Global Environmental Facility (GEF)
Energy efficiency is consistently cited as the best means to meet the ever growing energy needs in the region. Brazil is no exception.
With electricity consumption increasing by as much as nine percent annually in recent years, energy efficiency has real potential. Yet, paradoxically, businesses in Brazil still face many financial barriers for its widespread adoption.
The IDB and Global Environment Facility (GEF) partnered to create the Energy Efficiency Guarantee Mechanism (EEGM), a $25 million credit enhancement tool, to support companies and investors financing energy efficiency projects in Brazil.
The EEGM is the first guarantee fund that covers both performance risk of energy efficiency projects and credit risk of the borrowers.