Scaling of Energy Efficiency Financing – Step
Author : mitsue-stanley | Published Date : 2025-05-10
Description: Scaling of Energy Efficiency Financing Step towards Making India Carbon Neutral Workshop 11th July 2023 Drivers of GreenEnergy Efficiency Financing SBIs activity in the sphere of Energy Efficiency As per IRENA a combination of
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Transcript:Scaling of Energy Efficiency Financing – Step:
Scaling of Energy Efficiency Financing – Step towards Making India Carbon Neutral Workshop - 11th July, 2023 Drivers of Green/Energy Efficiency Financing SBI’s activity in the sphere of Energy Efficiency As per IRENA a combination of renewables (both power and end use, electrification and fuels such as hydrogen) and Energy Efficiency, can provide 80% of the CO2 reductions needed to align the world on a 1.5°C pathway SBI has been actively financing Climate Mitigation projects – mainly renewable energy projects like Solar (Utility, Rooftop, etc), Wind, Electric Vehicles, etc Projects involving Energy Efficiency are being financed: SME segment: Through SBI’s wide branch network - financing energy efficient process/products (Rs. 562.87 crs sanctioned as on 31-3-23) Real Estate segment (Construction financing) – both Residential & Commercial buildings (pls refer next slide) Apart from investments, SBI’s own operations are also becoming energy efficient IRENA – International Renewable Energy Agency Tie-up with Multilateral and Development Banks Facility 1 – Line of credit from KFW for Financing Energy Efficiency (EE) in Residential Buildings: Loan: USD 277 million – for providing concessional loans for 25% savings in energy efficiency Investment Grant: EUR 10 million for encouraging energy efficiency savings of above 40% Technical Assistance Grant: EUR 1.5 million Facility 2 – Line of Credit from AFD for Climate Finance (including EE in projects/equipment & processes) Loan: EUR 100 million – for providing concessional loans Key criteria for EE projects: 20% of EE and GHG emission reduction for industrial process For buildings: Use of low carbon materials and/or certification at gold/silver levels Way Forward Area to be developed: Lending to large scale industrial energy efficiency projects (e.g. Green Steel) under the Green Finance umbrella To be financed through: Raising dedicated funds for supporting energy efficient industrial processes (both large corporate & MSMEs) Financing Modality: Credit lines from Multilaterals, Green Bonds etc. Newer Energy Efficient avenues to be explored: Energy efficiency in core sectors like Steel, Cement, Oil & Gas etc. To help mitigate stricter trade requirements like CBAM CBAM – Carbon Border Adjustment Mechnaism
