Energy Efficiency Co-Financing Program

To overcome critical financing barriers to investments in energy efficiency (EE) in Hungary and to promote local EE markets and capacity, the project will create an EE co-financing program to facilitate and leverage private sector capital (including domestic bank capital and credit lines with international financial institutions) for EE investments. In addition to technical assistance, it will provide partial credit guarantees, whereby funds would be reserved to cover the guarantee liability, and medium- to long-term co-financing loans, targeting three subsectors: lighting, district heating and industrial motors and processes. The project will reduce credit risk on EE financing for eligible local financial intermediaries, facilitate longer term financing terms, provide targeted technical assistance, and reduce transaction costs borne by project participants.