“De-risking and Scaling-up Investment in Energy Efficient Building Retrofits” UNDP-GCF project
What we do
The building sector is one of the major energy consumers in Armenia. According to Armenia’s 2010 National Greenhouse Gas Inventory, almost 28 percent of primary energy resources are consumed in buildings, mostly in the residential sector, comprising 20 percent of total Greenhouse Gas (GHG) emissions. Armenia’s climate change contribution under the Paris Agreement (2015) identifies the building sector as among the country’s top priorities for climate change mitigation. GHG emissions from buildings grew fivefold between 2000 and 2010, from 345 ktCO2 in 2000 up to 1,723 ktCO2 in 2010.
Due to Armenia’s continental climate with a long heating season and winter average temperature around -5°C, energy consumption and GHG emissions in the Armenian building sector are mainly associated with space heating.
The objective of the Project is to scale-up investment in energy efficiency building retrofits in Armenia, and reduce the overall investment risk profile of energy efficiency building retrofits to encourage private sector investment and reduce fuel poverty.
The project will create a favourable market environment and scalable business model for investment in energy efficiency retrofits, leading to sizeable energy savings and reduction of GHG emissions. The Project will also contribute to green job creation, poverty reduction and catalyse additional private and public sector financing.
To address each specific risk area, the Project is structured under four components:
(i) building sector monitoring, reporting and verification (MRV) and knowledge management;
(ii) policy de-risking;
(iii) financial de-risking, and
(iv) financial incentives.
The Project will reduce GHG emissions through improved energy efficiency and increased share of low energy-intensive buildings. Based on the experience and evidence from energy audits of UNDP’s pilot project in Yerevan, up to 60 percent of energy consumption can be reduced in a cost-effective manner.
The estimated impacts on GHG emissions over the 20-year lifetime of the energy efficiency interventions are:
· Direct impact - 1.4 million tCO2
· Indirect impact - 4.2 to 4.4 million tCO2.
The Project scope will cover single-family houses, multi-apartment buildings as well as public buildings. The expected total number of direct beneficiaries: 210,000.
ARM - Ministry of Environment
GREEN CLIMATE FUND
UNITED NATIONS DEVELOPMENT PRO
DELIVERY IN PREVIOUS YEARS