IFC helps Armenian financial institutions develop sustainable energy finance

PanARMENIAN.Net - IFC, a member of the World Bank Group, is helping Armenian financial institutions develop sustainable energy finance products, thereby increasing renewable energy generation and lowering electricity waste and greenhouse-gas emissions.

As part of IFC’s regional strategy to address climate change and promote energy efficiency and renewable energy markets, IFC’s Armenia Sustainable Energy Finance Project hosted a seminar on energy efficiency and renewable energy financing opportunities for Armenian banks and leasing firms. Since Armenia imports two-thirds of its energy from abroad, developing renewable energy sources and unlocking energy efficiency potential is a top priority for the country, IFC Yerevan Office press service reported.

IFC experts discussed the key findings of the energy efficiency survey conducted by IFC among Armenian industrial companies. They also presented IFC’s approach to addressing the challenges based on work with Russian banks under the IFC Russia Sustainable Energy Finance Project.

“There is huge potential for energy efficiency in Armenian industry, and tapping into that resource will be beneficial both for companies and the financial institutions in the country,” said Tigran Parvanyan, Armenia Sustainable Energy Finance Project Manager. “Renewable energy also plays a critical role in decreasing dependence on imported fuel and raising Armenia’s energy security.”

The Armenia Sustainable Energy Finance Project aims to establish a sustainable market for energy efficiency and renewable energy investments and contribute to Armenia’s energy self-sufficiency by working with local and international financial institutions. The project’s main goal is to facilitate at least $35 million of energy efficiency lending and renewable energy investments, decreasing greenhouse-gas emissions, improving the energy efficiency of small and medium enterprises, and increasing the share of renewable energy resources in Armenia’s energy generation portfolio. The project was launched in January 2010 and is run in partnership with the Austrian Ministry of Finance.

IFC has been investing in Armenia since 2000 to support financial institutions, small retailers, and the hotel industry, among others. It also has implemented advisory projects to strengthen the financial sector, establish a sustainable market for energy efficiency and renewable energy investments, and improve the country’s business environment.