Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
Expected Outcomes
Policy Action 1 focuses on climate-informed public invest- ment management by introducing climate screening for investments, with half of the US$6.25 million allocated equally to adaptation and mitigation finance. Policy Action 2 emphasizes promoting energy efficiency, particularly in residential households, fully contributing to mitiga- tion efforts and allocating the entire US$6.25 million to mitigation finance. Policy Action 3 targets atmospheric air protection by enhancing air quality monitoring, with 50 percent of the US$6.25 million allocated to both ad- aptation and mitigation finance. Lastly, Policy Action 6 introduces a new competency-based curriculum aimed at improving STEM education with a focus on green ed- ucation, which addresses both adaptation and mitigation. However, since the action includes non-climate-related el- ements, only 25 percent of the US$6.25 million is allocated to adaptation finance and the same amount to mitigation finance.
The policy actions supported by the program are designed to strengthen Armenia’s climate policies and environmen- tal management, delivering critical socio-economic bene- fits. These actions are part of Armenia’s broader strategy to combat climate change and are funded equally by the OPEC Fund, with US$6.25 million allocated per action. One of the key actions is climate-informed public invest- ment management, which integrates climate considerations into all infrastructure projects. This policy mandates climate screening for all investments, aiming for full compliance by 2025, and aligning Armenia’s development with internation- al climate goals. Another significant action is the promotion of energy efficiency, particularly in residential buildings, to reduce greenhouse gas emissions. The policy supports energy-efficient renovations, aiming to benefit 5,000 fami- lies by 2025, while also revising building codes and enhanc- ing energy security. This approach could cut energy con- sumption by up to 50 percent in urban retrofitting projects, reduce dependency on imported energy, and create jobs in the green economy. Additionally, the program includes efforts to improve ambi- ent air quality and public health by addressing air pollution. This involves new legislation for air quality and GHG monitor- ing, which will have direct health benefits and contribute to both climate adaptation and mitigation. Finally, the program introduces a competency-based curriculum in education, emphasizing Science, Technology, Engineering and Math (STEM) subjects, green education and foreign languages. This curriculum is designed to foster climate awareness and equip future generations to tackle environmental challenges through sustainable practices and innovative solutions.
Following this analysis, mitigation finance accounts for a total of US$14.06 million and adaptation finance totals US$7.81 million.
Assessment according to the Joint MDB Methodology for Tracking Climate Finance
The OPEC Fund financed both mitigation and adaptation policy actions under the policy-based loan for Armenia. Each prior action was uniformly assessed to determine its contribution to either mitigation or adaptation.
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