Why CHUEE? The financing for energy efficiency and renewable energy projects in China is robust. IFC is working to meet the energy efficiency and renewable energy challenge through its financing projects as China is facing severe shortages of energy resources and rapidly growing energy demands. In order to reduce greenhouse gas emissions and combat the damage caused by climate change, continued investment in energy efficiency projects and equipment is a development priority.
Despite government policies in favor of energy efficiency, market inefficiencies still limit the use of energy efficiency equipment. Common hindrances in the Chinese energy efficiency and renewable energy sectors include:
Suppliers of energy efficiency products and services lacking strong marketing skills or experience
End-users lacking awareness of the economic and technical benefits of energy efficiency equipment
Financial Institutions in China being traditionally reluctant to lend to energy efficiency projects due to the lack of first-cost financing security.
Since 2006, CHUEE has enabled key players in China's economy — banks, utility companies, government agencies, and suppliers of energy efficiency equipment and services— to collaborate for the first time, in creating a sustainable financing model. This model successfully reduces greenhouse-gas emissions and promotes cleaner production through the implementation of energy efficiency and renewable energy projects.
The program provides marketing, engineering, project development, and financing services to commercial, industrial, and multi-household residential sector energy users to support the implementation of these projects.
IFC's CHUEE program is delivered under the leadership of Chinese government, with support from GEF, Finland and Norway.