Mainstreaming Energy Productivity Lending Practices among Indian Financial Institutions (FIs)

Abstract

A number of studies have addressed issues on Energy Efficiency (EE) pertaining to improving productivity, employment generation, and increased energy security. Investing EE reduces demand for electricity generation, reduces fiscal deficit and energy deficits. In this context, very few studies focused on scaling up EE efforts, the present approach is fragmented and lack holistic approach to make finance available from financial institutions. Therefore, this study makes an effort to mainstreaming energy productivity lending practices among financial institutions through five voluntary principles framework. The proposed framework is in line with India’s National Mission on Enhanced EE (NMEEE) as a part of the National Action Plan on Climate Change (NAPCC). The outcome of this study will provide a boost to the country’s efforts on enhancing EE efforts by strengthening national action plans, strategies and policies. Thus, a greater collaboration, mitigating institutional barriers and develops a favorable environment for the fiscal and regulatory landscape to attract investments for EE efforts.