Improving the energy efficiency (EE) ofmunicipally owned buildings, such as schools and hospitals,and municipal infrastructure, such as public lighting, watersupply, and district heating, offers budgetary savings onenergy bills and a wide range of environmental andsocioeconomic benefits. But relatively few municipal EEprojects have been developed and implemented successfully.The challenges that limit EE investments in municipalbuildings and facilities can be grouped into three broadareas: (i) a lack of awareness and incentives; (ii)insufficient implementation capacity; and (iii) limitedaccess to financing. All three sets of challenges need to beaddressed to scale up successful implementation of municipalEE projects. This Guidance Note focuses on the key issuesfaced by municipalities in accessing financing for EEinvestments, particularly for projects in the following fourareas: indoor lighting, building retrofits, public lighting,and municipal utilities. The guidance note discusses thefollowing potential financing mechanisms that can be used bymunicipalities to finance EE measures: budget financing,Funds developed specifically to address energy efficiency,public support to leverage commercial financing, andcommercial financing.
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