The UK Government recently contracted LRQA to establish and pilot a new set of guidelines to be used by Chinese banks for the third-party evaluation of energy saving projects.
China’s overall demand for energy efficiency finance was estimated at over RMB 1 trillion (£95 billion) between 2011 and 2015. Market potential remains locked-up though, as local banks are unable to independently verify energy savings so consequently energy savings companies (ESCos) who develop energy reduction projects with host companies suffer from capital shortage.
To address these issues, LRQA and its partner, the China National Institute of Standardisation (CNIS), will work with selected Chinese banks to help build a sustainable system for the third-party evaluation of projects and accreditation of verifiers.
Recommendations will be delivered to the China National Certification and Accreditation Administration (CNCA) to establish a new energy savings verification and accreditation program. It is hoped that if financial institutions in China can utilise third-party standards to reduce investment risks then financing becomes more attractive and the true market potential can begin to be unlocked.