Boost for Brazilian Energy Efficiency Measures

BRAZILIAN companies are receiving a boost to invest in energy efficiency measures from the Global Environment Facility (GEF) and the Inter-American Development Bank (IDB).

$1.6 million in guarantees has been issued under the Energy Efficiency Guarantee Mechanism, which is a credit tool which the IDB uses. They use their credit rating to encourage borrowers into Brazil’s energy efficiency market.

The joint guarantee is a new kind, the first guarantee fund covering the performance risk of energy efficiency projects and the credit risk of the borrowers.

It is also aimed at energy efficiency projects with the potential to produce substantial reductions in carbon-emissions and offer high financial returns, but where financing is often unavailable due to perceived risks.

Brazil has seen about a 9% energy consumption increase annually over recent years, increasing the importance of improving energy efficiency to cut demand and improve the economy.

Picture of Rio by Rodrigo Soldon (Flickr) [CC-BY-2.0], via Wikimedia Commons

Friday 1st November 2013

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