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BEE & HSBC India signed a memorandum of understanding to work closely on Energy Efficiency Financing Platform (EEFP) on 18 March 2010 at New Delhi - FAQ

The Bureau of Energy Efficiency (BEE) and The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India) today signed a Memorandum of Understanding to work closely on the former’s Energy Efficiency Financing Platform (EEFP).

The MoU was signed by Dr. Ajay Mathur, Director General, BEE and Mr. Stuart Davis, Chief Executive Officer, HSBC India.

The objective of the EEFP is to create a mechanism towards mainstream financing of energy efficiency projects. EEFP will provide instruments like bankable Detailed Project Reports (DPRs) and other risk mitigation measures to enhance comfort for lenders towards aggregated energy efficiency projects. The Bureau of Energy Efficiency has already initiated work towards developing guidelines and tools for partial risk guarantee and venture capital funds to augment the work that will facilitate the EEFP.

Dr. Ajay Mathur, while signing the MOU, said “EEFP is being positioned as a platform to facilitate learning and experience sharing on removing barriers that have stunted financing to the energy efficiency projects. The significant step taken by HSBC India will send the right signal in the market and would spur private investment”.

Mr Stuart A Davis, CEO, HSBC India, on the occasion said “The Signing of MOU with Bureau of Energy Efficiency is an expression of HSBC India’s desire to work in partnership with the government on issues surrounding energy efficiency and climate change. This partnership will help us enhance our learning and explore innovative opportunities in this space.”

The MoU will strengthen the Energy Efficiency Financing Platform (EEFP) that seeks to overcome barriers to financing of energy efficiency projects though risk sharing strategies and capacity up-gradation of financial institutions. PTC India and SIDBI have signed the EEFP memorandum with BEE.

The overall energy efficiency investment market is estimated to be around Rs. 74,000/- crores. This will get a significant push after the National Mission for Enhanced Energy Efficiency is approved by the government. BEE will facilitate, apart from providing overall guidance, bankable projects in areas like energy efficiency improvements in commercial buildings, municipalities, Small and Medium Enterprises (SMEs), agriculture, etc. to unlock the market.

The MOU provides for enhancing the effectiveness and reach of the energy efficiency activities; HSBC India, as per its internal policies and guidelines, will consider financial support for implementing this activity on terms mutually agreed with BEE.

The partnership will explore energy efficiency improvements by ESCO-based performance contracts and Demand Side Management initiatives in a variety of sectors.

Notes to Editors

Bureau of Energy Efficiency

The Government of India set up Bureau of Energy Efficiency (BEE) on 1st March 2002 under the provisions of the Energy Conservation Act, 2001. The mission of the Bureau of Energy Efficiency is to assist in developing policies and strategies with a thrust on self-regulation and market principles, within the overall framework of the Energy Conservation Act, 2001 with the primary objective of reducing energy intensity of the Indian economy. This will be achieved with active participation of all stakeholders, resulting in accelerated and sustained adoption of energy efficiency in all sectors.

HSBC and Sustainability

HSBC works in the community in India in the areas of financial inclusion, environment and sustainability. Our financial inclusion initiatives support education of children from underprivileged communities, life skills training for disadvantaged youth and financial literacy and entrepreneurship capacity building for rural women in marginalised communities. HSBC’s environmental initiatives support water harvesting, habitat and biodiversity conservation, sustainable livelihoods and climate change awareness.

HSBC globally has launched a number of climate change initiatives such as the HSBC Climate Partnership, HSBC Climate Confidence Index, HSBC Global Environment Efficiency Programme, HSBC Global Climate Change Benchmark Index and HSBC Climate Change Fund.

HSBC Climate Partnership was launched in India in January 2008 and supports Earthwatch, WWF, The Climate Group and Smithsonian Tropical Research Institute, who collaborate with research institutions, businesses and individuals to combat the impact of climate change on forests, freshwater, cities and people. HSBC India also supports water harvesting and drought proofing projects as an essential measure to reduce climate stress on agriculture. HSBC India’s Young Rangers Programme helps children understand the need to protect the environment and take small steps to combat climate change in their schools and homes. HSBC India launched Earth Sciences Forum, the first ever Public Private Partnership between HSBC and the Ministry of Science and Technology and Ministry of Earth Sciences, Government of India to find solutions to climate change in April 2008. The forum seeks to provide solutions through adaptation and mitigation strategies, recommending policy changes, showcasing innovative research and industry best practices and informing people.

HSBC has partnered with Sadguru Foundation for a programme that links rural livelihoods to climate change. In another partnership, HSBC has collaborated with Jal Bhagirathi Foundation to implement a Water-based livelihood model that will improve water security of poor communities in five villages of the Marwar region, Rajasthan.

HSBC also views volunteering as a key driver to employee engagement and an important contribution to the community. In 2009 alone, HSBC in India clocked 45,700 hours of volunteering by employees across India.

Globally, HSBC has won the 2007 Asian CSR Award for Environment Excellence, Environmental Protection Agency (EPA) Climate Protection Award 2007, and has been recognised as the Covalence Top Financial Company 2006, FT Sustainable Bank of the Year 2006, EPA Green Partner of the Year 2005 and 2006. HSBC is ranked 4th in Accountability Ranking 2007, is a member of the Carbon Disclosure Leadership Index 2007, Dow Jones Sustainability Indexes - World Index Market 2007 and FTSE4Good Environmental Leaders Europe 40 Index 2006. HSBC India has been recognised for its work in corporate sustainability and has received commendation at the Business World – SEDF FICCI CSR Award 2007 and nomination for the Economic Times Corporate Citizen Award 2007. Naina Lal Kidwai, Group General Manager and Country Head, HSBC India, was awarded the prestigious Green Globe Award in the business enterprise category for her commitment to environment sustainability at the Delhi Sustainable Development Summit on 5 February 2009.

Media contact details

Bureau of Energy Efficiency
(Government of India, Ministry of Power)

4th Floor Sewa Bhawan R.K. Puram, New Delhi - 110066
Tel:- 011-26179699 Fax 011-26178352

Make Energy Conservation a Mass Movement: Sushilkumar Shinde - NATIONAL MISSION ON ENHANCED ENERGY EFFICIENCY TO BE IMPLEMENTED FROM THE 1st OF APRIL, 2010
Shri Sushilkumar Shinde, Union Minister for Power has said that every citizen must practice energy conservation so as to make it a mass movement. Addressing a large gathering at a function to mark the National Energy Conservation Day today in Vigyan Bhawan, New Delhi, he said that every small effort is a big step in achieving consciousness of one and all. Stating that eradication of poverty and rapid economic growth are the two most important priorities for India, the Minister noted that Energy Efficiency is a vital policy tool in our quest to promote energy efficiency as a cost effective and environmentally benign supplement to the overall energy sector strategy. He also reaffirmed the commitment of the Government to pursue a credible and sustainable national energy efficiency and conservation agenda to stimulate a market transformation in favour of energy efficient technologies and products.

Observing that enhancing energy efficiency is a major and probably the quickest effective means of our climate change mitigation measures, Shri Shinde announced that the implementation plan for the National Mission on Enhanced Energy Efficiency prepared by Ministry of Power and the Bureau of Energy Efficiency, approved by the Prime Ministers Council on Climate Change earlier this year, will be implemented from the 1st of April, 2010. He said that in addition our international efforts are focussed on ways to accelerate the adoption of the latest energy efficiency technologies from all over the world. Shri Shinde expressed hope that the climate change negotiations that are currently going on in Copenhagen would result in a technology mechanism for this purpose.

Listing out the key features of the National Mission for Enhanced Energy Efficiency (NMEEE), the Minister observed that the mission seeks to upscale efforts to create a market for energy efficiency which is estimated to be around Rs. 74,000 crores. The Mission will create a conducive regulatory and policy regime to foster innovative and sustainable business models to unlock this market. As a result of the implementation of this Mission over the next five years, it is estimated that at by 2015, about 23 million tons oil-equivalent of fuel savings- in coal, gas, and petroleum products, will be achieved every year alongwith an expected avoided capacity addition of over 19,000 MW. The consequential carbon dioxide emission reduction is estimated to be 98.55 million tons annually.

Shri Shinde said that the National Mission for Enhanced Energy Efficiency seeks to implement an Action Plan based on four major initiatives. The mission will commence implementation from April, 2010. The flagship of the mission is the Perform Achieve and Trade (PAT) initiative which is a market based mechanism to enhance cost effectiveness of improvements in energy efficiency in energy-intensive large industries and facilities, through certification of energy savings that could be traded. Energy efficiency improvement targets will be set under section 14 of the Energy Conservation Act, 2001 in a manner that reflects their current energy intensity as compared to other units in the same sector, and the economic effort involved. Units that achieve savings in excess of their target will be provided the excess savings as Energy Savings Certificates. Units that underperform can buy these certificates to meet their target compliance requirements. This will ensure that the total desired savings are achieved in the most cost effective manner.

Shri Shinde also announced that the National Mission will also institute two innovative fiscal instruments namely the Partial Risk Guarantee Fund (PRGF) and Venture Capital Fund for Energy Efficiency (VCFEE). The PRGF will be a risk-sharing mechanism that will provide commercial banks with partial coverage of risk exposure against loans made for energy efficiency projects. This will reduce the risk perception of the banks towards lending for new technologies and new business models associated with energy efficiency projects. The VCFEE will ease a significant barrier from the viewpoint of risk capital availability to the ESCOs and other companies who invest in the supply of energy efficient goods and services.

In order to develop a viable ESCO industry, and also to undertake the market based implementation actions under the National Mission, the creation of a new commercial organisation named Energy Efficiency Services Limited (EESL) was announced in November. Shri Shinde observed that EESL has since been incorporated as a Joint Venture of NTPC, PFC, REC and POWERGRID to facilitate market implementation of energy efficiency projects. EESL will work as ESCO; as Consultancy Organization for CDM, Energy Efficiency; and as a Resource Centre for capacity building of SDAs, Utilities, financial institutions, etc. EESL will also lead the market-related actions of the NMEEE. The equity of EESL will be Rs. 190 crores with equal contribution from the 4 promoters.

Recognizing the need to enhance partnership with states, BEE has conducted a study through the National Productivity Council (NPC), an autonomous organisation under the Ministry of Commerce, Government of India, to estimate the electricity saving potential in key sectors of each state and UT. The study has highlighted a saving potential of 75.4 billion kWh through the implementation of energy efficiency in identified sectors. It is significant to note that this savings more than the overall national electricity deficit of 73.1 billion kWh reported during 2007-08. The study is intended to serve as a guiding factor in policy development at State level, and help in preparing actionable sector specific roadmaps. It would also form the basis of BEE’s engagement with SDAs. The study brings forth the fact that the current situation of power shortages can be significantly eased by capturing the savings possible in these areas. Most of these energy efficiency projects have payback periods between one to four years, and can yield quick results. Shri Shinde released the report on the occasion. Terming it as a landmark study, Shri Shinde said that he would write to Chief Ministers of all States to initiate action to harness this electricity savings potential in a fixed time frame.

Union Minister for Power also announced that an energy labeling programme for passenger cars will be initiated shortly to provide consumers with comparative information about fuel economy of various models in the market. Initially this programme will be voluntary. It will be expanded to cover other forms of vehicular transport in a phased manner. This program will be in line with the other labeling programs being successfully implemented for ACs, Refrigerators, tubelights, fans, Distribution transformer, etc. Preliminary estimates suggest that the combined fuel economy standards and labelling program will result in up to 20% reduction in oil use in year 2030. Given that 2 million cars are added every year, it could lead to savings of about 15 million tons of oil by 2015.

A portal on demand side management www.dsm-bee.in was also launched on the occasion.

National Awards for Energy Conservation were given away and the winners of National Painting Competition were also honoured on the occasion. Shri Bharatsinh Solanki, Minister of State for Power presided over the function. In his address, he announced that there will be a star rating scheme for buildings which house the BPOs. Shri H.S. Brahma, Secretary, Ministry of Power, Shri Rakesh Nath, Chairman, CEA, Shri Devender Singh, Joint Secretary (Power), Dr. Ajay Mathur, DG, BEE and other senior officials from the Ministry as well as luminaries from power sector were present on the occasion.
National Energy Conservation Day function, in New Delhi on December 14, 2009 Reference Website - www.pib.nic.in

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BEE Invites Comments on National Mission on Enhanced Energy Efficiency
Government of India is designing National Mission on Enhanced Energy Efficiency (NMEEE), which is one out of eight missions planned under the National Action Plan on Climate Change. We would like to invite comments on the proposed initiative. This note presents a short overview of the planned actions. Please note, that this document cannot include all the details of the activities; it is rather meant to give an overview of the actions being considered to tackle major inefficiencies in the country.

Comments, may be addressed to the
Director General,
Bureau of Energy Efficiency,
4th Floor, Sewa Bhavan,
R. K. Puram, New Delhi – 110 066.

National Mission on Enhanced Energy Efficiency - "Perform, Achieve and Trade" (PAT)
"Perform, Achieve and Trade" (PAT) mechanism which would assign energy efficiency improvement targets to the country's most energy-intensive industrial units, with the provision of allowing them to retain any energy-efficiency improvements in excess of their target in the form of Energy Savings Certificates, called ESCerts. Units will also be allowed to use purchased ESCerts to meet their targets...more

IMPACT OF CLIMATE CHANGE AND NATIONAL ACTION PLAN ON CLIMATE CHANGE -

The vulnerability assessment and adaptation studies of climate change have been made in various areas such as water resources, agriculture, forests, natural eco-systems, coastal zones, health energy and infrastructure .This has been carried out as a part of the Initial National Communication of India to the United Nations Framework Convention on Climate Change (UNFCCC);

Further, the Expert Committee on Impact of Climate Change set up by the Ministry of Environment & Forests in June 2007 assessed the impact of climate change on six areas, namely water resources, agriculture, Natural Eco-system, Health, Coastal Zone Management and Climate modeling. Reports of the Expert Committee in these areas have been prepared.

Besides, a range of policies and programmes have been initiated to address the problem of climate change in the context of sustainable development, such as:

  • ensuring energy conservation and improved energy efficiency in various sectors as well as setting up of Bureau of Energy Efficiency
  • promoting use of renewable energy
  • power sector reforms and active renewable energy programme
  • use of cleaner and lesser carbon intensive fuel for transport
  • fuel switching to cleaner energy
  • afforestation and conservation of forests
  • promotion of clean coal technologies
  • reduction of gas flaring
  • encouraging Mass Rapid Transport systems
  • environmental quality management for all sectors

India released the National Action Plan on Climate Change (NAPCC) on 30th June 2008 to outline its strategy to meet the challenge of Climate Change.

The National Action Plan on Climate Change (NAPCC) was released by the Prime Minister on 30th June 2008.It outlines a national strategy that aims to enable the country adapt to climate change and enhances the ecological sustainability of India’s development path. It stresses that maintaining a high growth rate is essential for increasing living standards of the vast majority of people of India and reducing their vulnerability of the impacts of climate change.

Eight National Missions, form the core of the National Action Plan
, representing multi-pronged, long term and integrate strategies for achieving key goals in the context of climate change.
These Missions are
National Solar Mission,
National Mission on Enhanced Energy Efficiency,
National Mission on Sustainable Habitat,
National Water Mission,
National Mission for Sustaining the Himalayan Eco-system,
National Mission for a Green India,
National Mission for Sustainable Agriculture and
National Mission on Strategic Knowledge for Climate Change.


The National Missions are to be institutionalized by the respective Ministries and will be organized through inter-sectoral groups. This was stated by the Minister of State for Environment and Forests, Shri Namo Narain Meena in a reply to a question by S/Shri Hansraj G. Ahir, Suravaram Sudhakar Reddy and C.K. Chandrappan in Lok Sabha.

(Press Information Bureau, Government of India, Wednesday, October 22, 2008 - Ministry of Environment and Forests)


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