Armenia: De-Risking and Scaling-up Investment in Energy Efficient Building Retrofits
The Government of Armenia seeks assistance from the Green Climate Fund (GCF) through the United Nations Development Programme (UNDP) to fund its project on “De-Risking and Scaling-up Investment in Energy Efficient Building Retrofits”.
This project proposal is aimed at creating a favorable market environment and scalable business model for investment in energy efficient building retrofits in Armenia, thereby leading to sizeable energy savings and GHG emission reductions (up to 4 million tCO2), green job creation and energy poverty reduction. It will directly benefit over 200,000 people and catalyse private and public sector investment of approximately US$ 100 million. The project is structured into the following components: establishment of building sector measuring reporting and verification system, policy de-risking, financial de-risking, and financial incentives.
The Project will achieve high greenhouse gas (GHG) emission reductions from improved energy efficiency and lower energy intensity buildings. Based on experience and evidence from energy audits of UNDP’s pilot project in Yerevan, up to 60% of energy consumption / GHG emissions in buildings can be reduced cost-effectively. This approach is based on the success of an earlier pilot project implemented in Yerevan in 2013-2014 by UNDP with GEF financial support. Under the pilot project, Armenia’s first ever large-scale thermal modernization project was undertaken in a typical residential apartment complex. The results of the project, which demonstrated the technical, economic and environmental feasibility of such approaches, as well as the positive feedback received from a survey of the residents, form the basis and rationale behind the current proposal.
On July 27, 2015, the project proposal was discussed and approved by a UNDP Local Programme Advisory Committee (LPAC), which saw the participation of relevant state agencies, specialized universities, and international donors, amongst others. Following positive feedback from the project partners and stakeholders, who noted the importance of the project’s outcomes for the municipal and national energy efficiency policy making process, and recognized its timeliness and consistency in relation to national and global development goals, the LPAC recommended the GCF Project Proposal document for further approval by the GCF Board.