Kyiv, Ukraine, April 8, 2010—Around
70 percent of surveyed Ukrainian industrial companies could cut production
costs by implementing energy efficiency improvements, helping increase
their global competitiveness in the post-crisis environment, according
to a new report by IFC, a member of the World Bank Group.
The report, Energy Efficiency: A
New Resource for Sustainable Growth, is based on a survey of 325 local
companies across several industrial sectors. It finds that Ukrainian
managers at the surveyed companies on average underestimate their potential
for energy savings by 45 percent—more than their peers in most neighboring
countries. According to the report, the Ukrainian companies surveyed
could achieve reductions of four to nine percent in energy and operational
costs through improved energy efficiency. In many cases, this could
be achieved by replacing outdated equipment—30 percent of these Ukrainian
companies operate outdated energy-intensive equipment over 15 years old.
“Ukraine’s economy is one of the most
energy intensive in the region. Our survey found that 82 percent of Ukrainian
companies rated energy efficiency as a business development priority but
have not yet taken any substantive actions to improve the situation,”
said Bryanne Tait, IFC Environment and Social Sustainability Leader in
Europe and Central Asia. “Industries need to increase their expertise
in energy efficiency.”
The report is designed to provide state officials, businesses, financial
institutions, and other interested parties with an assessment of existing
energy efficiency practices in Ukraine, evaluate the barriers to and opportunities
for improving energy efficiency in the industrial sector, and make recommendations
for tapping the potential for improvement. Recommendations include
improving energy management among businesses, developing energy consumption
monitoring instruments, and enhancing understanding of the benefits of
energy efficiency financing.
IFC is the only international financial
institution focused exclusively on the private sector, the engine of sustainable
development in emerging markets. Along with IBRD, it is currently
seeking a capital increase to strengthen its ability to create opportunity
for the poor in developing countries—including by improving energy efficiency
in developing markets.
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 $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visitwww.ifc.org.