Component 3. Development of a Financial Mechanism to support EnMS implementation and other industrial EE measures with a long-lasting effect of capital attraction into the industrial energy efficiency market.
The UKR IEE Project will also establish an appropriate financial mechanism. The financial mechanism will provide capital access via a financial institution through the provision of loan guarantees and/or other financial assistance to industrial companies involved within the Project. The financial mechanism will support eligible enterprises to undertake concrete actions to reduce their energy intensity of production and increase their operational energy efficiency.
To be eligible, energy use costs should represent a significant portion of the total production expenditures with top-management demonstrating a strong commitment for energy performance improvement. In addition, enterprises will need to demonstrate availability of collateral funding, sufficiency of cash-flow to meet debt servicing requirements, and rational RoI (return of investment) assessment parameters of the proposed IEE project.