The official signing ceremony of the United Nations Development Programme – Green Climate Fund (UNDP-GCF) “De-risking and Scaling-up Investment in Energy Efficient Retrofits” project took place today in the RA Ministry of Nature Protection.
The project is the 10th signed by the GCF globally and the first one in the Eurasian region. It is developed in close cooperation with the RA Ministry of Nature Protection, Yerevan Municipality and other stakeholder ministries in the grant amount of USD 20 million.
The project document was signed by Bradley Busetto, UN Resident Coordinator, UNDP Resident Representative in Armenia and Artsvik Minasyan, RA Minister of Nature Protection. The ceremony was also attended by the Yerevan First Deputy Mayor Kamo Areyan, as well as representatives of stakeholder ministries and agencies, international and non-governmental organizations.
“De-risking and Scaling-up Investment in Energy Efficient Retrofits” project is in line with the national priorities targeted at resource saving, as well as Armenia’s economic and energy safety. The main objective of the project is to reduce the greenhouse gas emissions in Armenia from the existing housing fund by ensuring sustainable development.
The project is targeted at modernization of energy efficiency of the both public and multi-apartment buildings, ensuring the cost efficiency of more vulnerable households, as well as creating favorable market environment for investments and establishment of a large-scale business model.
It is worth mentioning that 30 percent of Armenia’s population is considered “energy poor,” spending more than 10 percent of the family budget on the energy carriers. At the same time, 24 percent of the total greenhouse gas emissions is from the energy consumption in the buildings.
Within the project, it is envisaged to ensure about 50-60 percent energy saving through buildings thermoinsulation, thus resulting in budget savings. The investments throughout the 20 years will bring to the emission reduction from 5.1 - 5.4 million ton CO2. In addition to the GCF funding, the project will attract funds worth USD 110 million from the private and public sector.
The project is based on the UNDP experience involving the private sector, local self-governing bodies and other donors in the activities targeted at removing barriers of heating, building design and construction, as well as lighting sector energy efficiency. To ensure energy efficiency modernization with the purpose to attract soft loan resources, UNDP is negotiating with European Investment Bank, KfW, French Development Agency and other local and international financial institutions.
The project will be implemented jointly with the RA Ministry of Nature Protection, in close cooperation with Yerevan Municipality, other municipalities, as well as international and local partners. The duration of the project is six years.