OREANDA-NEWS  On 22 September was announced, that, according to a new report released this week by IFC and the World Bank (WB), Russia has the potential to save 45 percent of its total energy consumption. Realizing this potential could help the country improve competitiveness, increase oil and gas export earnings, and reduce environmental costs and carbon dioxide emissions.

The report, Energy Efficiency in Russia, is based on a study conducted in cooperation with the Russian Center for Energy Efficiency. It is designed to provide senior policymakers with a comprehensive analysis of Russia’s energy-efficiency potential, and makes recommendations for tapping this potential.

The study estimates that an investment of USD 320 billion toward energy efficiency could save investors and end users about USD 80 billion annually. The initial investment would be paid back within four years. The total economic benefits will be much higher, including savings up to USD 150 billion a year in energy costs and additional earnings from gas exports.

“Investing in Russia’s energy efficiency makes a lot of financial sense, but for investors, there are a number of barriers that stand in the way. The government will have to address these issues and work to change attitudes, behaviors, and regulations that impact energy use. Only then can the country realize its full potential,” said Yana Gorbatenko, Task Manager of the IFC Russia Sustainable Energy Finance Program.

“Russia can take advantage of its energy-efficiency potential to help improve the economy, industrial competitiveness, and environment. What is required is a clear strategy of how to tap it and the will to ensure that it is done properly,” said Klaus Rohland, World Bank Resident Representative in Russia.

The report is available here.