OREANDA-NEWS. April 12, 2010. Around 70 percent of surveyed Ukrainian industrial companies could cut production costs by implementing energy efficiency improvements, helping increase their global competitiveness in the post-crisis environment, according to a new report by IFC, a member of the World Bank Group.

The report, Energy Efficiency: A New Resource for Sustainable Growth, is based on a survey of 325 local companies across several industrial sectors.  It finds that Ukrainian managers at the surveyed companies on average underestimate their potential for energy savings by 45 percent—more than their peers in most neighboring countries.  According to the report, the Ukrainian companies surveyed could achieve reductions of four to nine percent in energy and operational costs through improved energy efficiency.  In many cases, this could be achieved by replacing outdated equipment—30 percent of these Ukrainian companies operate outdated energy-intensive equipment over 15 years old.

“Ukraine’s economy is one of the most energy intensive in the region. Our survey found that 82 percent of Ukrainian companies rated energy efficiency as a business development priority but have not yet taken any substantive actions to improve the situation,” said Bryanne Tait, IFC Environment and Social Sustainability Leader in Europe and Central Asia.  “Industries need to increase their expertise in energy efficiency.”

The report is designed to provide state officials, businesses, financial institutions, and other interested parties with an assessment of existing energy efficiency practices in Ukraine, evaluate the barriers to and opportunities for improving energy efficiency in the industrial sector, and make recommendations for tapping the potential for improvement.  Recommendations include improving energy management among businesses, developing energy consumption monitoring instruments, and enhancing understanding of the benefits of energy efficiency financing.

IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets.  Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by improving energy efficiency in developing markets.