Energy efficiency line CAF

completed

The overall objective of the project is to make a contribution to environmental and climate protection as well as to energy security in Latin America (LA). In LA, population and economic growth are contributing to an increasing demand for energy. Expanding the energy supply is expensive, time-consuming and carries the risk of favoring fossil fuels. In contrast, increasing energy efficiency (RE) reduces dependence on energy imports and increases the competitiveness of energy-saving companies. At the same time, RE investments have great potential to sustainably reduce emissions of climate-damaging carbon dioxide. Despite the high relevance of RE measures for climate protection and energy markets, the potential in LA is far from being exhausted. This is where we want to start with a comprehensive RE program with the CAF. The targeted FC funding loan will finance investments on the generation side (e.g. rehabilitation of power plants) as well as the rehabilitation of electricity transmission and distribution. The CAF will finance the final borrowers, both public and private institutions, directly and bears the default risk alone. All individual investment measures identified by the CAF, including the environmental and social impact analysis and the climate assessment, will be submitted to KfW for approval. The borrower and project sponsor is the CAF, which has established itself as one of the most important partners in financial cooperation with LA due to its good positioning in almost all of South and Central America, its professionalism and its solid economic base. As this planned project shows, the CAF takes up topics that are important for German development cooperation with great interest and uses them to expand its own range of instruments.