Energy consumption can account for up to 50 per cent of the total business costs for small and medium-sized enterprises (SMEs). Investments targeting energy savings provide a quick way for a small business to gain a cost advantage. Well-designed energy efficiency projects often show positive cash flows relatively quickly and allow for the projects themselves to pay back investments (and loans). Globally, there is a significant untapped potential to reduce energy costs. Demand-side market failures relate to lack of information. Supply-side market failures relate to limited access to finance for energy efficiency investments. Sustainable energy finance facilities (SEFFs) address this financing gap and provide access to technical advice for SMEs and banks. The success of SEFFs has demonstrated that commercial banks can bridge the sustainable energy financing gap by: 1) understanding the opportunity to improve their clients' cost structures using the right communication approach; 2) leveraging existing information from their own loan portfolio combined with publicly available information on the energy performance of technologies; 3) ensuring dedicated staff have project finance skills and that contracts are suitably tailored; 4) gaining access to energy expertise; and 5) having access to a list of high energy performance technologies.

Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. (2011) Small vs. Young Firms Across The World: Contribution to Employment, Job Creation, and Growth, Policy Research Working Paper 5631, Washington, DC: World Bank Development Research Group.

Bourns, N., Olmedo, M. and Fertziger, I. (2012) ‘Market study of sustainable energy finance in Mexico’, Final Report Prepared for the Sustainable Energy Finance Program IFC October 2012, London: DAI.

DAI (2014) Internal project report and data from SEFF projects in Poland and Bulgaria, June 2014.

EUROCHA MBRES (2010) Energy Efficiency in SMEs: Success Factors and Obstacles [online], Brussels: EUROCHA MBRES <www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852> [accessed 5 March 2014]. www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852

European Bank for Reconstruction and Development (2014) ‘Sustainable energy financing facilities’ [website] <www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml> [accessed 5 March 2014]. www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml

International Energy Agency (IEA) (2011) Energy Efficiency Policy and Carbon Pricing, Information Paper, Energy Efficiency Series, Paris: IEA.

IEA (2013a) Energy Efficiency Market Report 2013, Paris: IEA.

IEA (2013b) World Energy Outlook 2013, Paris: IEA.

Npower (2013) Business Energy Index 2013 [pdf], <www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf> [accessed 24 July 2014]. www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf

Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. (2011) Small vs. Young Firms Across The World: Contribution to Employment, Job Creation, and Growth, Policy Research Working Paper 5631, Washington, DC: World Bank Development Research Group.

Bourns, N., Olmedo, M. and Fertziger, I. (2012) ‘Market study of sustainable energy finance in Mexico’, Final Report Prepared for the Sustainable Energy Finance Program IFC October 2012, London: DAI.

DAI (2014) Internal project report and data from SEFF projects in Poland and Bulgaria, June 2014.

EUROCHA MBRES (2010) Energy Efficiency in SMEs: Success Factors and Obstacles [online], Brussels: EUROCHA MBRES <www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852> [accessed 5 March 2014]. www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852

European Bank for Reconstruction and Development (2014) ‘Sustainable energy financing facilities’ [website] <www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml> [accessed 5 March 2014]. www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml

International Energy Agency (IEA) (2011) Energy Efficiency Policy and Carbon Pricing, Information Paper, Energy Efficiency Series, Paris: IEA.

IEA (2013a) Energy Efficiency Market Report 2013, Paris: IEA.

IEA (2013b) World Energy Outlook 2013, Paris: IEA.

Npower (2013) Business Energy Index 2013 [pdf], <www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf> [accessed 24 July 2014]. www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf

Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. (2011) Small vs. Young Firms Across The World: Contribution to Employment, Job Creation, and Growth, Policy Research Working Paper 5631, Washington, DC: World Bank Development Research Group.

Bourns, N., Olmedo, M. and Fertziger, I. (2012) ‘Market study of sustainable energy finance in Mexico’, Final Report Prepared for the Sustainable Energy Finance Program IFC October 2012, London: DAI.

DAI (2014) Internal project report and data from SEFF projects in Poland and Bulgaria, June 2014.

EUROCHA MBRES (2010) Energy Efficiency in SMEs: Success Factors and Obstacles [online], Brussels: EUROCHA MBRES <www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852> [accessed 5 March 2014]. www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852

European Bank for Reconstruction and Development (2014) ‘Sustainable energy financing facilities’ [website] <www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml> [accessed 5 March 2014]. www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml

International Energy Agency (IEA) (2011) Energy Efficiency Policy and Carbon Pricing, Information Paper, Energy Efficiency Series, Paris: IEA.

IEA (2013a) Energy Efficiency Market Report 2013, Paris: IEA.

IEA (2013b) World Energy Outlook 2013, Paris: IEA.

Npower (2013) Business Energy Index 2013 [pdf], <www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf> [accessed 24 July 2014]. www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf

Ayyagari, M., Demirgüç-Kunt, A. and Maksimovic, V. (2011) Small vs. Young Firms Across The World: Contribution to Employment, Job Creation, and Growth, Policy Research Working Paper 5631, Washington, DC: World Bank Development Research Group.

Bourns, N., Olmedo, M. and Fertziger, I. (2012) ‘Market study of sustainable energy finance in Mexico’, Final Report Prepared for the Sustainable Energy Finance Program IFC October 2012, London: DAI.

DAI (2014) Internal project report and data from SEFF projects in Poland and Bulgaria, June 2014.

EUROCHA MBRES (2010) Energy Efficiency in SMEs: Success Factors and Obstacles [online], Brussels: EUROCHA MBRES <www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852> [accessed 5 March 2014]. www.eurochambres.eu/content/default.asp?PageID=1&DocID=2852

European Bank for Reconstruction and Development (2014) ‘Sustainable energy financing facilities’ [website] <www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml> [accessed 5 March 2014]. www.ebrd.com/pages/sector/energyefficiency/sei/financing.shtml

International Energy Agency (IEA) (2011) Energy Efficiency Policy and Carbon Pricing, Information Paper, Energy Efficiency Series, Paris: IEA.

IEA (2013a) Energy Efficiency Market Report 2013, Paris: IEA.

IEA (2013b) World Energy Outlook 2013, Paris: IEA.

Npower (2013) Business Energy Index 2013 [pdf], <www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf> [accessed 24 July 2014]. www.npower.com/idc/groups/wcms_content/@wcms/@busi/documents/digitalassets/nbei9.pdf