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This report by the Climate Policy Initiative analyzes the barriers facing energy efficiency business models in Indonesia and proposes three improved models to scale up Energy Service Companies (ESCOs). It identifies financial risk, lack of awareness, and regulatory instability as primary hurdles to achieving Indonesia's target of 17% energy savings by 2025.

This briefing by the Climate Policy Initiative examines the 'Energy Efficiency Milan Covenant of Mayors' program, an initiative administered by the Province of Milan to retrofit public school buildings using 'pure' Energy Performance Contracts (EPC). The program aims to achieve energy savings of at least 20% and annual emission reductions of approximately 9,000 tCO2, utilizing third-party financing from the European Investment Bank (EIB) and technical assistance from the ELENA program. While the program successfully tested standard EPCs in the Italian market and moved investments off municipal balance sheets, it faced significant delays and barriers due to existing bundled ESCO business models and banking uncertainties regarding energy efficiency collateral.