Russia Cleaner Production Program

2008 – present
Supported with funds from the Free State of Saxony (Germany), the Netherlands’ Agency for International Business and Cooperation (the Dutch Ministry of Economic Affairs), Ministry of Employment and the Economy of Finland and IFC FMTAAS

The Russia Cleaner Production Program (RCPP) is designed to stimulate investment in cleaner production projects and promote cleaner production best practices and policies in Russia. The program helps to advance the economic and environmental performance of Russian industry. Enterprises will improve resource efficiency and lower costs, thus enhancing their profitability. By implementing cleaner production technologies and best practices, they will also reduce wastage, prevent pollution and help offset climate change.

The Challenge

Production processes in Russia historically developed with little regard to economic efficiency and environmental effects. As a result, more than 90 percent of solid industrial waste, 60 percent of air pollution and over 25 percent of water pollution in Russia comes from industry. The maximum pollution charges that companies have to pay are 7-10 times lower than the actual costs to remove or reduce pollution. Consequently, companies have traditionally focused only on end-of-pipe measures – what to do with the waste after it’s already been generated.

At the same time, enterprises are increasingly under pressure to modernize equipment and lower operational costs. However, companies frequently lack knowledge about the best available cleaner production technologies and management techniques and have limited access to long term funds to finance necessary improvements.


The IFC Approach

Financing
IFC will provide dedicated financing for cleaner production investments directly to large industrial and municipal enterprises, as well as extend credit lines to local financial institutions to on-lend for cleaner production improvements at medium size entities.

Advice
The program conducts scoping visits and supports cleaner production audits/improvement programs at partner companies. The program will focus its efforts on the following sectors: machine building, wood processing, agribusiness, chemical industry, and water and energy efficiency at municipalities.

Information
To raise awareness and appreciation of cleaner production and management techniques in Russian industry and among policymakers, the program conducts benchmarking studies, develops case studies and adapts information on available cleaner production technologies.

Anticipated Results

The program will last five years, and is expected to:

• Facilitate over $250 million of financing in cleaner production investments;
• Provide in-depth advisory support to at least 20 partner companies;
• Reach more than 5,000 companies through public seminars and with information materials;
• Reduce pollution at partner companies, in particular lower CO2 emissions.