FP063

Promoting private sector investments in energy efficiency in the industrial sector and in Paraguay

Promoting private sector investments in energy efficiency in the industrial sector and in Paraguay

  • Status Under implementation
  • Date approved 01 Mar 2018 at B.19
  • Est. completion 16 Jan 2024
  • ESS Category Intermediation 3

Reducing reliance on fuelwood and other fossil fuel energy sources by Paraguayan SMEs, increasing their energy efficiency and shifting energy use to renewable hydropower.

Paraguay has a high hydropower capacity, yet industry is largely powered by traditionally inexpensive fuelwood (constituting 83 percent of industrial energy use), causing large amount of emissions from wood burning and associated deforestation. Hydropower is being increased as part of the country's long-term renewable energy goal. At the same time, zero deforestation laws in several regions have increased the price of fuelwood, a trend that is likely to continue. Despite these developments, SMEs are still largely using biomass, and opportunities exist to shift their energy use to renewable sources in order to reduce emissions.

Tools will be developed to generate an enabling environment for energy efficiency investments by SMEs, including standardized performance contracts, insurance contracts, and monitoring and verification systems. Concessional credit lines will be provided to local financial institutions and SMEs, whilst support will facilitate positive institutional, policy and regulatory environments for energy efficiency investments.

The project has an estimated lifespan of 5 years.

Total project value

 

Tonnes of emissions avoided

 

Theme

Mitigation

Result areas

Project timeline

Pipeline

12 May 2015 - 1025 days

Concept note received

12 May 2015

Funding proposal received

11 Apr 2017

Cleared by GCF Secretariat

01 Dec 2017

Cleared by iTAP

06 Feb 2018

Approved

01 Mar 2018 - 322 days

Approved by GCF Board

01 Mar 2018

Legal opinion on AE's Internal Approval

28 Jul 2018

FAA executed

24 Dec 2018

Under implementation

16 Jan 2019 - 443 days so far

FAA effective

16 Jan 2019

Disbursement - USD 3,000,000

11 Mar 2019

Completed

16 Jan 2024 - 1,385 days to go

One region

  • Latin America and the Caribbean

One country

USD  
  • Financing
    • Private sector
    • Public sector
  • Size
    • Micro
    • Small
    • Medium
    • Large

GCF financing7% disbursed

InstrumentAmount
LoanUSD 20,000,000
GrantUSD 3,000,000

Cofinancing

CofinancerInstrumentAmount
Co-FinancingLoanUSD 20,000,000

GCF Contacts

General media inquiries

GCF Communications
Phone +82 10 4458 7751
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Request for information

GCF Information Disclosure
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Project complaints and grievances

GCF Independent Redress Mechanism (IRM)
Phone +82 32 458 6157
File a complaint

Integrity issues

GCF Independent Integrity Unity (IIU)
Phone +82 32 458 6155
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Accredited Entity

Inter-American Development Bank

Matias Bendersky
Chief, Resource Mobilization Unit (Please CC in all communications Mr. Daniel Hincapie, Operations Specialist)
1300 New York Avenue NW, Washington, D.C., United States
Phone +1 (202) 623-1723
mbendersky@iadb.org
danielhi@iadb.org
Amal-Lee Amin
Chief, Climate Change and Sustainability Division
1300 New York Avenue NW, Washington, D.C., United States
Phone + 1 (202) 623-1924
amalleea@iadb.org
gloriav@iadb.org

National Designated Authority

Paraguay

Secretariat of Technical Planning for Economic and Social Development

Carlos Alberto Olmedo
Minister- Executive Secretary
Estrella Nr. 505 esquina 14 de Mayo, Asunción Paraguay, Asunción, Paraguay
Phone +595 21 450 422
ministro@stp.gov.py