Supporting Innovative Mechanisms for Industrial Energy Efficiency Financing in Indonesia with Lessons for Replication in other ASEAN Member States programme

There are three components to deliver: 

Energy Efficiency Finance

To provide backstopping credit risk of local financial institutions’ own loan with the GCF credit guarantee provision. This is managed directly by GCF, KDB and Local FIs, amounting to USD 100 million. This part falls outside ACE’s direct scope but is inherently important in achieving the overall project’s goals. 

De-risking Mechanism 

ACE will craft numerous of programmes to leverage Indonesia’s capacity in Energy Saving Insurance (ESI) and ESCO financing structures through consultation with key stakeholders and capacity building workshops. 

Technical Assistance for the Market Readiness 

ACE will craft numerous of programmes to develop Local Financial Institutions’ capacity in understanding the project pipeline, energy audits, and evaluation on energy efficiency projects. In addition, ACE will provide technical advisory for industry players and develop energy efficiency regulatory framework. The implementation of the programmes will be shared with ASEAN Member States through knowledge sharing session with key stakeholders.