China Utility-based Energy Efficiency Finance Program (CHUEE)
The International Finance Corporations’ (IFC) established the “China Utility-Based Energy Efficiency Finance Program” (CHUEE) to support marketing, development and equipment financing services to energy users in the commercial, industrial, institutional and multi-family residential sectors to implement energy efficiency projects in China.
The program brings together financial institutions, utility companies, and suppliers of energy efficiency equipment to create a new financing model for the promotion of energy efficiency. The program is expected to have a significant developmental impact in promoting energy efficiency, reducing pollution and greenhouse gas emissions, and expanding lending to small and medium enterprises in China.
Project financing for energy efficiency and renewable energy projects
CHUEE is supported by funding from the Global Environmental Facility, Finland’s Ministry of Employment and Economy and the Norwegian Agency for Development Cooperation, and operates under the IFC Private Enterprise Partnership for China.
CHUEE makes it possible for small and medium sized companies to get access to local project financing when developing energy efficiency and renewable energy projects in China, a financial tool which was absent in China until CHUEE was launched.
Energy utilities have been identified as the primary marketing and implementation partners for the Program, acting as a hub and offering a “one-stop shop” for end-users to develop their energy efficiency projects. The utilities will work in partnership with a network of energy efficiency equipment and service providers and with financial institutions who will provide loans for energy efficiency projects, supported by an IFC risk sharing facility to help secure these loans.
How does CHUEE benefit Norwegian business interests?
• Through its contribution to CHUEE, Norway is contributing to solve some of the financial bottlenecks facing energy efficiency and new and renewable projects in China carried out by small and medium sized companies.
• Norwegian companies will in the future benefit from an available financial tool as well as market information learned by CHUEE officers working with the program in China.
• In the future, Norwegian financial institutions could potentially be involved in this financial program.
• Norwegian industry experts could be involved more actively in the future to benefit the CHUEE program’s work in China.