OREANDA-NEWS. September 03, 2008. The German Ministry of Environment is supporting the EBRD Sustainable Energy Initiative for Kazakhstan with the provision of EUR2 million to assist the launch of the Sustainable Energy Finance Facility, reported the press-centre of EBRD.

Under the programme loans are being granted to private local banks for on-lending to enterprises for much-needed energy efficiency investments. The EUR 50 million-initiative also finances investments in renewable energy projects in the industrial sector.

The German contribution will be used to finance technical consultants whose task it will be to build capacity in participating banks, help them to reach clients, identify energy saving measures and draft relevant financing plans. The objective is to design, launch and implement the facility in close cooperation with participating banks and selected local engineers to enable prospective borrowers (privately owned industrial enterprises) to access loans for energy projects that the facility helps to identify and assess.

Recognizing the region’s significance need and potential for energy efficiency measures, the EBRD launched its Sustainable Energy Initiative in 2006. To-date, the Bank has invested more than EUR 2 billion in energy efficiency projects.

From the outset, Kazakhstan had been identified as a key focus country for the programme because of its highly energy intensive economy, regional imbalances in the domestic power sector and the authorities? commitment to put the country’s strong growth on a sustainable footing.

In addition, the EBRD has been working closely with the Kazakh authorities to draft a Sustainable Energy Action Plan which was signed in June 2008. The plan provides a framework of policy reform together with priority investments that support these reforms and the needs of the country.

The Bank is closely involved in the implementation of the plan and has built up a strong project pipeline, focusing in particular on investments for power generation efficiency. This is critical to carbon emissions reductions in the context of Kazakhstan’s heavy reliance on coal. Given current efficiency levels, very significant gains can be made.

Olivier Descamps, EBRD Business Group Director, welcomed the German contribution warmly and added: “The EBRD recognises the enormous potential for sustainable energy investment in Kazakhstan and has made energy efficiency a priority in the Bank’s Kazakhstan Country Strategy.

The contribution by Germany will help implement our Sustainable Energy Finance Facility at a crucial time when high energy prices make energy efficiency a priority concern for every business and economy all over the world.”