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Against global trends, energy intensity in Iran has been almost declining over the past decades. Energy tariffs are set by administrative authorities far below the export value which has burdened heavily the annual budget. On the other hand, Iran ranks among top ten GHG emitters worldwide. These facts all necessitate energy efficiency improvement in Iran and it is the time to utilize market oriented mechanisms. With the adoption of the Article 12 of the “Law on elimination of barriers to competitiveness and improving the country’s financial system” the legal basis was created for specific economic incentives for energy efficiency investments. However, it was not successful according to the outputs of planned projects.

Recently, Prof. Saboohi suggested to initiate market for energy efficiency in Iran. After a long and hard series of meetings and discussions with different stakeholders, the “Bylaw for creating energy efficiency and environment market” was approved by Supreme Energy Council of the I.R. Iran on 19 February 2018. As a private company, SE3T together with well-known German enterprises tries to support Iranian government on implementing the market. This task is defined through the project “Supporting Iran in implementation of an integrated energy efficiency market”. It is planned to be done in three packages from developing practical implementation mechanism to creating the market in pilot plants.