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
About the Global Environment Facility