Energy Efficiency and Emissions Reduction Fund



Project number:


Business sector:

Power and energy

Notice type:


Environmental category:


Approval date:

05 Oct 1999



PSD disclosed:

09 Aug 1999

Project Description

In conjunction with Dexia Project & Public Finance International Bank and FondElec Group Inc, the EBRD has participated in the development of a closed-end investment fund to provide equity financing for energy efficiency and emissions-reducing projects.

The investment objective is direct investment in energy-efficiency driven companies and projects. The Fund will invest primarily in the countries of central and eastern Europe but will consider investments in all of the Bank’s countries of operations.

Transition Impact

The Fund will contribute to economic transition by: 1) developing the energy efficiency sector with macro- and micro-economic benefits for all consumers of energy; and 2) increasing the participation of the private sector in the renewal of infrastructure.


By raising the efficiency of fuel combustion and decreasing related emissions to meet EU standards, the Fund will assist the accession countries in joining the EU. Reduced energy consumption improves municipal creditworthiness as well as the competitiveness of industry.


The Fund’s financing of energy service companies (ESCOs) will provide a commercial means to improve energy infrastructure without additional debt burden. The Fund will supplement the Bank’s financing capability in the sector and will encourage the creation of public/private cooperation.


The establishment of the first commercial investment vehicle that facilitates the distribution of carbon credits to shareholders through real investment in energy-saving projects will hasten the establishment of a regional market for such credits.

The Client

The Dexia-FondElec Energy Efficiency and Emissions Reduction Fund is a limited liability partnership to be established in the Cayman Islands.

EBRD Finance

The Bank will initially invest EUR 20 million in the Fund. An additional EUR 10 million will be available and may either be invested in the Fund if subscriptions exceed EUR 100 million or may be used by the Bank to co-invest with the Fund.

Project Cost

EUR 100 million (possible expansion up to EUR 150 million)

Environmental Impact

The Fund will be required to follow EBRD environmental policies. Investee companies will be required to follow, at a minimum, local health, safety & environmental standards. The Fund will report annually to the Bank.

Technical Cooperation



Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

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