On-going Projects

Reducing Greenhouse Gas (GHG) Emissions through Improved Energy Efficiency in the Industrial Sector in Georgia



Despite some progress in recent years due to increased policy-makers’ attention and international technical assistance and financing institutions’ support of energy efficiency investments, the Georgian industrial sector continues to largely have poor energy performance, 2-2.5 times less efficient than Western European countries. Strong potential for cost-effective energy efficiency and performance improvements exists in industry as well as other sectors of Georgian’s economy. The main barriers that hamper increased implementation and investment in best available energy efficiency practices and technologies in industry include:  

  • Lack of specific policy, legislative and institutional frameworks for improving industrial energy efficiency;
  • Limited expertise and capacity to operationalize energy efficiency policies and laws, and develop and implement programmes;
  • Constrained availability of highly-qualified expertise and services for energy efficiency in industry in terms of number of providers and range of technology options;
  • Limited number of institutions with research capacity and/or curricula for industrial energy efficiency; 
  • Scarce capacity or inability of industrial enterprises to properly assess their energy performance and size opportunities 
  • Lack of knowledge among top management on commercially available best-practices and technologies, and technically feasible activities with respect to energy efficiency;
  • Limited understanding within enterprises of financial and economic benefits that energy efficiency can deliver; 
  • Insufficient availability of domestic credit for energy efficiency due to low awareness and capacity of local banking sector and high perceived risk;
  • Inadequate expertise of companies’ energy efficiency specialists as well as consultants to prepared good quality investment proposals.


The project “Reducing Greenhouse Gas (GHG) Emissions through Improved Energy Efficiency in the Industrial Sector in Georgia” started in January 2017.  It is implemented by the United Nations Industrial Development Organization (UNIDO) in collaboration with the Georgia’s Ministry of Economy and Sustainable Development (MoESD), the Ministry of Energy (since December 15, 2017 part of MoESD) and the Ministry of Environment and Natural Resources Protection (since December 7, 2017 part of Ministry Environmental Protection and Agriculture).  Key project execution partners are the Austrian Energy Agency (AEA) and Kommunalkredit Public Consulting (KPC). The project is funded by the Federal Ministry for Sustainability and Tourism of Austria (at the time of project approval Federal Ministry of Agriculture, Forestry, Environment and Water Management).  The project seeks to address many of the existing barriers to energy efficiency in Georgian industry through an integrated approach that combines capacity building with targeted technical assistance interventions at the policy, market and energy efficiency implementation level.



The UNIDO project aims at reducing GHG emissions in the industrial sector of Georgia through the demonstration and dissemination support of selected industrial energy efficiency best-available practices and technologies such as energy management systems and electric motor system optimization; assistance for enhancing policy and institutional frameworks for industrial energy efficiency, and promotion of financial mechanisms to incentivize and facilitate investments. 

The project pursues the objectives of reducing industrial GHG emissions and transforming the local market for IEE through barrier-mitigation interventions through the following components:



Gender case study


The United Nations Industrial Development Organization (UNIDO) is a specialized agency of the United Nations which promotes and accelerates inclusive and sustainable industrial development (ISID) through three programmatic fields: 

  • Creating shared prosperity;
  •  Advancing economic competitiveness;
  • Safeguarding the environment 

Within the 2030 Agenda for Sustainable Development the international community for the first time has acknowledged industrialization as a driving force for economic and social development and poverty elimination. With the strong support of our 170 Member States, UNIDO actively rallied international backing for sustainable and inclusive industrialization to be part of the 2030 Agenda. The result - SDG 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation - vindicates these efforts and represents a clear endorsement of ISID. Goal 9 acknowledges that industry and industrialization are the main drivers of inclusive and sustained economic growth, environmental sustainability and shared prosperity.

UNIDO services are based on two core functions: as a global forum, it generates and disseminates industry-related knowledge; as a technical co-operation agency, it provides technical support and implement projects.

For more information: www.unido.org 

Ministry of Economy and Sustainable Development of Georgia. © 2021