New capital versus existing capital Different tools are required for different parts of the energy efficiency terrain: New capital versus existing capital Policy and regulation versus EE investment programs Key factors are who is making investment decisions relevant for energy efficiency, and how important is energy efficiency in these decisions

Energy Efficiency Interventions by Economic Sector KEY SECTOR SUBSECTOR PRINCIPAL EE INTERVENTIONS Industry A. New Plant Policy and planning Equipment regulating standards B. Existing Plant 1. Energy Supply Industries Restructuring investment EE investment 2. Industry Energy Consumers Buildings A. New Buildings Relating codes and standards B. Existing Buildings Transportation A. Motor Vehicles Vehicle regulating standards B. Other

Specific Energy Efficiency Investment Initiatives Supply-side EE investment; End-user EE investment: Requires institutional mechanisms to deliver expanded EE investment Mechanisms must match country institutional environments Mechanisms must have capacity to deliver: a) Technical investment project identification and assessment; and b) Financing.

Three Types of Institutional Mechanisms for EE Investment Delivery Include: Financial intermediation programs (lines of credit; guarantees; revolving funds); ESCOs; Utility DSM.

Three Sets of Questions to Debate: Is increased WBG EE investment the right goal? More specifically: Should increased effort be made to improve energy efficiency in broader, new capital investment projects? How? What is the best balance in support tools for promoting specific EE investment programs? As EE financial intermediation projects increase, what tools and products are appropriate for immature markets? When do we walk? Has past emphasis on developing ESCOs and DSM been well placed? Is there a future for these models?