Vienna Energy Forum. Project & Structured Finance Energy Team May

Transcription

1 Vienna Energy Forum Project & Structured Finance Energy Team May

2 Outline I. Energy efficiency potential in Turkey II. III. Electricity demand is taking its way with efficiency Challenges and recommendations IV. Energy efficiency financing / Tur-SEFF V. Energy efficiency at Garanti 2

3 Outline I. Energy efficiency potential in Turkey II. III. Electricity demand is taking its way with efficiency Challenges and recommendations IV. Energy efficiency financing / Tur-SEFF V. Energy efficiency at Garanti 3

4 Energy efficiency potential in Turkey The energy efficiency potential is tremendous in Turkey; 35% in buildings (insulations etc ) 15% in industry (electric motors etc.) 15% in transportation (lack of railroad freight etc ). efficiency could be achieved if we could take the vital actions. 4

5 Outline I. Energy efficiency potential in Turkey II. III. Electricity demand is taking its way with efficiency Challenges and recommendations IV. Energy efficiency financing / Tur-SEFF V. Energy efficiency at Garanti 5

6 Demand is taking its way with efficiency (TWh) Expected Projection w/ efficiency Important Growth Drivers 1. Energy Efficiency 2. Gross Domestic Product 3. Electric Motors 4. Iron & Steel Factories 5. Service Driven Economy Source: TEIAS Turkey has experienced a strong growth phase for the last 15 years and completed its first transition in its energy markets The demand growth is slowing to a medium growth rate in line with rest of the world Energy efficiency will play a vital role in energy demand in Turkey for the next 10 years and there is a great potential for the country to improve its use of energy. 6

7 Outline I. Energy efficiency potential in Turkey II. III. Electricity demand is taking its way with efficiency Challenges and recommendations IV. Energy efficiency financing / Tur-SEFF V. Energy efficiency at Garanti 7

8 Challenges and Recommendation FIs should be requested to report their loan portfolio of efficiency projects Lack of support for financing International financial institutions (EBRD, IFC, AFD etc..) Legal barriers Incentives Incentives should be introduced (BITT exemptions etc..) Transparency Building Managements should be regarded as legal entities. 8

9 Outline I. Energy efficiency potential in Turkey II. III. Electricity demand is taking its way with efficiency Challenges and recommendations IV. Energy efficiency financing / Tur-SEFF V. Energy efficiency at Garanti 9

10 Energy efficiency financing / Tur-SEFF Turkey Private Sector Sustainable Energy Finance Facility (TurSEFF) is a framework operation with up to ~USD 500 million (Garanti s share USD 60 million) under which credit lines will be provided by Climate Investment Fund & EBRD to eligible commercial banks for on-lending to private sector borrowers for energy efficiency ( EE ) and small-scale renewable energy ( RE ) investments. 10

11 Borrowers can be eligible for loans up to EUR 5 million under TurSEFF to implement projects that include energy efficiency component. TurSEFF includes a comprehensive technical assistance package. A team of local and international experts provide support to help prospective borrowers identify and develop sustainable energy projects, and prepare successful loan applications under TurSEFF. This technical assistance is provided free of charge and carried out through funding by the European Union (EU) and Climate Investment Fund (CIF). The framework has substantially closed the funding gap which was one of the main obstacles. Additionally the assistance has brought a significant corporate culture to small companies where they developed internal policies for a sustainable business management. We could furthermore focus on other issues like legal barriers, transparency and incentives together with all stake holder to increase country s energy efficiency. 11

12 One of the TurSEFF Projects in Turkey Investment Category Renewable Sector Energy Investment Amount EUR TurSEFF EUR Technology Cell composing machine Product Solar panel Capacity Increase 105% CoD 2013 The project has focused on increasing the production efficiency of solar panels by replacing the composing machines with more advanced ones. The investment allowed the company to increase its production capacity by 105%. 12

13 Outline I. Energy efficiency potential in Turkey II. III. Electricity demand is taking its way with efficiency Challenges and recommendations IV. Energy efficiency financing / Tur-SEFF V. Energy efficiency at Garanti 13

14 Energy efficiency at Garanti As Garanti Bank, we view climate change as a strategic issue which requires full integration to business processes and decision-making mechanisms. Climate Change Action Plan o carbon pricing and prioritization of renewable energy investments o reducing deforestation o management of water risks related to climate change o establishing green office standards 14

15 Energy efficiency at Garanti What we have done so far Construction of the Garanti Bank Pendik Technology Campus is continuing according to LEED criteria, We achieved a 10% reduction in Scope 1 and Scope 2 GHG emissions per total assets compared to 2015 We achieved a 56% reduction in Scope 1 and Scope 2 GHG emissions per total assets compared to 2012 With a reduction of 56% in 2016, we achieved our goal of reducing total Scope 1 and Scope 2 GHG emissions per total assets by 50% in 2020 against a 2012 baseline. 15

16 Energy efficiency at Garanti We are the bank with the most comprehensive Environmental Management System (EMS) in Turkey since 2015, with the ISO certificate covering 100% of our service points. We became one of the two companies from Turkey and the only company from the Turkish finance sector in the 193 companies listed in the CDP 2016 Global Climate Change Report A List. We became the first bank from Turkey to sign the UNGC s Business Leadership Criteria on Carbon Leadership. We are also a member of the Carbon Pricing Leadership Coalition. We are the VC of Turkish Green Building Council Board of Directors. 16

17 Vienna Energy Forum Project & Structured Finance Energy Team May