Q&A: Green goals and economic gains: shedding light on Georgia’s energy and climate strategy

In a recent discussion, Margalita Arabidze, Head of the Energy Efficiency and Renewable Energy Policy and Sustainable Development Department at the Ministry of Economy and Sustainable Development of Georgia, articulated her perspectives on the significance of aligning with international standards to accelerate the country’s goals of reducing the emissions by 2050.

“Georgia is actively harmonizing its legislative framework with crucial EU directives and regulations promoting renewable energy and energy efficiency. Georgia, as a candidate country for EU membership, will continue to work consistently to bring economic and digitalization strategies and policy documents closer to the EU” - Margalita Arabidze

To enhance compliance with European climate and energy policies, Georgia’s Integrated National Energy and Climate Plan (NECP) sets ambitious targets- to increase the share of renewable energy in total final energy consumption by 27.4% by 2030 and to reduce greenhouse gas emissions by 47% compared to 1990 levels.

Integration with the EU means a more stable business environment, attracting foreign investments and facilitating economic growth. Additionally, integration opens up access to financial aid for sustainable growth and climate initiatives to improve energy efficiency and infrastructure. 

On top of that, being closer to the EU will encourage technology transfer and its adoption, as well as energy cooperation with EU countries, increasing Georgia’s access to advanced renewable energy and digital technologies. This strategic alignment could make the country more competitive in exports and attract investments in green technologies.

Margalita Arabidze talks about the role of international cooperation in advancing Georgia's goals to reduce greenhouse gas emissions; The Ministry of Economy and Sustainable Development actively works with international organizations, countries and stakeholders to promote the development of renewable energy sources and innovations and improve energy infrastructure in the country. As a result of intensive cooperation, particularly with the European Union, initiatives aimed at improving energy efficiency have experienced a marked increase. The European Union provides significant support to Georgia in the implementation of energy efficiency measures and in particular supports Georgia in convergence with European Union regulations, in obtaining the necessary funds for thermal renovation and in introducing innovations towards sustainable energy.

The Ministry of Economy strives to strengthen international cooperation that supports the country's implementation of sustainable development goals. Active participation in international forums on climate change accentuates Georgia's advantageous geographical position as a transit country for energy resources, rendering it a propitious environment for sustainable energy investments.  In this regard, the Black Sea submarine cable project warrants particular mention, as it proposes the establishment of a high-voltage underwater transmission network aimed at linking the electrical energy systems of Georgia and Europe. The realization of this project is anticipated to enhance energy security for both Europe and the South Caucasus region, promote the development of the renewable energy sector, and broaden transit capabilities. In addition, the ministry is also conducting negotiations with other countries to create a kind of cooperation framework, attract investments and foster the advancement of innovative technologies.

According to Margalita Arabidze, the primary focus of the ministry is to train/sensitize government agencies and local stakeholders through international support programs. It is equally imperative for the ministry to systematically monitor projects financed by donors to accurately evaluate the contributions of these initiatives toward the attainment of climate objectives. Public engagement campaigns supported by donors further emphasize the critical role of international collaboration in realizing climate neutrality targets.

According to Arabidze, the Ministry of Economy has developed a number of strategies and policy documents. The proposed “Green Growth Strategy” and Action Plan for 2025-2030 outlines opportunities to support environmentally friendly business practices. The primary objective of formulating the “Green Growth Strategy” is to facilitate the modernization of the Georgian economy and its advancement through the integration of sustainability, green development, and innovative technologies. Furthermore, the strategy will emphasize enhancing the efficiency of energy and resource-intensive sectors, alongside the imperative to incorporate the principles of a low-carbon economy and a circular economy. Applying Green Economy principles in these domains will ultimately lead to a reduction in emissions.

Georgia is also exploring the potential of green hydrogen in collaboration with an esteemed international organization, namely the German Reconstruction Credit Bank (KFW). This partnership is centered on hydrogen pilot projects and the local adoption of renewable energy, with the objective of establishing a strategic framework and action plan for green hydrogen development. The pilot initiative encompasses a feasibility analysis regarding the utilization of green hydrogen as a fuel for public transportation within the Batumi municipality. Green hydrogen has the capacity to serve as a transport fuel, akin to its application in various European cities; this mode of transportation is characterized by the absence of emissions. The Ministry aims to devise a comprehensive action plan for the future production and application of clean hydrogen energy, which is projected to mitigate environmental pollution and foster a more sustainable energy system within Georgia.

In 2017, Georgia ratified the Paris Agreement, which underscores the "Just Transition Plan" as a critical measure for addressing climate change and facilitating the transition to a green economy. The European Commission's vision for a climate-neutral Europe by 2050 encompasses the necessity of ensuring a just and inclusive transition. According to Arabidze, Georgia is proactively leveraging modern technologies and digital solutions to expedite the nation’s "Green Transition" process, which is expected to substantially enhance environmental quality, public health, and overall quality of life.

The Georgian Innovation and Technology Agency (GITA) promotes the introduction of technological innovations in the country. Additionally, the state program "Enterprise Georgia" endorses environmentally sustainable technological initiatives and stimulates investments in the renewable energy sector. Such endeavors not only hasten the adoption of sustainable practices but also bolster the country’s resilience to the impacts of climate change.

To ensure the enduring viability of the "Green Transition" initiatives, Georgia employs inclusive and equitable approaches. Margalita Arabidze emphasized that the Ministry of Economy facilitates access to funding for environmentally friendly projects and promotes the participation of local communities in the decision-making processes to adequately address their needs. Additionally, there are educational initiatives aimed at enhancing the competencies of individuals engaged in green technologies, accompanied by financial incentive frameworks designed to encourage enterprises to embrace more sustainable operational practices.

By attracting strategic investments in green technologies and sustainable infrastructure, the country is underlining its willingness to develop long-term sustainable action plans.

Margalita Arabidze emphasizes the importance of the country's compliance with EU standards, active international cooperation, and a concentrated focus on technological innovation, alongside the formulation of comprehensive policy and regulatory frameworks. By adhering to these principles and approaches, Georgia is poised to realize and sustain the objectives associated with the "Green Transition."

According to Arabidze, "Green Transition" is anticipated to yield numerous benefits for Georgia; it will promote economic growth, job creation and community well-being. The transition to renewable energy sources and sustainable practices will ensure social equity and an inclusive labor market, contributing to the well-being of the country and the population.

This interview was developed as part of the Green Agenda for Armenia, Georgia, Moldova, and Ukraine project aiming to help the country achieve climate neutrality by 2050. It will prepare an assessment report on the nation's readiness for green transition, develop a detailed roadmap for achieving climate neutrality, deliver awareness-raising campaigns, and provide targeted technical support and capacity building.