 2023, Virtual event

1. General Implementation information
CEFIM - International Focus Group Discussion
14th March 2023

2. The ESI model was
recognised by the
Global Innovation
Lab for Climate
Finance as one of
the most promising
instruments to
mobilise private
sector investments
in energy efficiency.
ESI also features in
the G20 Energy
Efficiency
Investment Toolkit
by the UNEP FI and
in the Swiss
Sustainable Finance
compendium of
instruments for
Financing the Low-
Carbon Economy.
1
Mexico
El Salvador
(GCF)
Bancoldex
Argentina
Chile
Peru
Mauritius
Turkey Mongolia
(XavBank)
India
Goiás
Fomento
BANDES
BRDE
Paraguay
)GCF)
ESI Europe in
Italy, Portugal and
Spain
Croatia, Greece
and Slovakia
Morocco
Seeking support to
implement ESI in
Indonesia

3. barriers:
- Higher upfront costs
- Lack of trust among
stakeholders
- Competing investments/
financing opportunities
• 'Small’ Investments
2
$
$
Year 1 Year 2 Year 3 Year n
$
CAPEX OPEX
High-efficient
Conventional
1 2
Project Investment
Maintenance cost
Energy Consumption cost
Accumulated cost over
the lifespan of equipment
(10 years)

4. Risk/Return tradeoff investment
opportunities for enterprises
EE is perceived as a
high-risk investment
whose return does not
compensate for the
risks.
The ESI model reduces
the perceived risk of EE
investments, making
them more attractive.
3
Percived risk
Expected
return
Savings account
Investment in key
activities related to the
business
Investment in energy
efficiency
Stock market
Investment in
energy efficiency

5. 1. Energy Performance
Contract – Guaranteed
Savings
3. Energy Savings
Insurance
3. Technical Validation 4. Green Financing
4
Operation
Implementation Phase
Contract and negotiation
Arbitration
Verification of
reporting
Verification of
Installation
Validation of
project

6. ü Customer as
investor and
credit taker for
EE project with
ESI.
ü Banks mobilise
their green credit
lines for EE
projects.
ü Banks are
engaged and
trained to
integrate the ESI
as part of the
credit process
for EE project.
5
Financing
Institution
Customer Tech provider
Energy
Efficiency
Project
1. Turnkey contract -
Project payments
2. EE Performance Guarantee
3. Supply,
installation,
maintenance M&R
4. Energy Savings
2.EE Performance
Guarantee
Credit/
leasing
Insurance
company

7. 6
1. Periodic
Reporting
2. Reporting
approval
4. Convened in case
of Disagreement
5. Reports on the actual
savings
5. Reports on the actual
savings
3. Aggregate
information
to report EE
benefits