The ELI Story

:
TRANSFORMING MARKETS FOR EFFICIENT LIGHTING
IFC/GEF EFFICIENT LIGHTING INITIATIVE (ELI)

The ELI Story:
TRANSFORMING MARKETS FOR EFFICIENT LIGHTING
Contents
Part 1 Part 2 What is ELI? Efficient Lighting: A Bright Idea ELI’s Toolbox for Transforming Markets Innovation and Impact The ELI Legacy Acknowledgments
IFC/GEF EFFICIENT LIGHTING INITIATIVE

3 4 6 10 12 14

Part 3 Part 4 Part 5

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

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What is ELI?
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 Efficient Lighting Initiative (ELI), implemented 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.

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

» Thousands of newly trained lighting
professionals in seven countries will be able to specify efficient lighting for their clients. Across the board, ELI demonstrated substantial market impact with product prices falling (from $23 to $3 in Argentina), sales climbing (by a factor of 21 in Peru), and sales of traditional incandescent lamps tumbling (by 9 percent in South Africa, in a market undergoing widespread electrification). From ELI's outset, IFC commissioned an independent Monitoring and Evaluation (M&E) assessment with a focus on sustained, postprogram market impacts. While this long term study is not yet complete, aggregated preliminary results show that, across seven countries, ELI reduced energy consumption by 2,590 gigawatt-hours (GWH), and CO2 emissions by 2,018,000 tonnes between 20002003. These initial estimates indicate that ELI

» In Peru, annual sales of compact
fluorescent bulbs (CFLs) increased twentyfold, from 250,000 to over 5 million; In Argentina, the price of CFLs dropped eightfold due to ELI-inspired promotion and competition between lighting manufacturers; In the Philippines, manufacturers improved the quality of their efficient lighting products to meet ELI specifications; Electric utilities in Argentina, Peru, the Philippines, and South Africa began selling, and financing, efficient lamps to their customers; Municipal authorities in the Czech Republic, Latvia, Peru, and South Africa commenced energy-efficient street lighting upgrades;

catalyzed immediate uptake of efficient lighting, even as the program strategy focused on underpinning long term, sustained market growth. The ELI experience highlights IFC's role as a market leader able to coordinate the shared interests of multiple entities and channel resources in a manner that truly moves—and even transforms—markets.

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

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Efficient Lighting: A Bright Idea
Efficient 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 Efficient Lighting Project (PELP), funded by the GEF (see box on IFC and GEF, p. 5). Driven by dynamic marketing and subsidies, PELP grew demand for CFLs over two years, with measurable impacts beyond the program. By 2004, about one in two homes in Poland used a CFL, and the project saved an estimated 2,320 gigawatt-hours, which is a reduction of 2.8 million tons of CO 2 emissions.
PELP showed how the GEF's impact can be multiplied by market forces to generate substantial direct investments by manufacturers, wholesalers, retailers, and consumers in efficient lighting. PELP was a natural model for broader replication through ELI in diverse markets for a wider range of efficient lighting products. In 1999, IFC set out to implement ELI, selecting seven countries on the basis of inquiries received following PELP, and the ripeness of the market economy in each country. ELI was a laboratory for testing market transformation experiments in parallel, in seven different environments. Seven Diverse Lighting Markets… Lighting markets differed widely in each ELI country. ELI arrived in Latvia, Hungary and the Czech Republic during a period of economic transition from Soviet-era central planning. The fast-growing Czech and Hungarian markets had had some exposure to efficient lighting; unlike the poorer Latvian market. The Philippines and Argentina, both emerging markets, also provided contrasting conditions. The Philippine market was proliferated with low-quality, black market efficient bulbs, while in Argentina only 5 percent of homes used efficient lighting. Meanwhile, South Africa and Peru were low-income markets with undeveloped lighting infrastructure, particularly among poor communities. One Goal: To Create Dynamic Markets for Efficient Lighting Across these seven markets, IFC had one goal: to accelerate sustainable market development for efficient lighting. To strengthen the competitive underpinnings of the market, IFC built on market interventions, used separately before, to target the special interests of multiple market players, empowering them to become agents of change for efficient lighting. Using IFC's credibility and convening power, ELI collaborated with manufacturers, electric utilities, retailers, lighting professionals, and designers to create a virtuous cycle of commercial investment in efficient lighting—a cycle that improved product quality and availability, boosted sales, and put downward pressure in prices. ELI also became an important voice within government—a role that was unanticipated in the original program design. Tackling Market Barriers Creating dynamic markets required tackling prevailing barriers limiting the widespread use of efficient lighting. Consumers are discouraged from purchasing energy-efficient lighting due to the lack of credible information about its economic and environmental benefits. This is compounded by the high “first-cost” of buying efficient lighting products, which can retail at up to 15 times the cost of regular incandescent bulbs. With few recognizable quality standards for consumers to differentiate new technology, the market can easily be “spoiled” by bad quality products.

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Tried-and-Tested Market Interventions To overcome these barriers, ELI's country programs focused on four market support strategies to promote efficient lighting:

IFC and GEF: A Partnership for Innovation
The Global Environment Facility (GEF) supports projects in developing countries that 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 allocated for clean energy projects to reduce greenhouse gas emissions. GEF resources allow IFC to take noncommercial risks and test innovative technologies and business models with substantial environmental promise. In turn, IFC provides innovative ways of leveraging the GEF’s funding through the private sector for sustained environmental benefit. GEF provided $15 million for ELI to support activities the market was unlikely to undertake on its own—such as consumer education and quality assurance. In this way, IFC was able to go beyond the use of subsidies to accelerate market acceptance for an environmentally beneficial technology. Other IFC innovations, such as flexible finance instruments to stimulate commercial lending for energy efficiency and renewable energy, are further enhancing what has become a productive partnership between IFC and GEF.

» providing consumers with reliable information
on efficient lighting

» increasing the availability of efficient lighting » »
by strengthening distribution and retail channels supporting commercial financing to overcome the high “first-cost” barrier of efficient lighting products promoting open market competition, especially among lighting manufacturers

IFC's “adaptive management” approach supported a culture of innovation within each team so that ELI remained inherently dynamic, responding to market conditions as they evolved. IFC’s local teams focused on results in the market rather than implementing static workplans. This was essential for ensuring ELI's sustained impact on local markets.

Using these strategies as a common basis, ELI adapted tried-and-tested market transformation “tools” to leverage its impact in each country. These tools developed intensive consumer marketing and education campaigns, quality standards for manufacturers, and innovative financing and bulk purchasing schemes to improve distribution of efficient lighting products (see ELI Toolbox, p. 6-7). Who Implemented ELI? IFC's singular focus on market development was supported by a flexible implementation approach. Implementation teams had good knowledge of the market, varied expertise and institutional affiliations—from utility companies in Argentina, Peru and South Africa, to an NGO in the Czech Republic, and a consultancy in Hungary. These elements contributed to the personality of each program as local teams were given significant latitude in tailoring their country programs based on initial market assessments.

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ELI’s Toolbox for Transforming Markets
ELI and Electric Utilities
ELI forged partnerships with electric utilities to promote investments in efficient lighting as part of “demand-side management” (DSM) schemes that meet a number of utility business interests. DSM can reduce energy demand where costly infrastructure upgrades may be necessary. It can also reduce electricity bills and encourage consumers to pay, where high, unpaid electricity bills can lead to large financial losses. More broadly, DSM promotes good corporate values such as business efficiency, care for the environment and the poor. ELI prompted regulatory changes that have since enabled electric utilities in Argentina, Peru, South Africa, and the Philippines to sell CFLs, and lease them to consumers through “pay-on-the-bill” installments. ELI also worked with national utilities and governments to provide subsidized CFLs as an integral component of rural electrification programs.

ELI's Quality Mark and Product Qualification Process

Commercial Financing and Transaction Support for Efficient Lighting
ELI supported commercial financing channels to help overcome the high cost of providing efficient lighting products and services. Beyond financing efficient lighting to poorer consumers through utility “pay-on-the-bill” schemes, ELI addressed commercial sector financing shortfalls by supporting energy service companies (ESCOs). ESCOs are companies that offer energy efficiency services to third parties paid for by the savings they generate for their clients. ELI provided ESCO training courses, model ESCO contracts, and customized project development assistance. For example, in Latvia, ELI pioneered a business model that mobilizes commercial finance to support upgrades of public lighting infrastructure.

Bulk Purchases
ELI engaged housing and consumer associations, large offices, and utilities to make bulk efficient lighting purchases. Harnessing the purchasing power of these groups drove manufacturers to lower prices and, in turn, stimulated demand for efficient lighting products. ELI worked with manufacturers and suppliers to establish high quality ELIqualified products as the market standard and product of choice.

Limited Use of Subsidies
Unlike for PELP, ELI limited use of subsidies due to their potentially market-distorting effects. When used, subsidies only supported short term activities with long term impacts, such as ELI's public education efforts and helping overcome initial cost-barriers associated with bulk purchases of efficient lighting.

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To improve consumer awareness of high quality efficient lighting, ELI developed technical specifications for efficient lighting products, harmonized with international standards, such as the US Environmental Protection Agency's Energy Star Rating. Lighting products, not manufacturers, were qualified on the basis of performance results from ELI-approved labs. If up to standard, products could wear ELI's “green leaf” quality mark on packaging and participate in ELI-sponsored promotions and bulk purchase schemes. ELI issued specifications for several efficient lighting products, but CFLs for residential use were the most prominent market. The ELI logo became the centerpiece of ELI's marketing activities in all seven countries. Consumers were encouraged to “Look for the Leaf!” to identify quality, reliability, and economy in efficient lighting products. Results from consumer surveys, manufacturers, and retailers indicate that the ELI logo came to signify a high quality product. The logo was adopted widely by the lighting industry in all seven countries with over 200 products from 14 different manufacturers receiving ELI qualification.

Consumer Education and Marketing
ELI invested $3.7 million promoting efficient lighting across its seven countries. Advertising campaigns were customized to meet market needs. For example, in the Philippines, ELI engaged a national celebrity to promote quality to combat the flourishing black market of illegally-imported, bad quality CFLs. ELI's award-winning campaign in the Czech Republic promoted energy savings, comparing a greedy, energy-guzzling incandescent bulb to a slim, energy-efficient lamp. In South Africa, promotions were conducted in partnership with the Nelson Mandela Children’s Fund. In Latvia, ELI sponsored community promotions with municipalities and manufacturers to introduce a 'new' technology to consumers who knew little or nothing about efficient lighting prior to the program. ELI also worked with hypermarkets, lighting, and hardware stores to stock the shelves with ELI-qualified lighting products, further enticing customers with in-store promotions. These tailored campaigns increased purchases 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 market development—reducing prices, improving availability, and increasing sales of efficient lighting products. How exactly did ELI achieve this?
Spotlight on Argentina:
ELI Provides Consumers Affordable Efficient Lighting during an Economic Crisis
How did ELI increase sales of high-cost, imported efficient lighting products by 400 percent in the midst of economic crisis, when the peso lost 300 percent of its value against the dollar, and created a large impoverished class? ELI truly tangoed with the Argentine market, responding to the new dynamic by changing its strategy to mobilize consumer financing for efficient lighting through electric utilities. Innovation: ELI encouraged manufacturers to compete for utility supply contracts by offering their ELI-qualified CFLs in bulk at high discounts. Competing brands that did not win the tenders often matched the winning price in the stores. Bolstered by extensive public education and promotions, ELI made efficient lighting widely desirable, available, and affordable to residential consumers. Impact: ELI's interventions caused Argentine imports of CFLs to jump from 1 million in 2000 to 5.1 million by 2003. Simultaneously, the price of CFLs dropped from an average $23 each to $3. Sales of ELI-qualified products reached over 9 million people—about 23 percent of the population. As a result of this market shift, Argentina is projected to save an estimated 6,000,000 tonnes of C02 over the next ten years. If aggregated, these carbon savings have a market value of $30 million, at the current average price of $5 per tonne.

ELI's multi-faceted programs leveraged commercial investment in efficient lighting by manufacturers; improved distribution to consumers in partnership with electric utilities; built market capacity for efficient lighting by training lighting professionals; and developed new business models to deliver efficient lighting benefits. ELI also worked with public agencies to reinforce lighting standards and change regulations in support of efficient lighting use. Innovation and impact defined ELI's work to effect change by persuading market players to sell, buy, use, and promote efficient lighting—not just today, but for a long time to come. Leveraging Manufacturer Investment in Product Development and Marketing for Efficient Lighting One of ELI's distinguishing features is the extent to which it engaged lighting manufacturers to invest in developing and marketing efficient lighting products. ELI's voluntary qualification process and logo, supported by high profile marketing campaigns, provided an umbrella for these efforts. Manufacturers sought to position their brands to capitalize on ELI-stimulated market growth. The major players valued ELI as a credible third party able to highlight the quality of their products and weed out poor imitations that

threatened to spoil the market. Small producers used their ELI-qualified products to compete on a level playing field with the major manufacturers, increasing circulation of their high quality, “no name” brands. This level of cooperation enabled ELI to stimulate industry investment in market development for efficient lighting. In all countries, manufacturers designed expanded advertising campaigns around ELI's promotional material. Manufacturers offered their ELIqualified CFLs at deep discounts to participate in ELI's bulk purchasing schemes, and in-store promotions (a manufacturer in Hungary reduced prices by 50 percent). As ELI stirred up demand, manufacturers improved existing products so they could don ELI's “green leaf” logo. In the Philippines, a major manufacturer improved the quality of its best-selling CFL from 3,000 to 6,000 hours to gain ELI-qualification. The company then remarketed the product with the ELI logo. This was a significant achievement for ELI, as the lamp was sold throughout Southeast Asia, increasing ELI's impact beyond the borders of its target countries. Powerful Partnerships with Electric Utilities Improve Access to Efficient Lighting ELI's partnerships with electric utilities illustrate its effectiveness in cultivating the shared

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interests of disparate market players. Utility partnerships increased the availability of efficient lighting by addressing the high 'first-cost' barrier to consumers. As part of demand-side management programs (see ELI Toolbox, p. 6-7) utilities in Argentina and South Africa offered discounted CFLs to customers, often financed on utility bills. In promoting low-cost CFLs, and their related energy savings, utilities reduced financial losses. A pilot effort in Argentina, focused on low-income communities, found that CFL-generated energy savings reduced utility bills by 20 percent on average. This led bill non-payment to decrease by 35 percent. Buoyed by such experiences, five Argentine utilities have extended efficient lighting offerings to 60 percent of the residential lighting market (see Spotlight on Argentina). ELI Spurs Economic Development: Extending Modern Energy Services to the Poor Efficient lighting not only yields economic benefits by reducing electricity costs, but allows limited electricity resources to be stretched to provide more services to more people. This has a profound effect in countries struggling to provide modern energy services—including life-altering lighting and refrigeration—to large, un-electrified populations. In most countries, ELI was a vehicle to deliver modern energy products and services to low-income communities to improve their lives. For example, in Latvia, Peru, and South Africa, ELI promoted public lighting upgrades that improved safety in towns and rural areas, and reduced costs for municipalities. ELI's efforts to increase access to lighting services through energy savings have provided tangible life improvements throughout the ELI countries, especially to the South African poor. (see Spotlight on South Africa).

Central to South Africa's strategy for expanding access to electricity to the country's disadvantaged communities, the Electricity Basic Support Services Tariff (EBSST) promised the poorest households 50 kilowatt hours (kWh) of free electricity a month. The challenge for ESKOM (the national utility and ELI's implementation partner) was to implement this project on a national scale without the benefit of increased electricity revenues. Further, the corresponding increase in peak demand was likely to stretch grid capacity t o d a n g e r o u s l e v e l s .

Spotlight on South Africa:
ELI Lights Up Impoverished Communities

Innovation: ELI saw this as an opportunity to accelerate efficient lighting to the poor. In an ELI pilot to four townships, ESKOM provided households with two 15-watt CFLs, while reducing the allocation of free electricity to 40kWh. This reduced the amount of electricity used by 20 percent, while the new customers gained 400 percent more light in their energy quota, thanks to ELI's efficient bulbs. Impact: The pilot provides an important model for wider use as South Africa struggles to expand electricity services to a potential six million “poverty tariff” customers over the next fifteen years. Estimated energy savings through ELI's sustainable solution would be 720 GWh, enough to serve an additional 1.5 million customers. The government is now evaluating this option for national implementation.

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17,500,000 17,000,000 16,500,000 16,000,000 15,500,000 15,000,000
$10/ CFL $3.75/ CFL

5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0

In Peru, ELI triggered huge per capita sales growth in a low-income market, where perceptions of efficient lighting were previously negative.

14,500,000 14,000,000 13,500,000

ELI's course on efficient street lighting was accompanied by a technical manual in the Czech Republic. In Latvia, ELI invented words for efficient lighting that did not yet exist in Latvian. In Hungary, ELI focused on electricians, who are highly influential in selecting and installing light fixtures. Many of ELI's courses are still being offered today. In South Africa, ELI's curricula met with such demand that it was adopted permanently by a number of universities and technical colleges. Training alone is not enough to build sustainable market capacity. In light of this, ELI generated new business models to enhance the uptake of efficient lighting beyond the bulbs alone. For example, in the Czech Republic and South Africa, ELI worked with lighting designers and luminaire manufacturers to develop new product designs for consumers to use with efficient lamps. Several models are now in commercial production.

Innovation: ELI promoted CFLs heavily at
retail stores with three major manufacturers. Reinforced by substantial advertising campaigns in newspapers, and on radio and TV, ELI yielded astonishing results, with complex implications…
Impact: ELI's initial market assessment of Peru in 1999, showed yearly CFL sales flat at 270,000, with no growth expected. Preliminary results following ELI's four-year program show that annual CFL sales

1999

2000

2001

2002

2003

Sales of CFLs

Sales of Incandescent Lamps

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

Report

increased twenty times to almost 5,800,000 by 2003, while sales of incandescents decreased 17 percent. However, a high percentage—76 percent—of these sales were nonELI-qualified CFLs from unknown brands that undercut the prices of ELI-qualified products. IFC's long term evaluation study will assess the lasting impact of these market dynamics and widespread use of low quality efficient lighting in Peru.

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Incandescent Lamps Sales (Units)

Beyond the Bulb: Building Capacity to Design and Deliver Efficient Lighting Lighting professionals—including engineers, technicians, architects, and designers—are an important group whose decisions today will have an impact on energy consumption well into the future. Recognizing this, ELI established partnerships with technical schools, universities, and professional associations, in addition to designing efficient lighting curricula, training, and learning materials.

Spotlight on Peru:
ELI Triggers Huge Sales Growth for Efficient Lighting
CFLs Sales (Units)
7,000,000 6,000,000

Impact of ELI on Sales of CFLs and Incandescent Lamps, Peru
18,500,000 18,000,000

ELI Energizes National Regulations, Standards, and Institutions for Efficient Lighting ELI was positioned to make a big impact on the lighting market as convener and provider of technical information to government regulators, standards agencies, and independent organizations. ELI worked across the seven countries to strengthen existing institutions to promote efficient lighting—in some instances creating new organizations. One of these, the National Council for Energy-Efficient Lighting in the Philippines, a high-profile private-public partnership, continues to support market development today. In Peru, Argentina, and the Philippines, ELI promoted regulatory change that enabled utilities to diversify their business while improving their management of system demand (see Spotlight on the Philippines).

Spotlight on the Philippines:
ELI Powers Regulatory Change
In the Philippines, ELI built coalitions of regulators, lighting manufacturers and electric utilities to build consensus for efficient lighting as a strategy to manage electricity demand and expand provision of modern electricity services across the archipelago nation. Innovation: Leveraging IFC's “honest broker” role, ELI convened over 70 organizations to promote efficient lighting—from government agencies and power producers, to environmentalists and consumer groups. Efficient lighting emerged as the primary choice for utilities to manage electricity use due to its direct impact on reducing demand in the residential, commercial, and street lighting sectors. Impact: Once the new regulatory framework is fully implemented, potential energy savings in the Philippines could amount to 62 terrawatt hours (TWh) per year by 2016, with 12 GWh hours shaved off peak demand. This amounts to approximately 24,000,000 tonnes of CO2 per year, with an aggregated market value of $120 million at the current average price of $5 per tonne. Manila Electric (MERALCO), one of the Philippines largest utilities, has already committed to developing a “Smartlight” CFL program that will cover three million residential customers in Metropolitan Manila.

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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: growth for efficient lighting. These efforts were magnified by ELI's implementation partners—whether utility companies, independent consultancies or NGOs—who gained the trust of others in the lighting market and increased “buy-in” to ELI's activities. ELI focused on activities that went beyond the individual reach of these market actors. Acting as an “honest broker”, ELI provided credible public information, independent qualification for high-quality products, and acted as a conduit for others to lobby for regulatory and institutional change. This allowed market players to do what they do best: manufacturers developed and marketed new products; retailers put these products into consumers' hands; utilities built stronger connections with their customer base; and people bought lamps that burned brighter and longer, at a lower cost. ELI cultivated links throughout the lighting supply chain to lever long term market preferences toward efficient lighting, changes that remain institutionalized in the market today. Planting the Seeds: Nurturing Sustainable Market Capacity for Efficient Lighting The second part of ELI's legacy is the sustained commercial and professional capacity the program built for efficient lighting as its partners developed expertise in new areas. Government regulators, standards and testing agencies expanded their focus to limit low performance and inefficient lighting technology. Small manufacturers improved product quality and marketing capacity as ELI's activities energized their businesses. Technicians, engineers, and municipal decision-makers were trained by ELI to factor efficient lighting into their day-to-day work. ELI generated new business models for luminaire designers to extend their product lines to cover efficient lighting services, and for ESCOs to provide energy-efficient lighting to towns and municipalities. In these ways, ELI made a range of influential market actors amenable to the benefits of efficient lighting technology. In most countries, ELI continues to influence these market players through the ongoing use of ELI's product qualification process and logo, and continued

» First, ELI catalyzed market change rooted in
market fora. This empowered many different market actors to promote efficient lighting in their own special interests; Second, ELI planted the institutional and professional seeds in each country to support ongoing growth of efficient lighting markets well into the future; Third, ELI is evolving to its next incarnation—a self-sustaining, global certification process to support market development for an expanded range of efficient lighting technology worldwide.

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Fertile Ground for Market Development Looking back on three years of implementation, one paradigm emerges: ELI was most effective when it empowered existing market actors to become agents of change for efficient lighting. ELI's collaborations worked to mutual benefit—spotlighting ways in which efficient lighting is in the interest of manufacturers, utilities, retailers, and consumers, while furthering ELI's goal to accelerate market

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delivery of professional training and education. ELI planted the seeds to grow a generation of efficient lighting practitioners and users in countries where awareness of energy efficiency was formerly low. The ELI Tree Grows Global: Building Sustainable Value for ELI's Quality Mark The “Green Leaf” Lives On ELI created substantial value for the logo as a symbol of high quality efficient lighting products, both within and outside ELI countries. The logo was adopted widely by manufacturers and retailers in all ELI's countries during the course of the program, and is still used today by some manufacturers in the Czech Republic, Argentina, South Africa, and the Philippines on product packaging and marketing materials. The product qualification process also established a presence for ELI beyond the borders of its own countries. IFC has fielded inquiries from Africa, Asia, and Latin America, where governments and utilities are eager to adopt ELI's quality specifications and approved product list for their own bulk purchasing programs. Other efficient lighting initiatives are also keeping ELI's product specifications alive. The Philippine Department of Energy is using ELI specifications for the United Nations Development Program (UNDP)/GEF Philippine Efficient Lighting Transformation Project. The UNDP/GEF Vietnam Energy Efficient Lighting Project has also used the ELI qualification process as a model for its own market transformation efforts.

The Light Shines On: The Next Generation of ELI In response to groundswell demand from manufacturers, consumers, and national programs, IFC is using ELI as a springboard to launch a self-sustaining, fee-based, quality certification service for efficient lighting products worldwide, with an emphasis on developing countries. ELI will live on as the 'ELI Certification Institute', administered by the China Standard Certification Center (CSC). The Institute's work will be built around ELI's quality mark and sustained by manufacturers. CSC will build on institutional partnerships established in the ELI countries to extend product certification to an expanding range of efficient lighting technologies worldwide. This includes promoting the adoption of promising new technologies, such as light-emitting diodes (LEDs). The Certification Institute will provide an important link between the Asian manufacturer base, which dominates the lighting industry, and the developing country markets that it serves. Through the Institute, ELI will continue to light the way on market development for efficient lighting across the globe for many years to come. Reflections on ELI The ELI experiment was a success, both as a testing ground for market transformation strategies globally, and in its immediate market impacts. ELI’s monitoring and evaluation program will continue to document lessons learned from ELI for the benefit of the global development community. In addition to the institutional capacity established during the program in the ELI countries, the ELI Certification Institute will continue to play an

important role in the uptake of efficient lighting globally. ELI was a pioneer not just for the GEF, but also within IFC, where the Corporation went beyond its traditional direct investment role to support early market development for new technologies with high sustainability impacts. Significantly, since ELI was launched, IFC has moved the concept of sustainability—including environmental sustainability—to the core of its business strategy to deepen IFC's development impact in line with its mission. IFC/GEF collaborations like ELI prepare markets for private sector investment and position IFC at the head of the development curve for technologies with significant sustainable development potential. The ELI experience illustrates the alignment of GEF’s global environment interests with the capabilities and strategic interests of IFC. By identifying private sector actors’ self-interests, the power of the market can help find solutions to challenging problems facing the world in achieving sustainable development.

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Acknowledgments
ELI-Argentina Ing. Alberto Arrigoni, Lic. Alejandro Esquivel, Dr. Gautam Dutt, Ms. Karina Jurajda Mr. Daniel Mendiburu, Ing. Diego Pasjalidis, Ms. Mariela Barbotta, Lic. Adrian Peragallo, Ing. Esteban Conti, Lic. Alejandra del Rio ELI Czech Republic Lic. Daniela Auerbach, Martin Dasek, Michael Donkelaar, Miroslav Florian, Martin Hajek, Pavel Karnik, Jan “Honza” Koenig, Juraj Krivosik, Jaroslav Marousek, Petra Neuwirthova, Ivana Svojtkova, Tomas Špirek, Miroslav Votapek ELI-Hungary Géza Bakoss, Rózsa Bradák, Gábor Gáti, József Horotyák, István Kovacsics, Zoltán Lontay, Katalin Meskó, Erika Pintér, Elek Turda ELI Latvia 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 ELI Peru Ing. Luis Haro Zavaleta, Miss Erika Beyer, Mr. Juan Miguel Coriat, Engineer Carlos Centeno Zavala, Mrs. Sara Morla, Economist Hector Sanchez, Mr. Reynaldo Aragon, Mr. Dante Ojeda, Mr. Elio Landauro, Mr. Jaime Ponce, Mr. Daniel Lozano, Engineer Francisco Caycho, Mr. Jose Yui, Mr. Walter Fegan, Mr. Roberto Murillo, Mr. Jorge Velasquez, Miss Roxana Caceres ELI Philippines Alex Ablaza, Ruben Lambuson, Camilla Natasha Villegas, Florvi Villaescusa, Maria Theresa Ragasa, Mirko Moeller, Randee Almond Gabriel, Jay Jerrick Go ELI South Africa Peter Kgame, Barry Bredenkamp, Naas Jordan, Mmemezi Dlamini, Nad Perumaul, Bob Price, Mpho Makhetha, Helen Roos
ELI Cross-Cutting Activities International Institute for Energy Conservation (IIEC) (Product Certification: Sommai Phon-amnuaisuk) ELI Monitoring and Evaluation Martin Adelaar, Barbara Atkinson, Luisa Freeman, Rafael Friedman, Joseph S. Lopes, Iris Sulyma, Ken Tiedemann, Edward Vine

The ELI Story Team Written by: Emily Horgan, Russell Sturm, and Sabrina Birner Designed by: Vanessa Manuel Additional thanks to: Fabio Nehme, Alan Miller, Maria Gallegos, Sam Keller, and Dana Lane
Photo Credits Alex Ablaza Steve Beeson Andra Blumberga Barry Bredenkamp Davin Greenwell Jan Konig Ruben Lambuson Jose Maria Lopez Gary Poyner Russell Sturm Wrexham County Borough Council

ELI Global Management Team Global Program Manager: Russell Sturm Technical Advisors: Kathryn Conway, Christopher Granda Regional Coordinators: Sabrina Birner, Sam Keller, Ted Flanigan, Carol Mulholland Program Concept Developers: Dana Younger, Kelly Gordon ELI Local Implementation Teams Europe Regional Management Jens Demuth Asia/Africa Regional Management Mamen Salas, Jesus Lopez-Cotarelo, Jose Maria Lopez, Pepe Hurtado

In Memoriam Mirko Mueller, Janos Pollich, Doug Kuffel partners of the ELI family who passed away during the life of the program. In Celebration Eli Sturm (who is as old as ELI), Macarena Salas, and Ulysses Tiber Dalton who joined the ELI family as rays of light for the future.

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For more information, contact: Russell Sturm ELI Global Program Manager International Finance Corporation Email rsturm@ifc.org www.ifc.org Li Tienan ELI Quality Certification Institute China Standard Certification Center Email litn@cecp.org.cn
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