The Nordic Environment Finance Corporation, an international financial institution working on the green transition, has allocated 6.5 million euros to Georgia to support energy efficiency in the country’s mountainous regions, the Georgian Ministry of Finance announced on Wednesday.
The agreement will help save energy in schools in mountainous regions, improve energy efficiency, reduce utility costs and their impact on the environment, the national body revealed.
The ministry said €3.9 million of the project’s capacity would be allocated as a loan and €2.6 million as a grant, as the initiative to upgrade the energy efficiency of public buildings, to improve the environment of school classes through “multipurpose renovation” and to support energy transition globally.
In comments on the move, the ministry said it expected “significant improvements” in energy efficiency, landscaping and other related aspects of the agreement, signed between the Georgian minister of Finance Lasha Khutsishvili and Trond Moe, the managing director of Nefco earlier in the day.
Nefco said the project was funded by a €1.87 million grant from the Eastern Europe Energy Efficiency and Environment Partnership, with the European Union and Sweden being the main contributors.
Nefco first implemented an energy efficiency project in Georgia between 2018 and 2021 through the renovation of 26 public buildings across the country.