Credits for energy efficiency and cleaner production
To date, CABEI has provided approximately US$48 million for projects focused on renewable energy and energy efficiency at a regional level.
Managua, September 20, 2016. – Today, in the framework of the Green MSME Initiative, which is executed by the Central American Bank for Economic Integration (CABEI) and Germany’s KfW Development Bank, with support from the European Union (EU) through its Latin American Investment Facility (LAIF), a US$120,000.00 dollar non-reimbursable technical cooperation was granted to Banco LAFISE BanCentro of Nicaragua to fund the Project "Banco LAFISE BANCENTRO Eco-Credits."
The cooperation seeks to develop financial mechanisms that will enable bank customers to invest in energy efficiency, renewable energy and cleaner production projects through the implementation of environmentally-friendly technologies and practices that improve the customers’ profitability.
In addition, the Eco-Credits will benefit small and medium enterprises with less than 100 employees in different economic sectors, such as trade, service, tourism, agriculture, manufacturing and transportation, both freight and people. The Eco-Credits will provide access to financing for renewable energy, energy efficiency and cleaner production projects, as well as contribute to the improved environmental performance of companies by reducing pollution.
The plan includes training workshops
Following the agreement signing ceremony, a workshop was held where participants identified and evaluated energy efficiency projects, renewable energy initiatives for self-consumption and cleaner production projects in Nicaraguan markets with the highest potential (industry, trade, hotels, transportation and agriculture).
The training, which was provided by international experts, included a description of the type of projects that could be financed, the most appropriate technologies for each economic sector, energy audit concepts and national and international experiences.
The Green MSME Initiative is a mechanism established by CABEI with financial support from Germany’s KfW Development Bank and the European Union’s Latin American Investment Facility (LAIF). The Initiative seeks to contribute to climate and environmental protection through the actions of MSMEs, promoting regional environmental investments in the areas of energy efficiency and renewable energy.
This cooperation strengthens the Banking industry by diversifying the green credit portfolio channeled through Central American financial institutions at a more competitive fixed term, depending on the destination of investment resources. The maximum amount grated is US$5 million per project, for a period of up to 10 years, depending on the type of project to be executed, and with regional intermediated coverage by national banks.
To be considered as an eligible entity, a number of investment indicators are taken into account. For example, with regard to energy efficiency, it refers to savings equal to or greater than 15 percent of the energy bill, while, with respect to renewable energy, it refers to projects executed by legally incorporated MSMEs that generate up to 5 megawatts.
