2010 – present
Supported with funds from
the Free State of Saxony, the Ministry of Employment and the Economy of Finland (MEE), the Agency for International Business and Cooperation of the Dutch Ministry of Economic Affairs, and IFC FMTAAS.
The program aims to stimulate investment in cleaner production projects,
promote cleaner production best practices, and will help improve the
economic and environmental performance of target companies in Russia and
Ukraine. The program is primarily focused on IFC’s existing and
pipeline clients across all sectors. The program also seeks
opportunities for wholesale cleaner production via local financial
institutions in countries where the private sector is represented
primarily by small and medium enterprises.
The Challenge
Cleaner production is the improvement of operational processes to make
more efficient use of inputs such as power, raw materials, and water
along a company’s value chain. Effective cleaner production
interventions not only help conserve resources and reduce waste,
pollution and greenhouse gas emissions, but can also reduce operating
costs. Yet most companies in the region remain unaware of the potential
cost savings and environmental benefits of cleaner production. As a
result, such companies can be reluctant to invest the upfront costs
needed to identify and take advantage of cleaner production
opportunities – particularly in the current global credit environment.
Specific barriers impeding market uptake include: (i) limited in-house
technical expertise to identify and implement cleaner production
projects, (ii) lack of knowledge about appropriate cleaner production
technologies and possible cost savings, and (iii) lack of access to
appropriate financing, with financial decision makers often excluding
attractive cleaner production projects with a payback period of longer
than two years.
The IFC Approach
The program has three components: 1) advice, 2) financing, and 3) information.
1)
Advice
The program will target three to five companies per year through a combination of advisory services and investment products.
Key steps in the advisory process include:
A. Scoping visits. Before detailed work can
start, IFC technical experts conduct a scoping visit to each client to
identify whether significant cleaner production opportunities exist and
whether additional advisory support is needed.
B. In-depth advisory engagement (a cleaner production audit or feasibility study)
.
If the scoping visit identifies a need for further support, IFC will
propose an in-depth advisory engagement on a co-financing basis. Such an
engagement will be undertaken by the core team in association with
external cleaner production consultants able to provide specific
sectoral and regional knowledge. IFC can cover up to 50 percent of
direct costs for a full-scale cleaner production audit or technical
review implemented by independent teams of consultants. The program aims
to conduct at least 30 scoping visits and at least 20 in-depth cleaner
production advisory engagements with clients within the next five years.
C. Support in implementation of recommendations
. Advisory support
during the implementation of the measures identified as necessary in
the course of the cleaner production audit includes reviewing results
and communicating an independent view on achievements to the company’s
management. This approach will also enable IFC to verify whether and to
what extent benefits – such as CO2 avoided and other resource savings –
can be achieved.
2) Financing
IFC will provide dedicated financing for cleaner production investments
directly to large industrial and municipal enterprises that meet
investment criteria. It will also extend credit lines to local financial
institutions so that they can lend on to medium-size entities that want
to make cleaner production improvements. IFC aims to facilitate over
$90 million in market-priced financing for cleaner production
investments, to result in the avoidance of at least 120,000 tons/year of
greenhouse gas emissions.
3)
Information
To raise awareness and appreciation of cleaner production and management
techniques in industry among policymakers and financial institutions,
the Program plans to:
- Conduct sectoral benchmarking and market studies;
- Adapt good practice guides and information on best available technologies;
- Capture case studies on implementing cleaner production initiatives;
- Conduct seminars for company managers and technical specialists.
For more information please contact: Yana Gorbatenko, Project Manager, YGorbatenko@ifc.org
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