During her visit to Georgia, Ms. Katarina Mathernova, Deputy Director-General, DG NEAR, European Commission, visited a large-scale energy efficiency project implemented by the real estate developer m².

During her visit to Georgia, Ms. Katarina Mathernova, Deputy Director-General, DG NEAR, European Commission, visited a large-scale energy efficiency project implemented by the real estate developer m². The project was financed by the International Finance Corporation and the Green for Growth Fund, and supported by the EU. It is one of many EU-supported energy efficiency initiatives in Georgia.

The visit examined the measures m² is able to implement in the buildings due to the support, which include improved building insulation, modern boilers and appliances, and better insulated windows and doors. For the apartments constructed as part of this initiative, the total expected annual savings of CO2 are equal to planting 210,000 trees each year.

Speaking on behalf of the EU, Ms Mathernova noted: “The cheapest energy is the one you do not consume. As Georgia’s economy continues to grow, it is imperative to cut down energy use and harmful emissions, brining concrete financial benefits to the peoples, increasing their quality of life and climate protection. This is exactly what the EU, together with partners from International Financial Institutions, is helping to achieve in Georgia. We were here a year ago to launch discussions with the Government and other stakeholders on how to advance reforms enabling investment boost in energy efficiency. I am glad to be back to map out concrete steps with the government and development partner on this, but also to see that we are already on track in delivering benefits of energy efficiency to the citizens, as this project shows.”

m²’s Deputy General Director, Shorena Darchiashvili stated: "Since 2014, m² has been setting the standards for building energy-efficient complexes in Georgia. Caring for the environment is a key part of our corporate social responsibility. By constructing energy-efficient complexes, our company is saving a significant amount of resources.”

Green For Growth Director Olaf Zymelka, who accompanied Mrs Mathernova on the visit, stated: “The GGF has supported energy efficient buildings in Georgia since 2014 and the m² project is a prime example of the fund’s commitment to energy savings and CO2 reductions in the country. We are very pleased that the European Commission, a long-standing partner of the fund, is on site to visit this project and further show their support of the fund’s work to enhance energy efficiency and foster renewable energy.”

In order to benefit from the GGF and EU support, m² was required to develop apartment buildings at least 20% more efficient than those built to standard Georgian construction practices. In return they received a USD 11.5 million loan, which took first risks for the investment, making it easier to raise capital from other lenders. The GGF also provided technical assistance to conduct energy audits and identify the most efficient manner to meet high energy standards.