ECONOMYNEXT – A European Union funded project is helping Sri Lanka’s energy intensive industries become more energy efficient in response to the dual challenges of climate change and economic uncertainty.
The Accelerating Industries’ Climate Response in Sri Lanka project is financed by a 2.8 billion rupee (€7.56-million) contribution from the European Union and implemented by the United Nations Industrial Development Organization (UNIDO).
It is designed to help the country’s industrial sector cut its greenhouse gas emissions (GHG) by 7 per cent by 2030.
“To claim a significant share in the global market our industries to have to beat the global competition through economic and sustainable transformation,” Ministry of Industries and Entrepreneurship Development Secretary Thilaka Jayasundara said.
She added “the EU funded Accelerating Industries Climate Response Sri Lanka (AICRSL) project has contributed immensely to make many energy intensive industries energy efficient and decarbonize themselves and created the momentum for the industries to lead the way.”
The five-year initiative will work across a wide-range of areas, including measurement, reporting and verification of GHG emissions and creating policies to support industries to move to low-carbon technologies.
“Today’s events have shown Sri Lanka’s commitment to adopting greater energy efficiency in its industrial sector, which is very encouraging to see,” Head of Cooperation at the Delegation of the EU to Sri Lanka Johann Hesse said at a national forum held in Colombo.
“This approach supports climate change and environmental goals and aligns with international commitments in particular regarding the required updates to the NDCs. The EU is happy to support these initiatives in line with our Global Gateway strategy.”
The forum was attended by Government officials, business leaders and international partners discussed how industry can play a more active role in meeting emissions targets and strengthening the country’s resilience in the face of rising environmental risks.
Industry managers and service providers will gain expertise on renewables and energy efficiency, and funding opportunities will be unlocked to increase low-carbon technology investments.
The event was the third in a series of industry dialogues organized by the Project, aimed at enabling the government, the business community, the finance sector and civil society to share the technical knowledge, insights and solutions needed for a low-carbon future.
The discussions took place as Sri Lanka prepares to submit its updated national 2030 climate goals under the Paris agreement, known as the Nationally Determined Contributions (NDCs). The government says achieving these goals will require important shifts in how key industrial sectors operate.
Sri Lanka remains highly vulnerable to the impacts of climate change, from rising temperatures and erratic rainfall to coastal erosion and increased frequency of extreme weather events.
These pressures are being felt most acutely in the energy, agriculture, and industrial sectors—many of which are also grappling with rising costs, supply chain disruptions, and the aftershocks of the country’s recent economic crisis.
Industries are under growing pressure to remain competitive in global markets where low-carbon production and compliance with international environmental standards are becoming prerequisites.
“Data driven decision making is one of the key success factors in achieving energy efficiency and emission reduction targets at industry level as well as national level” said Dr. Jagathdeva Vidanagama, Chief Technical Specialist, UNIDO. (Colombo/Jul2/2025)
Continue Reading
