More than 50 representatives from the Government of Georgia, the Georgia Climate Finance Working Group, regional authorities, and the private sector attended a strategy session and training early February to accelerate the implementation of the Paris Agreement on Climate Change. The event, organized by UNDP with the support of the Government of Switzerland and the Ministry of Environmental Protection and Agriculture of Georgia, introduced new opportunities for businesses that work for profit, people and the planet.
This is a great opportunity for Georgian investors and entrepreneurs to develop new businesses that serve the public and the planet while earning profits
Georgia has committed to unconditionally reducing its total greenhouse gas (GHG) emissions to 35% below its 1990 baseline level (an approximately 16% per capita reduction) by 2030. Article 6 of the Paris Climate Agreement provides a viable way to achieve this through incentives for businesses to innovate new ways to create products or deliver services while simultaneously reducing carbon emissions.
“This is a great opportunity for Georgian investors and entrepreneurs to develop new businesses that serve the public and the planet while earning profits,” said UNDP Resident Representative Nick Beresford.
“Once the reduction has been documented, the enterprise can receive back up to 25% of its initial investment as an ex-post subsidy.”
“Carbon trade creates new prospects in our global effort to mitigate climate change,” said Maia Tskhvaradze, Head of the Climate Change Division at Georgia’s Ministry of Environmental Protection and Agriculture. “Access to carbon trade markets will support climate-friendly business development in Georgia, promote a low-emission economy, and contribute to fulfilling Georgia’s ambitious climate agenda.”
Access to carbon trade markets will support climate-friendly business development in Georgia, promote a low-emission economy, and contribute to fulfilling Georgia’s ambitious climate agenda
In this market-oriented approach, a private or state-owned enterprise must first identify and invest in a market opportunity that provides a product or service while helping to reduce Georgia’s GHG emissions. This could be anything from developing a new solar power plant or launching an e-mobility transportation service, to renovating old buildings with improved insulation. Once the initiative has demonstrated proven success in reducing carbon emissions, it can receive up to 25% of its originally invested capital from the specialized global facility created to mobilize funds for carbon trading systems.
The Swiss Federal Office for the Environment and the Swiss carbon procurement program have contributed $120 million to the facility to be used for this purpose.
Georgian companies interested in entering carbon markets can contact the Ministry of Environmental Protection and Agriculture for more information: ClimateChange@mepa.gov.ge
Background
UNDP is the leading United Nations organization fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in 170 countries, we help nations to build integrated, lasting solutions for people and the planet. UNDP established its presence in Georgia in 1993 and is working to support the country’s development in the areas of democratic transformation, sustainable economic development, environmental governance and conflict prevention and recovery.
