Yerevan, Armenia, September 9, 2009—A
new report from IFC, a member of the World Bank Group, finds that Armenian
businesses could save nearly 15 percent on energy costs by making energy-efficiency
improvements, increasing competitiveness for companies that undertake such
improvements, and strengthening Armenia’s energy security.
By taking advantage of its energy-efficiency potential Armenia can further
decrease the energy intensity of its economy, and increase industrial competitiveness,
according to the report Energy Efficiency: A New Resource for Sustainable
The report, based on a survey of 100 local companies, finds that Armenia’s
industrial sector, which comprises 24 percent of the country’s gross domestic
product, underestimates the potential energy and monetary savings related
to energy efficiency on average by more than 70 percent. It suggests that
the industry could achieve important reductions in energy costs and total
operational costs through improved energy efficiency.
“Armenian companies have made good progress in modernizing their manufacturing
equipment, but there is unrealized potential for further improvements,”
said Bryanne Tait, who oversees environmental and social sustainability
for IFC Advisory Services in Europe and Central Asia. “The companies surveyed
plan to increase investments in energy efficiency seven-fold by 2011, which
represents a significant market opportunity for financial institutions.”
The Energy Efficiency report is designed to provide state officials,
businesses, financial institutions, and other interested parties with an
assessment of existing energy efficiency practices in Armenia, evaluate
the barriers and opportunities to further improving energy efficiency in
the industrial sector, and it makes recommendations for tapping that potential
for improvement. Recommendations include increasing awareness about energy
efficiency among businesses, developing energy consumption monitoring and
management measures, and understanding the benefits of energy-efficiency
financing. The report is based on a study conducted by IFC in 2008. It
is available online at www.ifc.org/eesurveys.
Armenia became a member and shareholder of IFC in1995, and IFC began investing
in the country in 2000. As of June 2009, IFC had invested $52 million to
support local financial institutions, small retailers, and the hotel industry,
among others. IFC also has implemented advisory projects to help improve
the business environment and strengthen the financial sector.
IFC’s donor partner for Armenia’s energy-efficiency survey project is
the Federal Ministry of Finance of Austria.
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 $15
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.