Energy efficiency investments transform lives of over 600,000 people in Armenia

A pioneering energy efficiency project that has benefited 600,000 people and made significant contributions to Armenia’s national climate ambitions has closed. 

More than 600,000 people across Armenia have benefited from improved living conditions, lower energy costs, and more resilient public infrastructure as a result of a decade-long investment in energy-efficient buildings supported by Green Climate Fund (GCF) and implemented by the United Nations Development Programme (UNDP) in partnership with the Government of Armenia.

Launched in 2017, the project made a significant contribution to Armenia’s transition towards a low carbon and energy secure future. By improving the energy performance of residential and public buildings, the initiative supported reduction of greenhouse gas emissions, enhanced living standards, and promoted inclusive development. More than 470 buildings were retrofitted, achieving energy savings of 20–60 percent, depending on the level of intervention.

These improvements have directly benefited over 600,000 people, contributing to better living conditions, lower utility costs, and more resilient public infrastructure. The project has helped avoid approximately 32,000 tCO₂ emissions annually, with a projected lifetime reduction of up to 640,000 tCO₂ over 20 years, directly supporting Armenia’s national climate commitments.

A high level event brought together representatives from the Government of Armenia, the donor community, international organizations, financial institutions, the private sector, civil society, and the media to reflect on the project’s results and the collective efforts driving the sustainable transformation of Armenia’s building sector. The event celebrated ten years of transformative impact on Armenia’s building sector and climate action efforts.

“With the generous financial support of the Green Climate Fund and the strong partnership of the Government of Armenia, this project has helped transform energy efficiency into a viable and scalable investment opportunity in the country,” remarked Ms. Natia Natsvlishvili, UNDP Resident Representative in Armenia. “By reducing risks and mobilizing finance, we have improved buildings, cut emissions nationwide, and lowered energy costs for people. Most importantly, we have laid the groundwork for sustained climate action and a greener future for Armenia.”

Front and center at the event was also the strong systemic impact delivered by the project. With USD 17.4 million in Green Climate Fund financing leveraged into $64.8 million in co financing, it enabled the development of innovative financing mechanisms and risk mitigation tools, making energy efficiency investments more accessible and attractive for both public and private actors.

In his opening remarks Mr. Aram Meymaryan, RA Deputy Minister of Environment noted “As a country striving to enhance energy security and independence, it is important for us to promote and implement energy efficiency measures in buildings to strengthen our resilience. On behalf of the Ministry of Environment of the Republic of Armenia, I would like to express my sincere gratitude to UNDP and the GCF for the successful implementation of this project.”

Mr. Arnak Avetisyan, RA Deputy Minister of Territorial Administration and Infrastructure stressed, “We consider this to be one of our most successful projects and highly value its role, particularly in fostering behavioral change toward energy efficiency among the population. It would not have been possible without the active collaboration of UNDP, the GCF, local and international partners, and, of course, the direct participation of the beneficiaries.”

Beyond infrastructure, the initiative also drove meaningful behavioral change, with households increasingly adopting energy efficient solutions such as modern heating systems, improved insulation, and LED lighting.

In his closing remarks, Mr. Thomas Eriksson, GCF Regional Director for Eastern Europe, Central Asia and the Middle East, said: “This project stands as a flagship example of how climate finance can reduce emissions, improve resilience, mobilise capital, strengthen institutions, and most importantly improve people’s lives. The next chapter is about moving from successful retrofit demonstration to mainstream, scalable finance for energy-efficient buildings.”