Engaging the banking sector in financing renewable energy

Purpose

To identify the areas of opportunity for the financial sector to engage and accelerate its participation in renewable energy projects, particularly at a micro and small-scale level. This is an awareness raising effort to accelerate investments in renewable energies and promote the sustainable use of energy in the future.

Main Activities

  • Conduct a market opportunity assessment;
  • Conduct a review of existing financial products;
  • Develop a strategy to increase awareness, engagement and capacity building of the financial sector;
  • Host a consultation meeting with the main stakeholders within the energy and financial market;
  • Pilot a project that implements the strategies within one of the programmes that CONAE is currently developing: solar water heaters;
  • Monitor, evaluate and market the results.

Expected Impact

  • At least one commercial bank engaged in financing small scale renewable and energy efficiency projects;
  • Increase the interest and awareness of local banks in the sustainable energy business. Expression of interest from at least three local banks;
  • Contribute to clarifying the renewable energy market opportunities in Mexico aiming to increase the awareness and engagement of the local financial sector and consequently accelerate investments;
  • Replicate the model in other Latin America countries;
  • Contribute to the design of future government initiatives to increase investment in the sustainable energy.
Programme sector: 

Renewable Energy (RE) (Business&Finance)

Stage of project: 

Completed

Location: 

MX/Mexico

Duration: 

2007 - 2009

Budget: 

€ 100,000 including co-funding from United Nations Environment Programme (UNEP), Comision Nacional de Actividades Espaciales (CONAE)

Implementing agency: 

BASE

REEEP grant funded by:

United Kingdom