Russia get IFC Financial Help to Improve Energy Efficiency

THE International Financial Corporation (IFC), a member of the World Bank Group, is teaming up with the Russian Energy Agency (REA) to aid to Russia improve its energy efficiency.

The REA and IFC signed a memorandum of understanding yesterday with the aim to help Russian industry and housing to become energy efficient, while developing the country’s renewable energy potential all to reduce its greenhouse gas emissions.

The cooperation brings IFC’s global expertise together with the REA’s national knowledge and their large network which will help with new energy efficiency investment opportunities throughout Russia.

The aims of the cooperation is to educate the Russian market about the benefits of investment in industrial and residential energy efficiency, develop pilot renewable energy projects across Russia’s regions, and communicate best practices on resource efficiency.

The Russian government in 2008 set targets to reduce their GDP energy intensity by 40 percent while increasing the share of renewable energy generation to 4.5 percent by 2020. It is estimated that these ambitious plans will require the country to invest about $320 billion in energy efficiency and approximately $44 billion in renewable energy.

Timur Ivanov, Director General of the Russian Energy Agency commented: “Energy and resource efficiency and renewable energy are key factors for the modernisation of Russia’s economy.

“The Russian Energy Agency is supporting the implementation of the federal law on energy saving and energy efficiency improvement in order to create a platform for interaction between different market players, and to serve as an information exchange point between the regions. With support from the IFC, we can fulfill these tasks more effectively.”

Snezana Stoiljkovic, IFC Director for Eastern Europe and Central Asia added: “We have been working on these issues in Russia since 2005, and could not have achieved such successful results without support from our Russian stakeholders and partners.

“IFC investments in energy efficiency and renewable energy in Russia have amounted to almost $400 million since 2005, and I believe that joining forces with the Russian Energy Agency will support greater development of the market and lead to even more effective results.”

Picture of Kremiln, Moscow from Nigel's Europe

Friday 13th May 2011

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