{"id":29588,"date":"2015-04-22T10:53:55","date_gmt":"2015-04-22T10:53:55","guid":{"rendered":"http:\/\/climatepolicyinitiative.org\/?post_type=cpi_publications&p=29588"},"modified":"2026-05-17T14:41:18","modified_gmt":"2026-05-17T14:41:18","slug":"lab-instrument-analysis-energy-savings-insurance","status":"publish","type":"cpi_publications","link":"https:\/\/www.climatepolicyinitiative.org\/pt-br\/publication\/lab-instrument-analysis-energy-savings-insurance\/","title":{"rendered":"Lab Instrument Analysis: Energy Savings Insurance"},"content":{"rendered":"\n

This publication is CPI\u2019s analysis of Energy Savings Insurance, an innovative climate finance instrument endorsed by the Global Innovation Lab for Climate Finance<\/a> (the Lab). CPI serves as the Lab\u2019s Secretariat.<\/em> Each instrument endorsed by the Lab\u00a0is rigorously analyzed by our research teams. High-level findings of this research are published on each instrument, so that others may leverage this analysis to further their own climate finance innovation.<\/em><\/p>\n\n\n\n

This report provides the analysis on Energy Savings Insurance, an instrument to insure the financial performance of energy efficiency savings projects in Mexico and other countries.<\/p>\n\n\n\n

Energy efficiency upgrades can make small and medium-sized businesses (SMEs) in developing countries more competitive and more productive, saving them money while reducing their emissions of harmful greenhouse gases. However, the market for such upgrades is typically limited to those with very short payback periods, such as lighting. This is particularly true for some developing countries and sectors. For example, in the SME sector, SMEs and local banks often lack both the technical capacity to assess the potential of more capital-intensive energy efficiency investments and the confidence that they will pay back, starving the sector of investment.<\/p>\n\n\n\n

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Energy Savings Insurance aims to address these investment barriers by paying out if the projected value of energy savings is not met. The Lab\u2019s analysis shows that the instrument can absorb up to 80% of this underperformance risk.<\/p>\n\n\n\n

Energy Savings Insurance insures the financial performance of energy efficiency savings projects. ESI now has projects in seven countries that will target thousands of businesses.<\/p>\n\n\n\n

Energy Savings Insurance has been developed and led by the Inter-American Development Bank (IDB), with the support of BASE, and with ongoing projects in seven countries. If implemented in all relevant developing countries,  ESI will drive USD 10-100 billion in investment and provide annual emissions reductions of 27-234 MtCO2 by 2030.<\/p>\n\n\n\n