Ex-Im Bank leads coalition to promote energy efficient exports
December 15, 2010 - SCMR Editorial
The Export-Import Bank of the United States (Ex-Im Bank) has joined seven other U.S. Government agencies in launching a coordinated effort to promote renewable energy and energy efficiency exports, the Renewable Energy and Energy Efficiency Export Initiative (RE&EE).
A top priority of Ex-Im Bank is to increase its support for renewable energy and energy efficient exports by offering enhanced financing under its Environmental Exports Program. The Bank can provide repayment terms up to 18 years for renewable energy projects, offer capitalization of interest during construction, and support local costs up to 30 percent of the U.S. scope of supply.
Analysts speaking to SCMR also agree that key to any economic rebound will be the price of fuel. Derik Andreoli, an energy analyst and doctoral candidate at the University of Washington, said there is deep uncertainty in how energy for power, heat, and mobility will be sourced and paid for.
“The potential consequences of failing to plan for the unfolding energy paradigm could be catastrophic,” he said.
At the same time, said Andreoli, shippers must address energy-related risks to supply chains and the increasing vulnerability of just-in-time models.
The RE&EE Initiative is the country’s first-ever Federal government-coordinated effort to support renewable energy and energy efficiency exports. Through the implementation of 23 interagency actions, the Initiative will facilitate a significant increase of renewable energy and energy efficiency exports during the next five years, helping to meet the goals of the National Export Initiative and President Obama’s challenge to make the U.S. the leading exporter of clean energy technologies.
The prospects for U.S. technology exports focusing on this industry are “vast,” said Ex-Im Bank spokesmen. More than 100 countries now have policies to encourage the deployment of renewable energy and energy efficiency technologies. Many of these countries have substantial deployment targets that will drive demand for renewable energy and energy efficiency for years to come.
The Initiative was developed through the Trade Promotion Coordinating Committee Working Group on Renewable Energy and Energy Efficiency, which includes representatives from the Departments of Commerce, Energy, State, and Agriculture, as well as the Export-Import Bank of the United States, the Overseas Private Investment Corporation, the U.S. Trade and Development Agency, and the Office of the United States Trade Representative.
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