The ELI Story:

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

Contents IFC/GEF EFFICIENT LIGHTING INITIATIVE

Part 1 What is ELI? 3

Part 2 Efficient Lighting: A Bright Idea 4

ELI’s Toolbox for Transforming Markets 6

Part 3 Innovation and Impact 10

Part 4 The ELI Legacy 12

Part 5 Acknowledgments 14

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.
1 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, » Thousands of newly trained lighting

ELI achieved impressive results over its
three-year life:
» 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;
professionals in seven countries will be
able to specify efficient lighting for their
clients. catalyzed immediate uptake of efficient
lighting, even as the program strategy focused
Across the board, ELI demonstrated on underpinning long term, sustained market
substantial market impact with product prices growth.
falling (from $23 to $3 in Argentina), sales
climbing (by a factor of 21 in Peru), and sales The ELI experience highlights IFC's role as a
of traditional incandescent lamps tumbling (by market leader able to coordinate the shared
9 percent in South Africa, in a market interests of multiple entities and channel
undergoing widespread electrification). resources in a manner that truly moves—and
even transforms—markets.
From ELI's outset, IFC commissioned an
independent Monitoring and Evaluation (M&E)
assessment with a focus on sustained, post-
program 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 2000-
2003. These initial estimates indicate that ELI

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

3
 2 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.
4
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.

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 non-
commercial 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.
Tried-and-Tested Market Interventions IFC's “adaptive management” approach
To overcome these barriers, ELI's country supported a culture of innovation within each
programs focused on four market support team so that ELI remained inherently dynamic,
strategies to promote efficient lighting: responding to market conditions as they evolved.
IFC’s local teams focused on results in the
» providing consumers with reliable information market rather than implementing static
on efficient lighting workplans. This was essential for ensuring ELI's
» increasing the availability of efficient lighting sustained impact on local markets.
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
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.
5
 ELI’s Toolbox for Transforming Markets
ELI and Electric Utilities ELI's Quality Mark and Product
ELI forged partnerships with electric utilities to promote investments in efficient lighting Qualification Process
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.

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 To improve consumer awareness of
poorer consumers through utility “pay-on-the-bill” schemes, ELI addressed commercial high quality efficient lighting, ELI
sector financing shortfalls by supporting energy service companies (ESCOs). ESCOs developed technical specifications for
are companies that offer energy efficiency services to third parties paid for by the efficient lighting products, harmonized
savings they generate for their clients. ELI provided ESCO training courses, model with international standards, such as the US
ESCO contracts, and customized project development assistance. For example, in Environmental Protection Agency's Energy Star
Latvia, ELI pioneered a business model that mobilizes commercial finance to support Rating. Lighting products, not manufacturers, were
upgrades of public lighting infrastructure. qualified on the basis of performance results from
ELI-approved labs. If up to standard, products could
Bulk Purchases wear ELI's “green leaf” quality mark on
packaging and participate in ELI-sponsored
ELI engaged housing and consumer associations, large offices, and utilities to make promotions and bulk purchase schemes. ELI issued
bulk efficient lighting purchases. Harnessing the purchasing power of these groups specifications for several efficient lighting products,
drove manufacturers to lower prices and, in turn, stimulated demand for efficient lighting but CFLs for residential use were the most
products. ELI worked with manufacturers and suppliers to establish high quality ELI- prominent market. The ELI logo became the
qualified products as the market standard and product of choice. centerpiece of ELI's marketing activities in all seven
countries. Consumers were encouraged to “Look
for the Leaf!” to identify quality, reliability, and
Limited Use of Subsidies economy in efficient lighting products. Results from
consumer surveys, manufacturers, and retailers
Unlike for PELP, ELI limited use of subsidies due to their potentially market-distorting indicate that the ELI logo came to signify a high
effects. When used, subsidies only supported short term activities with long term quality product. The logo was adopted widely by the
impacts, such as ELI's public education efforts and helping overcome initial cost-barriers lighting industry in all seven countries with over 200
associated with bulk purchases of efficient lighting. products from 14 different manufacturers receiving
6 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).

7
 3 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?
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
8
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 ELI-
qualified 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
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.
interests of disparate market players. Utility
partnerships increased the availability of efficient
Central to South Africa's strategy for expanding access to electricity to the
lighting by addressing the high 'first-cost' barrier to
country's disadvantaged communities, the Electricity Basic Support Services Tariff
consumers. As part of demand-side management
(EBSST) promised the poorest households 50 kilowatt hours (kWh) of free
programs (see ELI Toolbox, p. 6-7) utilities in
electricity a month. The challenge for ESKOM (the national utility and ELI's
Argentina and South Africa offered discounted
implementation partner) was to implement this project on a national scale without
CFLs to customers, often financed on utility bills.
the benefit of increased electricity revenues. Further, the corresponding increase
In promoting low-cost CFLs, and their related
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 .
energy savings, utilities reduced financial losses.
A pilot effort in Argentina, focused on low-income Spotlight on
Innovation: ELI saw this as an opportunity to accelerate efficient lighting
communities, found that CFL-generated energy South Africa: to the poor. In an ELI pilot to four townships, ESKOM provided households
savings reduced utility bills by 20 percent on
ELI Lights Up with two 15-watt CFLs, while reducing the allocation of free electricity to
average. This led bill non-payment to decrease by
Impoverished 40kWh. This reduced the amount of electricity used by 20 percent, while
35 percent. Buoyed by such experiences, five
the new customers gained 400 percent more light in their energy quota,
Argentine utilities have extended efficient lighting Communities
thanks to ELI's efficient bulbs.
offerings to 60 percent of the residential lighting
market (see Spotlight on Argentina).
Impact: The pilot provides an important model for wider use as South
Africa struggles to expand electricity services to a potential six million
ELI Spurs Economic Development: Extending
“poverty tariff” customers over the next fifteen years. Estimated energy savings
Modern Energy Services to the Poor
through ELI's sustainable solution would be 720 GWh, enough to serve an
Efficient lighting not only yields economic benefits
additional 1.5 million customers. The government is now evaluating this option for
by reducing electricity costs, but allows limited
national implementation.
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,
9
especially to the South African poor. (see Spotlight
on South Africa).
 Beyond the Bulb: Building Capacity to
Design and Deliver Efficient Lighting
Lighting professionals—including engineers, Spotlight on Peru: Impact of ELI on Sales of CFLs and
Incandescent Lamps, Peru
technicians, architects, and designers—are an ELI Triggers
important group whose decisions today will have Huge Sales Growth 7,000,000 18,500,000
18,000,000
an impact on energy consumption well into the for Efficient Lighting 6,000,000

Incandescent Lamps Sales

17,500,000
future. Recognizing this, ELI established

CFLs Sales (Units)

5,000,000 17,000,000
partnerships with technical schools, universities, 4,000,000 16,500,000
In Peru, ELI triggered huge per capita sales

(Units)
16,000,000
and professional associations, in addition to
growth in a low-income market, where 3,000,000 15,500,000
designing efficient lighting curricula, training, and
perceptions of efficient lighting were previously 2,000,000 15,000,000
learning materials. 14,500,000
negative. 1,000,000 $10/ $3.75/
14,000,000
CFL CFL
0 13,500,000
ELI's course on efficient street lighting was 1999 2000 2001 2002 2003
Innovation: ELI promoted CFLs heavily at
accompanied by a technical manual in the Czech
retail stores with three major manufacturers. Sales of CFLs Sales of Incandescent Lamps
Republic. In Latvia, ELI invented words for Source: IFC Market Assessment, ELI Independent Monitoring and Ev aluation Report
Reinforced by substantial advertising Source: IFC Market Assessment, ELI Independent Monitoring and Evaluation Report
efficient lighting that did not yet exist in Latvian.
In Hungary, ELI focused on electricians, who are campaigns in newspapers, and on radio and
highly influential in selecting and installing light TV, ELI yielded astonishing results, with increased twenty times to almost 5,800,000 by 2003, while
fixtures. Many of ELI's courses are still being complex implications… sales of incandescents decreased 17 percent. However, a
offered today. In South Africa, ELI's curricula high percentage—76 percent—of these sales were non-
met with such demand that it was adopted Impact: ELI's initial market assessment of ELI-qualified CFLs from unknown brands that undercut the
permanently by a number of universities and Peru in 1999, showed yearly CFL sales flat at prices of ELI-qualified products. IFC's long term evaluation
technical colleges. 270,000, with no growth expected. study will assess the lasting impact of these market
Preliminary results following ELI's four-year dynamics and widespread use of low quality efficient
Training alone is not enough to build sustainable program show that annual CFL sales lighting in Peru.
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.

10
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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 4 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 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.
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
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

12
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.
13
 5 Acknowledgments
The ELI Story Team ELI-Argentina ELI Philippines
Written by: Emily Horgan, Russell Sturm, and Sabrina Birner Ing. Alberto Arrigoni, Lic. Alejandro Esquivel, Alex Ablaza, Ruben Lambuson, Camilla
Designed by: Vanessa Manuel Dr. Gautam Dutt, Ms. Karina Jurajda Mr. Daniel Natasha Villegas, Florvi Villaescusa, Maria
Additional thanks to: Fabio Nehme, Alan Miller, Maria Mendiburu, Ing. Diego Pasjalidis, Ms. Mariela Barbotta, Theresa Ragasa, Mirko Moeller, Randee
Gallegos, Sam Keller, and Dana Lane Lic. Adrian Peragallo, Ing. Esteban Conti, Lic. Alejandra Almond Gabriel, Jay Jerrick Go
del Rio
Photo Credits ELI South Africa
Alex Ablaza ELI Czech Republic Peter Kgame, Barry Bredenkamp, Naas
Steve Beeson Lic. Daniela Auerbach, Martin Dasek, Michael Donkelaar, Jordan, Mmemezi Dlamini, Nad Perumaul,
Andra Blumberga Miroslav Florian, Martin Hajek, Pavel Karnik, Jan “Honza” Bob Price, Mpho Makhetha, Helen Roos
Barry Bredenkamp Koenig, Juraj Krivosik, Jaroslav Marousek, Petra
Davin Greenwell Neuwirthova, Ivana Svojtkova, Tomas Špirek, Miroslav ELI Cross-Cutting Activities
Jan Konig Votapek International Institute for Energy
Ruben Lambuson Conservation (IIEC) (Product Certification:
Jose Maria Lopez ELI-Hungary Sommai Phon-amnuaisuk)
Gary Poyner Géza Bakoss, Rózsa Bradák, Gábor Gáti, József
Russell Sturm Horotyák, István Kovacsics, Zoltán Lontay, Katalin ELI Monitoring and Evaluation
Wrexham County Borough Council Meskó, Erika Pintér, Elek Turda Martin Adelaar, Barbara Atkinson, Luisa
Freeman, Rafael Friedman, Joseph S.
ELI Global Management Team ELI Latvia Lopes, Iris Sulyma, Ken Tiedemann,
Global Program Manager: Russell Sturm Dr. Hab. Sc. Ing. Blumberga, Dr. Andra Blumberga, Dr. Edward Vine
Technical Advisors: Kathryn Conway, Hab. Sc. Ing. Ivars Veidenbergs, MBA Laura Vecvagare,
Christopher Granda Ing. Pauls Krievins, M.Sc.Ing. Juris Ozolins, M.Sc.Ing. In Memoriam
Regional Coordinators: Sabrina Birner, Claudio Rochas, Romans Barmotins, Edgars Dukalskis, Mirko Mueller, Janos Pollich, Doug Kuffel
Sam Keller, Ted Flanigan, Carol Mulholland M.E. Andra Feldmane, Arita Berzina, Zane Upmane, partners of the ELI family who passed away
Program Concept Developers: Dana Younger, Kelly Gordon Martins Jonass, Anna Šèerbaka, Inga Smilga during the life of the program.

ELI Local Implementation Teams ELI Peru In Celebration

Ing. Luis Haro Zavaleta, Miss Erika Beyer, Mr. Juan Eli Sturm (who is as old as ELI), Macarena
Europe Regional Management Miguel Coriat, Engineer Carlos Centeno Zavala, Mrs. Salas, and Ulysses Tiber Dalton who joined
Jens Demuth Sara Morla, Economist Hector Sanchez, Mr. Reynaldo the ELI family as rays of light for the future.
Aragon, Mr. Dante Ojeda, Mr. Elio Landauro, Mr. Jaime
Asia/Africa Regional Management Ponce, Mr. Daniel Lozano, Engineer Francisco Caycho,
Mamen Salas, Jesus Lopez-Cotarelo, Jose Maria Lopez, Mr. Jose Yui, Mr. Walter Fegan, Mr. Roberto Murillo, Mr.
Pepe Hurtado Jorge Velasquez, Miss Roxana Caceres

14
 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
www.efficientlighting.net
Copyright (c) 2005
International Finance Corporation
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