Financing institutions are looking to include energy efficiency improvements in the transport sector in their portfolios
United Nations Environment and Clean Air Asia are developing baseline vehicle fleet data to support the development of policies for cleaner and more fuel-efficient vehicles, and support green lending efforts to improve Cambodia’s energy efficiency and the shift to renewable energy.
Speaking at the May 24 “Green Lending and Green Growth in Cambodia” forum in Phnom Penh, Clean Air Asia Transport Program Coordinator Kathleen Dematera said the development of baselines was important for financial institutions to help steer investment decisions.
“We’re working to understand vehicle fleet characteristics and to provide policy development assistance throughout the region,” Ms Dematera said. “We are determining where countries are now and where they’re headed, and are providing guidance on how to limit greenhouse gas emissions from vehicle fleets.
“Financing institutions are looking to include energy efficiency improvements in the transport sector in their portfolios. Emissions control technologies and more efficient vehicles play a crucial role in realizing those improvements.”
As part of this work, UN Environment and Clean Air Asia will conduct an inventory – or fuel economy baseline development – in Cambodia that will include the characteristics of the vehicle fleet and the average fuel economy of light-duty vehicles and two-wheelers that have entered Cambodia from 2005.
The forum, organized by the Global Climate Partnership Fund (GCPF), brought together representatives from the government, national and international non-governmental organizations, the financial sector, technology providers, and the private sector for a multi-stakeholder discussion on green lending in Cambodia.
Participants had the opportunity to share experiences and lessons learnt in green lending practices and discuss the financing needs of end-users and enterprises in the value chain.
“We are part of the solution,” said Maud Savary-Mornet, Asia Pacific Regional Director of responsAbility Investments AG, an asset manager in the field of development investments. “Green lending creates business opportunities.”
The GCPF is collaborating with UN Environment to develop country baselines for specific technologies to establish benchmarks for both sustainable energy policies and energy efficiency financing. The partnership will allow the GCPF to obtain information on the development of sustainable energy policies that boost the demand for green products financed through the climate fund’s partner institutions. Determining the average efficiency of equipment currently sold in countries enables baselines to serve as benchmarks against which financed equipment must achieve a minimum of 20 percent energy savings. UN Environment is a key partner in the Global Fuel Economy Initiative (GFEI) which aims to double the fuel efficiency of the global fleet by 2050. The GFEI is primarily supported by the European Commission, the Global Environment Facility, and the FIA Foundation.