JAKARTA (IndoTelko) – UOB Indonesia launched U-Energy, the first integrated financing platform in Asia, to drive the development and adoption of energy efficiency projects for buildings and homes in the country.
This follows the programme’s successful launch in Singapore, Malaysia, and Thailand. With U-Energy, the Bank will help businesses and homeowners save on electricity bills, cut carbon emissions, and achieve their sustainability goals.
Globally, buildings and construction projects account for 38 per cent of carbon emissions, according to the Global Alliance for Buildings and Construction.
In Indonesia, the country’s strong commitment to play a role in tackling climate change is being strengthened by the formulation of policies, particularly the energy sector. The country is also targeting to reduce emissions and net zero emission by 2060 or earlier2. In carrying out this mission, the country requires energy transition for new and renewable energy to contribute 23 per cent of the total energy mix by 2025 and 31 per cent by 20503.
While building owners and homeowners are keen to take on energy efficiency projects to reduce energy consumption, they often lack financing support and the expertise to find the right energy service companies (ESCOs). UOB has developed U-Energy to address this gap in the market.
Harapman Kasan, Wholesale Banking Director, UOB Indonesia, said, “As a bank, it is our responsibility to partner our customers in the transition towards sustainable growth. This is why we are pleased to introduce U-Energy, a progressive, integrated financing platform, to help building placed on fast-track approval process. Alternatively, building owners can take up the “energy-as-a- service” model where UOB will provide green loans to the U-Energy partners at no upfront cost to building owners.
For homeowners, UOB Indonesia offers flexibility when UOB credit cards are used as the mode of payment for their energy efficiency retrofitting projects.
U-Energy is part of UOB’s suite of Sustainable Financing solutions under the Bank’s Smart City Sustainable Finance Framework. UOB Indonesia has also launched U-Solar, Asia’s first integrated financing platform for solar energy.
The Bank’s three other sustainable finance frameworks are the UOB Green and Sustainable Trade Finance and Working Capital Framework, the UOB Sustainable Finance Framework for Green Building Developers and Owners, and the UOB Green Financing Framework for Circular Economy. Aligned with the United Nations Sustainable Development Goals, the Bank’s sustainable financing frameworks enable companies to apply for green or sustainability- linked banking products without having to develop their own financing framework.(es)