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Lesson
When a project provides substantial climate mitigation and environmental benefits, a project economist with strong background and experience in environmental valuation method can undertake the project economic analysis at appraisal. Usually, energy efficiency improvement projects have very low pay back periods and high economic internal rate of return. ADB should investigate the ways in which it can formalize the use of carbon prices in energy efficiency project economic analysis.

Project Number: 47051-002
Project Name: Chemical Industry Energy Efficiency and Emission Reduction Project
Report Date: