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China Utility-Based Energy Efficiency Finance Program (CHUEE)

IFC Backs Innovation in the Energy Services Market


More than 200 delegates from across China gathered in Beijing on September 20, 2012 to discuss sustainable financing and investment in China’s energy conservation service market.


The 2012 China Energy Conservation Service Industry Investment and Finance Forum was hosted by the Energy Conservation Service Industry Committee of China’s Energy Conservation Association (EMCA), and co-sponsored by IFC, the China International Capital Corporation, Bank of Beijing, Shanghai Pudong Development Bank, Ping An Bank, Shanghai CIEBO Group, and CCID Capital.


In recent years, the Chinese government has given strong support to the energy conservation service industry to scale up the market. However, the lack of financing for energy-efficiency projects has plagued its development. EMCA and major market stakeholders have been working together to solve this issue. This forum aimed to serve as a financing and investment platform to unite finance institutions and energy service companies to promote the energy services industry in China.


Deputy Director of the Energy Research Institute of National Development and Reform Commission Dai Yande and EMCA Director Wu Daohong held an award ceremony at the event to recognize the financial institutions in attendance for their valuable roles in promoting China’s sustainable energy finance market, and for their innovation of energy management financial products.


Speaking at the event, IFC Senior Investment Officer Zhang Lei said, “While the energy services market presents tremendous potential, it is still affected by many issues. For example, investors often misunderstand the market and are afraid of investing because energy service companies usually lack assets, relying mostly on their expertise in the market. IFC can play a key role in this area by providing more innovative financial products for the energy services industry to help achieve sustainable development.”


IFC Senior Engineer Zhang Dianjun spoke at the event on IFC’s efforts in promoting the energy efficiency market in China. “By working with partner banks, IFC’s China Utility-based Energy Efficiency Finance Program (CHUEE) has helped 175 energy efficiency/ renewable energy projects access to finance,” he said. “These projects have saved an estimated 19 million tons of carbon dioxide emissions every year. While Chinese SMEs’ significance in the energy sector has increased largely in recent times, the financing shortage has been particularly notable among this market.”


Zhang Dianjun referred to the launch of the CHUEE small and medium enterprises (CHUEE SME) program this year to focus on energy-efficiency loans issued to SMEs with support from commercial banks. CHUEE SME will play a significant role in ensuring the continued development of China’s energy services industry by working with partner banks to provide sustainable financing solutions in this developing market.


This story refers to information supplied in an article originally published in the China Energy Conservation Service magazine, written by Liu Longlong.

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