The Government of Georgia has proposed a significant update to the country’s Law on Environmental Protection. For the first time, the draft law would create a formal system to regulate greenhouse gas emissions—including carbon dioxide (CO2)—and introduce a national framework for monitoring, reporting, and verification (MRV) of emissions across key sectors of the economy. The legislation, part of broader climate governance reforms, was presented to the Parliament’s Environmental Protection and Natural Resources Committee by Deputy Minister Zurab Ezugbaia.
According to official summaries, the amendments are closely tied to Georgia’s obligations under the European Union Association Agreement and the Energy Community Treaty. The draft law specifically aims to align the country’s approach with the EU Emissions Trading System (ETS) and other related EU standards.
Under the proposed rules, companies operating in sectors such as energy, heavy industry, construction materials, chemicals, and aviation would need official authorization for their greenhouse gas emissions. They would also be required to submit annual emissions reports, which must be verified by accredited bodies before being submitted to the relevant authorities.
The legislation includes a transition period, with the MRV system set to be fully operational starting January 1, 2026. Initial authorizations will be free, but operators will face additional administrative and financial responsibilities related to monitoring and reporting. To implement the system, the National Environmental Agency plans to hire five new staff members, while the Environmental Supervision Department will add ten. Costs in 2025 will be covered by agency revenues, shifting to state budget funding from 2026 onward.
Implications for Georgia’s Climate Policy
Experts in Tbilisi and Brussels view this move as a major step forward for Georgia’s climate governance. The country has been actively working on its international climate commitments, including the preparation of its First Biennial Transparency Report (BTR) submitted to the United Nations Framework Convention on Climate Change (UNFCCC). The 2024 BTR, along with the national greenhouse gas emissions inventory, details emissions trends from 1990 to 2022. While Georgia’s total emissions remain relatively modest, they have risen since the early 2000s as the economy grew.
In 2022, total emissions were 20,096 Gg CO2 equivalent, with CO2 making up nearly two-thirds. The energy sector is the largest source of emissions, followed by industrial processes, agriculture, and waste.
Georgia’s climate governance has also been strengthened through the National Energy and Climate Plan (NECP), adopted in 2024. The plan sets out greenhouse gas reduction targets—including conditional commitments to significantly cut emissions relative to 1990 levels—and details strategies for energy transition, emissions reduction, and decarbonization through 2030.
Lawmakers have emphasized that climate-related legislation is essential not only for domestic policy, but also to align with European standards and meet Energy Community Treaty obligations. These agreements require robust systems to monitor and report greenhouse gas emissions, serving as a foundation for future climate actions and potential carbon pricing mechanisms.
Why the MRV System Matters
Experts agree that a strong MRV framework is key to Georgia’s climate strategy. Reliable, verifiable emissions data allow the government to track progress, develop targeted mitigation strategies, and engage credibly in international climate initiatives. A formal MRV system also lays the groundwork for future market-based approaches, such as emissions trading or carbon pricing.
Overall, the proposed amendments are more than technical updates—they represent a strategic effort to increase transparency, accountability, and alignment with EU standards. The law would give businesses, investors, and international partners a clearer understanding of Georgia’s climate policy direction, complementing existing planning, reporting, and strategic climate initiatives, and paving the way for more comprehensive implementation in the years ahead.
By Team GT
