Case Study 2
EBRD Green Energy Special Fund
Global warming and associated climate
anomalies may well be the root cause of
a growing number of problems such as
food insecurity and natural disasters, which
frequently cause significant damage to
infrastructure. In their efforts to mitigate the
effects of climate change, international aid
agencies have focused on carbon reduction
schemes for some years now. The MDGs
also feature similar indicators.
Carbon reduction efforts often require
the complete modernization of basic
infrastructure in energy, transportation
and other sectors so as to reduce energy
inefficiencies. Since the scope of such
projects can be very wide, there is a real
need for capital injection from international
aid agencies, supplemented by technical
assistance, to help improve the environment
and energy efficiency.
Working with the EBRD, Expanding Our
Ability to Participate in International Cooperation
In recent years, the EBRD has responded to the
issue of climate change by becoming actively involved
in sustainable forms of energy generation. We have
also made environmental protection one of own priority
areas of concern. Thus, the significance of joining forces
with the EBRD, a multilateral development organization
that has been providing continual assistance to Central
and Eastern European, Central Asian and former Soviet
nations, cannot be overstated. Our cooperation in the
establishment of the Green Energy Special Fund (GESF)
came after a two-year period of due diligence, which
culminated in negotiations with the EBRD in May 2011 and
our subsequent commitment of a contribution of US$80
million. Our participation in the fund offers opportunities
to draw on the EBRD’s expertise in this field and allows
us to leverage our limited resources through co-financing
initiatives, thereby expanding our ability to participate in
cooperative international endeavors.
Providing Concessional Loans, Effectively
Reducing Barriers to Participation
The initial investment required to kick-start energy
projects, in terms of both capital and technology, is
enormous. If, by providing concessional loans, the EBRD
can use the GESF to encourage our partner countries to
invest in more green products and technologies, this will
ultimately reduce the cost of financing those projects.
Providing the optimum economic incentives effectively
reduces the barriers to participation in energy-saving and
renewable energy projects.
At present, the target beneficiaries of the GESF
are municipal governments in the EBRD’s countries of
operation, including local government and public utilities
units engaged in environmental infrastructure projects.
As such, we hope that our involvement in the GESF will
provide opportunities for Taiwanese industries, such as
manufacturers of LED and solar photovoltaic equipment,
to expand into these regions.
By providing concessional loans, the Green Energy Special Fund will encourage the EBRD’s partner
countries to import more green energy products and technologies.
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