Moscow, Russia, September 19, 2008—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
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
“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.
For more information about IFC’s
The World Bank, www.worldbank.org
The Center for Energy Efficiency, www.cenef.ru