NDF - Financing for climate change and development projects

Promoting energy savings insurance [NDF C97]

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The objective of the project is to promote access to finance for small and medium sized enterprises investing in energy efficiency in Nicaragua.

Promoting energy savings insurance
Ref: NDF C97


NDF Grant: EUR 480,000
Project Period: 2017-2018
Partner Agency: Inter-American Development Bank (IDB)
Implementing Agency: IDB Capital Markets and Financial Institutions Division (CMF)


The Promoting Energy Savings Insurance project will support preparation and structuring of an Energy Savings Insurance (ESI) scheme in Nicaragua with the objective of promoting access to finance for small and medium sized enterprises (SMEs) investing in energy efficiency (EE) upgrades and energy saving technologies.

The ESI scheme has already been piloted by IDB in Colombia, El Salvador and Mexico. It is designed to accompany a dedicated financing line for EE investments with a toolkit of financial and non-financial instruments, including energy savings insurance, that serve to de-risk key aspects of EE transactions and create a framework for aligning interests between SMEs, technology providers and local lenders.


Preparatory activities financed through the NDF small grant are expected to put in place the framework and methodology for a dedicated EE line of credit with an indicative target of USD 20 million.

This line of credit is expected to mobilize an additional USD 5 million in direct investment by SMEs in energy saving equipment and technology, in turn estimated to result in aggregate emissions reductions of at least 280,000 tons of CO2 equivalent.


The total project cost estimate is USD 700,000. NDF is providing EUR 480,000 in grant support while IDB and Produzcamos Bank, the local National Development Bank partner, will provide approximately USD 70,000 and USD 100,000 respectively in in-kind support during implementation.

NDF Contact

Country Program Manager Charles Wetherill
Telephone +358 10 618 002

More information
NDF C97 Proposal for Final Consideration
NDF C97 Administration Agreement