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P. 151
Energy-saving projects factoring refers to establishing a contractual relationship among
energy-using units, energy-conservation service companies, and financing banks. Under
the contract, the energy-using units and energy-conservation service companies transfer
present or future receivables arising from the energy management contracts to the banks. At
the same time, the banks provide services including project financing, sales sub-account
management, accounts receivable collection, credit risk control, bad debt guarantees, etc.
Income buyout means that fund providers acquire the earnings resulting from the
contractual energy management project during the energy-conservation sharing period
from the energy-conservation service companies. The energy-conservation service
companies achieve discounted future income by transferring the right to earnings of
the project. After the income buyout, the energy-conservation service companies still
need to fulfil obligations including maintenance and training according to the energy
management contract. At the same time, the energy-conservation service companies
need to make compensations when the future energy-saving benefits do not meet the
contracted value according to the income buyout contract.
Mortgage refers to loans the energy-conservation service companies have gained
by mortgaging equipment and energy-saving technologies for projects. As a traditional
financing mode, the scope of collaterals for mortgage in contractual energy management
projects is innovated, taking energy-saving benefits as a kind of collateral. In case of
maturity of the loan, the energy-conservation service companies must repay the loan in
total, or the bank has the right to dispose of the collateral as compensation.
Finance lease means that the energy-conservation service companies rent their
invested equipment for contractual energy management projects from the financial
leasing companies, and pay the equipment rental fees by energy-saving benefits within the
energy-conservation service period. When the energy-conservation service companies
have repaid the total price of the equipment within the energy-conservation service
period, the financial leasing companies shall transfer the ownership of such equipment
to the energy-conservation service companies. Finance leases can help save equipment
funds for contractual energy management projects when developing the projects.
Trust plan means that trust companies use large-scale contractual energy management
projects or similar project portfolios as the future source of revenue and launch trust
products for trust plan client groups. The raised funds are used for the development,
operation, and maintenance of contractual energy management projects; energy-saving
benefits of the projects shall be shared between the energy service companies and clients.
The six financing modes are explorations and innovations that the Tianjin Climate
Exchange has made on contractual energy management project financing and have
corresponding demonstration projects.
Carbon Assets Pledge Credit Service
Under the carbon assets pledge credit service, commercial banks
provide credit to applicants with carbon assets owned by the applicants
as pledge. When the owners have registered CDM projects, commercial
banks can accept CER mortgage and provide short-term liquidity loans
to owners (see Box 2.9 for an example). The service cannot only help
116 Low Carbon Development in China and India
energy-using units, energy-conservation service companies, and financing banks. Under
the contract, the energy-using units and energy-conservation service companies transfer
present or future receivables arising from the energy management contracts to the banks. At
the same time, the banks provide services including project financing, sales sub-account
management, accounts receivable collection, credit risk control, bad debt guarantees, etc.
Income buyout means that fund providers acquire the earnings resulting from the
contractual energy management project during the energy-conservation sharing period
from the energy-conservation service companies. The energy-conservation service
companies achieve discounted future income by transferring the right to earnings of
the project. After the income buyout, the energy-conservation service companies still
need to fulfil obligations including maintenance and training according to the energy
management contract. At the same time, the energy-conservation service companies
need to make compensations when the future energy-saving benefits do not meet the
contracted value according to the income buyout contract.
Mortgage refers to loans the energy-conservation service companies have gained
by mortgaging equipment and energy-saving technologies for projects. As a traditional
financing mode, the scope of collaterals for mortgage in contractual energy management
projects is innovated, taking energy-saving benefits as a kind of collateral. In case of
maturity of the loan, the energy-conservation service companies must repay the loan in
total, or the bank has the right to dispose of the collateral as compensation.
Finance lease means that the energy-conservation service companies rent their
invested equipment for contractual energy management projects from the financial
leasing companies, and pay the equipment rental fees by energy-saving benefits within the
energy-conservation service period. When the energy-conservation service companies
have repaid the total price of the equipment within the energy-conservation service
period, the financial leasing companies shall transfer the ownership of such equipment
to the energy-conservation service companies. Finance leases can help save equipment
funds for contractual energy management projects when developing the projects.
Trust plan means that trust companies use large-scale contractual energy management
projects or similar project portfolios as the future source of revenue and launch trust
products for trust plan client groups. The raised funds are used for the development,
operation, and maintenance of contractual energy management projects; energy-saving
benefits of the projects shall be shared between the energy service companies and clients.
The six financing modes are explorations and innovations that the Tianjin Climate
Exchange has made on contractual energy management project financing and have
corresponding demonstration projects.
Carbon Assets Pledge Credit Service
Under the carbon assets pledge credit service, commercial banks
provide credit to applicants with carbon assets owned by the applicants
as pledge. When the owners have registered CDM projects, commercial
banks can accept CER mortgage and provide short-term liquidity loans
to owners (see Box 2.9 for an example). The service cannot only help
116 Low Carbon Development in China and India
