Towards a Secure, Sustainable, and Affordable Energy Future in Europe and Central Asia

The energy future of Europe and Central Asia (ECA) is about securing reliable, affordable, and sustainable energy for its people while driving long-term economic growth. Achieving this future requires scaling up renewable energy and improving energy efficiency.

However, despite the region’s abundant renewable energy resources and untapped energy efficiency potential, progress remains uneven due to technical, policy, and financial barriers.

To support ECA countries in overcoming these challenges, the World Bank Group launched two major regional programs in 2024: the Renewable Energy Scale-up in ECA (ECARES) Program and the Scaling up Energy Efficiency in ECA (E3) Program. These programs aim to provide up to US$3.5 billion in World Bank financing and mobilize and enable up to US$7.5 billion in private capital over the next decade.

E3 and ECARES use a Multiphase Programmatic Approach (MPA), a flexible model that makes it possible to support various countries through one “wholesale” mechanism. MPAs can help governments scale up renewables and energy efficiency more effectively than individual country operations by creating momentum, seeking higher levels of ambition, building partnerships, and promoting economies of scale through national-level programs. Both programs will build a diverse portfolio of country projects, tailored to national needs, help coordinate and pool donor funds into scaled programs, and leverage the World Bank Group to mobilize private capital.

ECARES
Energy Efficiency
Energy Knowledge
FAQs

Scaling Up Renewable Energy in Europe and Central Asia (ECARES MPA)
Launched in March 2024, ECARES is a $2 billion program to support the development of up to 15 GW of electricity from renewable sources. ECARES is focused on creating enabling policies and institutional frameworks as well as integrating renewable energy into national power grids.
The program will mobilize up to $6 billion of private investment in clean energy and catalyze opportunities for concessional co-financing from other partners.
ECARES comprises a seven-year commitment period and a 10-year implementation plan, adding more projects over the commitment period.
The region’s energy transition could boost employment in renewable energy from about 200,000 people today to over 900,000 people by 2040.
A Regional Partnership for Momentum and Scale
ECARES establishes regional partnerships, which will encourage knowledge sharing and replication of successful projects, helping governments to attract the capital and support required for the clean energy transition. The program encourages bilateral donors, climate funds, and multilateral agencies to streamline concessional co-financing, while harmonizing project preparation and implementation.
The program benefits from the unique convening power of the World Bank Group, which will bring together governments, international financial institutions, commercial banks, and private sector partners to deepen market integration in the region.
Promoting Energy Efficiency and Market Development in Europe and Central Asia
The Scaling Energy Efficiency in Europe and Central Asia (E3) MPA is a regional program aimed at strengthening energy security and affordability across the Europe and Central Asia region through improving technologies and practices to provide the same—or better—levels of production and/or service quality with lower energy inputs.
Considered the "first fuel" , energy efficiency offers cost-effective solutions to curb energy demand, reducing energy imports and freeing up fiscal resources for other development priorities. Energy efficiency investments are creating jobs in industrial production, appliance design and manufacturing, building retrofits, and energy auditing as well as other services, contributing to a more resilient and dynamic workforce. Employment in this sector already reached 10 million globally in 2023 and is expected to grow by 50% by 2030 (IEA).
Building on the World Bank’s decades of experience and rich energy efficiency portfolio across the region, the E3 program supports ECA countries in seizing the substantial opportunities that exist in the region to reduce energy inefficiencies in the heating, industrial, and building sectors.
The E3 is a $1.5 billion initiative with a seven-year commitment period. It aims to harmonize energy efficiency project designs in Europe and Central Asia, define trajectories and sequencing of interventions to promote market development, and build economies of scale. The program is projected to save more than 63 TWh and 18.7 MtCO2e over the investments’ lifetime and will leverage about $2.4 billion in co-financing.
Investment programs will encourage commercial financing for larger and wealthier municipalities and direct public support to target poorer ones. E3 operations will be developed with strong public consultation.
The Europe and Central Asia (ECA) Energy Knowledge Networks are new platforms that connect energy sector stakeholders across the region, fostering collaboration and the exchange of technical, policy, and financial solutions.
These Networks were established in response to the challenges ECA countries face in scaling up renewable energy and energy efficiency. They are a key pillar of the World Bank Group ECARES and E3 investment programs in ECA.
The ECA Energy Knowledge Networks aim to:
Enhance trust and collaboration among countries through structured knowledge-sharing, helping stakeholders recognize and address common challenges.
Connect governments, financial institutions, and private sector partners to mobilize commercial financing and scale up investments.
Support countries in raising ambition and refining implementation strategies by providing actionable insights, enabling policy reforms, strengthening enabling environments, and developing bankable projects.
To ensure lasting impact, the Networks are establishing Communities of Practice (CoPs)—dedicated groups where stakeholders regularly exchange knowledge and experiences on scaling up renewable energy and energy efficiency.
The following CoPs were launched in 2025:
Utility-Scale Renewable Energy
Energy Efficiency in Buildings
To support continuous engagement, the Networks use a hybrid collaboration model, combining in-person exchanges with ongoing online collaboration through the World Bank’s Connect4Impact platform. This digital hub allows members to share resources, post updates, and participate in structured discussions throughout the year. Selected external knowledge partners also have access to the platform, expanding the learning ecosystem and connecting members to global best practices beyond the World Bank Group.
Frequently Asked Questions (FAQ)
1. How can countries join ECARES and/or E3?
Any World Bank client country in the Europe and Central Asia region is eligible to join either, or both, of these programs. Countries are selected based on their readiness, level of project innovation, and potential for replicability.
2. What is the World Bank’s Multi-Phase Programmatic Approach (MPA) and what advantages does it offer?
The World Bank’s Multi-Phase Programmatic Approach (MPA)—which allows countries to structure a long, large, or complex engagement as a set of smaller linked operations (or phases), under one program—is uniquely suited to addressing the vulnerabilities exposed by the energy crisis in the region and ensuring long-term sustainability due to its focus on speed, scale, and impact.
In contrast to business-as-usual approach with individual projects, an MPA implies a cohesive continuous strategy that promotes replicable and scalable engagements. This is particularly beneficial for client countries facing the challenge of attracting private investment for their energy transition.
The MPA also allows the use of diverse instruments, including Program-for-Results (P4Rs), Investment Project Financing (IPFs), and guarantees, thereby enabling our client countries to better navigate their energy transitions. Critical policy and institutional reforms will also be necessary to remove investment barriers and enable scale up. Multi-year initiatives spanning several countries, the MPAs will also emphasize knowledge sharing and capacity building.
3. Why the emphasis on a regional approach?
A regional approach can help governments to scale up renewables and energy efficiency more effectively than individual country operations by creating a longer-term strategic vision and commitment, fostering greater ambition and momentum, building partnerships, and promoting economies of scale. The two programs will generate knowledge and best practices that can be replicated and scaled up across the region. The ECARES and E3 Programs will each establish Regional Support Networks made up of diverse partners to provide finance and technical assistance and to build capacity. This program will also attract private investment by developing regional connectivity and common procurement approaches along with greater harmonization of technical standards to develop local and regional supply chains. In time, the World Bank aims to bring together other regional programs to leverage global synergies.
4. How will ECARES leverage climate and carbon finance?
The ECARES program aims to leverage up to $200 million in grants and concessional and climate finance through the Energy Sector Management Assistance Program (ESMAP), the Climate Investment Funds (CIF), and the Green Climate Fund (GCF). Doing so will incentivize and de-risk investments. The program will leverage additional financing by monetizing emission reductions associated with renewable energy under the program that are aligned to specific results.