IFC and World Bank Report Recommends Measures to Maximize Russia’s Energy Efficiency Potential
Moscow, Russia — According to a new report released this week by IFC and the World Bank, Russia has the potential to save 45 percent of its total energy consumption. Realizing this potential could help the country improve competitiveness, increase oil and gas export earnings, and reduce environmental costs and carbon dioxide emissions.
The report, Energy Efficiency in Russia, is based on a study conducted in cooperation with the Russian Center for Energy Efficiency. It is designed to provide senior policymakers with a comprehensive analysis of Russia’s energy-efficiency potential, and makes recommendations for tapping this potential.
The study estimates that an investment of $320 billion toward energy efficiency could save investors and end users about $80 billion annually. The initial investment would be paid back within four years. The total economic benefits will be much higher, including savings up to $150 billion a year in energy costs and additional earnings from gas exports.
“Investing in Russia’s energy efficiency makes a lot of financial sense, but for investors, there are a number of barriers that stand in the way. The government will have to address these issues and work to change attitudes, behaviors, and regulations that impact energy use. Only then can the country realize its full potential,” said Yana Gorbatenko, Task Manager of the IFC Russia Sustainable Energy Finance Program.
“Russia can take advantage of its energy-efficiency potential to help improve the economy, industrial competitiveness, and environment. What is required is a clear strategy of how to tap it and the will to ensure that it is done properly,” said Klaus Rohland, World Bank Resident Representative in Russia.
The report is available online at: http://www.ifc.org/ifcext/rsefp.nsf/Content/Materials
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.
Russia became a shareholder and a member of the IFC in 1993. As of today, IFC has invested more than $3.6 billion, including about $527 million in syndicated loans, in more than 150 projects in sectors such as banking, leasing, mortgage finance, infrastructure, mining, food processing, wood and pulp, oil and gas, construction materials, telecommunications, retail trade, and health. Russia is the largest country exposure in IFC’s global portfolio, with a total investment portfolio of $2.24 billion. For more information, visit www.ifc.org/russia.
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