IFC helps Armenia develop suatainable energy finance products

IFC helps Armenia develop suatainable energy finance products

International Finance Corporation, 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, the IFC press office reported on Monday.

As part of IFC’s regional strategy to address climate change and promote energy efficiency and renewable energy markets, today 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,” the press release says.

IFC experts discussed the key findings of the energy efficiency survey conducted by IFC among Armenian industrial companies.

“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,” the press office quoted 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.

According to the press release, 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.

International Finance Corporation, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives and fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments.

The IFC new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis.

Armenia became a IFC member in 1995.

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. -0---