Low-Carbon Development for Mexico

Page 77

Chapter 4: Energy End-Use

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of water for irrigation, water supply, or drainage purposes has a significant mitigation potential, and a number of pressure-recovery opportunities could be harnessed by means of hydraulic turbines. Lack of adequate data prevented the thorough examination of these interventions.

Barriers to Mitigating Greenhouse Gas Emissions The barriers to improving energy end-use efficiency are understood; various barrier-removal policies and instruments have had successes (table 4.2). The approaches and processes to barrier removal are often as varied as the country or locality in which they are applied.

Table 4.2 End-Use Efficiency: Barriers and Corrective Actions Barrier

Corrective action

Industrial and commercial sectors Limited awareness of energy efficiency, including costs, benefits, and risks of new technologies and actions

Industry awareness campaigns on energyefficiency opportunities, technology seminars and expositions

Few examples presenting the business case for energy efficiency, limited market data, and few identified opportunities to encourage private sector participation

Development and dissemination of targeted energy-efficiency information, technical guides, case studies, project databases, and benchmark studies

Lack of expertise to conduct quality audits and identify energy efficiency opportunities, lack of market expertise to package investments into bankable project proposals

Technical training of energy managers, ESCOs, and auditors; development of standardized template audit reports, bidding documents, and case studies

High import tariffs for energy-efficiency equipment

Establish tax waivers and/or incentives for energy-efficiency equipment purchases

Low or questionable quality of energyefficiency equipment

Update/expand energy-efficiency standards, labels, and codes

High project development costs (audits) and transaction costs

Develop standard loan procedures, monitoring and verification protocols, and bidding documents; dedicate funds for energyefficiency audits

Limited private sector investment in energy efficiency (for audits, advisory services, leasing, ESCOs) due to limited equity and available financing

Develop local business models/ESCOs, promote joint venture options and venture capital funds, make small grants to stimulate the market and ESCOs

Limited banking expertise to assess energyefficiency proposals, low-quality loan applications, high perceived risks for energy efficiency projects

Provide technical assistance to local financial institutions, and conduct demonstrations of project performance

Unclear responsibilities and incentives among building developers, owners, and tenants (principal-agent problem)

Improved building codes/certificates, incentives for green buildings, energy metering

Poor customer creditworthiness or limited debt capacity among borrowers

Create dedicated financing schemes (revolving funds, pooled financing), credit enhancement mechanisms, and alternative financing models to share risks for energy-efficiency projects

(continued)


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