UNDP Advances Green Finance for Energy-Efficient Housing in Armenia

UNDP in Armenia, in partnership with the Central Bank of Armenia and the Union of Banks of Armenia, convened a dynamic workshop to facilitate the Banks’ Capacity for Green Loans in the Buildings Sector. The event brought together commercial banks and leading credit organizations to explore solutions that expand green financial products supporting energy-efficient retrofits in multi-apartment buildings and other housing sectors.

Building on nearly two decades of UNDP support for energy efficiency in Armenia, the workshop drew on insights from earlier national and international consultations, including ongoing analytical work with Berlin Economics and Modex. These consultations examined banks’ green financial products and their capacity to scale and upgrade green lending, with a particular focus on energy-efficient retrofitting of multi-apartment residential buildings. The findings informed draft recommendations, now being further refined through stakeholder consultations, which will guide policymakers in improving access to green finance for building energy-efficiency retrofits, particularly in the residential sector.

During the workshop, participants examined the accessibility, affordability, and readiness of existing green loans. Analysts and facilitators helped identify barriers ranging from limited technical capacity to fragmented regulations. The interactive agenda combined presentations of analytical findings with hands-on exercises and real-life case studies. Banks and credit organizations engaged in lively discussions, proposing practical strategies to make energy efficiency projects financially viable, scalable, and inclusive nationwide.

A major takeaway was the shared responsibility among stakeholders: banks committed to refining and diversifying green products; national partners pledged to strengthen collaboration with homeowner associations; and associations were encouraged to actively engage with financial institutions. UNDP will consolidate these insights into final recommendations, paving the way for a more systematic, inclusive, and climate-resilient green finance framework.

Implemented under the “De-risking and Scaling-up Investment in Energy Efficient Building Retrofits” UNDP–GCF project, the initiative underscores Armenia’s commitment to affordable, sustainable retrofits with particular attention to women and vulnerable populations. The workshop marks a significant step in turning Armenia’s ambitious energy efficiency goals into tangible solutions that benefit communities, reduce energy poverty, and advance the country’s climate commitments.