The ELI Story:TRANSFORMING MARKETS

FOR EFFICIENT LIGHTING

IFC/GEF EFFICIENT LIGHTING INITIATIVE (ELI)

Contents

Part 1 3

Part 2 4

6

Part 3 10

Part 4 12

Part 5 14

What is ELI?

Efficient Lighting: A Bright Idea

ELI’s Toolbox for Transforming Markets

Innovation and Impact

The ELI Legacy

Acknowledgments

ABOUT IFC: The mission of IFC ( is to promote sustainable private sector investment in developing countries, helping to reducepoverty and improve people's lives. IFC finances private sector investments in the developing world, mobilizes capital in the international financialmarkets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments andbusinesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and has arranged $23 billion insyndications and underwriting for 3,143 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY04 was $17.9 billionfor its own account and $5.5 billion held for participants in loan syndications.

www.ifc.org)

The ELI Story:

EFFICIENT LIGHTING

TRANSFORMING MARKETS

FOR

IFC/GEF EFFICIENT LIGHTING INITIATIVE

The goal was to reduce greenhouse gas emissions, one light bulb at a time, by

catalyzing vibrant markets for energy-efficient lighting across four continents and

in seven countries. The mplemented by IFC

between 1999 and 2003, and seeded by a $15 million* investment from the Global

Environment Facility (GEF), was a dynamic market experiment that engaged

multiple actors to promote efficient lighting in Argentina, the Czech Republic,

Hungary, Latvia, Peru, the Philippines, and South Africa.

Efficient Lighting Initiative (ELI), i

3

What is ELI?

Tailored to local conditions in each country,ELI achieved impressive results over itsthree-year life:

In Peru, annual sales of compactfluorescent bulbs (CFLs) increasedtwentyfold, from 250,000 to over 5million;In Argentina, the price of CFLs droppedeightfold due to ELI-inspired promotionand competition between lightingmanufacturers;In the Philippines, manufacturersimproved the quality of their efficientlighting products to meet ELIspecifications;Electric utilities in Argentina, Peru, thePhilippines, and South Africa beganselling, and financing, efficient lamps totheir customers;Municipal authorities in the CzechRepublic, Latvia, Peru, and South Africacommenced energy-efficient streetlighting upgrades;

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Across the board, ELI demonstratedsubstantial market impact with product pricesfalling (from $23 to $3 in Argentina), salesclimbing (by a factor of 21 in Peru), and salesof traditional incandescent lamps tumbling (by9 percent in South Africa, in a marketundergoing widespread electrification).

From ELI's outset, IFC commissioned anindependent Monitoring and Evaluation (M&E)assessment with a focus on sustained, post-program market impacts. While this long termstudy is not yet complete, aggregatedpreliminary results show that, across sevencountries, ELI reduced energy consumption by2,590 gigawatt-hours (GWH), and CO

emissions by 2,018,000 tonnes between 2000-2003. These initial estimates indicate that ELI

2

1

catalyzed immediate uptake of efficientlighting, even as the program strategy focusedon underpinning long term, sustained marketgrowth.

The ELI experience highlights IFC's role as amarket leader able to coordinate the sharedinterests of multiple entities and channelresources in a manner that truly moves—andeven transforms—markets.

*Note: All currencies are in US Dollars unless specified otherwise.

Efficient Lighting: A Bright Idea2Efficient lighting not only provides high quality lighting services and energy

savings, but reduces greenhouse gas emissions and pollution caused by

electricity generation. For example, a compact fluorescent lamp (CFL) lasts

six to ten times longer than an ordinary incandescent light bulb and consumes

only a quarter of the electricity. Replacing one 60-watt ordinary bulb with a

15-watt efficient CFL avoids burning around 350-400 pounds of coal or a

barrel of oil at a power plant. This translates to around 600-800 pounds of

greenhouse gas emissions reductions.

The Genesis of ELI

ELI was born from IFC's Poland EfficientLighting Project (PELP), funded by the GEF

. Driven by dynamicmarketing and subsidies, PELP grew demand forCFLs over two years, with measurable impactsbeyond the program. By 2004, about one in twohomes in Poland used a CFL, and the projectsaved an estimated 2,320 gigawatt-hours, whichis a reduction of 2.8 million tons of COemissions.

PELP showed how the GEF's impact can bemultiplied by market forces to generatesubstantial direct investments by manufacturers,wholesalers, retailers, and consumers in efficientlighting. PELP was a natural model for broaderreplication through ELI in diverse markets for awider range of efficient lighting products.

In 1999, IFC set out to implement ELI, selectingseven countries on the basis of inquiriesreceived following PELP, and the ripeness of themarket economy in each country. ELI was alaboratory for testing market transformationexperiments in parallel, in seven differentenvironments.

(see

box on IFC and GEF, p. 5)

Seven Diverse Lighting Markets…

One Goal: To Create Dynamic Markets for

Efficient Lighting

Lighting markets differed widely in each ELIcountry. ELI arrived in Latvia, Hungary and theCzech Republic during a period of economictransition from Soviet-era central planning. Thefast-growing Czech and Hungarian marketshad had some exposure to efficient lighting;unlike the poorer Latvian market. ThePhilippines and Argentina, both emergingmarkets, also provided contrasting conditions.The Philippine market was proliferated withlow-quality, black market efficient bulbs, whilein Argentina only 5 percent of homes usedefficient lighting. Meanwhile, South Africa andPeru were low-income markets withundeveloped lighting infrastructure, particularlyamong poor communities.

Across these seven markets, IFC had one goal:to accelerate sustainable market developmentfor efficient lighting. To strengthen thecompetitive underpinnings of the market, IFCbuilt on market interventions, used separatelybefore, to target the special interests of multiple

market players, empowering them to becomeagents of change for efficient lighting. Using IFC'scredibility and convening power, ELI collaboratedwith manufacturers, electric utilities, retailers,lighting professionals, and designers to create avirtuous cycle of commercial investment inefficient lighting—a cycle that improved productquality and availability, boosted sales, and putdownward pressure in prices. ELI also became animportant voice within government—a role thatwas unanticipated in the original program design.

Creating dynamic markets required tacklingprevailing barriers limiting the widespread use ofefficient lighting. Consumers are discouragedfrom purchasing energy-efficient lighting due tothe lack of credible information about its economicand environmental benefits. This is compoundedby the high “first-cost” of buying efficient lightingproducts, which can retail at up to 15 times thecost of regular incandescent bulbs. With fewrecognizable quality standards for consumers todifferentiate new technology, the market caneasily be “spoiled” by bad quality products.

Tackling Market Barriers

4

2

5

Tried-and-Tested Market Interventions

Who Implemented ELI?

To overcome these barriers, ELI's countryprograms focused on four market supportstrategies to promote efficient lighting:

providing consumers with reliable informationon efficient lightingincreasing the availability of efficient lightingby strengthening distribution and retailchannelssupporting commercial financing toovercome the high “first-cost” barrier ofefficient lighting productspromoting open market competition,especially among lighting manufacturers

Using these strategies as a common basis, ELIadapted tried-and-tested market transformation“tools” to leverage its impact in each country.These tools developed intensive consumermarketing and education campaigns, qualitystandards for manufacturers, and innovativefinancing and bulk purchasing schemes toimprove distribution of efficient lighting products

.

IFC's singular focus on market development wassupported by a flexible implementationapproach. Implementation teams had goodknowledge of the market, varied expertise andinstitutional affiliations—from utility companies inArgentina, Peru and South Africa, to an NGO inthe Czech Republic, and a consultancy inHungary. These elements contributed to thepersonality of each program as local teams weregiven significant latitude in tailoring their countryprograms based on initial market assessments.

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(see ELI Toolbox, p. 6-7)

IFC's “adaptive management” approachsupported a culture of innovation within eachteam so that ELI remained inherently dynamic,responding to market conditions as they evolved.IFC’s local teams focused on results in themarket rather than implementing staticworkplans. This was essential for ensuring ELI'ssustained impact on local markets.

The Global Environment Facility (GEF)supports projects in developing countriesthat address global environmental problems,such as climate change and biodiversity.GEF has a current budget of $3 billion.About 40 percent of this amount is allocatedfor clean energy projects to reducegreenhouse gas emissions.

GEF resources allow IFC to take non-commercial risks and test innovativetechnologies and business models withsubstantial environmental promise. In turn,IFC provides innovative ways of leveragingthe GEF’s funding through the private sectorfor sustained environmental benefit.

GEF provided $15 million for ELI to supportactivities the market was unlikely toundertake on its own—such as consumereducation and quality assurance. In thisway, IFC was able to go beyond the use ofsubsidies to accelerate market acceptancefor an environmentally beneficial technology.Other IFC innovations, such as flexiblefinance instruments to stimulate commerciallending for energy efficiency and renewableenergy, are further enhancing what hasbecome a productive partnership betweenIFC and GEF.

IFC and GEF:

A Partnership for Innovation

To improve consumer awareness ofhigh quality efficient lighting, ELIdeveloped technical specifications forefficient lighting products, harmonized

with international standards, such as the USEnvironmental Protection Agency's Energy StarRating. Lighting products, not manufacturers, werequalified on the basis of performance results fromELI-approved labs. If up to standard, products couldwear onpackaging and participate in ELI-sponsoredpromotions and bulk purchase schemes. ELI issuedspecifications for several efficient lighting products,but CFLs for residential use were the mostprominent market. The ELI logo became thecenterpiece of ELI's marketing activities in all sevencountries. Consumers were encouraged to “Lookfor the Leaf!” to identify and

in efficient lighting products. Results fromconsumer surveys, manufacturers, and retailersindicate that the ELI logo came to signify a highquality product. The logo was adopted widely by thelighting industry in all seven countries with over 200products from 14 different manufacturers receivingELI qualification.

ELI's “green leaf” quality mark

quality, reliability,

economy

ELI and Electric Utilities

ELI forged partnerships with electric utilities to promote investments in efficient lightingas part of schemes that meet a number of utilitybusiness interests. DSM can reduce energy demand where costly infrastructureupgrades may be necessary. It can also reduce electricity bills and encourageconsumers to pay, where high, unpaid electricity bills can lead to large financial losses.More broadly, DSM promotes good corporate values such as business efficiency, carefor the environment and the poor. ELI prompted regulatory changes that have sinceenabled electric utilities in Argentina, Peru, South Africa, and the Philippines to sellCFLs, and lease them to consumers through installments. ELI alsoworked with national utilities and governments to provide subsidized CFLs as anintegral component of rural electrification programs.

“demand-side management” (DSM)

“pay-on-the-bill”

Commercial Financing and Transaction Support for Efficient Lighting

ELI supported channels to help overcome the high cost ofproviding efficient lighting products and services. Beyond financing efficient lighting topoorer consumers through utility “pay-on-the-bill” schemes, ELI addressed commercialsector financing shortfalls by supporting . ESCOsare companies that offer energy efficiency services to third parties paid for by thesavings they generate for their clients. ELI provided ESCO training courses, modelESCO contracts, and customized project development assistance. For example, inLatvia, ELI pioneered a business model that mobilizes commercial finance to supportupgrades of public lighting infrastructure.

commercial financing

energy service companies (ESCOs)

Bulk Purchases

ELI engaged housing and consumer associations, large offices, and utilities to make. Harnessing the purchasing power of these groups

drove manufacturers to lower prices and, in turn, stimulated demand for efficient lightingproducts. ELI worked with manufacturers and suppliers to establish high quality ELI-qualified products as the market standard and product of choice.

bulk efficient lighting purchases

ELI’s Toolbox for Transforming Markets

ELI's Quality Mark and Product

Qualification Process

Limited Use of Subsidies

Unlike for PELP, ELI due to their potentially market-distortingeffects. When used, subsidies only supported short term activities with long termimpacts, such as ELI's public education efforts and helping overcome initial cost-barriersassociated with bulk purchases of efficient lighting.

limited use of subsidies

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Consumer Education and Marketing

ELI invested $3.7 million promotingefficient lighting across its sevencountries. Advertising campaignswere customized to meet marketneeds. For example, in the

Philippines, ELI engaged a national celebrity topromote quality to combat the flourishing blackmarket of illegally-imported, bad quality CFLs. ELI'saward-winning campaign in the Czech Republicpromoted energy savings, comparing a greedy,energy-guzzling incandescent bulb to a slim,energy-efficient lamp. In South Africa, promotionswere conducted in partnership with the NelsonMandela Children’s Fund. In Latvia, ELI sponsoredcommunity promotions with municipalities andmanufacturers to introduce a 'new' technology toconsumers who knew little or nothing about efficientlighting prior to the program. ELI also worked withhypermarkets, lighting, and hardware stores tostock the shelves with ELI-qualified lightingproducts, further enticing customers with in-storepromotions. These tailored campaigns increasedpurchases of efficient lighting in all ELI countries(see Spotlight on Peru).

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Innovation and Impact

Across its seven countries, ELI sparked the competitive forces that drive marketdevelopment—reducing prices, improving availability, and increasing sales ofefficient lighting products. How exactly did ELI achieve this?

ELI's multi-faceted programs leveragedcommercial investment in efficient lighting bymanufacturers; improved distribution toconsumers in partnership with electric utilities;built market capacity for efficient lighting bytraining lighting professionals; and developednew business models to deliver efficient lightingbenefits. ELI also worked with public agenciesto reinforce lighting standards and changeregulations in support of efficient lighting use.Innovation and impact defined ELI's work toeffect change by persuading market players tosell, buy, use, and promote efficientlighting—not just today, but for a long time tocome.

One of ELI's distinguishing features is theextent to which it engaged lightingmanufacturers to invest in developing andmarketing efficient lighting products. ELI'svoluntary qualification process and logo,supported by high profile marketing campaigns,provided an umbrella for these efforts.

Manufacturers sought to position their brands tocapitalize on ELI-stimulated market growth. Themajor players valued ELI as a credible thirdparty able to highlight the quality of theirproducts and weed out poor imitations that

Leveraging Manufacturer Investment in

Product Development and Marketing for

Efficient Lighting

threatened to spoil the market. Small producersused their ELI-qualified products to compete ona level playing field with the majormanufacturers, increasing circulation of theirhigh quality, “no name” brands.

This level of cooperation enabled ELI tostimulate industry investment in marketdevelopment for efficient lighting. In allcountries, manufacturers designed expandedadvertising campaigns around ELI's promotionalmaterial. Manufacturers offered their ELI-qualified CFLs at deep discounts to participatein ELI's bulk purchasing schemes, and in-storepromotions (a manufacturer in Hungary reducedprices by 50 percent).

As ELI stirred up demand, manufacturersimproved existing products so they could donELI's “green leaf” logo. In the Philippines, amajor manufacturer improved the quality of itsbest-selling CFL from 3,000 to 6,000 hours togain ELI-qualification. The company thenremarketed the product with the ELI logo. Thiswas a significant achievement for ELI, as thelamp was sold throughout Southeast Asia,increasing ELI's impact beyond the borders ofits target countries.

ELI's partnerships with electric utilities illustrateits effectiveness in cultivating the shared

Powerful Partnerships with Electric Utilities

Improve Access to Efficient Lighting

How did ELI increase sales of high-cost, importedefficient lighting products by 400 percent in themidst of economic crisis, when the peso lost 300percent of its value against the dollar, and createda large impoverished class? ELI truly tangoedwith the Argentine market, responding to the newdynamic by changing its strategy to mobilizeconsumer financing for efficient lighting throughelectric utilities.

: ELI encouraged manufacturers tocompete for utility supply contracts by offeringtheir ELI-qualified CFLs in bulk at high discounts.Competing brands that did not win the tendersoften matched the winning price in the stores.Bolstered by extensive public education andpromotions, ELI made efficient lighting widelydesirable, available, and affordable to residentialconsumers.

ELI's interventions caused Argentineimports of CFLs to jump from 1 million in 2000 to5.1 million by 2003. Simultaneously, the price ofCFLs dropped from an average $23 each to $3.Sales of ELI-qualified products reached over 9million people—about 23 percent of thepopulation. As a result of this market shift,Argentina is projected to save an estimated6,000,000 tonnes of C0 over the next ten years. If

aggregated, these carbon savings have a marketvalue of $30 million, at the current average priceof $5 per tonne.

Innovation

Impact:

2

Spotlight on Argentina:

ELI Provides Consumers

Affordable Efficient Lighting

during an Economic Crisis

3

interests of disparate market players. Utilitypartnerships increased the availability of efficientlighting by addressing the high 'first-cost' barrier toconsumers. As part of demand-side managementprograms utilities inArgentina and South Africa offered discountedCFLs to customers, often financed on utility bills.In promoting low-cost CFLs, and their relatedenergy savings, utilities reduced financial losses.A pilot effort in Argentina, focused on low-incomecommunities, found that CFL-generated energysavings reduced utility bills by 20 percent onaverage. This led bill non-payment to decrease by35 percent. Buoyed by such experiences, fiveArgentine utilities have extended efficient lightingofferings to 60 percent of the residential lightingmarket .

Efficient lighting not only yields economic benefitsby reducing electricity costs, but allows limitedelectricity resources to be stretched to providemore services to more people. This has aprofound effect in countries struggling to providemodern energy services—including life-alteringlighting and refrigeration—to large, un-electrifiedpopulations. In most countries, ELI was a vehicleto deliver modern energy products and services tolow-income communities to improve their lives.For example, in Latvia, Peru, and South Africa,ELI promoted public lighting upgrades thatimproved safety in towns and rural areas, andreduced costs for municipalities. ELI's efforts toincrease access to lighting services throughenergy savings have provided tangible lifeimprovements throughout the ELI countries,especially to the South African poor.

(see ELI Toolbox, p. 6-7)

(see Spotlight on Argentina)

(see Spotlight

on South Africa).

ELI Spurs Economic Development: Extending

Modern Energy Services to the Poor

Central to South Africa's strategy for expanding access to electricity to thecountry's disadvantaged communities, the Electricity Basic Support Services Tariff(EBSST) promised the poorest households 50 kilowatt hours (kWh) of freeelectricity a month. The challenge for ESKOM (the national utility and ELI'simplementation partner) was to implement this project on a national scale withoutthe benefit of increased electricity revenues. Further, the corresponding increasein peak demand was likely to stretch grid capacity to dangerous leve ls .

ELI saw this as an opportunity to accelerate efficient lightingto the poor. In an ELI pilot to four townships, ESKOM provided householdswith two 15-watt CFLs, while reducing the allocation of free electricity to40kWh. This reduced the amount of electricity used by 20 percent, whilethe new customers gained 400 percent more light in their energy quota,thanks to ELI's efficient bulbs.

The pilot provides an important model for wider use as SouthAfrica struggles to expand electricity services to a potential six million“poverty tariff” customers over the next fifteen years. Estimated energy savingsthrough ELI's sustainable solution would be 720 GWh, enough to serve anadditional 1.5 million customers. The government is now evaluating this option fornational implementation.

Innovation:

Impact:

Spotlight on

South Africa:

ELI Lights Up

Impoverished

Communities

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Spotlight on Peru:

ELI Triggers

Huge Sales Growth

for Efficient Lighting

In Peru, ELI triggered huge per capita salesgrowth in a low-income market, whereperceptions of efficient lighting were previouslynegative.

ELI's initial market assessment ofPeru in 1999, showed yearly CFL sales flat at270,000, with no growth expected.Preliminary results following ELI's four-yearprogram show that annual CFL sales

Impact:

Innovation: ELI promoted CFLs heavily atretail stores with three major manufacturers.Reinforced by substantial advertisingcampaigns in newspapers, and on radio andTV, ELI yielded astonishing results, withcomplex implications…

Beyond the Bulb: Building Capacity to

Design and Deliver Efficient Lighting

Lighting professionals—including engineers,technicians, architects, and designers—are animportant group whose decisions today will havean impact on energy consumption well into thefuture. Recognizing this, ELI establishedpartnerships with technical schools, universities,and professional associations, in addition todesigning efficient lighting curricula, training, andlearning materials.

ELI's course on efficient street lighting wasaccompanied by a technical manual in the CzechRepublic. In Latvia, ELI invented words forefficient lighting that did not yet exist in Latvian.In Hungary, ELI focused on electricians, who arehighly influential in selecting and installing lightfixtures. Many of ELI's courses are still beingoffered today. In South Africa, ELI's curriculamet with such demand that it was adoptedpermanently by a number of universities andtechnical colleges.

Training alone is not enough to build sustainablemarket capacity. In light of this, ELI generatednew business models to enhance the uptake ofefficient lighting beyond the bulbs alone. Forexample, in the Czech Republic and SouthAfrica, ELI worked with lighting designers andluminaire manufacturers to develop new productdesigns for consumers to use with efficientlamps. Several models are now in commercialproduction.

Source: IFC Market Assessment, ELI Independent Monitoring and Ev aluation Report

Impact of ELI on Sales of CFLs and

Incandescent Lamps, Peru

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1999 2000 2001 2002 2003

CF

Ls

Sale

s(U

nit

s)

13,500,000

14,000,000

14,500,000

15,000,000

15,500,000

16,000,000

16,500,000

17,000,000

17,500,000

18,000,000

18,500,000

Incan

descen

tL

am

ps

Sale

s(U

nit

s)

Sales of CFLs Sales of Incandescent Lamps

$10/CFL

$3.75/CFL

Source: IFC Market Assessment, ELI Independent Monitoring and Ev aluation Report

Impact of ELI on Sales of CFLs and

Incandescent Lamps, Peru

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

1999 2000 2001 2002 2003

CF

Ls

Sale

s(U

nit

s)

13,500,000

14,000,000

14,500,000

15,000,000

15,500,000

16,000,000

16,500,000

17,000,000

17,500,000

18,000,000

18,500,000

Incan

descen

tL

am

ps

Sale

s(U

nit

s)

Sales of CFLs Sales of Incandescent Lamps

$10/CFL

$3.75/CFL

increased twenty times to almost 5,800,000 by 2003, whilesales of incandescents decreased 17 percent. However, ahigh percentage—76 percent—of these sales were non-ELI-qualified CFLs from unknown brands that undercut theprices of ELI-qualified products. IFC's long term evaluationstudy will assess the lasting impact of these marketdynamics and widespread use of low quality efficientlighting in Peru.

Source: IFC Market Assessment, ELI Independent Monitoring and Evaluation Report

In the Philippines, ELI built coalitions of regulators,lighting manufacturers and electric utilities to buildconsensus for efficient lighting as a strategy tomanage electricity demand and expand provisionof modern electricity services across thearchipelago nation.

Leveraging IFC's “honest broker”role, ELI convened over 70 organizations topromote efficient lighting—from governmentagencies and power producers, toenvironmentalists and consumer groups. Efficientlighting emerged as the primary choice for utilitiesto manage electricity use due to its direct impacton reducing demand in the residential,commercial, and street lighting sectors.

Once the new regulatory framework isfully implemented, potential energy savings in thePhilippines could amount to 62 terrawatt hours(TWh) per year by 2016, with 12 GWh hoursshaved off peak demand. This amounts toapproximately 24,000,000 tonnes of CO2 peryear, with an aggregated market value of $120million at the current average price of $5 pertonne. Manila Electric (MERALCO), one of thePhilippines largest utilities, has already committedto developing a “Smartlight” CFL program that willcover three million residential customers inMetropolitan Manila.

Innovation:

Impact:

Spotlight on

the Philippines:

ELI Powers

Regulatory Change

ELI Energizes National Regulations,

Standards, and Institutions for Efficient

Lighting

ELI was positioned to make a big impact on thelighting market as convener and provider oftechnical information to government regulators,standards agencies, and independentorganizations. ELI worked across the sevencountries to strengthen existing institutions topromote efficient lighting—in some instancescreating new organizations. One of these, theNational Council for Energy-Efficient Lighting inthe Philippines, a high-profile private-publicpartnership, continues to support marketdevelopment today. In Peru, Argentina, and thePhilippines, ELI promoted regulatory change thatenabled utilities to diversify their business whileimproving their management of system demand(see Spotlight on the Philippines).

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The ELI Legacy

A dynamic program, implemented across four continents, in seven

countries, involving myriad stakeholders—ELI demonstrated sustained

innovation and impact in each of its markets. Far from following a static

workplan, ELI remained nimble, enabling it to capitalize on market

opportunities as they unfolded, refocus ineffective strategies, and assess

long term program impacts. ELI's legacy highlights the cumulative

contribution of these efforts to transform markets for efficient lighting

globally.

The ELI legacy lives on in three ways:

First, ELI catalyzed market change rooted inmarket fora. This empowered many differentmarket actors to promote efficient lighting intheir own special interests;Second, ELI planted the institutional andprofessional seeds in each country tosupport ongoing growth of efficient lightingmarkets well into the future;Third, ELI is evolving to its nextincarnation—a self-sustaining, globalcertification process to support marketdevelopment for an expanded range ofefficient lighting technology worldwide.

Looking back on three years of implementation,one paradigm emerges: ELI was most effectivewhen it empowered existing market actors tobecome agents of change for efficient lighting.ELI's collaborations worked to mutualbenefit—spotlighting ways in which efficientlighting is in the interest of manufacturers,utilities, retailers, and consumers, whilefurthering ELI's goal to accelerate market

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Fertile Ground for Market Development

growth for efficient lighting. These efforts weremagnified by ELI's implementationpartners—whether utility companies,independent consultancies or NGOs—whogained the trust of others in the lighting marketand increased “buy-in” to ELI's activities.

ELI focused on activities that went beyond theindividual reach of these market actors. Actingas an “honest broker”, ELI provided crediblepublic information, independent qualification forhigh-quality products, and acted as a conduitfor others to lobby for regulatory andinstitutional change. This allowed marketplayers to do what they do best: manufacturersdeveloped and marketed new products;retailers put these products into consumers'hands; utilities built stronger connections withtheir customer base; and people bought lampsthat burned brighter and longer, at a lower cost.ELI cultivated links throughout the lightingsupply chain to lever long term marketpreferences toward efficient lighting, changesthat remain institutionalized in the markettoday.

Planting the Seeds: Nurturing Sustainable

Market Capacity for Efficient Lighting

The second part of ELI's legacy is the sustainedcommercial and professional capacity theprogram built for efficient lighting as its partnersdeveloped expertise in new areas. Governmentregulators, standards and testing agenciesexpanded their focus to limit low performanceand inefficient lighting technology. Smallmanufacturers improved product quality andmarketing capacity as ELI's activities energizedtheir businesses. Technicians, engineers, andmunicipal decision-makers were trained by ELI tofactor efficient lighting into their day-to-day work.ELI generated new business models for luminairedesigners to extend their product lines to coverefficient lighting services, and for ESCOs toprovide energy-efficient lighting to towns andmunicipalities.

In these ways, ELI made a range of influentialmarket actors amenable to the benefits ofefficient lighting technology. In most countries,ELI continues to influence these market playersthrough the ongoing use of ELI's productqualification process and logo, and continued

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delivery of professional training and education.ELI planted the seeds to grow a generation ofefficient lighting practitioners and users incountries where awareness of energy efficiencywas formerly low.

ELI created substantial value for the logo as asymbol of high quality efficient lighting products,both within and outside ELI countries. The logowas adopted widely by manufacturers andretailers in all ELI's countries during the course ofthe program, and is still used today by somemanufacturers in the Czech Republic, Argentina,South Africa, and the Philippines on productpackaging and marketing materials.

The product qualification process also establisheda presence for ELI beyond the borders of its owncountries. IFC has fielded inquiries from Africa,Asia, and Latin America, where governments andutilities are eager to adopt ELI's qualityspecifications and approved product list for theirown bulk purchasing programs.

Other efficient lighting initiatives are also keepingELI's product specifications alive. The PhilippineDepartment of Energy is using ELI specificationsfor the United Nations Development Program(UNDP)/GEF Philippine Efficient LightingTransformation Project. The UNDP/GEF VietnamEnergy Efficient Lighting Project has also used theELI qualification process as a model for its ownmarket transformation efforts.

The “Green Leaf” Lives On

The ELI Tree Grows Global: Building

Sustainable Value for ELI's Quality Mark

The Light Shines On:

The Next Generation of ELI

In response to groundswell demand frommanufacturers, consumers, and nationalprograms, IFC is using ELI as a springboard tolaunch a self-sustaining, fee-based, qualitycertification service for efficient lighting productsworldwide, with an emphasis on developingcountries.

ELI will live on as the 'ELI Certification Institute',administered by the China Standard CertificationCenter (CSC). The Institute's work will be builtaround ELI's quality mark and sustained bymanufacturers. CSC will build on institutionalpartnerships established in the ELI countries toextend product certification to an expanding rangeof efficient lighting technologies worldwide. Thisincludes promoting the adoption of promising newtechnologies, such as light-emitting diodes (LEDs).

The Certification Institute will provide an importantlink between the Asian manufacturer base, whichdominates the lighting industry, and the developingcountry markets that it serves. Through theInstitute, ELI will continue to light the way onmarket development for efficient lighting acrossthe globe for many years to come.

The ELI experiment was a success, both as atesting ground for market transformation strategiesglobally, and in its immediate market impacts.ELI’s monitoring and evaluation program willcontinue to document lessons learned from ELI forthe benefit of the global development community.In addition to the institutional capacity establishedduring the program in the ELI countries, the ELICertification Institute will continue to play an

Reflections on ELI

important role in the uptake of efficient lightingglobally.

ELI was a pioneer not just for the GEF, but alsowithin IFC, where the Corporation went beyondits traditional direct investment role to supportearly market development for new technologieswith high sustainability impacts. Significantly,since ELI was launched, IFC has moved theconcept of sustainability includingenvironmental sustainability to the core of itsbusiness strategy to deepen IFC's developmentimpact in line with its mission. IFC/GEFcollaborations like ELI prepare markets forprivate sector investment and position IFC atthe head of the development curve fortechnologies with significant sustainabledevelopment potential. The ELI experienceillustrates the alignment of GEF’s globalenvironment interests with the capabilities andstrategic interests of IFC. By identifying privatesector actors’ self-interests, the power of themarket can help find solutions to challengingproblems facing the world in achievingsustainable development.

——

13

Acknowledgments

The ELI Story Team

ELI Global Management Team

ELI Local Implementation Teams

Photo Credits

Written by: Emily Horgan, Russell Sturm, and Sabrina BirnerDesigned by: Vanessa ManuelAdditional thanks to: Fabio Nehme, Alan Miller, MariaGallegos, Sam Keller, and Dana Lane

Global Program Manager: Russell SturmTechnical Advisors: Kathryn Conway,Christopher GrandaRegional Coordinators: Sabrina Birner,Sam Keller, Ted Flanigan, Carol MulhollandProgram Concept Developers: Dana Younger, Kelly Gordon

Jens Demuth

Mamen Salas, Jesus Lopez-Cotarelo, Jose Maria Lopez,Pepe Hurtado

Alex AblazaSteve BeesonAndra Blumberga

Davin GreenwellJan KonigRuben Lambuson

Gary Poyner

Barry Bredenkamp

Jose Maria Lopez

Russell SturmWrexham County Borough Council

Europe Regional Management

Asia/Africa Regional Management

ELI-Argentina

ELI Czech Republic

ELI-Hungary

ELI Latvia

ELI Peru

Ing. Alberto Arrigoni, Lic. Alejandro Esquivel,Dr. Gautam Dutt, Ms. Karina Jurajda Mr. DanielMendiburu, Ing. Diego Pasjalidis, Ms. Mariela Barbotta,Lic. Adrian Peragallo, Ing. Esteban Conti, Lic. Alejandradel Rio

Géza Bakoss, Rózsa Bradák, Gábor Gáti, JózsefHorotyák, István Kovacsics, Zoltán Lontay, KatalinMeskó, Erika Pintér, Elek Turda

Dr. Hab. Sc. Ing. Blumberga, Dr. Andra Blumberga, Dr.Hab. Sc. Ing. Ivars Veidenbergs, MBA Laura Vecvagare,Ing. Pauls Krievins, M.Sc.Ing. Juris Ozolins, M.Sc.Ing.Claudio Rochas, Romans Barmotins, Edgars Dukalskis,M.E. Andra Feldmane, Arita Berzina, Zane Upmane,Martins Jonass, Anna Šèerbaka, Inga Smilga

Ing. Luis Haro Zavaleta, Miss Erika Beyer, Mr. JuanMiguel Coriat, Engineer Carlos Centeno Zavala, Mrs.Sara Morla, Economist Hector Sanchez, Mr. ReynaldoAragon, Mr. Dante Ojeda, Mr. Elio Landauro, Mr. JaimePonce, Mr. Daniel Lozano, Engineer Francisco Caycho,Mr. Jose Yui, Mr. Walter Fegan, Mr. Roberto Murillo, Mr.Jorge Velasquez, Miss Roxana Caceres

Lic. Daniela Auerbach, Martin Dasek, Michael Donkelaar,Miroslav Florian, Martin Hajek, Pavel Karnik, Jan “Honza”Koenig, Juraj Krivosik, Jaroslav Marousek, PetraNeuwirthova, Ivana Svojtkova, Tomas Špirek, MiroslavVotapek

ELI Philippines

ELI South Africa

In Memoriam

In Celebration

Alex Ablaza, Ruben Lambuson, CamillaNatasha Villegas, Florvi Villaescusa, MariaTheresa Ragasa, Mirko Moeller, RandeeAlmond Gabriel, Jay Jerrick Go

Peter Kgame, Barry Bredenkamp, NaasJordan, Mmemezi Dlamini, Nad Perumaul,Bob Price, Mpho Makhetha, Helen Roos

Mirko Mueller, Janos Pollich, Doug Kuffelpartners of the ELI family who passed awayduring the life of the program.

Eli Sturm (who is as old as ELI), MacarenaSalas, and Ulysses Tiber Dalton who joinedthe ELI family as rays of light for the future.

ELI Cross-Cutting Activities

ELI Monitoring and Evaluation

International Institute for EnergyConservation (IIEC) (Product Certification:Sommai Phon-amnuaisuk)

Martin Adelaar, Barbara Atkinson, LuisaFreeman, Rafael Friedman, Joseph S.Lopes, Iris Sulyma, Ken Tiedemann,Edward Vine

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Copyright (c) 2005International Finance Corporation2121 Pennsylvania Avenue, N.W.

Washington, D.C. 20433, USAwww.ifc.org

For more information, contact:

Russell Sturm

Li Tienan

ELI Global Program ManagerInternational Finance Corporation

Email rsturm@ifc.org

ELI Quality Certification InstituteChina Standard Certification Center

Email litn@cecp.org.cn

www.ifc.org

www.efficientlighting.net

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