BWI: BEE and HSBC Sign MoU to Work Closely on Energy Efficiency Financing Platform

Press release from Business Wire India
Source: The Bureau of Energy Efficiency (BEE)
Thursday, March 18, 2010 06:37 PM IST (01:07 PM GMT)
Editors: General: Economy, Environment; Business: Advertising, PR & marketing, Banking & financial services, Business services, Energy companies, Financial Analyst
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BEE and HSBC Sign MoU to Work Closely on Energy Efficiency Financing Platform


New Delhi, Delhi, India, Thursday, March 18, 2010 -- (Business Wire India) -- 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.


CONTACT DETAILS
Saurabh Bhatnagar, Media Manager, The Bureau of Energy Efficiency (BEE), +91 (11) 26179699, saurabh.bee@gmail.com

KEYWORDS
ECONOMY, ENVIRONMENT, MARKETING, BANKING, BUSINESS SERVICES, ENERGY, Financial Analyst

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