Climate Change

 

 

 


Overcoming Financial Barriers to Clean Energy Technologies in Indonesia and Viet Nam

A small percentage of households in Southeast Asia can afford clean energy technologies. Most of these end-users cannot pay for these technologies, despite the long-term, low-carbon and low-maintenance energy benefits that these systems can provide. Some form of end-user financing is needed to surmount the hurdle of up-front costs but financial institutions have been slow to take advantage of new credit opportunities that small-scale clean energy technologies provide.

UNEP’s end-user Finance for Access to Clean Energy Technologies (FACET) programme helps overcome financial barriers to using such technologies. This initiative aims to motivate domestic banks to provide loans for small-scale clean energy applications in Southeast Asia.

FACET activities are currently focused on Indonesia and Viet Nam. It encourages domestic banks in these two countries to provide low interest loans for clean energy technologies. By building the experience of these banks and demonstrating customer demand for finance for clean technologies, FACET ensures the continued development of this market well after the programme has been completed.