Industrial Decarbonization and Competitiveness Facility Project

pipeline

The proposed project would include two components: Component 1 – Aggregated Financing for Industrial Decarbonization This component will establish a blended financing facility - the IDCF to provide loans and potentially other financial products for eligible low-carbon investments undertaken by select industrial enterprises. Eligible investments include:• Energy and material efficiency upgrades;• Fuel switching (e.g., electrification of low-temperature processes via grid or on-site RE);• Adoption of low-carbon fuels (e.g., biofuels);• Circular economy solutions and industrial symbiosis; and• Pilot demonstrations of new technologies, where viableThe facility will focus on the nine priority sectors identified in Ministry of Industry's decarbonization roadmap and offer tailored financial products (e.g., long tenor, de-risking features) to mobilize domestic banks and private capital. Component 2 - policy support, technical assistance (TA) and project implementation support A Project Management Unit (PMU) will be established under MoI to support early project development, raise awareness, and coordinate implementation. The PMU will strengthen the broader ecosystem by engaging green industry service companies (GISCOs), energy service companies (ESCOs), banks, industrial firms, and technology providers, supporting pipeline development and capacity building across the market.This component could include the following activities: (i) policy and regulatory support; (ii) market and pipeline development, and transaction support; (iii) capacity building and training; and (iv) pilot and innovation support.