The World Bank has released a report examining Georgia’s potential for transitioning to green energy and building climate-resilient agriculture. The report emphasizes that increased investment in clean energy and climate-smart agriculture could strengthen economic competitiveness, improve resilience to shocks and potentially boost GDP by an additional 4%.
The report stated that Georgia’s Climate and Development Report (CCDR) identifies main economic opportunities in electrified transport, energy efficiency and renewable energy. Currently, 74% of the country’s electricity comes from hydropower, resulting in per capita emissions 32% below the EU average. Achieving more manageable emission levels by 2050 would require an additional $4.4 billion in energy investments, but this could generate $6 billion in systemic savings, reduce import dependence and enhance energy security.
Expanding and diversifying renewable energy capacity to 15 gigawatts could lower emissions and imports while increasing energy sector employment by 21%. However, this will require investment in workforce skills for high-tech jobs.
World Bank South Caucasus Regional Director Roland Price noted that sustainable development and responsible emission management can support GDP growth, quality job creation, long-term economic expansion and resilience in agriculture and infrastructure. He pointed out the importance of private sector involvement and stable policies to mobilize investment.
The report also mentioned the need for comprehensive reforms to help sustainable investment. Main measures include adopting cleaner technologies, integrating emissions targets into energy sector planning, expanding local renewable energy and electric vehicle markets, improving energy efficiency in buildings and investing in resilient infrastructure. Targeted interventions, such as modernized irrigation systems, drought-resistant seeds and improved rural roads, could protect livelihoods and generate up to $2 billion in additional agricultural income.
Without adaptation strategies, climate risks could reduce agricultural productivity by up to 30% in rain-fed areas and 60% in irrigated zones, cause annual transport infrastructure losses of about $95 million and reduce hydropower output by 20%. By contrast, effective adaptation combined with strengthened social protection could lower the national poverty rate by 0.6% by 2030.
