Short description of the overall project

This project aims at reducing GHG emissions in the industrial sector of Georgia through the demonstration and dissemination support of selected industrial energy efficiency (IEE) best available practices and technologies such as energy management systems and energy systems optimization; assistance for enhancing policy and institutional frameworks for industrial energy efficiency, and promotion of financial mechanisms to incentivize and facilitate investments. In addition to improving framework conditions for IEE, the project will serve to implement follow-up actions of the final international climate change agreement reached in Paris. In this regard, the project will promote cooperation with relevant carbon management programs and institutions on designing crediting program and/or financial mechanisms that could be usable by participating companies for mobilizing carbon financing.

Short description of activities financed by the donation

The project’s technical assistance will consist mainly of barrier-mitigation interventions at three levels:

• Policy and institutional level: Intervention to raise the profile of industry within the EE policy-making and institutional space, to strengthen technical capacity and to contribute to the establishment of a programmatic framework that promotes and supports the sustainable improvement of energy efficiency and climate footprint of industry.
• IEE market level: Intervention on both the demand for and the supply of services and technologies for IEE through a mix of capacity building, direct implementation support and piloting of new solutions. The project will specifically focus on boosting:
• Financing for industrial energy efficiency: Intervention to catalyze increased mobilization of financing from local as well as international financing institutions and investments flow from industrial enterprises. The project is planned work closely with Government counterparts and other stakeholders to identify innovative and appropriate financing mechanisms, including carbon financing, and provide support for design.