The document summarizes the results of a survey of 47 Georgian SMEs about opportunities and barriers to promoting resource efficiency and cleaner production (RECP) financing. Key findings include: 1) Most companies think they can improve resource efficiency but need training and information on new technologies. 2) Companies are willing to finance profitable RECP projects themselves but are reluctant to take loans due to high interest rates and economic instability. They need assistance accessing low-cost financing and grants. 3) Lack of financial resources was the primary reason cited for only partially or not implementing RECP projects proposed through UNIDO's demonstration project. Tighter regulations were seen as a way to increase RECP project demand.

1. Research about opportunities and barriers
to promote RECP financing in Georgia
Ana Chorgolashvili
National Consultant on Financing | UNIDO
Tbilisi, April 27th 2017

2. Highlights
• Background and Objectives of the Research
• Survey Result Demonstration
• Summary

3. Background and Objectives of the Research
• Private sector role in environmentally friendly
infrastructure and production processes;
• Importance of the existence of a strong banking
sector for enabling private sector investment in
green projects, particularly for energy efficiency
and renewable energy;
• Government’s role in putting in place the
appropriate policy and legal frameworks to
encourage a green investment climate.

4. Survey Result Demonstration
23%
53%
21%
2%
Micro (up to 10 employees)
Small (10-50 employees)
Medium (50-250 employees)
Large (more than 250 employees)
0% 10% 20% 30% 40% 50% 60%
The company belongs to the following group:
• 47 SMEs took part in the Survey in Georgia
• 46 SMEs took part in the UNIDO RECP Demonstration Project

5. Survey Result Demonstration
87%
9%
4%
The position of a person in the
company who filled the survey:
Manager Engineer Accountant
6%
11%
17%
6%
51%
9%
Chemical Industry
Metallurgical industry
Production of construction materials
Plastics Production
Food industry (including alcoholic
and non-alcoholic beverages)
Other
0% 10% 20% 30% 40% 50% 60%
Production industry

6. Survey Result Demonstration
21%
0%
2%
53%
21%
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Yes No I cannot answer
Is environmental protection important in your enterprise?
Large (more than 250 employees)
Medium (50-250 employees)
Small (10-50 employees)
Micro (up to 10 employees)

7. Survey Result Demonstration
15%
4% 4%
36%
4%
13%
17%
4%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No I cannot answer
Do you implement the activities of environmental protection
on a regular basis?
Micro (up to 10 employees)
Small (10-50 employees)
Medium (50-250 employees)
Large (more than 250 employees)

8. Survey Result Demonstration
11% 9%
4%
32%
6% 15%
19%
2%
2%
0%
10%
20%
30%
40%
50%
60%
70%
Yes No I cannot answer
Does the company have a responsible person / service (active) to analyze the
resource consumption and develop measures to improve its efficiency?
Micro (up to 10 employees)
Small (10-50 employees)
Medium (50-250 employees)
Large (more than 250 employees)

9. 66%
2%
32%
Yes
No
I cannot answer
0% 10% 20% 30% 40% 50% 60% 70%
How do you estimate, is the skills of these
employees sufficient?
Survey Result Demonstration
85%
6%
9%
Yes
No
I cannot answer
0% 20% 40% 60% 80%
Do you think that it is possible for your
enterprise to use resources more
efficiently?

10. Survey Result Demonstration
9%
13%
2%
19%
19%
15%
13%
2%
6%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Yes No I cannot answer
Does the company have a development plan for the next 2-5 years?
Micro (up to 10 employees)
Small (10-50 employees)
Medium (50-250 employees)
Large (more than 250 employees)

11. Survey Result Demonstration
24%
37%
14%
7%
9%
6%
2%
0% 5% 10% 15% 20% 25% 30% 35% 40%
Assistance with banks to obtain Financing (example: low rate
debts)
Information about resource efficient technology and equipment
External experts help to determine the RECP measures
Grants / Low rate debts
Trainings
Database in the national language for benchmarking
I do not need help
In which aspect do you need help, in order to increase the effective use
of resources?

12. 0%
15%
78%
7%
unsatisfied
Neutral
Satisfied
I cannot answer
0% 20% 40% 60% 80%
Estimate experts' qualification
Survey Result Demonstration
0%
37%
63%
0%
Unimportant
Neutral
important
I cannot answer
0% 20% 40% 60%
How important was the offer of RECP
project?

13. Survey Result Demonstration
8%
8%
12%
68%
4%
0% 20% 40% 60% 80%
Energy efficient actions and expenses
reductions
Baseline surveys
Financing would be more important
The proposed recommendations and measures
Work with experts
What were the most attractive features of the project for
your company?

14. 39%
61%
What additional level of resourcing
was required to implement the
project?
Financing
I cannot answer
78%
17%
0%
4%
Yes
Yes, partially
No
I cannot answer
0% 20% 40% 60% 80%
Did you find the RECP project easy to understand
and the potential benefits clear?
Survey Result Demonstration

15. Survey Result Demonstration
22%
2%
2%
37%
9% 4%
2%
13%
7%
2%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Yes Yes, partially No I cannot answer
Did you implement the project/options proposed by the RECP
experts?
Micro (up to 10 employees)
Small (10-50 employees)
Medium (50-250 employees)
Large (more than 250 employees)

16. 2%
5%
60%
2%
19%
6%
2%
5%
0% 10% 20% 30% 40% 50% 60% 70%
The company plans to impement these projects by its own
funds in 2017-2018
We have already implemented
Lack of financial resources required for implementation of the
proposed Project
Lack of time required for implementation of the proposed
Project
There are other priority problems to be resolved in the
company which require financial resources
Too long‐term, we may change our business before payback
If we received grants we would implemet the suggested
measures
I cannot answer
If you did not implemented the project, indicate why?
Survey Result Demonstration

17. 53%
17%
30%
Would you take a loan to finance
the implementation of a profitable
project?
Yes
No
I cannot
answer
Survey Result Demonstration
4%
19%
21%
15%
17%
15%
2%
4%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Yes No I cannot answer
Does your company have a loan?
Large (more than 250 employees)
Medium (50-250 employees)
Small (10-50 employees)
Micro (up to 10 employees)

18. 29%
31%
27%
7%
3%
3%
0% 5% 10% 15% 20% 25% 30% 35%
Implementation of Winning
Business Plan
Expansion of the enterprise
Introduction of new technology
To cover company liabilities
We do not have any loan
Purchases of raw materials
What is the main motivation of you to take on a
loan?
Survey Result Demonstration
42%
15%
43%
Would you consider to take a loan if
you would receive a grace period of
let's say 2 months before starting to
repay your loan?
Yes
No
I cannot
answer

19. 41%
4%
43%
8%
3%
1%
0% 10% 20% 30% 40% 50%
Interest rates are high on business loans
I would like to take a loan
I do not want to take the risks, because the
economic situation in the country is unstable
I cannot answer
I already have a loan
It is difficult to communicate with banks
If not, please highlight possible reasons:
Survey Result Demonstration

20. Survey Result Demonstration
15%
6%
2%
11%
43%
11%
11%
2%
0%
10%
20%
30%
40%
50%
60%
EUR 5 000 - 15 000 EUR 15 000 - 100 000 EUR 100 000 and above
If you are to take a loan to improve resource efficiency, kindly
specify which amount would be sufficient?
Micro (up to 10 employees)
Small (10-50 employees)
Medium (50-250 employees)
Large (more than 250 employees)

21. Survey Result Demonstration
19%
4%
19%
4%
30%
6%
2%
13%
2%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Yes No I cannot answer
Would you implement the profitable project with your company's own
funds?
Micro (up to 10 employees)
Small (10-50 employees)
Medium (50-250 employees)
Large (more than 250 employees)

22. Survey Result Demonstration
85%
4%
11%
Are your decisions influenced by policy or
regulation?
Yes
No
I cannot answer

23. Survey Result Demonstration
28%
26%
26%
4%
9%
1%
3%
2%
1%
0% 5% 10% 15% 20% 25% 30%
Adoption of Energy efficiency regulations
Increase penalties for environmental pollution
Tightening environmental legislation
The law is strict and penalties are hight
Encourage companies
Financing
Benefits / Privileges
All Changes
I cannot answer
What expected changes in regulation would increase demand for
RECP projects?

24. Summary
• Environmental protection is important for the companies,
but their decisions are influenced by government
regulations, so tightening environmental legislation will
help to increase demand for RECP projects;
• Company representatives think that they can use resources
more efficiently, but they need trainings and information to
introduce new technologies;
• Most of the respondent companies are willing to finance
the profitable projects, but they do not want to take a risk,
because they think that economic situation in the country
is unstable, also interest rates are high; They need help to
take low rate debts and grants;

25. Summary
• Companies are satisfied by cooperation
process and outcomes with the RECP
Demonstration Project and think that the
offers of RECP activities were important;
• Lack of financial resources was the main
reason why only some of the companies
implemented the proposed projects fully or
partially.

26. Thank You for Your Attention!
Ana Chorgolashvili
National Consultant on Financing | UNIDO
ana.chorgolashvili@gmail.com
www.recp.ge
www.unido.org