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China Utility-Based Energy Efficiency Finance Program (CHUEE)

Partners


CHUEE SME Program
The CHUEE Program allows businesses to increase profits through energy savings while also actively working to combat climate change. A package of technical assistance is offered to businesses including marketing, engineering, market research, project development, and equipment financing services.

 

IFC can draw on its success working with local financial institutions to promote access to finance for SMEs, as well as our experience working with Chinese banks on energy efficiency to dramatically expand the scope of CHUEE.

 

Companies that invest in energy efficiency improvements or renewable energy projects will not only reduce greenhouse gas emissions, but become more competitive by improving profitability and efficiency. IFC’s $558 million CHUEE risk-sharing facility is specifically dedicated to supporting small and medium enterprises in partnership with up to seven Chinese banks.

 

How can I get involved?
If you are a small or medium enterprise owner interested in increasing profits and contributing to combating climate change by becoming involved in the CHUEE Program, please contact the CHUEE program management office for details.


Financial Institutions
IFC offers Chinese commercial banks a risk-sharing facility, bearing a certain portion of the potential loss for loans within their energy efficiency/renewable energy financing portfolio, thus minimizing the exposure risk to the sector. With IFC’s support, the program allows banks to expand their product lines and attract new clients by building their own sustainable finance products. CHUEE helps banks increase sales and aids in the diversification of the bank’s credit portfolio. It also assists banks in obtaining funding from other sources and positions them as responsible corporate citizens, helping to reduce energy waste and improve China’s environment.


Government
IFC has partnered with the Ministry of Finance to raise awareness of the business opportunities in the energy efficiency/renewable energy sector. IFC is working with government agencies at national, provincial, and municipal levels to scale up green finance. IFC provides global and regional expertise to help governments achieve their green energy targets. With strong government support, IFC continues to develop an effective action plan for jump-starting climate-friendly energy projects, and creating improved understanding of the energy efficiency/renewable energy market.


Energy Efficiency Equipment and Service Suppliers
Companies that manufacture, sell and deliver energy efficiency products have critical roles in marketing and delivering energy efficiency projects and services. They benefit from increased sales of their products facilitated through the aggregation of customers, enhanced access to finance for energy efficiency projects, and Global Environment Facility-supported technical assistance to build capacity.

 

For example, Shuangliang Eco-Energy supplies gas-fired absorption coolers and other large-scale air-conditioning equipment. Its clients (including commercial buildings, hotels, hospitals and airports), have high-volume needs. It has limited experience with equipment finance and CHUEE has provided financial guarantees to support sales of their equipment.


Energy Management Companies (EMCs)
IFC and its partner banks cooperate with Energy Management Companies -- consultancies who advise on planning and implementing energy efficiency projects -- by facilitating knowledge sharing and the exchange of good industry practices. They are playing an increasingly important role in promoting the application of energy efficiency technology and methodology to energy end-users in China. IFC also helps partner banks build relationships with prominent equipment suppliers. Through these partnerships, banks can better market energy efficiency/renewable energy loans, diversify risks, and replicate deals.


Associations
IFC helps associations build business cases for energy efficiency improvements and renewable energy projects and assists them in promoting this as a value addition to their members. Together we can develop an effective action plan on how to realize more energy efficiency projects and to raise market awareness and understanding of the sector.

 

IFC has also built a strong repertoire of business cases  through the CHUEE Program and shares them with clients to help initiate more successful projects.

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