The World Bank has announced a significant new regional initiative aimed at accelerating energy efficiency across Europe and Central Asia. The 10-year "Scaling Up Energy Efficiency in Europe and Central Asia Program" (E3 Program) is expected to save over 63 terawatt hours (TWh) of energy, equivalent to Switzerland's annual electricity production, and reduce CO2 emissions by 18.7 million metric tons.
The E3 Program will provide $1.46 billion in World Bank funding and raise an additional $2.4 billion from public, private, and development sectors, including $1.5 billion in private capital. Initial funds are earmarked for energy efficiency programs in four countries, with more expected to join over the decade. Investments will target public facilities, residential buildings and appliances, industrial modernization, and district heating upgrades.
“Investing in energy efficiency is part of the World Bank Group’s vision to accelerate a shift towards clean and efficient energy,” said Antonella Bassani, World Bank’s Vice President for Europe and Central Asia. “Efficient systems make business operations cleaner and more competitive, lower household energy bills, decrease air pollution, reduce carbon emissions, and create jobs.”
Initial projects under the program include $300 million for renovating central government buildings in Türkiye and $54.5 million for renovating public buildings and district heating in Moldova. The project in Moldova is supported by a $5 million grant from the Moldova – Growth, Resilience and Opportunities for Well-being (M-GROW) program.
Over time, the E3 Program aims to transition countries from smaller publicly financed programs to national-scale initiatives with greater commercial financing. Public financing will focus on demonstrating investments needed to attract commercial financiers while testing new business models.
Eighteen countries in the region have pledged at COP 28 to double their annual rate of energy efficiency improvement by 2030. However, the region remains home to some of the world’s most energy-inefficient economies. The E3 program seeks to address market failures associated with energy efficiency investments by strengthening policies and regulations, developing robust institutions, creating credible data sources, enhancing market capabilities, and mobilizing private capital.
"The recent energy crisis has underscored the urgent need for large-scale energy efficiency measures," said Charles Cormier, World Bank Regional Director for Infrastructure."Our program builds on decades of experience helping countries increase their energy efficiency."
A coalition of regional organizations will be established as part of the program with an initial $5 million grant from Energy Sector Management Assistance Program (ESMAP). This network will facilitate knowledge exchange on policy formulation and implementation among other topics.
The E3 program will work alongside the recently launched Europe and Central Asia Renewable Energy Scale-up (ECARES) Program to enhance energy security while supporting clean energy transitions.