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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01
Scaling of Energy Efficiency Financing – Step towards Making India Carbon Neutral
Workshop - 11th July, 2023<br>
02
Drivers of Green/Energy Efficiency Financing<br>
03
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<br>
04
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<br>
05
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<br>
