Facilitating Finance for Energy Efficiency 能效项目融资工具 William Chandler President Transition Energy, Ltd. supported by the Energy Foundation China Investment Association Beijing, China 23 September 2007 ©Transition Energy

与美国工业相比，中国工业为能源支付更多费用 Market Context/市场背景 Chinese industry often pays more for power than American industry. 与美国工业相比，中国工业为能源支付更多费用 Power shortages continue in many provinces. 很多省仍电力不足 Existing market for waste heat recovery is several thousand megawatts. 现有余热发电市场为几千兆瓦

DEED’s Business Product: Waste energy recovery 产出：废热利用 Market: Cement, metallurgy 市场：中国水泥行业，冶金行业 Business model: BOOT 商业模式：BOT Financial constraints (and opportunities):融资障碍(和机会) Transaction costs/交易费用 Industrial policy constraints/工业政策的限制 CDM costs/CDM费用 Taxes/税收

China’s Waste Recovery Power Generation Leader DEED China’s Waste Recovery Power Generation Leader Wang Yanjia William Chandler Tang Jin Quan Jin Jiaman

Dalian East CV Partner A Chinese Engineering and Marketing Leader 大连易事达, 合作伙伴 中国工程和市场开拓的先驱 100% 的民营企业 57名工作人员,其中: 38 位工程师 8 位高级工程师 3 位博士 2005 收入2千万美元 项目遍及十几个省 设计了550 MW 完成了72 MW 现有合同89 MW 在金属、生物质能及甲烷方面也有相关经验

Design-Build Experience设计-承建经验 Fujian Long Yan Fu Long 6 MW (turn key) Built 2005 Hubei Ge Zhou Ba 12 MW (turn key) Built 2003

A Foreign-Invested BOOT Model for China

整个公司结构 股权/贷款投资 ERPA 技术伙伴 战略投资方 中国银行 NGO合 合作经营公司 作伙伴 离岸公司 碳汇买家 水泥厂 工程合同 IFC 担保 股权/贷款投资 合作经营公司 离岸公司 NGO合 作伙伴 工程合同 碳汇买家 能源服务合同 ERPA 水泥厂

Energy Policy 能源政策 Myth and Reality 误解和事实 MYTH: China has an over-abundance of cheap coal REALITY: Industrial coal is expensive MYTH: China has a reckless disregard for the environment. REALITY: “China attaches great importance to energy conservation. We … give top priority to conservation.” - President Hu Jintao, 17 Nov. 2005

Key problems/主要问题 But cement plants cannot borrow directly from bank due to industrial policy 但是由于工业政策的出台导致水泥厂不能直接从银行贷款 Cap on interest rates discourages ”risk-based” lending. 税率的上限削弱了”有风险的”贷款 Company law constrains formation of EMCs. 公司法限制EMC的成立

Disconnect Between Central and Provincial Governments 中央政府和地方政府的差异 China has enacted impressive national policies to promote clean and renewable energy. The “Cleaner Production Promotion Law” and “Renewable Energy Law” are examples of well-intentioned policies NEED: To provide provinces with the human and financial capital to implement clean energy promotion policies.

Suggested Policy Solutions/政策建议 Exempt clean energy from investment controls. 取消对清洁能源投资的控制 Provide VAT holidays and exemptions for clean energy companies and services. 给清洁能源公司和服务减免增值税 Shift CDM from payment-on-delivery to payment-as-investment. 将CDM的货到付款改到投资付款 Shift to risk-based clean energy lending 鼓励给清洁能源等风险项目的提供贷款

Expand the IFC Loan Guarantee Program/扩大IFC贷款担保计划 Solutions: /解决方案 Expand the IFC Loan Guarantee Program/扩大IFC贷款担保计划 Launched in 2006 2006年启动 The IFC and GEF guarantee private Chinese bank loans for energy efficiency projects. IFC和GEF为中国私人银行给能效项目的贷款提供担保 Combining training with guarantees has been very effective. 同时给贷款方提供培训的方法很有效