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COP 22
Side Events
 
Session Date: 16th November, 2016
Session Time: 10:00hrs – 13:00hrs
Anchor Ministry: Ministry of Power
 
While the first half of the session, till 11:30 AM will focus on the broader concepts of innovative business models and its impact on enhancing energy efficiency,
The latter half, starting 11:30 AM will deep-dive into Green Bonds as one of the innovative ways that are being implemented in India.

 
                                                          Side Event: How India Scaled up Energy Efficiency via Innovative business models                                                                         

 
 
Title of the Side Event:
How India Scaled up Energy Efficiency via Innovative business models
Abstract

Thematic Focus
Demand side management tools such as energy efficiency facilitate least cost planning and generate reductions in greenhouse gas emissions. The INDCs submitted under the Paris Agreement show that renewable energy and energy efficiency are central to the climate change mitigation efforts of most countries. However, energy efficiency projects typically face under-investment due to misalignment of incentives, and difficulties in capturing positive externalities from energy efficiency as part of investment returns.
Business and financing models for energy efficiency projects should take account of the unique risks and returns arising in the sector. Innovative business models have facilitated the development of suitable risk-sharing mechanisms between the public and the private sector, created opportunities for projects to raise green investment, and provided access to capital markets to diversify sources of finance. New business models have also revolutionized service and product delivery, making it possible for energy efficiency technologies to reach new markets and attain commercial viability.
An example of such innovation is Energy Efficiency Services Ltd., which has successfully distributed over 130 million LED bulbs and replaced 1 million street lights under its National LED programs, thereby avoiding an additional capacity creation of 3,466 MW and reducing 14 million tCO2e. EESL’s interventions have enabled a reduction of over 70% in the price of LED bulbs in 3 years.
Objectives
Going forward, it is important to draw lessons from past experiences with various business models for energy efficiency, and identify factors that acted as catalysts to their success. The proposed panel discussion will focus on the challenges facing energy efficiency, innovative financial and service delivery models, and international experiences in the sector, particularly in the context of channelizing green investments towards the sector and unlocking private investment and capital markets.
The proposed panel discussion will fall under Thematic Track 2.2.1: Sectors relevant to climate change mitigation including inter alia: a) Renewable energy, Energy efficiency and energy access.
Potential Contribution
COP 22’s focus is on operationalizing the Paris agreement by mobilizing and accessing climate finance for mitigation and adaptation in developing countries. The role of innovative financial instruments such as green bonds to access climate finance will be discussed.
The Indian capital market is relatively new to green bonds, and the event will discuss parameters that influence investor decisions, including underlying project portfolio, cash flows, credit ratings, risk allocation, financing instruments, hedging costs, and monitoring and reporting arrangements including Green certification.
International experience with green bonds and lessons for India – expected benefits to issuing institutions and corporates, the need for credit enhancement and risk mitigation, addressing investor concerns, models that have seen success.
The event would be of relevance to other developing economies similar to India, especially developing African and South East Asian countries, in executing similar initiatives. The fact that EESL is in the process of setting up operations in Africa and other places to replicate its Indian success story in designing and implementing business models on energy efficiency, would be good news to governments and further whet investor appetite.

Proposed List of Participants


Welcome Address: Smt. Anju Bhalla, Joint Secretary, Ministry of Power: 10.00-10.05 Hrs.
Key Note Address by Secretary (Power): 10.05-10.15 Hrs.
1st Half of F/N session: How India Scaled up Energy Efficiency via Innovative business models

S.No. Proposed Participant Thematic Area and topic covered Time (Hrs)
  Moderator: Gevorg Sargsyan, Global Lead on Clean Energy, The World Bank Panel Introduction 10:15-10:20
1 International Energy Agency (IEA, Deputy Executive Director Dave Turk) Energy Efficiency in Emerging Market prospects- Indian Context (extracts from IEA Study) 10:20-10:30
2 TERI, Director General, Ajay Mathur Utility driven models – laying the foundation for a market model 10:30-10:40
3 EESL (Manu Maudgal) Market aggregating models – scaling an EE portfolio (Lighting and others) 10:40-10:50
  Panel Discussion- Lessons learnt and Business Models for the future
(Speakers as above)
Moderator: Gevorg Sargsyan, Global Lead on Clean Energy, The World Bank
10:50-11:25
  Session Close 11:25

In addition to the participants, there shall be two organizers from EESL/TERI who will coordinate the event.

 
Title of the Side Event:
Tapping Green Bonds to finance India’s INDC
Abstract

Thematic Focus
To highlight the potential of green bonds in financing India’s climate mitigation related targets and to showcase the Energy Efficiency Services Limited’s (EESL) portfolio of energy efficiency programmes in the areas of LED home and street lighting, Ceiling fans, agricultural pump-sets, SMART Grid AMI and other planned demand side management applications as potential green investible ideas.
Objectives
The objective of the event will be to discuss the role of Green bonds in channelizing private sector investment towards achieving India’s climate change mitigation goals in the context of the changing climate finance landscape.
EESL’s recent experience shall be shared in scaling up an energy efficiency portfolio, its relevance to international investors looking for an investable energy efficiency portfolio, the event will address the benefits of Green bonds, risk mitigation and lessons learned from an investors perspective.
The event will also discuss the climate mitigation portfolio potential especially the investment pipeline in energy efficiency and renewable energy in India, providing investors insights to current day concerns and priorities, and how bonds could be structured to attract greater private sector participation.
Potential Contribution
COP 22’s focus is on operationalizing the Paris agreement by mobilizing and accessing climate finance for mitigation and adaptation in developing countries. The role of innovative financial instruments such as green bonds to access climate finance will be discussed.
The Indian capital market is relatively new to green bonds, and the event will discuss parameters that influence investor decisions, including underlying project portfolio, cash flows, credit ratings, risk allocation, financing instruments, hedging costs, and monitoring and reporting arrangements including Green certification.
International experience with green bonds and lessons for India – expected benefits to issuing institutions and corporates, the need for credit enhancement and risk mitigation, addressing investor concerns, models that have seen success.
The event would be of relevance to other developing economies similar to India, especially developing African and South East Asian countries, in executing similar initiatives. The fact that EESL is in the process of setting up operations in Africa and other places to replicate its Indian success story in designing and implementing business models on energy efficiency, would be good news to governments and further whet investor appetite.
 
 
Proposed List of Participants


2nd  Half of F/N session: Tapping Green Bonds to finance India’s INDC
Sr. No. Proposed Participant Thematic area and Topic Covered Proposed Time
  Moderator- Axel Olearius, Head Climate Policy Support Programme, GIZ Panel Introduction 11:35-11:40
1 GIZ India (Ashish Chaturvedi) Green bonds Landscape: market barriers; incentives to scale up; role of private sector in India 11:40-11:50
2 EESL (Shankar Gopal, Chief General Manager, Finance) Appetite and green bonds to fund energy efficiency programs 11:50-12:00
3 Standard Chartered, Gaurav Bhagat, Executive Director Why energy efficiency is ripe to invest: Merchant Bank perspective 12:00-12:10
4 The World Bank Group, Xueman Wang, Coordinator, Global Platform for Sustainable Cities Structures to address investor concerns– credit enhancement, green certification, and other risk mitigation mechanisms 12:10-12:20
5 Climate Bond Initiative, Sean Kidney Green verification methods– Cherry-pick a green energy efficiency portfolio 12:20-12:30
  Panel Discussion- Tapping Green Bonds to finance India’s INDC
 
Moderator- Axel Olearius, Head Climate Policy Support Programme, GIZ
12:30-12:50
  Concluding remarks on the forenoon session by Ajay Mathur, DG, TERI 12:50-13:00
  Session Close 13:00
 
In addition to the participants, there shall be two organizers from EESL/GIZ who will coordinate the event.


    
Last updated on 13 Dec 2016