The proposed project initiative will promote investments in energy efficient technologies in Russia. IFC will create an investment facility to provide credit lines for Russian financial institutions who will on-lend to energy efficiency and renewable energy projects. The credit lines will be supported by a partial risk guarantee, funded by the Global Environment Facility. The investment facility will operate in parallel with an extensive technical assistance program. The immediate objective of the IFC/GEF investment project is to encourage private sector financing of energy efficiency projects in Russia in three pilot regions. The ultimate impact of the proposed investment/TA project will be the improved energy efficiency (EE) and profitability of Russian companies, leading to a reduction in greenhouse gas emissions. This will be accomplished by creating an awareness in Russian financial institutions that energy efficiency projects are - financially viable and - improve the risk profile of the client by reducing operating costs. The project will work with the participating financial institutions to “deepen” the Russian financial markets, making longer term capital available for investment by Small and Medium Enterprises (SMEs). The Technical Assistance Project will be structured around five inter-related objectives, which are to: - Establish and monitor the operation of the investment facility; - Support development of EE investment projects by participating FIs and their clients; - Improve market awareness and understanding of energy efficiency; - Strengthen capacity of emerging local energy service companies (ESCOs); and, - Provide policy and legal support to EE investment projects given the evolving legislative landscape.