MEET-BIS Vietnam This project is funded by the European Commission s Switch-Asia program (project 2008 VN 171-201) LEARNINGS FROM A MEET-BIS PERSPECTIVE Challenges, Opportunities, Partnerships & Sustainability SHERATON HOTEL, Hanoi 14 March 2014 This publications has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of MEET-BIS Vietnam Project and can in no way be taken to reflect the views of the European Union
INTRO OVERVIEW 1. ABOUT MEET-BIS Its set up and the results 2. KEY OBSERVATIONS General challenges A2F specifics Partnerships Example of partnerships Sustainability Take aways for MEET-BIS Cambodia 3. CONCLUSION Summary
1. ABOUT MEET-BIS
KEY FEATURES Creating opportunities through catalyzing functions MEET-BIS: A 80% EU funded project with total expenditure of 1.6 Mln, during period 2009-2013 To assist key private sector players (suppliers) in North Vietnam to develop commercial markets for their energy and water saving products targeting urban SMEs As Facilitator (connector, organizer and capacity builder) As Innovator (catalyzing, developing) Investigate financing options for cleantech products CONCEPT Replicability/ sustainability via market mechanisms
KEY RESULTS Realised financial & environmental impacts EE/WS promoted to 3,852 SME s Interest of 1,364 SMEs in such options, of which 423 invested Value total sales by 9 suppliers to SMEs VND 66 million ( 2.5 million) CO 2 reduction of 9,842,559 kgco 2 realized during project period of sales between 1-1-2011 30-6-2013 Present EE/WS investments contribute to a yearly climate change mitigation of 9,788,036 kgco 2
AROUND THE WORLD 9,9 million kgco 2 equals : driving around the world 1,800 times with a new car; or the annual emission reduction of a 4 MW hydropower plant in Vietnam.
2. KEY LEARNINGS AND OBSERVATIONS
SOME CHALLENGES CHALLENGE Finding the SME: a database challenge. Get attention from SME: They are too busy, other priorities, too much unclear info Getting Cleantech companies willing to join the project Lacking relevant 'mainstreamable' water saving technology Access to Finance OUR ACTION Screening, verifying, developing own database Simplify technology, make it tangible, work with (local) stakeholders to reach SME, Follow up (calling etc) Patience, trust, show by example MB value. Get visible MatchMaking with International firm...
ACCES TO FINANCE Project set up aimed to provide financing options for offered EE products. This has not been achieved: Despite many explorations and cooperation's on Access to Finance: IFC, Green trust funds /credit lines, banks, ESCO concepts, etc. Many funds do not have favorable conditions to SME Bank for SME unattractive due to rate and process Bank sector in difficult period, risk averse and limited expertise on EE Finance But..toward end of project an opportunity identified: Lease firms. Matchmaking in progress, key is assurance on collateral quality and value over time
PARTNERSHIPS ARE KEY PARTNER Note Approach SME Demand Awareness creation, matchmaking Association Technology Suppliers Demand/ potential facilitators Supply Awareness, capacity building, connecting Capacity building, matchmaking, connecting Government Policy Collaborating in communication (I)NGO Finance Institutes Development strengthening Enabling environment EU Donor Flexibility Strengthening for impact maximizing Product development
PARTNERSHIPS OPPORTUNITIES An illustration/ example: The CATBA experience Peoples Committee Hotel Association 8 suppliers 71 Hotel SMEs Ministery of Tourisme: Green Lotus New water product intro ESRTproject Haiphong TV docu Leading to: Project collaboration within 2 projects and with 3 parties: ESRT, Hotel Association, MEET-BIS to build capacity within association WORKING TOGETHER CREATES SYNERGY
SUSTAINABILITY? Market mechanism as driver of Green Growth 2.5 mln sales indicate existence of a growing market, (up for grabs!). Tools shared with 50+ suppliers Some updates on what happened after the project: Continue buying water saving technology by Sheraton 2 staff members employed by technology supplier Supplier joining Chief Engineering (Association), MB staff ad hoc facilitation Co developed transfer of knowledge to VEEB REEEP project (website) - http://e4g.org/en/ Energy news (ECC) via website associations
MEET-BIS CAMBODIA IS BUILDING UPON VN EXPERIENCE 1. Similar market mechanism to embed sustainability. 2. Be quicker on the ground/ visible: Convince cleantech suppliers from day -1; Vietnam as show model provides visibly added value project. Pro-active seeking Government and (I)NGO partners from the start A2F priority in project : Dedicated staff and increased budget Systematic approach to identify effective demand for leasing products, feasibility ESCO model, crowdfunding, donor and climate funds In proposal stage identified 2 potential finance partners (Alceda, FBT)
3. IN CONCLUSION
SUMMARY 1. Innovative and cost effective marketing helps to increase SME sales 2. Building relationships with private sector takes time 3. 2.5 mln sales indicate existence of a growing market 4. Government is key, as partner in promoting EE/WS, and as leader setting policy 5. (I)NGO projects can strengthen each other 6. Sustainability is also thinking about the next project, and previous projects together with development partners 7. Access to affordable finance for SMEs is challenging and required systematic approach and effective demand 8. Need of flexible partners and donors; Development of commercial markets takes time, and require flexibility
THANK YOU This project is implemented by: ETC Foundation (www.etc-international.org) AdaPPPt / Triodos Facet (www.encludesolutions.org) Aidenvironment (www.aidenvironment.org) Research Center for Energy & Environment (www.rcee.org.vn) Vietnam Chamber of Commerce and Industries For more information, please visit the MEET-BIS website: www.meet-bis.vn / www.meet-bis.org
QUOTE FROM A SUPPLIER As a small technology supplier, we lack the know-how in sales and marketing. MEET-BIS helps us to approach the market in a different way. We used to depend mainly on our relationships to win projects. Now we approach a wider group of potential customers. My staff learns a lot on how to reach out to the SME and to network with other suppliers.
WHY THE SME MARKET? MANY GO FOR THE FEW BIG FISHES. WHILE THERE ARE SO MANY SMALL FISHES OUT THERE Fish efficient and effective!