Georgia and the European Green Deal

Im Rahmen unseres Pro­jek­tes „Öst­li­che Part­ner­schaft Plus“ ver­öf­fent­li­chen wir eine zweite Reihe von Input Papers zum Thema Perspek­tiven und Priori­täten des  European Green Deals (EGD) in der Ukraine, Geor­gien und Moldau. Die Autoren aus der Region (Nataliya Andru­sevych, Manana Kochladze, Iuliana Canta­ragiu) ana­ly­sie­ren die Rolle der Euro­päi­schen Union bei der Unter­stüt­zung der Umsetzung des EGDs und for­mu­lie­ren ihre Hand­lungs­emp­feh­lun­gen an die Ent­schei­dungs­trä­ger in Berlin und Brüssel.

By Manana Kochladze, Democra­tization and Human Rights, CEE Bankwatch Network

The European Green Deal (EGD) will funda­men­tally change economic and political relations with the EU’s neigh­bourhood. The Government of Georgia has not made yet any commit­ments with regard to the EGD.[1][2] The government’s approach to the country’s economic develo­pment primarily involved extensive libera­lization and deregu­lation for decades. This changed only with the signature of the EU-Georgia Association Agreement (AA) in 2014. Since then, Georgia has taken a few positive steps in the environ­mental, energy and climate sector, but environ­mental protection and climate resilience are still considered to be of secondary priority; economic growth takes top priority.

The current path of economic develo­pment and its impact on health and the environment are challenging. The Global Alliance on Health and Pollution has reported that at least 140 out of every 100,000 deaths in Georgia are linked to air pollution, one of the highest rates in Europe.[3] World Bank estimates that the costs of environ­mental degra­dation (air pollution, lead exposure, forests, agriculture land degra­dation, climate change impacts) were equivalent to 15% of Georgia’s GDP in 2018.

Article 29 of Georgia’s Consti­tution requires the government to ensure the protection of the environ­mental protection and rational use of natural resources in the interests of current and future genera­tions. The Law on Environ­mental Protection provides for an environ­mental planning system to ensure “condi­tions appro­priate for the sustainable develo­pment of the country”. The law requires the develo­pment of a sustainable develo­pment strategy for the country. This requi­rement has yet to be met, as have those for a five-year national environ­mental action plan and plans and policy documents for individual areas. The social-economic develo­pment strategy “Georgia 2020” (2014)[4] acknow­ledges ineffi­cient use of natural resources and extensive agricul­tural production, combined with low techno­lo­gical develo­pment and innovation level. In 2015, government adopted the a national strategy to meet SDGs by 2030.[5]

The Association Agreement between EU and Georgia and the Association Agendas have fuelled numerous positive changes. The first step was enactment of a new Environ­mental Assessment Code in line with the nEIA and SEA direc­tives (2018), addressing multiple failures in environ­mental decision-making on projects and policies during (2007–2017), and reintro­ducing public parti­ci­pation in decision making. Several other laws and policy documents have also been adopted, including the Waste Code and Waste Management Strategy 0216–2030, the Forest Code (2020), environ­mental liability legis­lation (2021), etc. The Third National Environ­mental Action Program of Georgia (NEAP‑3) 2017–2021,[6] the key policy document in this area, was influenced by the EU-Georgia Association Agreement and United Nations Sustainable Develo­pment Goals. However, its imple­men­tation is behind schedule both with respect to environ­mental gover­nance and in key strategic sectors. This is due to ineffective gover­nance and insti­tu­tional model, inade­quate funding, only 0.4% of the state budget was allocated to environ­mental protection (around 60 million GEL). This was coupled with constant lobbying on behalf of the business sector to delay or abandon the new environ­mental regula­tions. For instance, Georgia is behind schedule in in designated protected Emerald-network sites[7] under the Council of Europe’s Convention on the Conser­vation of European Wildlife and Natural Habitats (Bern Convention). The country needs to develop a national freshwater strategy due to abundant hydro­power develo­pment plans.[8]

Georgia has been a full member of the European Energy Community since 2016. The adoption of the Law on Energy and Water Supply in line with the Third Energy Package (2019) was a breakth­rough for further energy reforms. Renewable energy legis­lation was adopted in 2019 is in line with the EU’s 2009 renewables directive. Legis­lation on energy efficiency adopted in 2020 twill enter into force after 2022. The trans­po­sition of the Large Combustion Plants Directive into Georgian law and the prepa­ration of the Energy and Climate Action Plan (NECP) have been delayed. As the Clean Energy Package will be integrated into the Energy Community Treaty by the end of 2021, the ECT Secre­tariat has started to assist with the trans­po­sition and imple­men­tation of energy reforms, including the Clean Energy Package.[9]

Georgia has no energy sector develo­pment strategy or action plan for 2030 aimed at decou­pling energy use and economic growth. Unsus­tainable electricity consumption and the country’s depen­dence on imported fossil fuels (70–75% of primary energy consumption) are not stressed in any strategy document. Sparsely available policy documents[10] promote increased energy consumption and the building of new generation plants, including the large hydro­power plants that the vast majority of the public oppose. Meanwhile, crypto­cur­rency mining, which can be done at next to no cost thanks to low rates charged for electricity, is negatively affecting both on the energy balance and on citizens’ lives in Abkhazia and Svanetia^[11]. It is estimated that crypto­cur­rency accounts for at least 15% of Georgia’s total power load.[12] According to USAID, “Current and strategic decisions of the energy sector are not made on the basis of relevant and suffi­cient infor­mation analysis and research. There is no proper system and proce­dures in place for providing expert research and profes­sional support for decision-making”.[13]

In April 2021, the Government of Georgia approved an updated natio­nally deter­mined contri­bution (NDC)[14] under the UNFCCC and an imple­men­tation tool for it. The NDC includes uncon­di­tional (35%) and condi­tional (50–57%) mitigation targets for the reduction of GHG emissions by 2030 compared to 1990 levels. It defines targets for a number of sectors (transport, construction, energy generation and trans­mission, agriculture, industry, waste management and forestry). The National Adapt­ation action plan will be elabo­rated with the support of the Green Climate Fund.

The transport sector represents the biggest emitter and was respon­sible at least for 24% of GHG emissions (2015). The updated NDC predicts that emissions would rise up to 71% under the baseline scenario by 2030, with planned reduction of 15%. The country does not have “a single entity with respon­si­bility for overar­ching national transport sector strategy and policy.”[15] This has resulted in the allocation of a dispro­por­tionate amount to road infra­structure, with severe impacts on local commu­nities, reducing their incomes and forcing invol­untary resett­lement, and on the environment, including protected areas.

Despite promises to the contrary, no green economy policy, green economy strategy 2030 or green economy action plan for 2017–2022[16] were ever adopted. A technical report prepared for use in the develo­pment of a green economy strategy that analysed three sectors of economy – construction, agriculture and tourism – pointed out the potential for such a strategy to generate signi­ficant savings and additional economic and environ­mental benefits, including job creation.[17] Activity in this area is mainly supported by inter­na­tional donors, including the EU.[18]

The EGD has the potential to completely eliminate the country’s reluc­tance to update existing economic models and to define new perspec­tives for Georgia’s develo­pment. This would require the relevant guidance and skills support coupled with extensive awareness raising, trans­pa­rency and public invol­vement in decision making to build the ownership and ensure a results-oriented approach. Georgia is experi­encing stagnation in the develo­pment of democracy and its economy [19] due to a political crisis[20] combined with Covid-19 pandemic. In this situation, EGD could provide a much-needed stimulus for further development.

The party currently in power is in the process of preparing a national plan for Georgia develo­pment to 2030. If developed with wider public parti­ci­pation and based on the “grow back better and greener” principle in line with EU legis­lation and the EGD, the plan may be able to serve as recovery tool to address immediate shocks and ensure the sustainable develo­pment of the country. The EGD together with Association Agreement provides new oppor­tu­nities for Georgia to make progress towards sustaina­bility goals and to access potential financial sources, as well as further Georgia’s ambitions for closer integration with EU.

Recom­men­da­tions:

• The EAP summit in 2021 should spotlight the EGD as a major topic, and the EU should continue to emphasize this topic on multi­la­teral and bilateral levels with the EaP countries to encourage co-ownership and engagement on their part.
• The Green Deal Roadmap and Strategy should be elabo­rated with the invol­vement of all stake­holders and ensure commit­ments in environment and climate sector in line with a long-term vision for the areas of energy, industry, trade, agriculture and transport.
• The new environ­mental action plan to be developed should be geared towards Georgia’s transition to a climate-neutral, resource-efficient clean and circular economy in line with 2030 targets of the European Green Deal.
• The capacities of decision makers should be enhanced to promote the imple­men­tation of already existing environ­mental and climate legis­lation, as well as EDG integration into different economic sectors.
• Ensure sustaina­bility of the projects funded through EU-related financial streams, including those of inter­na­tional financial insti­tu­tions (e.g. EIB, EBRD and etc) and ECAs (e.g. KFW, ADFB , SACE and others).
• The EU Taxonomy Regulation, estab­li­shing the framework for the EU taxonomy of sustainable activities, should be widely promoted and encou­raged vis-à-vis the EaP countries.
• Promote EGD integration into different areas at different levels (coope­ration among parlia­ments, local autho­rities, develo­pment of civil society, academia, cross-border coope­ration. etc.).
• Country strategies and action plans for zero pollution and zero emission systems should be defined for the agriculture, energy and transport sectors.
• Provide support for and engage in syste­matic transfer of knowhow – new techno­logies, innovative project models, intern­ships and trainings for decision makers, experts, CSOs, businesses.

[1] 31 May 2021 on joint hearing of the Parlia­mentary Committees on European Integration and Environ­mental Protection and Natural Resources was mentioned that there are ongoing negotia­tions with the EU for Green Deal roadmap and strategy develo­pment. The statement does not receive any follow up.

[2]   The European Green Deal and its Signi­fi­cance for Georgia, Ekaterine Mikadze, February 2021,

[3] GAPH, 2019, 2019 Pollution and Health Metrics: Global, Regional and Country Analysis,

[4] Social-economic Develo­pment Strategy of Georgia “GEORGIA 2020”, Government of Georgia 2014,

[5] Sustainable Develo­pment Goals National Document.pdf

[6] NEAP‑3 2017–2021,

[7] Network analogous to Natura 2000 outside of the EU.

[8] https://rm.coe.int/files04e-2020-georgia-svaneti1-candidate-emerald-site-nenskra-govt-rep/16809ce010

[9] New phase of EU4Energy Gover­nance project launched in Georgia, Moldova and Ukraine

[10] E.g. Georgia’s electricity networks develo­pment plan 2021–2031

 [11]Despite Bitcoin’s Dive, a Former Soviet Republic Is Still Betting Big , New York Times, 2019, November

[12] Georgia 2020 Energy Policy review, IEA

[13]  Energy Policy Concept of Georgia , November 2020, USAID

[14] Georgia Natio­nally deter­mined contri­bution 2021,

[15]  Climate Decar­bo­nization Scenarios for Georgia Transport Sector, Thomas Day, Sofia Gonzales-Zuñiga, Swithin Lui, New Climate Institute, January 2021

[16] Ministry of Economy and Sustainable Develo­pment, 2017, Green Economy Policy and Strategy,

[17] Supporting the Develo­pment of a Green Growth Economic Strategy in Georgia, Technical Report, 2018, EaP Green

[18] EU-funded Projects Aiming at the Main Goal and Principles of the Green Deal in Georgia

[19] https://freedomhouse.org/country/georgia/nations-transit/2020

[20]Defusing Georgia’s Political Crisis: An EU Foreign Policy Success? May 2021

Gefördert durch: