Identifying green finance potential through portfolio screenings for Global Climate Partnership Fund (GCPF) partner financial institutions
The Global Climate Partnership Fund (GCPF) was set up to mitigate climate change by reducing greenhouse gas emissions through investments in energy efficiency (EE) and renewable energy (RE) projects, primarily via financial institutions. The aim of the GCPF is to save energy by reducing projected greenhouse gas emissions at least 20% in all energy efficiency projects financed and by targeting small- to medium-sized renewable energy projects that are beyond the reach of traditional renewable energy financing providers.
The GCPF signed a framework contract with IPC to conduct a series of portfolio and market screenings to identify green finance potential. On behalf of GCPF, IPC screened the portfolios of several banks, looking for potential EE/RE investments among existing or potential client groups (e.g. retail, SME or corporate clients), as well as in different economic sectors of local markets (market studies). IPC also conducted workshops for key staff and provided recommendations regarding credit products as needed.
Among their responsibilities as part of this GCPF framework, IPC experts have engaged in the following activities:
- reviewing bank portfolio data, with the goal of mapping potential sectors and clients for EE/RE investments
- identifying pipelines of EE/RE projects that may be financed by each bank (e.g., green buildings, photovoltaic projects, EE equipment)
- identifying and interviewing potential EE/RE sales and distribution partners for banks
- visiting and interviewing bank clients to assess their current energy usage and identify potential for EE/RE investments
- meeting experts and public officials to better understand the local regulatory environment and impact of public policies on the demand for and supply of EE/RE investments and technologies
- calculating the short- and mid-term potential EE/RE project portfolio volume at each bank
- conducting workshop for selected personnel for key bank staff
IPC experts have already conducted assignments on behalf of the GCPF in in LATAM (Bolivia, Ecuador, El Salvador and Honduras) and Southeast Asia (Indonesia).