Moscow, Russia, March 22, 2012—IFC,
a member of the World Bank Group, has signed a first of its kind agreement
to work with a regional government in Russia to develop renewable energy,
helping stimulate the sector’s growth, address climate change, and promote
investment in Russia’s regions.
The IFC Russia Renewable Energy Program
is helping the Kaluga regional government to analyze the region’s renewable
energy potential, pinpoint technology gaps, and identify investment opportunities.
IFC also will help Kaluga develop a regional legislative framework that
will support investment into renewable energy and serve as a model for
other regions. This is the first cooperation agreement of its kind that
IFC has signed with a regional administration in Russia.
“We know that great social and economic
gains can be realized by diversifying our energy sources, and we have ambitious
plans for our region,” said Maxim Akimov, First Vice Governor of Kaluga
Oblast. “Our cooperation agreement with IFC to develop a regulatory framework
and build technical capacity will help to attract investment into renewable
energy projects in our region.”
Russia is the fourth-largest emitter
of greenhouse gases in the world. Its energy intensity is among the highest
globally, and its existing generation assets are nearing the end of their
technical lifetimes. The Russian government has set a target of 4.5 percent
for renewable energy generation by 2020, up from less than 1 percent now.
If this goal is realized, it could create a $20 billion market for renewable
energy in Russia.
“Renewable energy is a cost-effective
alternative to fossil fuels in many regions of Russia, and IFC can help
the regions play a role in the development of a national renewable energy
market,” said Tomasz Telma, IFC Director for Europe and Central Asia.
“Russian regions working to make an effective transition to renewable
energy sources can also help reduce global greenhouse emissions.”
The IFC Russia Renewable Energy Program,
supported with funds from the Global Environment Facility, promotes the
development of renewable energy through a combination of investment and
advisory services. The program places a special importance on partnerships
with Russia’s regions.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, providing advisory services to businesses and
governments, and mobilizing capital in the international financial markets.
In fiscal 2011, amid economic uncertainty across the globe, we helped our
clients create jobs, strengthen environmental performance, and contribute
to their local communities—all while driving our investments to an all-time
high of nearly $19 billion. For more information, visit www.ifc.org.
About the Global Environment Facility
For more information, visit http://www.thegef.org/gef/