Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1694869224177.pdf (Georgia)
ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITH THE EU GREEN DEAL This document has been prepared within the framework of the EU/UNDP Action: EU4Climate, CRIS number ENI/2017/387-538 Date of Report: 20 JUNE 2022 Reporting Period: 20 FEBRUARY 2022 – 20 JUNE 2022 Project Partners: European Environmental Agency (Denmark) Environment Agency Austria (Austria) Energy Community Secretariat (Austria) Prepared By: World Experience for Georgia This publication has been produced with the assistance of the European Union (EU) and the United Nations Development Programme (UNDP).
Its contents are the sole responsibility of the World Experience for Georgia analytical center and do not necessarily reflect the views of the EU and UNDP.
ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITH THE EU GREEN DEAL AUTHORS: Giorgi Mukhigulishvili Tutana Kvaratskhelia Natalia Shatirishvili Medea Inashvili Irakli Urgebashvili CONTRIBUTORS: Murman Margvelashvili Elisabeth Kampel Ekaterine Mikadze CONTENTS List of Abbreviations AA Association Agreement EBRD ACER European Union Agency for the Cooperation of Energy Regulators ADSL Asymmetric digital subscriber line AFD Agence Française de Développement BDD Basic Data and Direction BSEC Black Sea Economic Cooperation European Bank for Reconstruction and Development EC EE EED EGD Energy Community energy efficiency Energy Efficiency Directive European Green Deal EGDIP European Green Deal Investment Plan CARI CBAM Coal Regions in Transition and Clean Air Regions Initiative EIEC Environmental Information and Education Center Carbon Border Adjustment Mechanism CCC Climate Change Council CENN Caucasus Environmental NGO Network CLRTAP Convention on Long-Range Transboundary Air Pollution CMA Common Maritime Agenda for the Black Sea CoM Covenant of Mayors COP26 The 2021 United Nations Climate Change Conference CSA Climate-Smart Agriculture EPR Extended Producer Responsibility ESCO Electricity System Commercial Operator ESR ETS EU EUR FAO Effort Sharing Regulation Emissions Trading System European union Euro Food and Agriculture Organization of the United Nations GCAP Green City Action Plan for Tbilisi GCF GDP Green Climate Fund Gross Domestic Product CSAP Climate Strategy and Action Plan GEOSTAT National Statistics Office of Georgia DAI Digital Adoption Index DANIDA Danish International Development Agency GHG GIZ Greenhouse Gas Deutsche Gesellschaft für Internationale Zusammenarbeit DCFTA Deep and Comprehensive Free Trade Agreement GNERC Georgian National Energy and Water Supply Regulatory Commission DESI Digital Economy and Society Index DG RTD Directorate General for Research and Innovation of the European Commission domestic material consumption European Battery Alliance DMC EBA GoG GSE GVA GW Government of Georgia
 Georgian State Electrosystem Gross Value Added Gigawatts GWMA Georgian Waste Management Association 5 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Ha HIS IBAT ISET hectare Heating system improvements Integrated Biodiversity Assessment Tool International School of Economics at Tbilisi State University ISUMP Integrated Sustainable Urban Mobility Plan for the City of Batumi NEEAP National Energy Efficiency Action Plan NEFCO Nordic Environment Finance Corporation NHA NIR OECD National Hydrogen Association National GHG Inventory Report Organization for Economic Co- operation and Development Just Transition Mechanism PFAs Per- And Polyfluoroalkyl Substances JTM KfW Kreditanstalt für Wiederaufbau LT-LEDS Long-Term Low GHG Emission Development Strategy LULUCF Land Use, Land Use Change and Forestry MEPA The Ministry of Environmental Protection and Agriculture of Georgia MHDRIS Multi-Hazard Disaster Risk Information System MIA Ministry of Internal Affairs MoESD Ministry of Economy and Sustainable Development MRDI The Ministry of Regional Development and Infrastructure of Georgia MRV Monitoring, Reporting and Verification MSP Maritime Spatial Planning MSW Municipal Solid Waste Megawatts National Bank of Georgia POP PPP RED SDC Persistent Organic Pollutants Public-Private Partnership Renewable Energy Directive Swiss Agency for Development and Cooperation SDG Sustainable Development Goals SECAPs Sustainable Energy and Climate Action Plans SEIP SIDA Sustainable Europe Investment Plan Swedish International Development Cooperation Agency SME Small and Medium Enterprises TEN-T Trans-European Transport Network UCO Used Cooking Oil UN United Nations UNCLOS United Nations Convention on the Law of the Sea UNDP United Nations Development Programme UNECE United Nations Economic Commission for Europe National Biodiversity Strategies and Action Plans UNFCCC United Nations Framework Convention on Climate Change National Climate Platform Nationally Determined
 Contributions National Environmental Action Programme USAID United States Agency for International Development VRE Variable Renewable Energy WMTR Waste Management Technologies in Regions MW NBG NBSAP NCP NDC NEAP NECP National Energy and Climate Plans 6 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Introduction The European Green Deal (EGD), adopted in December 2019, is the EU’s new growth strategy and aims to transform the European Union into a fair and prosperous society.
It aims to create a modern resource-efficient and competitive economy where there are no net emissions of greenhouse gases by 2050 and where economic growth is decoupled from resource use.

It also aims to protect, conserve and enhance the EU’s natural capital and protect the health and well- being of citizens from environment-related risks and impacts.

At the same time, this transition aims to be just and inclusive.
The European Green Deal is a revived EU approach to achieve the UN 2030 Agenda and Sustainable Development Goals, not only within the EU but also across the globe.

The Green Deal is a key component of the EU’s external assistance with neighboring regions.
In line with the European Green Deal, the EU will scale up its support for climate change mitigation and adaptation measures, including the development of renewable energy sources reaffirming that environmental and climate challenges require urgent action by the EU and the partner countries.

The EGD aims to achieve three main goals.


First, it focuses on achieving net- zero emissions by proposing specific strategies that can help curb emissions across all sectors with a strong focus on energy which makes up more than 75% of the total EU-27’s greenhouse gas.

The objective is to increase the share of renewable energy in the EU’s energy mix.

Second, it plans to decouple growth from resource exploitation.
While reductions in emissions have been achieved in the last decade, Europe remains one of the major contributors of resource consumption in the world.

Described as a “generation-defining task,” achieving this objective will not only require a boost in technological advancements but also rethinking lifestyles, communities and societies.
Third is the need to foster an inclusive green transition and to leave none behind supported through the Just Transition Mechanism which will provide between 65€ and 75€ billion over the period of 2021-2027 to alleviate the socio-economic impacts of the transition.
1 2 3 7 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL According to the guidelines for the implementation of the EU Green Deal, there are five pillars of the Green Agenda:1   climate action/decarbonization, including climate, energy and mobility;   circular economy, addressing, in particular, waste, recycling, sustainable production and the efficient use of resources;   biodiversity, aiming to protect and restore the natural wealth of the region;   depollution/fighting pollution of air, water and soil and   sustainable food systems and rural areas.
Digitalization will be a key enabler for the above five pillars in line with the concept of the dual green and digital transition.

The objectives of these pillars should be pursued through concrete actions and supported by mechanisms and financial instruments.
Ranging across eight policy areas - biodiversity, sustainable food systems, sustainable agricul- ture, clean energy, sustainable industry, building and renovating, sustainable mobility, elimi- nating pollution and climate action2 - the EGD represents an unprecedented effort to review more than 50 European laws and redesign public policies.

The European Green Deal is a set of policy initiatives by the European Com- mission with the overarching aim of making the European Union (EU) climate neutral in 2050.
This has been enshrined in the EU Climate Law setting the intermediate target of reducing net greenhouse gas emissions (GHG) by at least 55% by 2030 as compared to 1990 levels and achieve net zero GHG emissions (climate neutrality) by 2050.

The European Commission proposed the first European Climate Law in 2020.

This enshrines the 2050 climate neutrality objective in legislation.
The Climate Law also ensures that all EU policies contribute to the climate neutrality objective and that all sectors play their part.

In July 2021, the European Commission published the first part of the Fit for 55 Package which was followed by a second part including the Hydrogen and Decarbonized Gas Markets package in December 2021.

The Fit for 55 Package represents a series of legislative proposals setting out how it intends to reach its climate targets under the EU Green Deal.
These proposals include revisions of existing legislation and new legislation.

In March 2022 following Russia’s invasion of Ukraine, the European Commission proposed a REpowerEU plan to cut the EU’s dependence 1 green_agenda_for_the_western_balkans_en.pdf (europa.eu) 2 The European Green Deal: What to know and what comes next | World Economic Forum (weforum.org) 8 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL on Russian fossil fuels by 2027, starting with gas.
The plan, which was presented on 18 May 2022, sets new targets for renewable energy (45%) and energy efficiency (13%) development.3 The EU-Georgia Association Agreement and Georgia’s Energy Community membership create a legal framework for the future transposition of the EU climate and energy acquis into national legislation.
Georgia, as a non-EU member state, signed the EU-Georgia Association Agreement in 2014, emphasizing the need for cooperation in climate change mitigation and adaptation, emissions trading, climate change integration into sectorial policies and the development of clean technologies.

Georgia’s accession to the Energy Community Treaty in 2016 also encouraged the inter-sectoral integration of climate-related issues.
The Protocol of Georgia’s accession to the Treaty requires the harmonization of Georgian legislation with the EU Directives and Regulations.

In the context of climate change, the Treaty includes some obligations which require an increase of energy efficiency, facilitating the use of renewable energy sources (which serves the decarbonization of the economy), the safety of energy supply and the elaboration of the National Energy and Climate Plan (NECP).
The NECP is a new initiative of the European Union and the member states of the Energy Union also have a recommendation to develop a unified integrated policy and measures for energy and climate issues at the national level.

The NECP development process takes place in parallel with the Nationally Determined Contributions (NDC) and its Climate Action Plan development.
The NECP covers the period 2021-2030 and includes a vision for 2050 to be in line with the policy objectives of the European Union, the Energy Community or the UNFCCC.

Georgia submitted its updated NDC on May 5, 2021, committing to an unconditional reduction target of 35% below the 1990 level of its domestic total greenhouse gas emissions and a conditional reduction target of 50-57% in the case of international support.
The objective of this study is to assess the extent to which the current policy framework in Georgia is in line with the policies of the EU Green Deal and identify the main policy measures to be addressed/implemented.

This is done by mapping relevant policies and making a gap analysis of the key pillars of the EU Green Deal.
The gap analysis is complemented by the national best practice examples (e.g., flagship initiatives), identifying not only existing bottlenecks but also good practice in Georgian climate and environmental policies.

The result of this study will support the Georgian government in designing a roadmap for the further alignment of Georgian Legislation with the EGD policies and the attracttion of international financial support.
3 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2022%3A230%3AFIN&qid=1653033742483 9 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Methodology The assessment of the readiness of Georgia for alignment with the European Green Deal was performed through the following components: Mapping of the relevant EGD documents in Georgia.

Identifying the progress indicators to monitor the implementation of the EGD and to compare Georgia with EU Member States.
Assessing the gaps in Georgia’s policy and legislative framework for alignment with the EGD and providing relevant recommendations.

Identifying and analyzing Georgian best practice examples relevant to the EGD.

Document mapping refers to listing relevant documents.
At the EGD level, it included the Communication from the European Commission - the European Green Deal and the Roadmap, the European Green Deal Investment Plan, EU taxonomy, the Green Agenda for the Western Balkan Countries, EU sectoral strategies, etc.

As for the national level, legislative and other strategic documents addressing one or more components of the EGD five pillars (decarbonization, circular economy, biodiversity, depollution, sustainable food systems and rural areas) were reviewed.
Overall, about 100 strategic documents were analyzed.

As a next step, progress indicators to monitor the implementation of the EGD were identified for each of the five pillars based on the assessment of the strategies and action plans, studies on EGD indicators and sustainable development indicators.

Indicators were selected taking into consideration the national characteristics of Georgia.
Data for evaluating the indicators were obtained from official sources; for those indicators where official statistics were not available, the data gaps were outlined.

10 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL The gaps between the EGD and the Georgian legislative and policy framework were identified and assessed based on a desk study and stakeholder consultations conducted by the project team.
Ranked recommendations (priority levels - low medium, high) were provided by sectoral experts.

The prioritization of the recommendations is based on the project team’s personal expert judgement.

The prioritization was made based on the following criteria: relevance to the EGD and Georgia’s strategic priorities, efficiency and impact of the measures, synergy with other measures and country specificity.
To identify relevant EGD best practice examples in Georgia, the project team assessed implemented and ongoing projects in different sectors using the following criteria: social, economic and environmental impact, including GHG emissions reduction potential, other co- benefits and financing schemes.

Six best practice examples were identified in total.
11 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL EU and Georgian Documents Relevant to the European Green Deal The European Green Deal is a set of policy initiatives by the European Commission with the overarching aim of making the European Union (EU) climate neutral by 2050.

The table below represents the mapping of the EU and Georgian strategies and legislation relevant to the European Green Deal.
N EU Documents Relevant to the Green Deal  CROSSCUTTING 1 Communication From the European Commission - the European Green Deal4 and the Roadmap  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document It is a new growth strategy that aims to transform the EU into a fair and prosperous society with a modern, re- Georgia does not have one unified strategy; however, it has adopted several strategies and action plans, source-efficient and competitive economy where there including: are no net emissions of greenhouse gases in 2050 and where economic growth is decoupled from resource use.
Nationally Determined Contribution (NDC)5 - The goal of the NDC of Georgia is to support the sustainable and balanced development of the country, equally taking It also aims to protect, conserve and enhance the EU’s into consideration climate change and environmental natural capital and protect the health and well-being of and socio-economic challenges.

The updated NDC citizens from environment-related risks and impacts.
At aims to support the sustainable development of the the same time, this transition must be just and inclusive.

country and defines the following targets: It must put people first and pay attention to the regions, industries and workers who will face the greatest chal- lenges.

إ Unconditional limiting target of 35% below the 1990 level of its national GHG emissions by 2030.
إ Provided international support, Georgia is commit- ted to a target of 50% below the 1990 level by 2030 if the world commits to the 2°C average global temper- ature increase holding scenario.
4 EUR-Lex - 52019DC0640 - EN - EUR-Lex (europa.eu) 5 https://mepa.gov.ge/Ge/Files/ViewFile/50125 12 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL The roadmap has actions to boost the efficient use of resources by moving to a clean circular economy and إ In the case that the world commits to the 1.5°C aver- age global temperature growth scenario, Georgia will stopping climate change, reducing biodiversity loss target reducing emissions by 57% as compared to its and cutting pollution.
It outlines investments needed 1990 level by 2030. and financing tools available and explains how to ensure a just and inclusive transition.
The Climate Change Strategy and Action Plan6 pro- vides targets for some sectors and defines policy ob- jectives for others, such as: reducing GHG emissions by 15% in the transport sector by 2030 as compared to the baseline scenario, decreasing GHG emissions by 15% in the energy generation and transmission sector by 2030 as compared to the baseline scenario, reducing GHG emissions by 5% in the industry sector by 2030 as compared to the baseline scenario, increasing the car- bon capture capacity of forests by 10% and promoting low-emission approaches in the building, agriculture and waste sectors.
The Long-Term Low GHG Emission Development Strategy (LT LEDS) intends to promote the goals and policies of the Paris Agreement and ensure low- emission and climate-friendly development for the period 2020-2050.

National Energy and Climate Plans (NECPs), which describe a unified integrated policy and measures for energy and climate issues at the national level, need to be developed by each EU Member State and by the Contracting Parties of the Energy Community.
Georgia, being a member of the Energy Community, plans to submit its NECP by the end of 2022.

It will cover the period 2021-2030 and include a vision for 2050 to be in line with the policy objectives of the EU, the Energy Community and the UNFCCC/Paris Agreement.

The NECP covers five main areas: energy security, Georgia’s internal energy market, energy efficiency, decarboniza- tion and renewable energy sources and research, inno- vation and competitiveness.
6 Georgia’s Updated Nationally Determined Contribution (NDC), Climate Change Strategy 2030 and Action Plan 2021-2023 (matsne.gov.ge) 13 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL The National Environmental Action Program-3 of Georgia 2017-20217 aims at achieving the sustainable and balanced development of the country in which environmental and socio-economic challenges are considered equally.

Currently, Georgia has been developing its fourth NEAP.
N EU Documents Relevant to the Green Deal 2 The European Green Deal Investment Plan8  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The European Green Deal Investment Plan (EGDIP), Georgia does not have an investment plan.

also referred to as the Sustainable Europe Investment Plan (SEIP), is the investment pillar of the Green Deal.
The Investment Plan mobilizes EU funding and creates an enabling framework to facilitate and stimulate the public and private investments needed for the transition to a climate-neutral, green, competitive and inclusive economy.
EU Taxonomy  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document In order to meet the EU’s climate and energy targets The National Bank of Georgia develops the Sustaina- for 2030 and reach the objectives of the European green deal, it is vital that we direct investments towards sustainable projects and activities.

The EU taxonomy is a classification system9 establish- ing a list of environmentally sustainable economic ac- tivities.
It could play an important role helping the EU scale up sustainable investment and implement the European Green Deal.

The EU taxonomy would provide ble Finance Framework and publishes the Sustainable Finance (SF) Taxonomy draft11.

The SF Taxonomy pro- vides a classification system for identifying activities that deliver on key climate, green, social or sustainabil- ity objectives.
The primary purpose of the taxonomy is to support the development of a sustainable finance market and consequently contribute to the country’s sustainable development.
7 Strategic documents | The Third Programme of Environmental Protection Activities of Georgia 2017-2021 (mepa.gov.ge) 8 Financing the green transition (europa.eu) 9 EU taxonomy for sustainable activities | European Commission (europa.eu) 11 The NBG publishes Sustainable Finance Taxonomy for public consultations / Sustainable Finance Taxonomy for Georgia (nbg.gov.ge) 14 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL companies, investors and policymakers with appropri- Moreover, the NBG is working on the Regulation on ate definitions for which economic activities can be Loan Classification and Reporting according to the considered environmentally sustainable.
In this way, it Sustainable Finance Taxonomy (Taxonomy Regulation) should create security for investors, protect private in- which will be adopted in the near future.

The Taxonomy vestors from greenwashing, help companies to become Regulation formally defines green, social, and sustaina- more climate-friendly, mitigate market fragmentation ble loans and imposes reporting requirements for com- and help shift investments where they are most needed.

mercial banks on taxonomy-aligned loans.


The NBG The Taxonomy Regulation (EU 2020/852) was published in the Official Journal of the European Union on June 22, 2020 and entered into force on July 12, 2020.

It es- tablishes the basis for the EU taxonomy by setting out four overarching conditions that an economic activity has to meet in order to qualify as environmentally sus- tainable.
The Taxonomy Regulation10 establishes six environ- mental objectives إ Climate change mitigation إ Climate change adaptation إ The sustainable use and protection of water and marine resources إ The transition to a circular economy إ Pollution prevention and control إ The protection and restoration of biodiversity and ecosystems N EU Documents Relevant to the Green Deal 3 Fit for 55 Package12  Aim of the Document will also develop a green, social and sustainable bond framework for capital market participants based on the Taxonomy.
Georgian Documents Relevant to the Green Deal and Aim of the Document The Fit for 55 Package consists of a set of inter-con- nected proposals which all drive towards the same goal of ensuring a fair, competitive and green transition by Transposition of this legislation into national legis- lation is not yet mandatory for Georgia.

However, the transposition of this legislation into national legislation 2030 and beyond.
Where possible, existing legisla- will become a critical factor in trading high-polluting tion is made more ambitious and where needed, new goods (cement, iron and steel, aluminum, fertilizers, proposals are put on the table.

Overall, the package electricity) with EU countries.

There is an ongoing dis- strengthens eight existing pieces of legislation and pre- cussion in Georgia to develop am emission trading sents five new initiatives across a range policy areas and mechanism.
economic sectors: climate, energy and fuels, transport, buildings, land use and forestry.
10 Regulation (EU) 2020/852 of the European Parliament and of t... - EUR-Lex (europa.eu) 12 EUR-Lex - 52021DC0550 - EN - EUR-Lex (europa.eu) 15 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Fit for 55 Package includes the following initia- Georgia also transposed RED and EED (previous ver- tives13: sions) into national legislation: إ Law on Promoting the Generation and Consumption of Energy from Renewable Sources.
إ Law On Energy Efficiency.

إ Revision of the EU Emissions Trading System (ETS), including maritime, aviation and CORSIA as well as a proposal for ETS as its own resource.

إ Carbon Border Adjustment Mechanism (CBAM) and a proposal for CBAM as its own resource.

إ Effort Sharing Regulation (ESR).

إ Revision of the Energy Tax Directive.

إ Amendment to the Renewable Energy Directive to implement the ambition of the new 2030 climate target (RED).
إ Amendment of the Energy Efficiency Directive to implement the ambition of the new 2030 climate target (EED).

إ Revision of the Regulation on the Inclusion of Green- house Gas Emissions and Removal from Land Use, Land Use Change and Forestry (LULUCF).

إ Revision of the Directive on the Deployment of Alternative Fuels Infrastructure.

إ Revision of the Regulation Setting CO2 Emission Performance Standards for New Passenger Cars and for New Light Commercial Vehicles.
Fit for 55 is a draft amendment to eight existing legal acts and the adoption of five new legal or policy doc- uments13.

Particularly noteworthy in this regard is the increase in the share of renewable energy up to 40% and the noticeable increase in the total target energy efficiency (36-39%), the change in the emissions trad- ing system and the adoption of a regulation of effort sharing.
Among the innovations are the development of carbon price mechanisms (the so-called regulation of the carbon border correction mechanism) and the promotion of green hydrogen popularization.
13 The EU’s Fit-for-55 package: The European Green Deal’s fitness test | Heinrich Böll Stiftung | Brussels office - European Union (boell.org) 16 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 4 Just Transition Mechanism  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Just Transition Mechanism (JTM) is a key tool to Georgia does not have a Just Transition Mechanism.
ensure that the transition towards a climate-neutral economy happens in a fair way, leaving no one behind.

The Mechanism will create the necessary investment to help workers and communities which rely on the fossil fuel value chain.

The Just Transition Mechanism will consist of three main sources of financing: 1. a Just Transition Fund, 2. a dedicated Just Transition scheme under InvestEU and 3. a public sector loan facility with the European Investment Bank backed by the EU budget.
N EU Documents Relevant to the Green Deal 5 New EU Strategy on Adaptation to Climate Change14  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The strategy aims to realize the 2050 vision of a climate- Georgia does not yet have the National Adaptation resilient European Union by making adaptation smarter, Plan to Climate Change.

more systemic, swifter and by stepping up international action.
This translates throughout the policy cycle into improved knowledge and data, support to policy development and climate risk management at all levels and accelerated adaptation action across the board.

This would mean adaptation awareness and planning spread to every single local authority, company and household; adaptation implementation well underway for those most affected and global leadership in areas such as climate services, climate proofing or nature- based solutions.
Nationally Determined Contributions (NDC)15 - The goal of the NDC of Georgia is to support the sustaina- ble and balanced development of the country, equally taking into consideration climate change and environ- mental and socio-economic challenges.

Adaptation to climate change is one of the priorities of the climate policy of Georgia.

The National Plan for Adaptation to Climate Change for the Agricultural Sector (2017)16 - defines objectives and measures in the agricultural sector.
14 A new EU Strategy on Adaptation to Climate Change (europa.eu) / EUR-Lex - 52021DC0082 - EN - EUR-Lex (europa.eu) 15 NDC Georgia_ENG WEB-approved.pdf (unfccc.int) 16 https://eiec.gov.ge/ge/Documents/Download/531 17 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 6 EU Gender Strategy17  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document One of the main aims is to encourage a higher number Georgia does not have a Gender Strategy.
of women in the labor market and their progress in securing better education and training.
N EU Documents Relevant to the Green Deal 7 Digital Europe Program18  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Digital Europe Program (DIGITAL) is a new EU fund- Georgia plans to develop a long-term national strat- ing program focused on bringing digital technology egy for the development of the digital economy and to businesses, citizens and public administration.
The Digital Europe Program will provide strategic funding supporting projects in five key capacity areas: in su- information society and the plan for its implementa- tion19 which will define the future directions of its digital economy and promote the development of electronic percomputing, artificial intelligence, cybersecurity, ad- services in the public and the private sectors, increase vanced digital skills and ensuring a wide use of digital digital literacy and enhance the country’s competitive- technologies across the economy and society, includ- ness in the global digital economy.
ing through Digital Innovation Hubs.

With a planned overall budget of 7.5 € billion (in current prices), it aims to accelerate economic recovery and shape the digital transformation of Europe’s society and economy, bring- ing benefits to everyone but, in particular, to small and medium-sized enterprises.

In addition, the Georgian National Broadband Network Development Strategy 2020 - 2025 and Action Plan for its Implementation is already developed and will contribute to the abovementioned goals.
The program aims to give the population access to high-speed inter- net and gradually create the environment for digital ser- vices across the country.
According to the plan, house- holds will have access to 100 mb/s while the quality will be 1 Gb/s for the public sector.20 17 https://ec.europa.eu/info/policies/justice-and-fundamental-rights/gender-equality/gender-equality- strategy_en 18 Digital Programme | Shaping Europe’s digital future (europa.eu) 19 Government Program 2021 – 2024 For the Construction of a European State, p. 32.
20 https://tinyurl.com/yudxfa78 18 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 8 Digital Finance Strategy21  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The digital finance strategy and legislative proposals on Georgia does not have a Digital Finance Strategy.
crypto-assets and digital resilience for a competitive EU financial sector gives consumers access to innovative financial products while ensuring consumer protection and financial stability.

 DECARBONIZATION22 N EU Documents Relevant to the Green Deal 9 European Climate Law23  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The European Climate Law entered into force on July Georgia does not yet have a climate law.

29, 2021.
29, 2021.

The law sets a legally binding target of net zero greenhouse gas emissions by 2050.

The law also puts the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030 as compared to 1990 levels.

It sets a high standard for public involvement (the principle of equitable energy regulation).
N EU Documents Relevant to the Green Deal 10 Methane Strategy (EU Strategy to Reduce Methane Emissions)24  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The European Commission presented an EU strategy to Georgia joined the Global Methane Pledge, which was reduce methane emissions on October 14, 2020.

Tack- launched at the COP26 in November 2021, to catalyze ling methane emissions is essential for reaching our action to reduce methane emissions.
The MEPA plans 2030 climate targets and the 2050 climate neutrality to develop the Methane Strategy for Georgia in the near goal as well as contributing to the European Commis- future.

sion’s zero-pollution ambition.
21 https://ec.europa.eu/info/publications/200924-digital-finance-proposals_en 22 The five pillars of the Green Agenda: (1) climate action/decarbonisation, including climate, energy and mo- bility; (2) circular economy, addressing, in particular waste, recycling, sustainable production and the efficient use of resources, (3) biodiversity, aiming to protect and restore the natural wealth of the region, (4) fighting the pollution of air, water and soil and (5) sustainable food systems and rural areas.
23 European Climate Law (europa.eu) / EUR-Lex - 32021R1119 - EN - EUR-Lex (europa.eu) 24 TA MEF (europa.eu) 19 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL This strategy sets out measures to cut methane emis- sions in Europe and internationally.

It presents legisla- tive and non-legislative actions in the energy, agricul- ture and waste sectors which account for around 95% of methane emissions associated with human activity worldwide.
One of the priorities under the strategy is to improve the measurement and reporting of methane emissions.
N EU Documents Relevant to the Green Deal 11 Proposals to Stop Deforestation, Innovate Sustainable Waste Management and Make Soils Healthy25  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The proposal aims to minimize the consumption of products coming from supply chains associated with The Forest Code of Georgia (2020)26 - The Forest Code of Georgia, irrespective of its form of ownership, is man- deforestation or forest degradation, avoid risks for hu- aged on the basis of a system developed in accordance man health and the environment generated from waste with the principles of sustainable development to en- shipped across borders and prevent soil degradation sure the improvement of the quantitative and qualita- and its promote its restoration.
tive characteristics of forests, the conservation of their biodiversity, the rational use of the economic potential of forests taking into consideration their environmen- tal value, the participation of the public in the manage- ment of forests and the availability of forest resources to the public.

The Waste Management Strategy 2016-2030 and Ac- tion Plan 2016-2020.27 A draft action plan 2021-2025 is under development.
The Strategy, based on the Waste Management Code (2014) elaborated according to the EU/Georgia AA requirements and best practices, aims at the harmonization of the waste management process in Georgia with the EU’s waste management policy.

The Strategy covers the management of all types of solid waste except radioactive waste and outdated persistent organic pollutants (POPs).
25 European Green Deal: Commission adopts new proposals (europa.eu) 26 Forest Code of Georgia | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 27 Strategic Documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 20 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 12 European Climate Pact28  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document In 2020, the European Commission launched a Europe- The UNECE Convention on Access to Information, an Climate Pact – an EU-wide initiative to engage with Public Participation in Decision-making and Access different stakeholders and civil society with the aim of committing them to climate action and more sustaina- ble behavior.
The Pact focuses on three ways to engage to Justice in Environmental Matters (Aarhus Conven- tion).29 The Aarhus Convention links environmental rights and human rights and establishes that sustaina- with the public on climate action.

ble development can be achieved only through the in- 1.

First, it will encourage information sharing, inspira- tion and fostering public understanding of the threat and the challenge of climate change and environ- mental degradation and on how to counter it.
It will use multiple channels and tools to do so, including volvement of all stakeholders.

It focuses on interactions between the public and public authorities in a demo- cratic context and is forging a new process for public participation in the negotiation and implementation of international agreements.
events in Member States on the model of the Euro- Decree of the Government of Georgia #629 (Decem- ber 20, 2019) on the Approval of the Rules of Policy Planning, Monitoring and Evaluation.30 Policy planning rules and guidelines require a public consultation step before the adoption of a policy document.

Sustainable Energy (and Climate) Action Plans, adopt- ed by local governments, a signatory’s action plan de- scribe the steps towards their 2020 or 2030 targets.
pean Commission’s on-going citizens’ dialogues.

2.

Second, there should be both real and virtual spaces for people to express their ideas and creativity and work together on ambitious actions, both at the in- dividual and collective levels.

Participants would be encouraged to commit to specific climate action goals.

3.

Third, the European Commission will work on build- ing capacity to facilitate grassroots initiatives on climate change and environmental protection.
N EU Documents Relevant to the Green Deal 13 New European Bauhaus31 28 https://europa.eu/climate-pact/system/files/2020-12/20201209%20European%20Climate%20Pact%20Com- munication.pdf 29 https://unece.org/DAM/env/pp/documents/cep43e.pdf 30 https://matsne.gov.ge/ka/document/view/4747283?publication=0 31 New European Bauhaus: Commission launches design phase (europa.eu) / Call for Partners (europa.eu) 21 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The New European Bauhaus is a creative initiative, There is no such initiative at the national level in breaking down boundaries between science and tech- Georgia.
nology, art, culture, and social inclusion, to find solu- tions for everyday problems.

The New European Bau- haus is an environmental, economic and cultural project aiming to combine design, sustainability, accessibility, affordability and investment in order to help deliver the European Green Deal.

The core values of the New Eu- ropean Bauhaus are thus sustainability, aesthetics and inclusiveness.
The goal of the design phase is to use a co-creation process to shape the concept by exploring ideas, identifying the most urgent needs and challeng- es and connecting interested parties.

It is an interdisciplinary project, co-steered by an ad- visory board of external experts including scientists, architects, designers, artists, planners and civil socie- ty that create experimental spaces where art, culture, science and technology can imagine, test and demon- strate new solutions.
N EU Documents Relevant to the Green Deal 14 Renovation Wave Strategy32 - A Renovation Wave for Europe – Greening Our Buildings, Creating Jobs, Improving Lives  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document It aims to double annual energy renovation rates in the next ten years while also improving the quality of life The Law of Georgia on Energy Efficiency.33 The general goal of the Law on Energy Efficiency is to provide the (eliminating energy poverty) and creating new jobs.
legal foundation for promoting and implementing The Renovation Wave identifies three focus areas: 1. tackling energy poverty and worst-performing build- ings, 2. public buildings and social infrastructure and 3. decarbonizing heating and cooling.

energy efficiency in the country, establish a procedure for developing national energy efficiency targets and coordinate, control, supervise and monitor the energy efficiency policy.
The Law on Energy Performance of Buildings.34 The purpose of this law is to promote the rational use of energy resources and improve the energy efficiency 32 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0662 33 On Energy Efficiency | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 34 https://www.matsne.gov.ge/en/document/view/4873932?publication=0 22 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document of buildings, considering the external climate and local conditions of buildings, the demand for indoor climate conditions and cost-effectiveness.
However, its full implementation is pending the adop- tion of necessary secondary legislation which is cur- rently being developed.

The National Energy Efficiency Action Plan (NEEAP) (2019–2020) (NEEAP)35 – establishes a set of investment and policy measures.

The aim of the NEEAP is to opti- mize and reduce the use of energy resources as com- pared to a Business as Usual (BAU) scenario.

A separate section is devoted to energy efficiency measures in buildings.
The EED requires that the NEEAP present a long-term strategy for mobilizing investment in the ren- ovation of buildings and that it is included in the NEEAP.

However, there is currently no national building renova- tion strategy in place and very limited information is available on the building stock.

The National Energy and Climate Plan (NECPs) de- scribes a unified integrated policy and measures for energy and climate issues at the national level.
Geor- gia, being a member of the Energy Community, plans to submit its first NECP by the end of 2022.

It will cover the period 2021-2030 and include a vision for 2050.

The NECP covers five main areas: energy security, Georgia’s internal energy market, energy efficiency, decarboniza- tion and renewable energy sources, and research, inno- vation and competitiveness.

The Energy Efficiency of Buildings is an important part of the NECP.

Renovation targets and related measures are described in the doc- ument.
Georgia’s 2030 Climate Change Strategy.36 The Cli- mate Strategy and Action Plan identify a long-term vi- sion of GHG emissions reduction by 2030 and specific planned actions.

Buildings are one of the main contrib- utors of GHG emissions.
35 http://www.economy.ge/?page=ecopolitic&s=63&lang=ge 36 https://mepa.gov.ge/En/Files/ViewFile/50123 23 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 15 European Battery Alliance37  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document With the massive migration from fossil fuels to clean Georgia does not have a battery regulation or other tech, electricity is considered as a cleanest energy related strategies.
carrier.

In the future with electricity, batteries play a significant role and the demand for efficient batteries grows faster than ever before.

The European Battery Alliance (EBA) was created to help Europe establish crucial goals – a complete battery value chain with the aim of a clean energy transition.

The EBA is a community with more than 700 actors from different sectors of the economy with the same goal of building a competitive European battery industry.
For more than a decade, the European Commission has developed policies and directives including the New Battery Regulation, the Batteries Directive, the Eco-design Directive, the Strategic Action Plan on Batteries and the List of Critical Raw Materials.

These documents should help the community electrify the future.
N EU Documents Relevant to the Green Deal 16 EU Strategy on Offshore Renewable Energy38  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Strategy proposes to increase Europe’s offshore Georgia does not have a strategy on Offshore Renew- wind capacity from its current level of 12 GW to at least able Energy.

60 GW by 2030 and to 300 GW by 2050.


The European Commission aims to complement this with 40 GW of ocean energy and other emerging technologies such as floating wind and solar by 2050.
N EU Documents Relevant to the Green Deal 17 EU Strategy on Energy System Integration39 37 https://www.eba250.com 38 https://energy.ec.europa.eu/topics/renewable-energy/eu-strategy-offshore-renewable-energy_en 39 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0299&from=EN 24 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Strategy sets out a vision on how to accelerate the transition towards a more integrated energy system, The National Energy and Climate Plan (NECP) is under development where key domains are related to the core one that supports a climate neutral economy at the least pillars of the EU’s strategy on energy system integration.
cost across sectors.

Energy system integration refers to The NECP uses the TIMES-Georgia model for energy the planning and operating of the energy system “as a sector planning.

whole” across multiple energy carriers, infrastructures and consumption sectors by creating stronger links between them with the objective of delivering low- carbon, reliable and resource-efficient energy services at the least possible cost for society.
It includes three core pillars: إ A more ‘circular’ energy system, with energy effi- ciency at its core, in which the least energy intensive choices are prioritized, unavoidable waste streams are reused for energy purposes and synergies are ex- ploited across sectors.

إ A greater direct electrification of end-use sectors.
The rapid growth and cost competitiveness of renewable electricity production can service a growing share of energy demand – for instance, using heat pumps for space heating or low-temperature industrial processes, electric vehicles for transport or electric furnaces in certain industries.

إ The use of renewable and low-carbon fuels, includ- ing hydrogen, for end-use applications where direct heating or electrification are not feasible.
System integration will likely follow different pathways in each EU country depending on their respective start- ing points and policy choices.

Some of these are al- ready reflected in the national energy and climate plans 2021-2030.

A net-metering scheme was introduced to support the use of renewable energy in end-use sectors which allows consumers to trade excess generation.
The use of renewables for end-use applications where direct electrification is not feasible is also taking place with the support of donor funds and in cooperation with the Ministry of the Economy and Sustainable Development.
Solar PV panels were installed in high mountainous villages that had no access to the national electricity grid.40 The government introduced incentives to support the faster penetration of more efficient (e.g., hybrid) and electric cars in order to tackle air pollution caused by old and inefficient vehicles, These included tax subsidies and exceptions for hybrid and electric cars, taxes on the purchase of cars over ten years of age and increasing fuel rates for petrol and diesel.
As a result, hybrid and electric cars are gradually gaining popularity among Georgian drivers.

Fiscal incentives include an increased excise tax for older cars, a reduced excise tax on hybrid cars, no excise and import tax on electric cars and increased excise tax on fuels.

The compulsory technical inspection of cars was introduced on January 1, 2019.
At the same time, however, there is no common ap- proach that will consider all of these pillars together and the energy system “as a whole” across multiple en- ergy carriers, infrastructures and consumption sectors.
40 https://www.agenda.ge/en/news/2020/2295 25 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 18 Hydrogen Strategy for a Climate-Neutral Europe41  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The priority for the EU is to develop green hydrogen, Georgia does not have an official Hydrogen Strategy produced using mainly wind and solar energy.
but it is making some steps towards the development This gradual transition will require a phased approach: إ From 2020 to 2024, we will support the installation of at least 6 gigawatts of renewable hydrogen elec- trolysers in the EU and the production of up to one million tons of renewable hydrogen.
إ From 2025 to 2030, hydrogen needs to become an intrinsic part of our integrated energy system with at least 40 gigawatts of renewable hydrogen electrolys- ers and the production of up to ten million tons of of green hydrogen potential.

The Georgian government has asked the EBRD to explore the country’s potential for generating green hydrogen which could then be blended and transported to end-users through existing gas pipelines.

Georgia signed an agreement with the KfW.


The declaration between Georgia and the German KFW intends to: إ Assess the potential and benefits of green hydrogen renewable hydrogen in the EU.

in Georgia.

إ From 2030 to 2050, renewable hydrogen technolo- gies should reach maturity and be deployed at large scale across all hard-to-decarbonize sectors.

إ Undertake a pilot project providing benefits to the country’s economy and assisting the development of clean and renewable energy.
إ Reduce the country’s dependence on imported gas and increase supply security.

إ Increase the pace of development of renewable en- ergy projects for mitigating carbon emissions and the creation of export opportunities for the country.

The National Hydrogen Association (NHA) was found- ed in 2021 to support the practical implementation of global energy transition goals in Georgia by working on the development of the country’s hydrogen sector.
The Association acts as a platform for advancement of hydrogen research and development and works to bridge Georgia’s clean hydrogen potential with national and international actors and opportunities in the energy and climate fields.
41 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0301&from=EN 26 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 19 Clean Energy for All Europeans Package42  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The package, adopted in 2019, will help to decarbonize As a member of Energy Community, Georgia is im- the EU’s energy system in line with the European Green plementing the respective EU Directives.
Some of the Deal objectives.

The package consists of eight new laws already entered into the force; however, their full laws: implementation is pending the adoption of secondary 1.

Energy performance in buildings.43 legislation.

2.

Renewable energy.45 3.

Energy efficiency.45 4.

Governance of the energy union.46 5.

Electricity regulation.47 6.

Electricity directive.48 7.

Risk preparedness.49 8.

ACER (European Union Agency for the Cooperation of Energy Regulators).50 1.
Law on Energy Efficiency of Buildings.51 2.

Law on Promoting the Generation and Consumption of Energy from Renewable Sources.52 3.

Law on Energy Efficiency.53 4.

N/A 5.

Law on Electricity and Water Supply.54 6.

Law on Electricity and Water Supply.

7.

Rules for Security of Electricity Supply.55 8.

N/A 42 https://energy.ec.europa.eu/topics/energy-strategy/clean-energy-all-europeans-package_en 43 h t t p s : / / e u r- l e x .

e u r o p a .

e u / l e g a l - c o n t e n t / E N / T X T / ?
t o c = O J : L : 2 0 1 8 : 1 5 6 : TO C & u r i = u r i s e r v : O - J.L_.2018.156.01.0075.01.ENG 44 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0082.01.ENG&toc=O- J:L:2018:328:TOC 45 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0210.01.ENG&toc=O- J:L:2018:328:TOC 46 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0001.01.ENG&toc=O- J:L:2018:328:TOC 47 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2019.158.01.0054.01.ENG&toc=O- J:L:2019:158:TOC 48 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2019.158.01.0125.01.ENG&toc=O- J:L:2019:158:TOC 49 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:L:2019:158:FULL&from=EN 50 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2019.158.01.0022.01.ENG&toc=O- J:L:2019:158:TOC 51 https://www.matsne.gov.ge/en/document/view/4873932?publication=0 52 https://matsne.gov.ge/en/document/view/4737753?publication=1 53 https://matsne.gov.ge/en/document/view/4873938?publication=0 54 https://matsne.gov.ge/ka/document/view/4747785?publication=6 55 https://www.matsne.gov.ge/ka/document/view/5043284?publication=0 27 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 20 Sustainable and Smart Mobility Strategy– Putting European Transport on Track for the Future56  Aim of the Document The European Green Deal includes a target to reduce transport-related greenhouse gas emissions by 90% by 2050.
The objectives of the strategy are: إ Increasing the uptake of zero-emission vehicles.

إ Making sustainable alternative solutions available to the public and businesses.

إ Supporting digitalization and automation.

إ Improving connectivity and access.

The key milestones are: By 2030: إ At least 30 million zero-emission vehicles will be in operation on European roads.

إ 100 European cities will be climate neutral.

إ High-speed rail traffic will double.


إ Scheduled collective travel of under 500 km should be carbon neutral within the EU.

إ Automated mobility will be deployed at a large scale.

Georgian Documents Relevant to the Green Deal and Aim of the Document The Climate Change Strategy 203057 and Action Plan for 2021-202358 aims to: reduce greenhouse gas emis- sions in the transport sector to 15% below the reference scenario projections by 2030.
This goal can be achieved through the fulfilment of the following objectives: إ Increase the share of low- and zero-emission and roadworthy private vehicles in the vehicle fleet.

This includes increasing the share of electric and hybrid vehicles in the total registered vehicles in Georgia with 5% and 20%, respectively, by 2030.

إ Encourage the reduced demand on fossil fuel and the use of biofuels.

إ Promote non-motorized means of mobility and public transport.
The strategy uses the percentages of transportation by non-motorized transport (cycling and walking) and by public transport (metro, bus, minibus) as the outcome indicators.

The identified 2030 targets for these indicators are - 35% and 45%, respectively.

إ Implement innovative, evidence-based initiatives in إ Zero-emission vessels will become ready for the the transport sector.

market.

By 2035: إ Zero-emission large aircraft will become ready for the market.
By 2050: Several potential plans and strategies have been de- veloped that would have a positive impact for shifting freight from road to railroad but there remains a lack of clarity on what would be the most effective option to pursue.

The 2021-2023 Climate Action Plan includes conducting of a cost-benefit analysis and a (technical and economic) feasibility study in order to assess the إ Nearly all cars, vans and buses as well as new heavy- most suitable policy options in this area.
duty vehicles will be zero-emission.

إ Rail freight traffic will double.

56 https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12438-Sustainable-and-Smart- Mobility-Strategy_en 57 https://mepa.gov.ge/En/Files/ViewFile/50123 58 https://mepa.gov.ge/En/Files/ViewFile/50122 28 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL إ High-speed rail traffic will triple.
إ The multimodal Trans-European Transport Network (TEN-T) equipped for sustainable and smart transport Integrated Sustainable Urban Mobility Plan for Batumi59 The key objectives of the Urban Mobility Plan for with high-speed connectivity will be operational for Batumi are: the comprehensive network.

إ Increase transport safety and security.

إ Offer and optimize alternative sustainable transport options for walking, cycling and public transport.
إ Reduce the effects of transport on people, health and the environment.

Sustainable Urban Strategy for Tbilisi60 and Associated Long-Term Action Plan (2022-2030) The Tbilisi SUT Strategy focusses on environmentally friendly and low emission solutions and the realignment of the Tbilisi urban mobility system along an efficient, innovative, safe, economically viable and financially sustainable model.
The strategy covers all transport modes including personal motor vehicles, public trans- port and non-motorized transport as well as institutional and land use aspects to foster better living conditions, city attractiveness and competitiveness, and economic development.

The Green City Action Plan for Tbilisi (2017-2030)61 (GCAP) covers eight sectors including transport.

The main objectives in the transport sector62 are: إ Develop and implement a Sustainable Urban Mobil- ity Plan.
إ Public road vehicle fleet with low levels of emissions and noise and high levels of safety.

إ An optimized transport infrastructure network with the prioritization of public transport on roads.

إ An optimized city traffic management system includ- ing all achievable features of an Intelligent Transport System.
59 https://www.undp.org/sites/g/files/zskgke326/files/migration/ge/UNDP_GE_ENV_Green_Cities_Batumi_ Integrated_Sustainable_Urban_Mobility_Plan_ENG.pdf 60 http://mdf.org.ge/storage/assets/file/documents%202016/murtazi/Strategic%20Paper%20Report%20 PDF%20Geo(18_03_2016)/Strategic%20Paper%20Report%20final%20ENG.pdf 61 https://tbilisi.gov.ge/page/green-city?lang=en 62 https://wecoop.eu/wp-content/uploads/2022/02/Clinic-1-SUMP-Session-3-5-Vladislav-Bizek-WECOOP- EN-080222.pdf 29 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL The Tbilisi Resilience Strategy63 is based on existing strategies by highlighting complementary actions and expanding initiatives to include a resilience approach.
Among other goals, the strategy aims at developing active and inclusive transport systems, including meas- ures to increase the use of electric (metro) public trans- portation means.
 CIRCULAR ECONOMY N EU Documents Relevant to the Green Deal 21 Circular Economy Action Plan64  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document This Circular Economy Action Plan provides a fu- ture-oriented agenda for achieving a cleaner and more competitive Europe in co-creation with economic ac- Georgia plans to develop a circular economy devel- opment strategy and action plan.

The MEPA is cur- rently developing target indicators.
Throughout the tors, consumers, citizens and civil society organizations.

elaboration of the economic development policies, the It aims at accelerating the transformational change re- new waste management code implies the first steps quired by the European Green Deal while building on of circularity.
In parallel with the code, the MEPA also circular economy actions implemented since 2015. cultivated an extended consumer responsibility and an entailing principle which will boost several regulations that will foster a circular approach to waste and ensure the accrual of materials and their processing (Minister Davitashvili, July 2021).65 This plan also aims at ensuring that the circular economy works for people, regions and cities; fully contributes to climate neutrality and harnesses the potential of research, innovation and digitalization.
It foresees the further development of a sound monitoring framework contributing to measuring well-being beyond the GDP.

A circular economy reduces pressure on natural re- sources and is a precondition for achieving the cli- mate-neutrality target by 2050 and halting biodiversity loss.
N EU Documents Relevant to the Green Deal 22 Sustainable Blue Economy.66 A New Approach for a Sustainable Blue Economy in the EU, Transforming the EU’s Blue Economy for a Sustainable Future 63 https://resilientcitiesnetwork.org/downloadable_resources/Network/Tbilisi_Resilience-Strategy-English.pdf 64 New Circular Economy Action Plan (europa.eu) / new_circular_economy_action_plan.pdf (europa.eu) / Cir- cular economy action plan (europa.eu) 65 News | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 66 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52021DC0240&from=EN 30 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document It is a systemic view that integrates ocean policy into The World Bank supports Georgia’s transition to a more Europe’s new economic policy.
This communication sustainable blue economy.

World Bank reports include: sets out a detailed and realistic agenda for the blue Impacts of Climate Change on Georgia’s Coastal Zone: economy to play a major role to achieve the European Vulnerability Assessment and Adaptation Options67 Green Deal’s objectives.

This communication: إ Calls on all maritime players to base their activities on the responsible use of natural resources, on de- carburization and on circular economy concepts.
إ Sets out a detailed agenda for greening the blue economy, underpinned by international ocean gov- ernance.

إ Facilitates the coexistence and the synergies of eco- nomic activities in the maritime space through mari- time spatial planning without damaging the environ- ment.
Proposes a series of actions to boost investment in re- search (e.g., Mission on Oceans and Waters), skills and innovation, and mobilizes financing opportunities un- der the new European Maritime, Fisheries and Aquacul- ture Fund and other EU Program (e.g., Resilience and Recovery Facility).
and The Cost of Coastal Zone Degradation in Georgia: A Tool for the Coastal Zone Adaptation and the Nationally Determined Contributions.68 The recommendations provided in these two reports seek to raise the level of urgency needed to reduce the impact of climate change on the country’s coastal zone, address the escalating cost of inaction and focus on the blue economy as a vehicle to accelerate climate change adaptation and mitigation measures and contribute to Georgia and the region’s socio-economic development, tourism and environmental conservation.
The purpose of these studies is to support the implementation of the coastal zone-related NDC targets with the integration of blue economy gains.

Its findings are to be used to start raising the ambition of Georgia’s NDC and help define climate adaptation targets for the country’s Black Sea coast.
This report is also a key part of the World Bank’s Blueing the Black Sea Program (BBSEA) that is being developed in support of the Common Maritime Agenda signed by all of the countries of the Black Sea plus Moldova in May 2019.
The Common Maritime Agenda for the Black Sea (CMA)69 and its Implementation Process70 - is a sea ba- sin initiative that aims at supporting regional coopera- tion for a more sustainable blue economy in the Black Sea and is developed in the broader framework of the Black Sea Strategy.
The Republic of Bulgaria, Georgia, 67 https://openknowledge.worldbank.org/bitstream/handle/10986/34886/Impacts-of-Climate-Change-on- Georgia-s-Coastal-Zone-Vulnerability-Assessment-and-Adaptation-Options.pdf?sequence=1&isAllowed=y 68 https://openknowledge.worldbank.org/bitstream/handle/10986/35179/The-Cost-of-Coastal-Zone-Degrada- tion-in-Georgia-A-Tool-for-the-Coastal-Zone-Adaptation-and-the-Nationally-Determined-Contributions.pd- f?sequence=1&isAllowed=y 69 http://www.bsec-bsvkc.org/UploadedDocuments/Annex%201%20-%20Common%20Maritime%20Agen- da%20for%20the%20Black%20Sea.pdf 70 http://www.bsec-bsvkc.org/UploadedDocuments/Annex%202%20-%20CMA%20implementation.pdf 31 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL the Republic of Moldova, Romania, the Russian Feder- ation, Republic of Turkey and Ukraine, all BSEC Mem- ber States, are the participating countries.
It is comple- mented by its scientific pillar, the Strategic Research and Innovation Agenda for the Black Sea (SRIA), sup- ported by the Directorate General for Research and In- novation of the European Commission (DG RTD).

The CMA sets three goals: 1. healthy marine ecosystems, 2.

An innovative blue economy and 3. investment – and ten priorities further defined into actions.
N EU Documents Relevant to the Green Deal 23 Framework for Maritime Spatial Planning71 (EU Directive)  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document This Directive establishes a framework for maritime Georgia does not have an approved Maritime Spatial spatial planning aimed at promoting the sustainable Plan.
However, in accordance with Association Agree- growth of maritime economies, the sustainable devel- ment, the government introduces some amendments opment of marine areas and the sustainable use of ma- to the Law on Maritime Space and included provisions rine resources.

Through their maritime spatial plans, Member States to protect the country’s coastal zone and the Black Sea from pollution as well as ensuring its monitoring.
aim to contribute to the sustainable development of Law on Maritime Space72 energy sectors at sea, of maritime transport and of the fisheries and aquaculture sectors as well as to the pres- ervation, protection and improvement of the environ- ment, including resilience to climate change impacts.

In addition, Member States may pursue other objectives such as the promotion of sustainable tourism and the sustainable extraction of raw materials.
N EU Documents Relevant to the Green Deal 24 A New Industrial Strategy for Europe73 71 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0089&from=EN 72 https://matsne.gov.ge/ka/document/view/18244?publication=24 73 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0102 32 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document This Strategy helps Europe’s industry lead the twin transition and drive its competitiveness.
The package of Government Program 2021 - 2024 For the Construction of a European State74 initiatives set out a range of actions to support all players of European industry to maintain competitiveness in the internal market and globally, make Europe climate- neutral by 2050 and shape Europe’s digital future.

The document aims to form the general development perspectives for every sector of the economy, includ- ing Industry.
By focusing on increasing economic out- put, it is planned to maintain a favorable tax system and implement innovative approaches, including digital and state-of-the-art technologies to create a comfort- able environment for industry and entrepreneurs.
It is planned to continue the Mining Sector Development Program which aims to create an attractive mining in- dustry and optimize economic benefits.75 The docu- ment also references other strategies and action plans, both already developed and in progress, and their pur- pose is to enhance competitiveness, access to interna- tional markets, infrastructure and labor skills in order to help the industry to sustainably grow.
It is planned to adopt new legislation on entrepreneurs with a view to fully reflect the benefits of the Association Agreement.

N EU Documents Relevant to the Green Deal 25 Action Plan on Critical Raw Materials76  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Action Plan on Critical Raw Materials is aimed to Georgia does not have an Action Plan on Critical Raw develop resilient value chains for EU industrial ecosys- Materials.
tems, reduce dependency on primary critical raw mate- rials through circular use of resources, sustainable prod- ucts and innovation and strengthen domestic sourcing of raw materials in the EU.
N EU Documents Relevant to the Green Deal 26 An SME Strategy for a Sustainable and Digital Europe77 74 https://www.gov.ge/files/68_78941_292978_govprogramme.pdf 75 https://nam.gov.ge/?m=text&menu=4&id=115 76 https://erma.eu 77 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0103 33 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The SME sector accounts for more than half of the GDP SME Development Strategy of Georgia, 2021-202578 in the EU, creates two-third of the jobs and covers every sector of the economy.
Underlining the importance of SMEs, the strategy builds on the foundation of the EU’s existing SME policy framework and support programs and sets the objective of unleashing the power of Europe’s SMEs while increasing their participation in sustainable development as well as in the digital technologies business.
N EU Documents Relevant to the Green Deal 27 Single Market Barriers Report79  Aim of the Document The strategy is based on the principles of the 2008 Small Business Act and on the best practice of Euro- pean countries within the small and medium business sector.

The main priorities of the strategy include the improvement of legislation regarding permits/licenses and strengthening the institutions and the operation- al environment.
Different institutions and agencies will contribute to the support of entrepreneurship by low-interest funding, research in e-communication, informational technologies and innovation and by searching for additional export markets.

According to the strategy, it is planned to simplify procedures for starting a business as well as digital services for en- trepreneurs, digitalizing the tax administration system and prioritizing the fight against corruption.
By doing so, competitiveness between SMEs will be enhanced which will create a solid base for inclusive and sustain- able economic growth.

The action plan sets out several targets and well-defined plans for accomplishment and the performance reports for the period of 2016-2020 and for 2021.

These reports are already available.


Georgian Documents Relevant to the Green Deal and Aim of the Document Most reported barriers in the market including gather- The relevant information is presented in Georgia’s SME ing information about requirements, cross-border pur- strategy.

chases and deliveries of goods and services and so on.
N EU Documents Relevant to the Green Deal 28 Intellectual Property Action Plan80 78 http://www.economy.ge/?page=ecopolitic&s=45&lang=ge 79 https://ec.europa.eu/info/sites/default/files/communication-eu-single-market-barriers-march-2020_en.pdf 80 Intellectual property action plan implementation (europa.eu) 34 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document This strategy aims to help SMEs protect their intellec- In Georgia, two similar laws are already adopted - Law tual property.
of Georgia on Copyright and Related Rights81 and the Patent Law of Georgia.82 N EU Documents Relevant to the Green Deal 29 Pact for Skills83  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document To support a fair and resilient recovery and deliver on The long-term strategy and action plan for the devel- the ambitions of the green and digital transitions and of opment of the vocational education system84 is a docu- the EU Industrial and SME Strategies, the Commission ment with similar purposes.
invites public and private organizations to join forces and take concrete action to upskill and reskill people in Europe.

N EU Documents Relevant to the Green Deal 30 European Innovation Council85  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The EIC is Europe’s flagship innovation program to Georgia’s Innovation and Technology Agency serves identify next generation technologies, accelerate their this purpose in Georgia.
commercial application and help them support the rapid scale up of start-ups.

N EU Documents Relevant to the Green Deal 31 Digital innovative Hubs (DHIs)86  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document These are agencies which consult SMEs about sustain- Similar agencies are already presented in Georgia ability and digitalization.

such as, for example, the Chamber of Commerce and Industry.
81 Law of Georgia on Copyright and Related Rights | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 82 Patent Law of Georgia | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 83 https://ec.europa.eu/social/main.jsp?catId=1517&langId=en 84 The document should be prepared within the next four years.
85 European Innovation Council (europa.eu) 86 Digital Innovation Hubs: helping companies across the economy make the most of digital opportunities — Brochure | Shaping Europe’s digital future (europa.eu) 35 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  BIODIVERSITY N EU Documents Relevant to the Green Deal 32 The EU Biodiversity Strategy For 203087  Aim of the Document To set Europe’s biodiversity on the path to recovery by 2030 and ensure that by 2050 all of the world’s ecosys- tems are restored, resilient and adequately protected.
Georgian Documents Relevant to the Green Deal and Aim of the Document The National Biodiversity Strategy and Action Plan of Georgia 2014-2020 (latest)88 strategy covers the bi- odiversity of the following areas: species and habitats, protected areas, forests ecosystems, agricultural biodi- versity and natural grasslands, inland water ecosystems and the Black Sea.

It sets strategic goals, national tar- gets, objectives and actions for each area.
Georgia is a signatory of the Bern Convention – on the Conservation of European Wildlife and Natural Habi- tats.

The total area (the so-called, emerald’ area) under this convention in Georgia covers 1,285,974 ha which is 18.45% of the country’s territory.89 According to the EC Directive N92/43/EEC).90 the owners of the areas pro- tect them from negative impact and ensure the mainte- nance of proper ecological conditions and components defined for the ‘emerald’ status.
(SDG 14.c.1) Georgia is a party to: 1.

UNCLOS, the UN Convention on the Law of the Sea (Accession on March 21, 1996).

2.

FAO Agreement to Promote Compliance with Inter- national Conservation and Management Measures by Fishing Vessels (Accession on September 7, 1994).

3.

The Convention on the Protection of the Black Sea Against Pollution (Bucharest Convention) (Ratified on September 1, 1993).
87 EUR-Lex - 52020DC0380 - EN - EUR-Lex (europa.eu) 88 CBD Strategy and Action Plan - Georgia (English version) 89 Strategic Documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 90 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:31992L0043&from=EN 36 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal  DEPOLLUTION 33 Zero Pollution Action Plan (EU Action Plan: Towards Zero Pollution for Air, Water and Soil)91  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document It sets out an integrated vision for 2050: a world where pollution is reduced to levels that are no longer harmful to human health and natural ecosystems as well as the Georgia does not yet have a chemical strategy for sus- tainability.
However, it has adopted Laws on Environ- mental Protection92 and on Ambient Air Protection.93 steps to get there.

The plan ties together all relevant EU policies to tackle and prevent pollution with a special emphasis on how to use digital solutions to tackle pol- lution.

Reviews of relevant EU legislation are foreseen to identify remaining gaps in EU legislation and where better implementation is necessary to meet these legal obligations.
The Action Plan sets out key 2030 targets to reduce pollution at the source in comparison to the current situation.

Namely: Improving air quality to reduce the number of pre- mature deaths caused by air pollution by 55%.

The amendments to the Law on Ambient Air Protection adopted in 2021 will enable Georgia to fully switch to the European ambient air quality management system in line with appropriate EU directives.
There is a state program for reducing the pollution of ambient air94 containing measures in Tbilisi city, includ- ing transport.

The EU Georgia Association Agreement95 determines the ways of approximation to EU regulations.

The EU-Georgia AA is a key document defining air protec- tion related strategic directions in the future.

The AA includes selected provisions from five air protection Improving water quality by reducing waste, plas- related EU directives.
The National Action Plan for the tic litter in the sea (by 50%) and microplastics re- Implementation of the AA96 provides a set of measures leased into the environment (by 30%).

to implement the AA requirements in given timeframes.

Improving soil quality by reducing nutrient losses and chemical pesticide use by 50%.

These actions are adequately reflected in the present Action Program: THE EU-GEORGIA ASSOCIATION AGREEMENT IMPLEMENTATION FRAMEWORK.
Trade     Reducing EU ecosystems where air pollution and Sustainable Development.

Work Plan 2021-23. threatens biodiversity by 25%.
91 Commission aims for zero pollution in air, water and soil (europa.eu) / www.eubusiness.com/topics/environ/ zero-pollution-action-plan 92 On Environmental Protection | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 93 277 (eiec.gov.ge) 94 Strategic Documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 95 EU/Georgia Association Agreement | EEAS Website (europa.eu) 96 Ministry of Foreign Affairs of Georgia - National Action Plans for the implementation of the Association Agreement and Association Agenda (mfa.gov.ge) 37 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Reducing the share of people chronically dis- ENVIRONMENT AND CLIMATE ACTION97 and the Ren- turbed by transport noise by 30%.
ovated EU-Georgia Association Agenda.98  Significantly reducing waste generation and resid- ual municipal waste by 50%.
Order #297 of the Minister of Labor, Health and Social Protection provides sets of environmental quality rules for the protection of surface waters from pollution (An- nex 2), hygiene requirements imposed on water quality in non-centralized water supply systems, sanitary pro- tection of water sources (Annex 3), the protection of marine coastal waters in areas of water use by the pop- ulation (Annex 4) and sanitary rules for the protection of underground waters (Annex 16).99 إ The Law of Georgia on Water Resource Manage- ment100 determines the national policy with respect to water resources, their sustainable use and man- agement.
إ The Conditions of Discharge and Acceptance of Wastewater into Sewage System and Maximum Permissible Conditions of Pollutant Substances101 determines the regulation regarding wastewater discharge and the thresholds of pollutant substanc- es.
إ Extended Producer Responsibility (EPR)102 is a part of the National Waste Management Code.103 97 2021-2023 EU-Georgia work plan for the implementation of the Trade and sustainable development chapter (europa.eu) 98 EU-Georgia Association Agreement and Agenda, old.civil.ge/files/files/annex_ii_-_eu-georgia_association_ agenda_text.pdf 99 Order No 297/N of 2001 of Minister of Labor, Health and Social Affairs of Georgia on Environmental Quality Requirements | InforMEA 100 On Water | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 101 On the approval of the technical regulation on the conditions of discharging and receiving wastewater into the sewage system and the marginally permissible norms of polluting substances | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 102 Strategic Documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 103 Waste Management Code | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 38 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N EU Documents Relevant to the Green Deal 34 Chemicals Strategy for Sustainability (Annexed with Action Plan for 2021-2024)104  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Strategy aims to significantly increase the protec- tion of human health and the environment from harm- ful chemicals, paying particular attention to vulnerable Georgia does not yet have a chemical strategy for sus- tainability.
However, it has adopted the Law on Environ- mental Protection105 and a resolution on the procedure population groups.
Flagship initiatives include, in par- for the export-import of certain hazardous chemicals ticular: إ Phasing out consumer products, such as toys, child- care articles, cosmetics, detergents, food contact materials and textiles with the most harmful sub- stances which include endocrine disruptors, chem- icals that affect the immune and respiratory systems and pesticides and the procedure of prior informed consent106 with annexes.
This is a list of chemicals and pesticides under ban or strict restriction for export and import (Annex I) and a list of hazardous chemicals and pesticides prohibited for production, export and import under the Stockholm Convention.

and persistent substances such as per- and polyfluo- In 2014, Georgia took an obligation under the EU- roalkyl substances (PFAS), unless their use is proven Georgia AA about chemicals management, embracing essential for society, among others.
the elaboration of corresponding legislation and its harmonization with the EU’s legislation, accounting and reporting of chemicals and dangerous/hazardous waste and the creation of a register of chemicals.

إ Minimizing and substituting as far possible the pres- ence of substances of concern in all products.

Pri- ority will be given to those product categories that affect vulnerable populations and those with the highest potential for a circular economy.
إ Addressing the combination effect of chemicals (cocktail effect) by taking better account of the risk that is posed to human health and the environment by daily exposure to a wide mix of chemicals from different sources.

Ensuring that producers and consumers have access to information on chemical content and their safe use by introducing information requirements in the context of the Sustainable Product Policy Initiative.
104 Commission adopts new Chemicals Strategy (europa.eu) / Chemicals strategy (europa.eu) / resource.html (europa.eu) / resource.html (europa.eu) / chemicals-strategy-factsheet.pdf (europa.eu) 105 On Environmental Protection | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 106 On the procedure for export-import of certain hazardous chemical substances and pesticides and the procedure for prior informed consent | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 39 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  SUSTAINABLE FOOD SYSTEMS AND RURAL AREAS N EU Documents Relevant to the Green Deal 35 From Farm To Fork (Farm To Fork for a Fair, Healthy and Environmentally Friendly Food System)107  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The Farm to Fork Strategy is at the heart of the Europe- an Green Deal aiming to make food systems fair, healthy and environmentally friendly.
It aims to reduce the envi- The Agriculture Development Strategy 2017-2021 and the Action Plan 2021-2023 of Georgia108 aim towards the diversification/development of economic opportu- ronmental and climate footprint of the EU food system nities in rural areas and the improvement of the social and strengthen its resilience, ensure food security in the status and the standard of living based on the principles face of climate change and biodiversity loss and lead of sustainable development.
a global transition towards competitive sustainability from farm to fork and tapping into new opportunities.
N EU Documents Relevant to the Green Deal 36 Organic Action Plan110  Aim of the Document The Environmental Protection and Agriculture Devel- opment Plan 2030 of Georgia109 has the following as its main objectives: self-sufficiency ratio enhancement for food safety, environmental and natural resources pro- tection, ensuring sustainable development, fostering the greater utilization of export potential for Georgia’s agro-production and the development of crucial insti- tutional capacity for enhancing sustainable and com- petitive agriculture.
Georgian Documents Relevant to the Green Deal and Aim of the Document A sustainable food system is at the heart of the Euro- Georgia does not yet have a separate organic strategy pean Green Deal.

Under the Green Deal’s Farm to Fork or action plan.

strategy, the European Commission has set a target of at least 25% of the EU’s agricultural land under organic farming and a significant increase in organic aquacul- ture by 2030.
107 f2f_action-plan_2020_strategy-info_en.pdf (europa.eu) 108 Strategic Documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 109 Strategic documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 110 Organic action plan | European Commission (europa.eu) / resource.html (europa.eu) / resource.html (europa.
eu) 40 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL To achieve this target and help the organics sector Georgia does not yet have a separate organic strategy reach its full potential, the European Commission de- or action plan.

veloped an action plan for organic production in the EU.
According to the Agriculture and Rural Development Strategy of Georgia 2021-2027111 - the sustainable use of natural resources, the conservation of ecosystems and adaptation to climate change are among the strategic goals and promoting environmentally friendly and climate-smart agricultural practices while promoting the development of bio/organic production are key objectives under this goal.
The World Bank has recently assessed Georgia’s agricultural sector– in its Climate-Smart Agriculture in Georgia report.112 N EU Documents Relevant to the Green Deal 37 Strategic Guidelines for Sustainable and Competitive EU Aquaculture113  Aim of the Document Georgian Documents Relevant to the Green Deal and Aim of the Document The European Commission aims at engaging all rele- vant stakeholders in the development of EU aquacul- ture as a sector that supplies nutritious and healthy The Common Maritime Agenda for the Black Sea (CMA)114 and its Implementation Plan115 include provi- sions for the development of sustainable aquaculture food with a low environmental and climate footprint, in the Black Sea.
Priority 3: Support sustainable fisher- creates economic opportunities and jobs and becomes ies and aquaculture in the Black Sea as well as actions: a global reference for sustainability and quality.

In par- Support for aquaculture research and joint pilot pro- ticular, the guidelines have the following objectives: jects; Innovation in blue biotechnologies, marine tech- إ Building the resilience and the competitiveness of the EU aquaculture sector.
إ Ensuring the participation of EU aquaculture sector in the green transition.

إ Fostering social acceptance and improved consumer information on EU aquaculture activities and prod- nologies and aquaculture.
The Law of Georgia on Aquaculture116 has the following objectives: a) to regulate aquaculture activities in specific areas of the continental shelf (of the Black Sea) of Georgia, ter- ritorial waters (the territorial sea), the special economic zone (marine waters) and internal waters − water reser- ucts.
voirs; 111 Strategic Documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 112 World Bank Document - Climate-Smart Agriculture in Georgia 113 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2021:236:FIN 114 http://www.bsec-bsvkc.org/UploadedDocuments/Annex%201%20-%20Common%20Maritime%20Agen- da%20for%20the%20Black%20Sea.pdf 115 http://www.bsec-bsvkc.org/UploadedDocuments/Annex%202%20-%20CMA%20implementation.pdf 116 https://matsne.gov.ge/en/document/view/4901055?publication=0 41 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL إ Increasing knowledge and innovation in the EU aquaculture sector.
b) to promote the responsible and sustainable devel- opment of aquaculture; c) to protect the environment, biodiversity and biolog- ical water resources when implementing aquaculture activities; d) to ensure the rational and effective use of water and land resources when implementing aquaculture activ- ities and protect the interests of other water and land users; e) to ensure the implementation of aquaculture activi- ties in accordance with the sustainable development goals of the United Nations; f) to ensure the effective environmental monitoring and state control of aquaculture entities.
The National Aquaculture Development Strategy (un- der development).

The EU and the FAO support the Georgian government in creating the National Aquaculture Development Strategy.

The National Aquaculture Strategy will be developed with the consideration of the EU Strategic Vision for Sustainable Aquaculture Production and Consumption.
42 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Progress Indicators to Monitor the Implementation of the European Green Deal The table below is a summary of the indicators used for assessing EGD implementation in Georgia.

The assessment is conducted by using qualitative and quantitative indicators selected and developed by the project team.

As EGD related activities are partially reflected in the Sustainable Development Goals (SDG), the SDG indicators are used where relevant.
 CROSSCUTTING INDICATORS Sub-Topic of the Green Deal Financing 1 Indicator National financial resources allocated to achieve the objectives of the Green Deal.

Description of the Indicator Result of the Indicator Finances allocated from the national Data gap.

Need to develop national budget labeling system.

budget (%) to achieve the objectives of the Green Deal (climate change, green budget).

Development of the climate budget tagging system is ongoing.
Climate Budget Tagging (CBT) is a tool for monitoring and tracking climate-related expenditures in the national budget system.
Sub-Topic of the Green Deal Digitalization 2 Indicator Digital Adoption Index-DAI (World Bank117) and Digital Economy and Society Index (DESI)118 Description of the Indicator Result of the Indicator The DAI is a worldwide index that meas- DAI for Georgia: ures the digital adoption of countries 2014 – 0.564 across three dimensions of the econo- 2016 – 0.599 my: people, government and business.

Currently, DESI estimates are only available for EU countries.
117 Digital Adoption Index (worldbank.org) 118 https://digital-strategy.ec.europa.eu/en/policies/desi 43 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL The index covers 180 countries on a 0–1 scale and emphasizes the “supply-side” of digital adoption to maximize coverage and simplify theoretical linkages.

The overall DAI is the simple average of three sub-indexes.
The Digital Economy and Society Index (DESI) summarizes the indicators on Eu- rope’s digital performance and tracks the progress of EU countries.

Sub-Topic of the Green Deal Digitalization 3 Indicator Internet Access (OECD119) Description of the Indicator Result of the Indicator Internet access is defined as the per- Georgia:120 centage of households which reported that they had access to the internet.
In almost all cases, this access is via a per- sonal computer either using a dial-up, ADSL or cable broadband access.

This indicator is measured in a percentage of all households.

2020 – 83.8% 2021 – 86.1%121 Sub-Topic of the Green Deal Gender Equality 4 Indicator Proportion of seats held by women in Parliament and city councils.
Description of the Indicator Result of the Indicator SDG-16.7.1.2 Proportion of seats held by 16.7.1.2: women in Parliament and in city councils 2016: women hold 16 % of seats in the Parliament.

(Sakrebulo).

2016: women hold 11.6 % of seats in city councils (Sakrebulo).

2019: Share of seats in the Parliament 14.8% - according to the GII.

16.7.1.2: 2017 - women hold 13.4 % of seats in city councils (Sakrebulo).
119 Information and communication technology (ICT) - Internet access - OECD Data 120 Trends of Intenet Access and Use in Georgia (idfi.ge) 121 Use of information and communication technologies in households – GEOSTAT/National Statistics Office of Georgia (geostat.ge) 44 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sub-Topic of the Green Deal Gender Equality 5 Indicator UNDP - Gender Inequality Index (GII)122 Description of the Indicator Result of the Indicator The GII is a composite measure, reflect- GII value for Georgia is 0.33 – above the world average (0.43).123 ing the inequality in achievements be- tween women and men in three dimen- sions: reproductive health, empower- ment and the labor market.
 DECARBONIZATION Sub-Topic of the Green Deal Climate Targets 6 Indicator Climate target and annual amount of National GHG Emissions com- pared to 1990.

Description of the Indicator Result of the Indicator Climate target by 2030 and 2050 com- 35% reduction of GHG emissions by 2030 compared to 1990 (will not pared to 1990. exceed ≈30 mln.

t CO2 eq).

Annual amount of National GHG Emis- 17.8 mln.

t CO2 eq was in 2017 (39% of the GHG emissions in 1990).

sions compared to 1990 in mln t CO2 eq.


Sub-Topic of the Green Deal Climate Indicators 7 Indicator GHG intensity per capita GHG intensity per GDP (real) Description of the Indicator Result of the Indicator Greenhouse gas emission intensity per In 2017: capita – GHG emission intensity per capita – 4.76 t/capita.

GHG emission intensity per real GDP GHG emission intensity per real GDP – 0.485 kg/GEL (in 2015 prices).
Sub-Topic of the Green Deal Methane Strategy 8 Indicator Amount of methane-CH4 (Gg) reduced/recovered 122 https://hdr.undp.org/data-center/thematic-composite-indices/gender-inequality-index#/indicies/GII 123 The index ranges from 0 where women and men fare equally to 1 where one gender fares as poorly as possible in all of the measured dimensions.
45 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Amount of methane-CH4 (Gg) reduced/ In 2017, methane (CH4) emissions were – 235.29 Gg (NIR, 2017).124 recovered annually at the national level.

Sub-Topic of the Green Deal Stop Deforestation 9 Indicator GHG emission/sink from LULUCF Description of the Indicator Result of the Indicator Measures the GHG emissions (Gg CO2e) In 2017 GHG emissions125 – 3,813 Gg CO2 eq.
and removal – 8,737 Gg from LULUCF sector.

Compares the fig- CO2 from LULUCF sector.

ures of actual and previous emissions from National GHG Inventory Reports of Georgia (NIR).

Net-removals – (4,924 Gg CO2).

Sub-Topic of the Green Deal Stop Deforestation 10 Indicator SDG 15.1.1.

Forest area Description of the Indicator Result of the Indicator SDG 15.1.1.

Forest area as a proportion of 15.1.1: 2015: 40 % (2,822,500 ha) total land area.
2017: 39% (2,747,068 ha including Abkhazia, Adjara, and protected ar- eas).126 SDG 15.1.1.

- It is not convenient to set a target for this indicator at this stage as the existing baseline value (40%) is completely satisfactory and a sufficient index for the country.

However, the ongoing forest in- ventory is worth notice and its results will be finalized in the near fu- ture.
If the inventory showcases a different result, appropriate actions will be planned on a policy level and the target indicator will also be determined.

Sub-Topic of the Green Deal Stop Deforestation 11 Indicator Forest density (annual) in sample spots.

124 NIR Eng 30.03.pdf (unfccc.int) 125 National Inventory Report (NIR) to NC4 Georgia.

| UNFCCC 126 National Inventory Report (NIR) to NC4 Georgia.
| UNFCCC 46 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Density of trees in the forests.

Constant Data gap.

value (in sample areas) will prove that de- forestation does not take place.

Sub-Topic of the Green Deal Stop Deforestation 12 Indicator Number of cases of illegal logging (annual).

Description of the Indicator Result of the Indicator Cases of illegal logging (according to the Number of illegally logged trees.
The annual values (data) can be ob- Forest Code).

tained from the MEPA (National Forestry Agency): 1,692 cases (2021).

Sub-Topic of the Green Deal Climate Pact127 Unknown in cubic meters.

13 Indicator Number of Climate Pact Ambassadors from Georgia.
Description of the Indicator Result of the Indicator Pact Ambassadors are citizens who lead Georgia has one Climate Pact Ambassador.128 by example in climate and environmental protection action and become a proac- tive bridge between civil society, stake- holders and the European Commission.

Ambassadors are endorsed through an objective and transparent process based on the merits and the motivation of ap- plicants for one year with the possibility of prolongation.
Sub-Topic of the Green Deal Climate Pact 14 Indicator Number of educational programs integrating climate science and solutions.
127 https://ec.europa.eu/clima/eu-action/european-green-deal/european-climate-pact_en 128 https://europa.eu/climate-pact/ambassadors/meet-our-ambassadors_en?f%5B0%5D=world_world%3A78 47 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Promoting climate literacy through edu- cational programs in schools, vocational education and training, higher education Georgia has an Environmental information and Education Center (EIEC) under the Ministry of Environmental Protection and Agriculture which was established on May 14, 2013.
The main priority of the EIEC and life-long learning.

is to promote environmental and agricultural education among Geor- SDG 12.8.1 Extent to which (i) global cit- izenship education and (ii) education for sustainable development (including climate change education) are main- streamed in (a) national education pol- gian society and raise public awareness, support public participation in decision-making processes and ensure access to environmental and agricultural information.
The Center provides certificate courses, training courses/programs, lectures/seminars, organizes environmen- tal and agricultural contests, etc.

icies, (b) curricula, (c) teacher education Trainings and educational activities are held under various donor fund- and (d) student assessment.

ed projects as well.


Certification Course on Climate Change and Sustainable Develop- ment - In 2016, Ilia State University, with the support of the analytical center World Experience for Georgia and the Heinrich Boell Founda- tion, established a course entitled Climate Change and Sustainable Development for Public Officials and Journalists.

The course was sup- ported by the donors within the framework of the project.

The course’s syllabus and materials can be updated and adapted.
Climate change policy is taught in the Master’s level program in Envi- ronmental Management and Policy at the Georgian Institute of Pub- lic Affairs.

The program was created in 2016 with the support of the Ministry of Environment and the GIZ.

12.8.1: The indicator belongs to Tier II and its baseline data are not yet defined.

Sub-Topic of the Green Deal Climate Pact 15 Indicator Number of climate change related stakeholder platforms (which are still active).
Description of the Indicator Result of the Indicator E.g., Stakeholder Platform and Multi- stakeholder Platform on Sustainable Climate Change Council (CCC) – established in 2020 to strengthen cooperation on climate change and support information sharing at Development Goals.

the national level.

The Council is led by the Minister of Environmental Industrial alliances and other business- related initiatives.
Protection and Agriculture while members are high level government officials from different ministries, the head of the Coordination Team of the Covenant of Mayors of signatory municipalities and the Execu- tive Director of the Georgian National Statistics Office.

National Climate Platform (NCP) – association of stakeholders work- ing in the climate change sector.
48 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sustainable Development Goals Inter-Agency Council (SDG Coun- cil), chaired by the head of the Administration of the Government of Georgia, is the key coordination body for the implementation of the national SDG targets.

Since 2015, the Administration of the Govern- ment of Georgia has led the nationalization and the coordination pro- cess of the SDGs.
The Council has four thematic working groups on: إ Social Inclusion, إ Economic Development, إ Sustainable Energy and Environmental Protection, إ Democratic Governance.

The Council engages stakeholders from the public, civil, international, academic and private sectors in its working groups.

The Policy Plan- ning Unit of the Policy Planning and Coordination Department at the Administration of the Government of Georgia serves as the secretariat to the SDG Council.
That unit also monitors the implementation of the national SDGs through a special electronic system.

Sub-Topic of the Green Deal Climate Pact 16 Indicator Local governments engaging citizens and stakeholders in climate actions.

Description of the Indicator Result of the Indicator Number of cities and municipalities sig- Out of 69 municipalities on the territory of Georgia, including five natures of the Covenant of Mayors.
self-governing cities and 64 self-governing communities, 24 munic- ipalities are signatories of the Covenant of Mayors which commits them to the development of municipal action plans for sustainable energy development and climate change impact mitigation.

In the context of the latter, the municipalities are responsible for municipal waste management and municipal transport services, amongst other responsibilities and competencies imposed by law.
The 24 CoM sig- natory municipalities are represented in the CCC by the coordination team of the Covenant of Mayors.

Sub-Topic of the Green Deal European Bauhaus 17 Indicator Setting up a creative European Bauhaus platform.

Description of the Indicator Result of the Indicator Interdisciplinary project co-steered by No similar incentives in Georgia.

an advisory board of external experts in- cluding scientists, architects, designers, artists, planners and civil society.
49 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sub-Topic of the Green Deal Clean Energy for All Europeans Package 18 Indicator Fossil Fuel Subsidies (FFS).

Description of the Indicator Result of the Indicator Amount of fossil fuel subsidies according 2020 – 145 mln.

GEL to the OECD129 inventory on an annual base.

Sub-Topic of the Green Deal Renewable Energy 19 Indicator SDG 7.2.1 Renewable energy share in the total final energy consump- tion.
Description of the Indicator Result of the Indicator SDG 7.2.1 - Renewable energy share in As of 2019 – 22.7% (Source: GEOSTAT, Energy Balance) the total final energy consumption.

Target: Renewable energy share (hydro, geothermal and solar, biofuels Target: Renewable energy share (hy- and waste) in the energy mix will equal approximately 35% by 2030 dro, geothermal and solar, biofuels and (draft NECP of Georgia).

waste) in the energy mix by 2030.


Sub-Topic of the Green Deal Energy Efficiency 20 Indicator SDG 7.3.1 Energy intensity per GDP.

Description of the Indicator Result of the Indicator SDG 7.3.1 Energy intensity measured ac- As of 2019 – 5.30 TJ/real mln.

GEL (2015) GDP (Source: GEOSTAT) As of 2020 – 5.51 TJ/real mln.

GEL (2015) GDP cording to primary energy and the GDP (TJ/mln.

GEL real GDP).

Measure energy use in relation to eco- nomic output (real GDP).
As an indica- tor of domestic resilience is a sign of a country’s economic exposure to energy disruptions.

Sub-Topic of the Green Deal Renovation Wave Strategy130 21 Indicator % of building stock renovated at all public administration levels.

129 Fossil Fuel Support - Detailed Indicators (oecd.org) 130 Renovation wave (europa.eu) 50 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator إ Share of buildings renovated annually.
There are no official estimates of the indicators for Georgia.

إ Square meters of buildings renovated annually.

According to the EU Directive on Energy Efficiency in Buildings, Ar- ticle 5, the government shall take the commitment to renovate 1% إ Share of new and renovated buildings of government (public) buildings annually.

Starting from 2024 (if the in total building stock.

deadline is not postponed for Georgia), the obligation will be to reno- vate 3% of public buildings annually.
Sub-Topic of the Green Deal Renovation Wave Strategy 22 Indicator Adopted minimum energy performance standards.

Description of the Indicator Result of the Indicator إ Mandatory minimum energy perfor- The Law on Energy Efficiency of Buildings (which came into force on mance standard for buildings.

May 29, 2020) set the minimum energy performance standards for primary energy consumption for new buildings or buildings which are undergoing major renovations – to a cost-effective level.
The law requires that all new buildings satisfy the requirements of Nearly Zero Energy Buildings unless it is not cost-effective to do so.

The minimum energy performance requirements for buildings or building units and building elements and the national calculation methodology for buildings performance was adopted by the government in July and September 2021.
A draft rule for a comparative methodology for calculating cost- optimal levels of minimum energy performance requirements for buildings, building units and building elements is developed.

A draft Rule for the development and utilization of one or more energy performance calculating programs/software is developed.

The government plans to develop a national plan to increase the number of nearly zero-energy buildings (NZEBs) by 2023.
Sub-Topic of the Green Deal Renovation Wave Strategy 23 Indicator Share of buildings with energy performance certificates.

Description of the Indicator Result of the Indicator EGD proposes updated energy perfor- mance certificates (EPC) The Law on Energy Efficiency of Buildings (which came into force on May 29, 2020) was developed according to the Energy Performance in an EU machine-readable data format.

in Buildings Directive 2010/31/EU adjusted to Energy Community Contracting Parties circumstances.
51 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL According to the law: إ The national methodology for calculating the energy efficiency of buildings shall be determined and approved.

إ There is a requirement for private buildings sold or rented and all public buildings with more than 500 m2 (lowered to 250 m2 on June 30, 2023) and visited often by the public to have energy per- formance certificates (NECP).
The objective is 100% of newly con- structed buildings subject to certification being certified for energy efficiency by 2030 (Climate Change Strategy).

The rules for the certification for energy performance of buildings are pending.

Sub-Topic of the Green Deal Renovation Wave Strategy 24 Indicator Number of certified energy auditors.
Description of the Indicator Result of the Indicator The EGD extends energy audit require- ments to larger and more complex The Law on Energy Efficiency sets the requirement for setting up certification programs for energy auditors.

non-residential buildings such as hospi- tals, schools or offices.

The government plan to develop a system for the certification of en- ergy service providers, auditors, managers and developers working in the installation of energy appliances in the buildings sector.
The qualification, accreditation and certification schemes developed and approved by the government will be fully in line with the Directive 2009/28 /EC.

The rules for the certification and accreditation of independent ex- perts issuing energy performance certificates and inspecting heat- ing and air-conditioning systems in buildings are pending.

It is not yet clear how the certification of energy auditors should be or- ganized.
The Georgian National Accreditation Center (GAC) does not provide the accreditation of legal bodies certifying organizations and is not authorized to approve the training programs.

It is also unlikely that the Georgian market can support competition between certifica- tion providers.

A market-based accreditation system managed by the GAC may, therefore, be a challenge.

Sub-Topic of the Green Deal Renovation Wave Strategy 25 Indicator Digital Building Logbooks.
52 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Online tool that integrates all building Georgia does not have a building registry.

related data.

Sub-Topic of the Green Deal Renovation Wave Strategy 26 Indicator The annual rate of replacement of heating equipment.

Description of the Indicator Result of the Indicator The EGD promotes advanced heating Gap.
and cooling, including highly efficient low-temperature renewable and waste heat and cold technologies and the de- velopment of local and regional heating and cooling plans.

The rules for the regular inspection of heating and air-conditioning systems in buildings are pending.

Sub-Topic of the Green Deal Renovation Wave Strategy 27 Indicator Number of green jobs created in the construction sector annually.
Description of the Indicator Result of the Indicator Green jobs are related to energy efficient There are no official estimates of the indicator for Georgia.

renovations, energy auditors, etc.

Sub-Topic of the Green Deal Renovation Wave Strategy 28 Indicator Amount of accessible and well-targeted funding for building renova- tion by 2030.

Description of the Indicator Result of the Indicator Funds allocated for building renovation Currently, there is no national fund for energy efficiency.
(grants, technical assistance, project de- velopment support and loans, private fi- nancing).

The Law on Energy Efficiency promotes the use of ESCOs but does not include a framework to support public financing (i.e., an energy efficiency fund).

Nevertheless, many international technical assistance projects and financing programs support energy efficiency measures, especially in the building sector.
Support for energy efficiency in buildings is mainly funded by IFIs or donors (NEFCO, KfW, EBRD, DANIDA etc.).

53 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Additional technical assistance programs are currently being devel- oped to help fully approximate Georgia’s legislative framework with that of the EU.
This is most notably linked to a KfW policy-based loan linked with a large technical assistance program and additional tech- nical assistance from the Energy Community Secretariat.

The JSC Georgian Energy Development Fund, founded by the MoESD in 2010, supports exploring and developing promising renewable ener- gy projects and, within this framework, makes relevant procurements for the further development of pilot projects on renewable energy.
The LEPL Municipal Development Fund of Georgia, coordinated by the MRDI, makes procurements for projects related to municipal in- frastructure.

Sub-Topic of the Green Deal Renovation Wave Strategy 29 Indicator Number of ESCOs.

Description of the Indicator Result of the Indicator Number of active energy service compa- Currently, there is no ESCO in Georgia.

nies.

Sub-Topic of the Green Deal Renovation Wave Strategy 30 Indicator Number of electricity prosumers and total installed capacity.
Description of the Indicator Result of the Indicator Number of electricity prosumers and to- As of April 2022, 397 micro-generating power plants with 20.4 MW tal installed capacity under net-metering installed capacity are in operation.131 program.

The GNERC regulation on net metering is currently in force to encourage micro power plants.

It is used by small commercial and household users or a group of consumers as a support mechanism for their own consumption.
The customers or a group of customers can deduct their energy production and consumption and transfer it to the receipt of the next period for further deduction or for the purpose of financial settlement in the case of excess.

Sub-Topic of the Green Deal Renovation Wave Strategy 31 Indicator Percentage of people living in energy poverty.
131 GNERC, 13 April 2022 FB post 54 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Percentage of people living in energy Energy poverty is included in the NECP and National Energy Policy of poverty and the energy poverty elimi- Georgia.

According to the document, the objective is to reduce the nation target by 2030 according to the percentage of the population in situations characterized by energy NECP (DRAFT).
poverty from an estimated 43% in 2017 to less than 15% in 2030.

In January 2022, a center for alleviating energy poverty was established within the Energy Community Secretariat.
The purpose of the center is to collect data and information related to the causes and impact of energy poverty in the Energy Community Contracting Parties, promote the development of appropriate policies and measures for reducing energy poverty and provide a platform for discussion of all related issues among the relevant energy sector stakeholders in the energy community.

Georgia, as a member of energy community, will be involved in the process.
The first study on energy poverty in energy community coun- tries was published in 2021.

Sub-Topic of the Green Deal Sustainable and Smart Mobility Strategy 32 Indicator Share of transport related GHG emissions.

Description of the Indicator Result of the Indicator Transport related GHG emission in mln t According to National GHG Inventory Report (NIR)132 of Georgia to the CO2 eq.

annually.

UNFCCC, transport GHG emissions were 4,1 mln t CO2 eq.

in 2017.
in 2017.

Sub-Topic of the Green Deal Sustainable and Smart Mobility Strategy 33 Indicator Share of low and zero emission vehicles.

Description of the Indicator Result of the Indicator Share of low (hybrid) and zero emission MIA data for 2022133 (electric) vehicles in the total transport Share of electric cars 0.17% (2,401).

fleet.

Share of hybrid cars 7.26% (100,784).


Sub-Topic of the Green Deal Sustainable and Smart Mobility Strategy 34 Indicator Modal share of sustainable alternative solutions for transportation.

132 NIR Eng 30.03.pdf (unfccc.int) 133 Ministry of Internal Affairs, data on registered vehicles.
https://info.police.ge/page?id=553&parent_id=552 55 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Modal share of alternative zero emission According to available 2016-year data, the modal share of alternative means of transportation (e.g., cycling, zero emissions transportation in Batumi was 32% (cycling and e-scooters, e-micro mobility, etc.).
walking).134 The modal share of alternative zero emission transportation in Tbilisi was 27% (mainly walking) in 2016.135 Latest data are not available.

Sub-Topic of the Green Deal EU Offshore Renewable Energy Strategy 35 Indicator Offshore renewable energy.

Description of the Indicator Result of the Indicator Installed capacity (MW) of offshore re- Georgia does not yet have an offshore renewable energy strategy.

newable energy (ocean, floating wind and solar).


Sub-Topic of the Green Deal EU Strategy on Energy System Integration 36 Indicator NECP implementation progress using pre-defined indicators.

Description of the Indicator Result of the Indicator In terms of transposing and implementing Not yet available.
the Governance Regulation in the Energy Community context, the Contracting Parties will be requested to submit an NECP in 2024 and integrated energy and climate progress reports every two years starting from 2025.

Based on progress reports, the implementation progress (%) will be estimated.

Georgia is currently developing a set of indicators for each domain of the NECP.

Based on these indicators, the progress of NECP implemen- tation and the achievement of targets/objectives will be evaluated.
Sub-Topic of the Green Deal A Hydrogen Strategy for a Climate-Neutral Europe 37 Indicator Annual production (tons) of green hydrogen.
134 Feasibility Studies for Pilot Low-Carbon Urban Transport Corridor and Integrated Sustainable Urban Mobility Plan for the City of Batumi (ISUMP) 135 Transportation Households Survey in Tbilisi Metropolitan area https://tbilisi.gov.ge/img/original/2018/4/20/ THS_Final_Report_Eng.pdf 56 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Annual production of green (from renew- There is no production of green hydrogen in Georgia.
able) hydrogen (tons).

 CIRCULAR ECONOMY Sub-Topic of the Green Deal Research and Innovation 38 Indicator SDG – 9.5.1 Research and development expenditure.

Description of the Indicator Result of the Indicator 9.5.1 Research and development expend- As of 2018 – 29%136 iture as a proportion of the GDP.

Sub-Topic of the Green Deal Waste Management 39 Indicator Generation of municipal waste per capita137 (kg/capita).
Description of the Indicator Result of the Indicator The indicator measures the waste col- 505 kg/capita (2020 EU) Georgia does not yet have a waste management system.

lected by or on behalf of municipal au- thorities and disposed of through the waste management system.

It consists to a large extent of waste generated by households, although similar wastes from sources such as commerce, offices and public institutions may be included.
Sub-Topic of the Green Deal Waste Management 40 Indicator Generation of waste excluding per GDP.

Description of the Indicator Result of the Indicator Generation of waste excluding major 66kg/1000 EUR (2018 EU) mineral wastes per GDP unit (kg per thousand euro).138 Data gap for Georgia.
136 SDG-Georgia, Statistical Annex, 2019 137 Monitoring framework - Circular economy - Eurostat (europa.eu) 138 Monitoring framework - Circular economy - Eurostat (europa.eu) 57 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL In a more circular economy, the value The data (amount) of municipal solid waste (MSW) is collected by the of products, materials and resources is LEPL Waste Management Company under the MRDI annually.
These maintained in the economy for as long amounts comprise all the types of SW landfilled (by local/regional as possible and the generation of waste landfills).

Generated waste can be calculated (there is a default is to be reduced, where practical, with coefficient; however, by law (Waste Strategy) almost all the SW should attention to prospects for recycling and be landfilled or otherwise processed – implying that there will not be reductions in biotoxicity.

Waste pre- illegal landfilling).


vention is closely linked with improving manufacturing methods and influencing consumers to demand greener products and less packaging.

By making the tran- sition to a circular economy, the EU aims at decreasing waste generation while maintaining or increasing economic out- put.
Sub-Topic of the Green Deal Waste Management 41 Indicator Generation of waste excluding major mineral wastes per domestic material consumption (percentage).139 Description of the Indicator Result of the Indicator The indicator is defined as all waste gen- 12.9% (2018 EU) Data gap for Georgia.

erated in a country (in mass unit), exclud- ing major mineral wastes, divided by the domestic material consumption (DMC) of a country.
This indicator monitors the efficiency of material consumption by comparing the tons of waste generated to the domestic material consumption (DMC).

The DMC measures the amount of materials (ex- cluding water and air) directly and actu- ally used in a national economy.

Both waste generation and DMC – in absolute terms and as per unit intensities – are important indicators as “building blocks” for the Circular Economy Monitoring Framework.
Their ratio is relevant as an index of relative intensity of raw material and waste “pressures” of an economy such as, for example, in cross-country comparisons.
139 Monitoring framework - Circular economy - Eurostat (europa.eu) 58 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sub-Topic of the Green Deal Waste Management 42 Indicator Recycling rate of municipal waste (%).140 Description of the Indicator Result of the Indicator The indicator measures the share of 47.8 % (2020 EU) Nowadays, too little waste is recycled (and the corresponding coeffi- cient will be near zero).

recycled municipal waste in the total municipal waste generation.
Recycling includes material recycling, composting and anaerobic digestion.

The ratio is expressed in a percentage (%) as both terms are measured in the same unit, namely tons.

The recycling rate of municipal waste gives an indication of how waste from final consumers is used as a resource in the circular economy.
Municipal waste reflects mainly waste generated by the final consumers as it includes waste from households and waste from other sourc- es that is similar in nature and composi- tion to household waste.

Although it ac- counts for around 10% of the total waste generated in the EU, the sound manage- ment of municipal waste is challenging because of its heterogeneous compo- sition.

The recycling rate of municipal waste provides a good indication of the quality of the overall waste management system.
Sub-Topic of the Green Deal Waste Management 43 Indicator Circular material uses rate (percentage).141 Description of the Indicator Result of the Indicator The indicator measures the share of 12.8 % (2020 EU) material recycled and fed back into the economy - thus saving extraction of Data gap for Georgia.
140 Monitoring framework - Circular economy - Eurostat (europa.eu) 141 Monitoring framework - Circular economy - Eurostat (europa.eu) 59 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL primary raw materials - in overall material use.

The circular material use, also known as circularity rate, is defined as the ratio of the circular use of materials to the overall material use.
The overall material use is measured by summing up the aggregate domestic material consumption (DMC) and the circular use of materials.

The DMC is defined in economy-wide material flow accounts.

The circular use of materials is approxi- mated by the amount of waste recycled in domestic recovery plants minus im- ported waste destined for recovery plus exported waste destined for recovery abroad.
Waste recycled in domestic recovery plants comprises the recovery opera- tions R2 to R11 - as defined in the Waste Framework Directive 75/442/EEC.

The imports and exports of waste destined for recycling - i.e., the amount of import- ed and exported waste bound for recov- ery - are approximated from the Euro- pean statistics on international trade in goods.
A higher circularity rate value indicates that more secondary materials are sub- stituted for primary raw materials, thus reducing the environmental impacts of extracting primary material.

Sub-Topic of the Green Deal A New Industrial Strategy for Europe 44 Indicator SDG 9.2.1 Manufacturing value added as a proportion of the GDP and per capita.

Description of the Indicator Result of the Indicator SDG 9.2.1 Manufacturing value added as 2019: a proportion of the GDP and per capita.
The index measures the share of value added created by the manufacturing sector in the total GDP.

Manufacturing value added as a proportion of GDP - 9.8 %.

Manufacturing value added per capita - 766.9 GEL ($272).

60 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sub-Topic of the Green Deal A New Industrial Strategy for Europe 45 Indicator SDG 9.2.2 Manufacturing employment.

Description of the Indicator Result of the Indicator SDG 9.2.2 Manufacturing employment as SDG 9.2.2.
(2018) a proportion of total employment.

The index measures the extent of manufac- turing employment.

6.7% for mining and quarrying and the manufacturing industry.

6.2% for the manufacturing industry.

Sub-Topic of the Green Deal A New Industrial Strategy for Europe 46 Indicator SDG 9.3.1: Proportion of small-scale industries in total industry value added.
Description of the Indicator Result of the Indicator The index shows the share of value add- SDG 9.3.1 (2018): 48.7% ed created by small-scale industries in the total industry value added.

Sub-Topic of the Green Deal An SME Strategy for a Sustainable and Digital Europe 47 Indicator SME value added compared to the base year 2019.
Description of the Indicator Result of the Indicator The indicator measures the progress to- Georgian target: increase by 20% by 2025. ward the base year made with measures described in the SME action plan.

Sub-Topic of the Green Deal An SME Strategy for a Sustainable and Digital Europe 48 Indicator SME employment share compared to the base year 2019.
Description of the Indicator Result of the Indicator The indicator measures the progress to- Georgian target: increase by 20% by 2025. ward the base year made with measures described in the SME action plan.
61 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sub-Topic of the Green Deal An SME Strategy for a Sustainable and Digital Europe 49 Indicator SME Policy Index.142 Description of the Indicator Result of the Indicator The index assesses and monitors pro- From an already strong position, Georgia has made further progress gress in the design and implementation since 2016 by adopting a more strategic approach to small and medium- of SME policies against EU and interna- sized entrepreneurship development through targeted initiatives.
The tional best practice.

adoption of the SME Development Strategy 2016-2020 and respective action plans, the improvements made to entrepreneurial learning and women’s entrepreneurship, the continued simplification of business registration and the increase in e-government services have drastically improved the operational environment for SMEs.

Pp.
412 Pillar Dimension GEO GEO EaP average 2020 2016 2020 Institutional and regulatory framework 4.20 3.48 A Operational environment Bankruptcy and second chance Entrepreneurial learning / Woman’s entrepreneurship B SME skills C Access to finance Public procurement D Standards and regulations Internationalisation Business development services E Innovation policy Green economy Sub-Topic of the Green Deal Sustainable Blue Economy 49 Indicator Gross value added (GVA) in sustainable blue economy.143 Description of the Indicator Result of the Indicator GVA from the value of ocean-sea relat- No data is available for Georgia.
ed assets (offshore renewables, coastal tourism, maritime transport, ports activ- ities, etc.).

142 https://www.oecd.org/countries/georgia/sme-policy-index-eastern-partner-countries-2020-8b45614b-en.

htm 143 Blue indicators online dashboard | ‘DG Mare Blue Economy’ (europa.eu) 62 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sub-Topic of the Green Deal Sustainable Blue Economy144 51 Indicator Employment in sustainable blue economy.
Description of the Indicator Result of the Indicator Number of people employed in sustain- No data is available for Georgia.

able blue economy (e.g., marine renew- able energy, waste recycling in maritime business, sustainable coastal tourism, etc.).

 BIODIVERSITY Sub-Topic of the Green Deal EU Biodiversity Strategy For 2030 52 Indicator SDG 2.5.1.

Maintain genetic diversity.


Description of the Indicator Result of the Indicator SDG 2.5.1 Number of plant and animal SDG 2.5.1: genetic resources for food and agricul- ture secured in either medium or long- term conservation facilities.

Target: 2025 - 50-60% of genetic resources to be evaluated.

Genetic resources of plants (incomplete) – 7,026 samples (MEPA 2019).

Genetic resources of animals (incomplete) – 2,473 samples (MEPA 2019).
Sub-Topic of the Green Deal EU Biodiversity Strategy For 2030 53 Indicator SDG-15.4.1 Coverage by protected areas of key mountainous biodi- versity.

Description of the Indicator Result of the Indicator SDG-15.4.1 Coverage by protected areas SDG-15.4.1: 40 % (2019) of key mountainous biodiversity.

The indicator was calculated by the Integrated Biodiversity Assess- Target: 40% by 2022 ment Tool (IBAT) Alliance (https://www.ibat-alliance.org/country_pro- files/GEO).
Under the Bern Convention, a total of 58 ‘emerald areas’ have been se- lected in Georgia, 46 of which are approved by the Standing Commit- tee of the Bern Convention, 12 - proposed.

The total area of the emer- ald network in Georgia is 1,285,974 ha which is 18.45% of the country’s territory.
144 https://blueindicators.ec.europa.eu/access-online-dashboard 63 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Sub-Topic of the Green Deal Zero Pollution  DEPOLLUTION 54 Indicator Microplastics released into the environment (tons or % to the baseline/ base year).

Description of the Indicator Result of the Indicator Tons of or % to the baseline value EU: to be reduced by 50%.

(amount) of microplastics into the envi- ronment.

No data for Georgia.


Sub-Topic of the Green Deal Zero Pollution 55 Indicator Reduction of residual municipal waste.

Description of the Indicator Result of the Indicator Amount of municipal solid waste land- EU: to be reduced by 50%.

filled (residual after separation of frac- tions for recycling or other use).

Georgia: Shares of recycled paper, glass, metal and plastics aim to be 80%, 80%, 90% and 80% ,respectively, by 2030.
Sub-Topic of the Green Deal Zero Pollution 56 Indicator SDG 3.9.1 Mortality rate attributed to household from ambient air pollution.

Description of the Indicator Result of the Indicator Corresponds to the SDG target 3.9 (By 2012: 65 EU is Georgia’s adjusted indicator target for 2030.
2030, substantially reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollu- tion and contamination) under the SDG3: Good Health and Well-being.145 Report of 2016 for Georgia: 184   Male: 197 Female: 172 Sub-Topic of the Green Deal Zero Pollution 57 Indicator SDG 3.9.2 Mortality rate attributed to unsafe water, unsafe sanitation, and lack of hygiene (exposure to unsafe Water, Sanitation and Hygiene for All (WASH) services).
145 Sustainable Development Goals and Georgia (wordpress.com) 64 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Relates to water pollution and unsafe SDG 3.9.2 - Georgia 0.2 (2016).

sanitation.

Corresponds to the SDG tar- get 3.9 (goal 3.9.2.).

Sub-Topic of the Green Deal Zero Pollution 58 Indicator SDG 3.9.3 Mortality rate attributed to unintentional poisoning.
Description of the Indicator Result of the Indicator SDG 3.9.3 Relates to food, water or air EU: 0.7 is Georgia’s adjusted indicator target for 2030. pollution of an unknown nature.

Georgia: 0.8 (Female: 0.5, Male: 1.2, 2016 data).146 Sub-Topic of the Green Deal Zero Pollution 59 Indicator SDG 3.9.4 Cases of lower respiratory diseases per 100,000 population.
Description of the Indicator Result of the Indicator SDG 3.9.4 cases of lower respiratory dis- Georgia: 1,314.3 per 100,000 inhabitants (aggregated data 2018).

eases per 100,000 population related to Substantial reduction since 2015 (2,669.9).

air pollution in general.

Sub-Topic of the Green Deal Zero Pollution 60 Indicator SDG 11.6.1 Proportion of urban solid waste regularly collected in cities.
Description of the Indicator Result of the Indicator SDG-11.6.1 Proportion of urban solid SDG - 11.6.1: 84 % (2015) waste regularly collected and with ade- quate final discharge out of total urban solid waste generated, by cities.

Target: 100% by 2030.


This is an approximate figure: Since only the municipal solid waste is computed, an approximate calculation was made (by the German methodology) of what possible municipal solid waste would be pro- duced in the country according to which the ratio was obtained.
Sub-Topic of the Green Deal Make Soils Healthy 61 Indicator SDG-15.3.1 Land Degradation 146 Sustainable Development Goals and Georgia (wordpress.com) 65 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator SDG-15.3.1 Proportion of land that is de- SDG 15.3.1: in 2019: 6,1 %, area – 4,071 square km.

(reporting on this indi- graded over total land area.

cator will be conducted once every four years).


Sub-Topic of the Green Deal Make Soils Healthy 62 Indicator Areas of irrigated lands.

Description of the Indicator Result of the Indicator Areas of irrigated lands (ha).

By now: 127,000 ha147 – the data accessible at LEPL საქართველოს მელიორაცია at the MEPA.

Sub-Topic of the Green Deal Make Soils Healthy 63 Indicator The overall use of chemical pesticides.
Description of the Indicator Result of the Indicator Annual use of chemical pesticides and EU: by at least 50%.

the reduction of the use of chemical pesticides to the base year.

No data for Georgia.

Sub-Topic of the Green Deal Make Soils Healthy 64 Indicator The use of more hazardous pesticides.

Description of the Indicator Result of the Indicator Annual use of more hazardous pesticides EU: reduce by at least 50%., and reduction of used more hazardous pesticides (tons).

No data for Georgia.


The Georgian Law on Pesticides and Agrochemicals148 provides the legal grounds for the efficient use of pesticides and agrochemicals and for their application in such a manner which is safe both for hu- mans and the environment.

The Ministry of Agriculture of Georgia (the Registration Authority’) is responsible for the state registration of pes- ticides and agrochemicals.
147 Mission | Georgian Amelioration (ag.ge) 148 On Pesticides and Agrochemicals | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 66 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  SUSTAINABLE FOOD SYSTEMS AND RURAL AREAS Sub-Topic of the Green Deal Sustainable Agriculture 65 Indicator GHG emissions from the agricultural sector.

Description of the Indicator Result of the Indicator Amount of GHG emissions in Gg CO2 In 2017 GHG emissions149 – 3,488 Gg CO2 eq.

eq.
eq.

from the agricultural sector annually.

Sub-Topic of the Green Deal Sustainable Agriculture 66 Indicator Amounts (tons) of bio-fertilizers, protein feed, bioenergy(biogas) and bio-chemicals produced from agriculture (separate indicators).

Description of the Indicator Result of the Indicator Expressed in tons – agricultural products, No quantified values for the EU or Georgia.

residues and manure processed in refineries to get fertilizers, natural protein feeds, bioenergy (biogas) and bio- chemicals.
There is a certified entity, Bioagro,150 producing biological pesticides and fertilizers and providing them to some farms/farmers.

Sub-Topic of the Green Deal Sustainable Agriculture 67 Indicator Share of organic food in the total agricultural food products.

Description of the Indicator Result of the Indicator Amount (tons) of organic/eco food/and No quantified values for the EU or Georgia.

share of organic food in the total agricul- tural food products.
Sub-Topic of the Green Deal Sustainable Agriculture 68 Indicator Area of organic farming.

149 National Inventory Report (NIR) to NC4 Georgia.

| UNFCCC 150 Bioagro (bioagro.ge) 67 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description of the Indicator Result of the Indicator Area of organic farming annually and its No quantified values for the EU or Georgia.

share in total arable land area.


The area (ha) of organic farming (annual data) can be obtained from the specialized entity, Caucascert,151 (or Green Caucasus), giving out certificates to farmers producing organic products.

Sub-Topic of the Green Deal Sustainable Agriculture 69 Indicator Amount of food waste (tons).

Description of the Indicator Result of the Indicator Aims to avoid food loss.

No quantified values for Georgia.

This practice is already taking place in Georgia (at initial stage).
EU data are accessible at: Statistics | Eurostat (europa.eu) 151 About us – Caucascert 68 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Gaps in Georgia’s Policy Framework for Alignment with the EU Green Deal and Relevant Recommendations Georgia is in the process of approving new energy legislation to align its regulations with the EU energy acquis (including the Third Energy Package) under the terms of the Energy Community Treaty and the Association Agreement with the EU.
The Association Agreement and Energy Community membership establish the main setting for the alignment of Georgian policy and the legislative framework with the European Green Deal.
Georgia does not have a National Development Strategy (the document has been drafted but is not yet published) which would combine the main goals and the targets from sectoral strategies and the SDG action plan and show the long-term vision and the objectives for state development, For this reason, gaps can be analyzed at a sectoral level.

Georgia does not have a climate law which sets a legally binding target for reducing net greenhouse gas emissions.
Meeting emissions reduction targets as defined by the updated NDC of Georgia, as well as by the National Climate Change Strategy 2030 and its Action Plan 2021- 2023, is not legally-binding.

Existing climate-related laws only partially address the priorities identified in Georgia’s international commitments.

Georgia joined the Global Methane Pledge, launched at the COP26 in November 2021, to catalyze action to reduce methane emissions.
The MEPA plans to develop the Methane Strategy for Georgia in the near future.

Georgia does not have an MRV system for GHG emissions, climate change mitigation and adaptation.

In 2020, Georgia established the Climate Change Council (CCC); however, a working group under the council has not been established.

Climate change-related stakeholder platforms are mainly created on project bases and cease functioning after the project ends.

Industrial alliances and other business-related initiatives are rare.
Educational programs in schools or universities are not well integrated and very few universities offer courses on climate change policy.

There are no action plans against disinformation and while several donors funded projects are aimed at awareness raising and information dissemination, a systemic approach is lacking in this direction.

There is a further lack of secondary regulations and incentives for buildings renovation.
The Law on Energy Efficiency of Buildings (came into force on May 29, 2020), developed according to the Energy Performance in Buildings Directive 2010/31/EU and adjusted to the Energy Community Contracting Parties circumstances, includes specific relevant provisions requiring private buildings sold or rented and all public buildings with more than 500 m2 (lowered to 250 m2 on June 30, 2023) and often visited by the public to have energy performance certificates.
The law 69 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL sets minimum energy performance standards for primary energy consumption for new buildings or buildings which are undergoing major renovations to a cost-effective level.

According to the law, all new buildings must satisfy the requirements of Nearly Zero Energy Buildings unless it is not cost-effective to do so.
To fully approximate to the Directive, Georgia plants to develop various secondary legal acts in the coming period, including: the development of a national calculation methodology for the energy performance of buildings with national annexes (default input values) – setting a national standard and providing technical assistance in laying down the methodology for the calculation of the energy performance of buildings in line with the requirements of Directive 2010/31/EU and the new European standards.
So far, two regulations were adopted by the GoG in 2021 and the remainder are expected to be adopted in 2022.

The policy based loan between the KFW, the AFD (and involving the EU) with the GoG is directed at supporting the achievement of the adoption of key regulations with certain timelines.

Georgia does not have a strategy for the energy retrofitting of buildings targeted at energy poor households.
The issue of energy poverty has been recognized by the Georgian authorities and some initiatives are already in place to provide suggestions on addressing energy poverty., Georgia has also put several measures in place in order to aid vulnerable consumers, all of which are short -term measures intended to reduce the energy burden.
However, the major cause of energy poverty is the low energy efficiency of buildings resulting in the inability to heat the entire living surface or heat it to the required temperature.

The main approach in mitigating energy poverty in Georgia should aim at improving the energy efficiency of dwellings belonging to vulnerable and energy-poor households as well as facilitating fuel switching and improvements to heating systems, primarily for those households relying on unsustainable fuelwood.
 There is a lack of vision and a strategy/action plan for the development and the use of batteries in energy generation and the transport sector.

 The absence of a vision and plan for the development of offshore renewable energy in Georgia is also problematic.

 The lack of systematic “whole system” energy plan to support the transition towards a more integrated energy system is another challenge.
The efforts directed towards “whole system” energy planning are not systematic and are often linked to specific donor projects.

There is no strong analytical base to support the transition towards a more integrated energy system which would support a climate neutral economy at the least cost across sectors.

 A clear vision of the potential for green hydrogen development in Georgia is not envisaged in any strategic documents nor is there an official development strategy.
Additionally, there is no comprehensive study on the potential for hydrogen development in Georgia or its technical and economic feasibility.

 Georgia does not yet have a forest cadaster.

There is a low pace of the forest inventory process and information on deforestation and land use change at the national level is still absent.

70 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Georgia plans to develop a circular economy development strategy and action plan.
The MEPA is currently developing target indicators.

Blue economy principles are not integrated in relevant strategic documents.

The National Biodiversity Strategy and Action Plan of Georgia 2014-2020 needs to be updated.

There is a lack of proper functioning/operationalization of the legislation on the sanitary norms for water, wastewater and soil.

There is a need to study the level of operationalization of the Extended Producer Responsibility (EPR) principle of the National Waste Management Code.
Georgia does not have a chemical strategy for sustainability which results in a lack of rules to prevent and reduce industrial emissions.

There is a need to transpose Directive (EU) 2016/2284 on the reduction of the national emissions of certain atmospheric pollutants into national legislation.
Precision agriculture, organic farming, agro-ecology, agro-forestry, low-intensive permanent grassland and stricter animal welfare standards under the Farm to Fork Strategy and the new Common Agricultural Policy (CAP) are fragmentarily reflected in Georgia’s agriculture development strategies.
There is a lack of strategic vision for the development of aquaculture as a sector that supplies nutritious and healthy food with a low environmental and climate footprint, creating economic opportunities and jobs in Georgia.

The table below summarizes the main gaps between the EGD and the Georgian legislative and policy framework and provides recommendations to overcome them.

The recommendations are based on priority ranking.


 CROSSCUTTING ISSUES N Topic Communication from the Commission - The European Green Deal152 and the Roadmap 1 Gaps Priority  High Lack of an overall national development strategy.
Description/Justification (with sources) Recommendations Georgia does not have a National Development Strategy which would align with sectoral strategies إ The GoG should adopt the National Development Strategy which will be aligned with sectoral strat- and SDG action plan and show a long-term vision and egies and SDG indicators and its action plan and objectives for state development.

shows a long-term vision and objectives for state development.
152 EUR-Lex - 52019DC0640 - EN - EUR-Lex (europa.eu) 71 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Administration of the Government of Georgia has drafted a National Development Strategy which is not إ The goals, objectives and indicators of the Strategy should be integrated into the Basic Data and yet publicly available.

Direction (BDD) and other strategic documents.


إ The GoG should develop an effective monitoring and evaluation system for the Strategy and the SDG.153 N Topic European Green Deal Investment Plan154 2 Gaps Priority  High Lack of National Investment Plan and local financial resources.
Description/Justification (with sources) Recommendations Georgia does not have a National Investment Plan to mobilize funding and create an enabling framework إ The National Development Strategy should have a robust investment plan reflecting local financial to facilitate and stimulate the public and private resources and bilateral and multilateral donor investments needed for the transition to a low-emission, support.

green, competitive and inclusive economy.


Georgia lacks the mechanism (like a Just Transition إ Developing a national budget labeling system (climate related, mitigation, adaptation, etc.)

will Mechanism) which would create the necessary invest- facilitate the identification of allocated finances for ment to help workers and communities which rely on climate related actions.

the fossil fuel value chain.

N Topic European Green Deal 3 Gaps Priority  High Lack of human resources and analytical capacity.
Description/Justification (with sources) Recommendations Development of bylaws and the implementation of institutional reforms are challenging due to the lack إ Strengthening the analytical capacity and increasing the number of qualified staff in the key institutions of human resources and analytical capacity in various (MoESD, MEPA).

sectors of Georgia.

The European Green Deal is a complex strategy that requires cross sector cooperation and coordinated planning at national and local levels.
إ Support is needed to assist in the implementation of the laws as well as in transposing and implementing EGD related laws and laws not yet in the Energy Community Acquis.

153 Sustainable Development Goals.

Efficiency Audit Report.


State Audit Service, 2019 154 Financing the green transition (europa.eu) 72 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N Topic Fit for 55 Package155 4 Gaps Priority  Medium Absence of an Emission Trading System and Carbon Border Adjustment Mechanism.
Description/Justification (with sources) Recommendations Although transposition of legislation of the Fit for 55 Package into national legislation is not yet mandatory إ The MEPA should develop an Emission Trading System and Carbon Border Adjustment Mechanism for Georgia, part of them will soon become critical to facilitate trade relations with EU countries.

factors in trading goods with EU countries.


N Topic New EU Strategy on Adaptation to Climate Change156 5 Gaps Priority  High Lack of National Adaptation Strategy/Plan.

Description/Justification (with sources) Recommendations Adaptation to climate change is one of the priorities of the climate policy of Georgia (NDC);157 however, the إ The MEPA should assess the vulnerability of different sectors to climate change and develop a relevant country does not yet have the National Adaptation Plan.
adaptation strategy/plan.

The MEPA plans to develop the National Adaptation Plan for Georgia.

This will improve knowledge and data, support to policy development and climate risk management at all levels and accelerate adaptation action across different sectors.
Georgian legislation does not fully regulate climate change adaptation (tangential approach) and disaster- risk management.158 155 EUR-Lex - 52021DC0550 - EN - EUR-Lex (europa.eu) 156 A new EU Strategy on Adaptation to Climate Change (europa.eu) / EUR-Lex - 52021DC0082 - EN - EUR-Lex (europa.eu) 157 NDC Georgia_ENG WEB-approved.pdf (unfccc.int) 158 GIZ Study on Climate Law, 2022 73 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N Topic EU Gender Equality Strategy 2020-2025159 6 Gaps Priority  Medium Gaps in gender equality affecting energy transition – gaps in legislative framework and gender mainstreaming.160 Description/Justification (with sources) Recommendations Inequalities can persist in green energy systems as إ It is recommended for the GoG to integrate the gen- energy interventions do not automatically tackle the der perspective in energy and climate policies.
structural dynamics embedded within socio-cultural and socio-economic contexts.

Also, in general the proportion of women engaged in energy transition is still low.
Several laws dealing with gender equality have been adopted in Georgia, including: إ Law of Georgia on Combating Trafficking إ Law of Georgia on the Elimination of Domestic Vi- olence, Protection and Assistance to the Victims of Domestic Violence إ Law of Georgia on Gender Equality إ It is recommended that the MoESD and the GEOSTAT begin monitoring gender inequalities in the energy sector at the national level using relevant indicators used by Eurostat (LFS and LFSE), the EC’s Directorate General for Energy and the EC’s Asset Study.162 إ Questionnaires can be developed for energy minis- tries, regulators, TSOs and companies that provide insights into the current situation of gender inequal- ity as well as valuable information on the barriers to Several institutional mechanisms were established for women’s entry, retention and advancement in the the achievement of gender equality and they include: energy labor market.163 إ It is recommended to take efforts that the delegates participating in UNFCCC decision taking processes (such as COP meetings) are attended by 50% women.
Also, efforts should be made that women are equally represented in the National Climate Change Council.

إ The Gender Equality Advisory Council in the Parlia- ment with the mandate to develop and monitor an action plan for ensuring gender equality.

إ The Gender Equality Department as a standing unit in the structure of the Public Defender’s Office.

إ The Inter-Agency Commission on Gender Equality, Violence Against Women and Domestic Violence Issues.
Georgia’s updated NDC intends to collect, manage, re- port and archive information on gender-disaggregated relevant data in its national reports related to green- house gas mitigation and climate change adaptation.
159 https://ec.europa.eu/info/policies/justice-and-fundamental-rights/gender-equality/gender-equality- strategy_en 160 https://www.energy-community.org/regionalinitiatives/Transition.html 162 POLICY PAPER by the Energy Community Secretariat on Collecting Gender-Disaggregated Data in the Energy Sector, April 25, 2022 163 POLICY PAPER by the Energy Community Secretariat on Collecting Gender-Disaggregated Data in the Energy Sector, April 25, 2022 74 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL In addition, Georgia intends to carry out gender anal- ysis, capacity building and knowledge sharing within climate-related projects.
The Law on Gender Equality, despite some positive changes, remains an ineffective mechanism in Georgia.

To this date, the law does not include comprehensive obligations for the appropriate agencies with respect to relevant areas.
The law still does not emphasize the importance of gender mainstreaming nor does it impose an obligation to put its instruments, including Gender Impact Assessment, Gender Budgeting, Gender Audit, Gender Segregated Data Collection and Gender Training, into practice to ensure their effective implementation.161 The Digital Europe Program164 is a new EU funding program focused on bringing digital technology to businesses, citizens and public administrations.
The Digital Europe Program will provide strategic N Topic funding supporting projects in five key capacity areas: supercomputing, artificial intelligence, cybersecurity, advanced digital skills and ensuring a wide use of digital technologies across the economy and society, including through Digital Innovation Hubs.

7 Gaps Priority  High Absence of a digital strategy and own financial resources and technical capacity to achieve the digitalization goals.
Description/Justification (with sources) Recommendations Georgia plans to develop a long-term national strat- egy for the development of the digital economy and إ The MoESD should develop a long-term national strategy for the development of the digital economy information society and the plan for its implementa- and information society, considering the objectives tion165 which will define the future directions of a digital of the Digital Europe Program.
economy and promote the development of electronic services in the public and the private sectors, increase إ In line with the development of the strategy, Georgia should prepare a relevant action plan with relevant digital literacy and enhance Georgia’s competitiveness financial resources.

in the global digital economy.


Georgia has the developed National Broadband Net- work Development Strategy 2020 - 2025 and Action Plan, aiming to give the population access to high- speed internet and gradually create an environment إ Parallel with the digitalization process, the GoG should strengthen cybersecurity measures.
161 https://www.ge.undp.org/content/georgia/ka/home/library/democratic_governance/gender-equality- research.html 164 Digital Programme | Shaping Europe’s digital future (europa.eu) 165 Government Program 2021 – 2024 For the Construction of a European state, page 32.

75 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL for digital services across the country.
According to the plan, households will have access to 100 mb/s while the quality will be 1 Gb/s for the public sector.166 However, Georgia does not have its own sufficient financial resources and technical capacity to achieve the set goals.

N Topic Data and Statistics 8 Gaps Priority  High Lack of data and information to estimate various indicators relevant to the European Green Deal and SDGs.
Description/Justification (with sources) Recommendations Due to the lack of financial resources and technical The GoG should strengthen the technical capacity capacity, Georgia does not have sufficient data to and provide sufficient funding for GEOSTAT and estimate various indicators relevant to the European other relevant institutions to produce relevant data for Green Deal and SDGs.

estimating indicators relevant to the European Green Deal and SDGs.
An action plan, including a timeframe to address these data gaps, should be elaborated.

 DECARBONIZATION167 European Climate Law168 The Law sets a legally binding target of net zero greenhouse gas emissions by 2050.

The law also N Topic puts the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030 compared to 1990 levels.

It sets a high standard for public involvement (the principle of equitable energy regulation).

9 Gaps Priority  High Absence of a unified climate law.
166 https://tinyurl.com/yudxfa78 167 The five pillars of the Green Agenda: (1) climate action/decarbonisation, including climate, energy and mobility; (2) the circular economy, addressing, in particular, waste, recycling, sustainable production and the efficient use of resources; (3) biodiversity, aiming to protect and restore the natural wealth of the region, (4) fighting the pollution of air, water and soil and (5) sustainable food systems and rural areas.
168 European Climate Law (europa.eu) / EUR-Lex - 32021R1119 - EN - EUR-Lex (europa.eu) 76 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description/Justification (with sources) Recommendations Georgia does not have a climate law which sets a legally binding target of reducing net greenhouse gas إ The MEPA should develop climate law which sets a legally binding target of reducing net greenhouse emissions by at least 35% by 2030 and 50-57% by 2050 gas emissions according to the updated NDC (by at compared to 1990 levels, including the MRV system and least 35% by 2030 and 50-57% by 2050 compared measures to keep track of progress and adjust actions to 1990 levels), including the legal framework for the MRV system.
This includes the definition of the roles and the responsibilities of different governmental bodies.

accordingly.

Climate-related issues are legally tackled in a scattered and fragmented fashion through sectoral laws and bylaws.

Meeting emissions reduction targets defined by the updated NDC of Georgia, as well as by National Climate Change Strategy 2030 and its Action Plan 2021-2023, is not legally-binding.
Existing climate-related laws only partially address the priorities identified in Georgia’s international commitments.

The role of institutional and non-institutional actors is not fully defined.169 Mandatory commitments and obligations from private entities are missing.

The MEPA has started developing the concept for the Climate Change Law.

N Topic Methane Strategy (EU strategy to reduce methane emissions)170 10 Gaps Priority  High Lack of an MRV system for methane emissions in Georgia.
Description/Justification (with sources) Recommendations Georgia joined the Global Methane Pledge, which was إ The MEPA should develop a sustainable MRV system launched at the COP26 in November 2021, to catalyze for GHG emissions, including methane.

action to reduce methane emissions.

The MEPA plans to develop the Methane Strategy for Georgia in the near future.

Georgia does not have an MRV system for GHG emis- sions, including methane.
169 GIZ Study on Climate Law, 2022 170 TA MEF (europa.eu) 77 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N Topic European Climate Pact171 11 Gaps Priority  High Lack of permanent stakeholder platforms, coordinated action against climate denial and misinformation or educational programs integrating climate science and solutions.
Description/Justification (with sources) Recommendations In 2020, Georgia established the Climate Change إ The GoG should ensure the effective functioning of Council (CCC) with the resolution of the GoG;172 how- the Climate Change Council.

ever, a working group under the council has not yet been established.

Climate change-related stakeholder platforms are mainly created on project bases and stop functioning after a project ends.

Industrial alliances and other business-related initiatives are rare.
إ The CCC should establish a permanent working group which will be an advisory body to the Council for addressing specific issues of climate change pol- icy in the economic and social fields and consisting of public officials, experts and representatives of the Educational programs in schools or universities are not scientific community.

well integrated and very few universities offer courses on climate change policy.
There are no action plans against disinformation, sever- al donor funded projects are aimed at awareness raising and information dissemination but a systemic approach is lacking in this direction.

N Topic European Climate Pact173 12 Gaps Priority  Medium Lack of local incentives and involvement of local municipalities in climate action.
Description/Justification (with sources) Recommendations Out of 69 municipalities on the territory of Georgia, in- cluding five self-governing cities and 64 self-govern- إ The MEPA, the MOESD and the MRDI should work together to support municipalities, engage them ing communities, 24 municipalities are signatories of in climate action and strengthen their capacity to the Covenant of Mayors which commits them to the develop, implement and monitor of progress of development of municipal action plans for sustainable the Sustainable Energy and Climate Action Plans energy development and climate change impact miti- (SECAPs).
gation; however, the involvement of local governments in particular actions in this direction are very limited.

Local government capacity engaging citizens is limited as well.
171 https://europa.eu/climate-pact/system/files/2020-12/20201209%20European%20Climate%20Pact%20 Communication.pdf 172 On Establishment of the Climate Change Council (matsne.gov.ge) 173 https://europa.eu/climate-pact/system/files/2020-12/20201209%20European%20Climate%20Pact%20 Communication.pdf 78 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N Topic New European Bauhaus174 13 Gaps Priority  Low Lack of platforms and initiative groups relevant to the European Bauhaus in Georgia.
Description/Justification (with sources) Recommendations The New European Bauhaus is a creative initiative, breaking down boundaries between science and tech- إ It is recommended for donors to support Georgia in developing initiatives relevant to the European nology, art, culture and social inclusion, to find solutions Bauhaus, establishing an advisory board of external for everyday problems.
The New European Bauhaus is experts, including scientists, architects, designers, an environmental, economic and cultural project aiming artists, planners and civil society that create to combine design, sustainability, accessibility, afforda- experimental spaces where art, culture, science and bility and investment in order to help deliver the Euro- technology can imagine, test and demonstrate new pean Green Deal.

The core values of the New European solutions.


Bauhaus are sustainability, aesthetics and inclusiveness.

The goal of the design phase is to use a co-creation process to shape the concept by exploring ideas, iden- tifying the most urgent needs and challenges and con- nect interested parties.

N Topic Just Transition 14 Gaps Priority  High Georgia does not have a Territorial Just Transition plan or a Just Transition mechanism.
Description/Justification (with sources) Recommendations The main aim of a territorial Just Transition plan is to identify the most impacted territories that should إ The GoG should identify the most impacted territo- ries/areas that should get support (e.g., coal regions).

get support.

Plans set out ways to best address social, economic and environmental challenges.
The Just Transition mechanism envisages facilitating employment opportunities in new sectors and those in transition, offering re-skilling opportunities, improving energy-efficient housing, investing in the fight against energy poverty an d facilitating access to clean, affordable and secure energy.175 إ The GoG should explore opportunities for involving Georgia in the Energy Community Just Transition Initiative - Coal Regions in Transition and the Clean Air Regions Initiative (CARI).176 174 New European Bauhaus: Commission Launches Design Phase (europa.eu) / Call for Partners (europa.eu) 175 https://ec.europa.eu/info/strategy/priorities-2019-2024/european-green-deal/finance-and-green-deal/just- transition-mechanism_en 176 https://www.energy-community.org/regionalinitiatives/Transition.html 79 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N Topic Just Transition and Renovation Wave.
Energy Poverty 15 Gaps Priority  High There is no systematic approach to addressing the issue of energy poverty in Georgia.
Description/Justification (with sources) Recommendations The issue of energy affordability and energy poverty have been recognized by the Georgian authorities and إ The GoG should develop a Program for Mitigating Energy Poverty which will define the measures aimed some initiatives are already in place to provide sugges- at mitigating energy poverty, the timeframe and the tions on addressing energy poverty.

Georgia has put implementation plan.


The program should also de- several measures in place in order to aid vulnerable con- fine the steps for setting up a monitoring and report- sumers, all of which are short-term measures intended ing system for energy poverty.

to reduce the energy burden.

However, the major cause of energy poverty is the low energy efficiency of homes resulting in the inability to heat the entire living surface or heat it to the required temperature.
The main approach in mitigating energy poverty in Georgia should aim at improving the energy efficiency of dwellings belonging to vulnerable and energy-poor households as well as facilitating fuel switching and improvements to heating systems, primarily for those households relying on unsustainable fuelwood.

The primary measures should have a long-term effect to facilitate eliminating the root causes of energy poverty.

N Topic Just Transition and Renovation Wave.


Energy Poverty 16 Gaps Priority  High Georgia does not have a strategy for energy retrofitting of buildings targeted at energy poor households.
Description/Justification (with sources) Recommendations Overall energy retrofits of buildings, which includes in- stalling thermal insulation on the entire building enve- إ The MOESD and the MRDI should develop eligibility criteria for identifying energy poor households where lope as well as the replacement of windows and doors, people live in buildings requiring energy retrofitting.

result in significant energy savings and improvements to people’s quality of life.
The most important effect of this measure is to alleviate energy poverty by eliminating its main causes.

This is إ A strategy for energy retrofitting of buildings should be developed with a primary focus on energy poor households.

Investment and funding schemes for retrofitting the buildings countrywide should be done by reducing energy costs through upgrading developed.
efficiency of the dwelling whilealso removing adverse health effects typically caused by low energy efficiency (due to cold, dampness, mold, and draft).

This improves the overall quality of life.

80 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL The inability to keep a house adequately warm is a key challenge for those living in energy poverty.
Heating system improvements (HIS) for the energy-poor consist of three main variations which can be implemented as a single measure or combined: إ Improving the energy efficiency of the system - Replacing existing systems with the same but higher efficiency systems; i.e., replacing traditional fuelwood stoves with more efficient furnaces (applicable in rural areas where there is a high prevalence of using biomass).
إ Modernization and expansion of the heating system - This involves replacing entire heating systems with more adequate heating systems إ Fuel switching - Switching fuel from a fossil to a re- newable source.

N Topic 17 Gaps Renovation Wave Strategy177 - A Renovation Wave for Europe – Greening Our Buildings, Creating Jobs, Improving Lives Priority  High Lack of secondary regulations and incentives for private building renovation.
Description/Justification (with sources) Recommendations A renovation wave strategy includes mandatory mini- mum energy performance standards and targets for the إ Georgia should ensure the timely implementation of the EE laws and planned activities according to the existing stock of buildings and new buildings.
It also in- NECP – Energy Efficiency Chapter (also including cludes energy audits and Energy Performance Certifi- setting mandatory minimum energy performance cates, etc.178 The Law on Energy Efficiency of Buildings (came into force on May 29, 2020), developed according to the Energy Performance in Buildings Directive 2010/31/EU and adjusted to Energy Community Contracting Parties circumstances, includes specific relevant provisions to: إ Require private buildings sold or rented and all public buildings with more than 500 m2 (lowered to 250 m2 on June 30, 2023) and visited often by the public to have energy performance certificates.
standards and targets for the existing stock of build- ings and new buildings.

This also includes energy au- dits and Energy Performance Certificates, adopting Eurocodes, etc.).

إ Work on capacity building and strengthening coop- eration among government bodies and other rele- vant stakeholders on developing EE measures in the building sector.

إ Introduce energy certificates for buildings to eval- uate energy performance and establish a support scheme for renovation.
177 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0662 178 Renovation Wave Strategy 81 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL إ Encourages public education on the topic of EE in buildings.

إ Set minimum energy performance standards for primary energy consumption for new buildings or buildings which are undergoing major renovations – to a cost-effective level.
إ Require that all new buildings satisfy the require- ments of Nearly Zero Energy Buildings unless it is not cost-effective to do so.

Require regular inspections of heating systems and air- conditioning systems.

Encourage public education on the topic of EE in build- ings and review of financing measures to encourage EE.
Fully approximate the Directive which means that Georgia will develop various secondary legal acts in the coming period, including: the development of a national calculation methodology for the energy performance of buildings with national annexes (default input values) – setting a national stand- ard and providing technical assistance in laying down the methodology for the calculation of the energy per- formance of buildings in line with the requirements of Directive 2010/31/EU and the new European standards.
Provide support for the adoption of relevant supporting national standards which outline the methodologies for the calculation of the energy performance of buildings (within the national calculation methodology) compliant with the relevant European (CEN) standards in force and the provisions of Directive 2010/31/EU.

Hitherto, two regulations were adopted by the GoG in 2021 and the remainder are expected to be adopted in 2022.
The policy based loan between the KFW, the AFD (and involving the EU) with the GoG is directed at supporting the achievement of the adoption of key regulations with certain timelines.

82 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N Topic European Battery Alliance179 18 Gaps Priority  Low A lack of vision and strategy/action plan for the development and use of batteries in the energy generation and transport sectors.
Description/Justification (with sources) Recommendations With massive migration from fossil fuels to clean tech, electricity is considered to be the cleanest energy car- إ The MoESD and the GSE should study options for the development of batteries in the power genera- rier in the world.

With more than 70% of renewable tion and transport sectors.

Also, they should develop electricity, Georgia aims to continue a green path of a relevant action plan for its development.

electricity generation.


To achieve its objectives, it is im- portant to ensure the integration of variable renewable energy sources into the system (VRE) – primarily wind and solar power.

Batteries can play a significant role for VRE integration in the system.

إ Support mechanisms should be developed for pro- moting small-scale storage facilities in remote/rural areas.
N Topic EU Strategy on Offshore Renewable Energy180 19 Gaps Priority  Low Absence of vision and a plan on the development of offshore renewable energy in Georgia.

Description/Justification (with sources) Recommendations Development of domestic renewable energy sources is one of the priorities of the MoESD.

However, the إ With donor support, the MoESD should assess the potential development of offshore renewable energy development of offshore renewables is not foreseen in in Georgia.
Respective provisions can be included in any planned or drafted strategic documents, including, energy sector development policy and strategies.

but not limited to the: إ National Energy and Climate Plan (draft).

إ National Energy Policy (draft).

إ National Renewable Action Plan.181 N Topic EU Strategy on Energy System Integration182 20 Gaps Priority  High Lack of a systematic “whole system” energy planning to support the transition towards a more integrated energy system.
179 https://www.eba250.com 180 https://energy.ec.europa.eu/topics/renewable-energy/eu-strategy-offshore-renewable-energy_en 181 http://www.economy.ge/uploads/files/2017/energy/samoqmedo_gegma/nreap_v_3_eng_21022020.pdf 182 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0299&from=EN 83 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description/Justification (with sources) Recommendations In developing the National Energy and Climate Plan (NECP), the MoESD is using the TIMES energy system إ The MoESD should strengthen its analytical capacity by developing a systematic long-term energy plan- strategic planning tool that is designed to find the least ning practice using “whole system” energy planning cost energy mix to satisfy the demand through linear tools/models to develop various scenarios with the optimization.
However, the efforts of the “whole system” least cost plans in order to deliver low-carbon, relia- energy planning are not systematic and are often linked ble and resource-efficient energy services.

to specific donor projects.

There is no strong analyti- cal base to support the transition towards a more inte- grated energy system which supports a climate neutral economy at the least cost across sectors.
N Topic Hydrogen Strategy for a Climate-Neutral Europe183 21 Gaps Priority  Medium Absence of vision and an official green hydrogen development strategy.

Description/Justification (with sources) Recommendations A clear vision of the potential for green hydrogen de- velopment in Georgia is not envisaged in any strategic إ The MoESD should study the potential development of green hydrogen in Georgia and adopt an officially documents nor is there an official development strat- relevant strategy.
Proper stakeholder coordination egy.

Additionally, there is no comprehensive study on and involvement in developing the strategy is crucial.

the potential for hydrogen development in Georgia or its technical and economic feasibility.

N Topic Clean Energy for All Europeans Package184 22 Gaps Priority  High Lag in developing secondary legislation in the field of energy efficiency, energy efficiency in buildings, renewable energy, electricity market design and others.
Description/Justification (with sources) Recommendations As a member of the Energy Community, Georgia has already transposed part of the third energy package di- إ The timely development of secondary legislation to ensure the effective implementation of already rectives and regulations into national legislation.

Some adopted laws on EE and RES is recommended.


of the laws have already entered into the force; howev- er, their full implementation is pending due to the ab- sence of secondary legislation, a lack of incentives and the existence of inefficient energy subsidies.

إ Effective interagency coordination and communica- tion are needed to ensure the final buy-in and imple- mentation of the clean energy package in the future.
183 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52020DC0301&from=EN 184 https://energy.ec.europa.eu/topics/energy-strategy/clean-energy-all-europeans-package_en 84 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL إ Rationalize inefficient fossil fuel subsidies that en- courage wasteful consumption by removing market distortions in accordance with national circumstanc- es including by restructuring taxation and phasing out those harmful subsidies where they exist in or- der to reflect their environmental impacts, fully tak- ing into account the specific needs and conditions of the country and minimizing possible adverse im- pacts on its development in a manner that protects the poor and affected communities.
N Topic Sustainable and Smart Mobility Strategy– Putting European Transport on Track for the Future185 23 Gaps Priority  High Lack of a common sustainable and smart mobility strategy.

Coherence is needed among existing initiatives and strategic documents, including urban mobility plans.
Description/Justification (with sources) Recommendations Policy actions and objectives related to the transport sector to make it more sustainable and reduce GHG إ The MoESD should develop a long-term sustainable and smart national mobility/transport policy which emissions are included in several cross-sectoral and will set the vision, the key principles and the incen- sectoral strategic documents (CSAP, GCAPs, etc.).

tives for its development.


Municipal and city level However, large urban areas are lacking a common ap- mobility plans should be harmonized and consider proach to make transport more sustainable, increasing the principles set out in the national transport policy.
the penetration of zero-emission vehicles through var- ious financial incentives and regulations, making sus- tainable alternative transport solutions available to the public, improving connectivity and access, increasing high speed rail transport and others.

إ Strong stakeholder coordination and involvement is needed in developing national and municipal mobil- ity plans.
إ Assess the current modal split for freight and pas- senger transport and develop measures to reduce individual motorized traffic and increase public transport (train, bus, shared mobility concepts) and walking and cycling.

N Topic Sustainable and Smart Mobility Strategy – Putting European Transport on Track for the Future 24 Gaps Priority  High Small share of low emissions vehicles and low modal share of sustainable alternative transport solutions (cycling, e-micro mobility, etc.).
185 https://ec.europa.eu/info/law/better-regulation/have-your-say/initiatives/12438-Sustainable-and-Smart- Mobility-Strategy_en 85 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description/Justification (with sources) Recommendations In spite of a number of incentives to stimulate the pen- etration of electric vehicles, the share of such vehicles إ It is recommended to analyze the effectiveness of the existing measures/incentives and regulations is still very low in Georgia.
The reasons for this needs and identify key barriers hindering sustainable and to be studied and the results integrated in respective smart mobility development in Georgia.

policy measures.

The modal share of sustainable transport solutions is low according to the available data for Batumi and Tbilisi.

According to the available data for Batumi, the modal share of walking and cycling was 32% in 2016 where largest share was for walking.
While having a flat terrain and bicycle lines, people in Batumi still often do not use bicycles as a transportation means.

In Tbilisi, this share was even lower at 27%, and, again, the largest share was for walking.

N Topic Stop Deforestation 25 Gaps Priority  High Lack of well-established forest information and monitoring system.

Description/Justification (with sources) Recommendations Georgia does not have a well-established forest infor- mation and monitoring system.
However, forest bound- إ It is recommended to strengthen the capacity and qualifications of foresters and collect and systema- aries are registered.

There is a low pace for the forest tize data on land degradation, deforestation and land inventory process and information on deforestation, use change in Georgia.

land degradation and land use change at the national level remains absent.
إ The forests should be managed by their functional designation which are grouped into four categories of forests according to the Forest Code – protective, protected, tourist-recreational and agricultural forests.

إ The sustainable use of forest resources should be supported and promoted by all relevant institutions at the national and regional levels with measures set out to prevent forest fires.
86 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  CIRCULAR ECONOMY N Topic 26 Gaps Circular Economy Action Plan186 - aims at accelerating the transformational change required by the European Green Deal.

Priority  High Absence of a Circular Economy Strategy.

Description/Justification (with sources) Recommendations Georgia plans to develop a circular economy develop- ment strategy and action plan.
The MEPA is currently إ Georgia should develop a circular economy strat- egy and action plan to reduce pressure on natural developing target indicators.

resources, thus contributing to climate targets and In a more circular economy, the value of products, mate- halting biodiversity loss.
rials and resources is maintained in the economy for as long as possible and the generation of material waste إ Georgia should establish a robust and accurate data collection system for waste management (type and is reduced quantitatively and improved qualitatively.

amount of different waste types and treatment paths) Waste prevention is closely linked with improving man- to identify measures and track progress.

ufacturing methods and influencing consumers to de- mand greener products and less packaging.
Reducing the amount of waste generated is stated as the highest priority under the Waste Hierarchy established in the Waste Framework Directive (Article 4) which estab- lishes a priority order from prevention, preparation for reuse, recycling and energy recovery through to envi- ronmentally safe disposal, such as landfilling.
Sustainable Blue Economy187 - N Topic A New Approach for a Sustainable Blue Economy in the EU - Transforming the EU’s Blue Economy for a Sustainable Future 27 Gaps Priority  Medium Blue economy principles are not integrated in relevant strategic documents.
186 New Circular Economy Action Plan (europa.eu) / new_circular_economy_action_plan.pdf (europa.eu) / Circular economy action plan (europa.eu) 187 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52021DC0240&from=EN 87 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description/Justification (with sources) Recommendations The World Bank supports Georgia’s transition to a more sustainable blue economy.
The recommendations إ The GoG should consider the recommendations of the World Bank studies to set Black Sea coastal zone provided by the World Bank seek to raise the level related targets and include them in the NDC.

This of urgency needed to reduce the impact of climate will raise the ambition of Georgia’s NDC and help change on the coastal zone, address the escalating cost define climate adaptation targets for Georgia’s Black of inaction and focus on the blue economy as a vehicle Sea coast.
to accelerate climate change adaptation and mitigation measures and contribute to the socio-economic development, tourism and environmental conservation of Georgia and the region.

إ The GoG should support the implementation of the Common Maritime Agenda for the Black Sea (CMA)188 aiming at strengthening regional cooper- ation for a more sustainable blue economy in the Black Sea.
N Topic Framework for Maritime Spatial Planning189 (EU Directive) 28 Gaps Priority  Medium Lack of a maritime spatial plan and its principles in the country’s policy in relation to the maritime sector.

Description/Justification (with sources) Recommendations Georgia has a Law on Maritime Space190 but it does not have a maritime spatial plan.
Although the law was إ It is recommended that the GoG to develop a mar- itime spatial plan considering sustainable maritime amended in accordance with requirements of the Asso- spatial plan principles contributing to the sustainable ciation Agreement to protect the coastal zone from pol- development of the energy sectors at sea, maritime lution and ensure its monitoring, there is no common transport and fisheries and aquaculture as well as strategy to consider relevant European Green Deal prin- the preservation, protection and improvement of the ciples such as the sustainable development of maritime environment, including resilience to climate change transport, sustainable maritime tourism, improving re- impacts.
It may pursue other objectives such as the silience to climate change impacts, etc.

Some of these promotion of sustainable tourism and the sustaina- provisions are mentioned in Adjara’s Climate Change ble extraction of raw materials.

Strategy;191 however, the document is already outdated.
The EU cooperates with the Intergovernmental Ocean- إ Georgia can also benefit from cooperation with the MSPGlobal project and use international guidelines ographic Commission of UNESCO to accelerate MSP to develop the MSP.
processes worldwide through the MSPGlobal project.192 188 http://www.bsec-bsvkc.org/UploadedDocuments/Annex%201%20-%20Common%20Maritime%20Agen- da%20for%20the%20Black%20Sea.pdf 189 https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32014L0089&from=EN 190 https://matsne.gov.ge/ka/document/view/18244?publication=24 191 https://www.undp.org/sites/g/files/zskgke326/files/migration/ge/UNDP_GE_EE_Ajara_CC_2013_eng.pdf 192 https://www.mspglobal2030.org/ 88 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Maritime spatial planning (MSP) is the tool to manage the use of seas and oceans coherently and ensure that human activities take place in an efficient, safe and sus- tainable way.
N Topic A New Industrial Strategy for Europe193 29 Gaps Priority  Medium Georgia does not have a policy or a vision for the development of the industry sector.

Description/Justification (with sources) Recommendations Georgia has great opportunities to develop its industri- al sector with its strategic location and having signed إ It is recommended for Georgia to develop an indus- trial strategy which will set the vision, the objectives the AA/DCFTA with the EU.
However, there is no official and the specific measures to develop the country’s strategy with a state level vision vis-à-vis industrial de- production capacity and increase international com- velopment.

petitiveness.

Also, the ongoing sanctions on Russia create addition- al prospects for Georgia to develop a modern industry which has a high value added, a competitive advantage and diversified export markets.
 BIODIVERSITY N Topic 30 Gaps EU Biodiversity Strategy For 2030194 - aims to set Europe’s biodiversity on the path to recovery by 2030 and ensure that all of the world’s ecosystems are restored, resilient and adequately protected by 2050.

Priority  Medium Need to update Georgia’s NBSAP.


Description/Justification (with sources) Recommendations The National Biodiversity Strategy and Action Plan of Georgia 2014-2020 (latest)195 covers the biodiversity of the following areas: species and habitats, protected areas, forest ecosystems, agricultural biodiversity and natural grasslands, inland water ecosystems and the Black Sea and sets the strategic goals, the national targets, the objectives and the actions for each area.
إ Georgia needs to update the National Biodiversity Strategy and Action Plan.
إ It is necessary to improve the capacity of human and technical resources in the field of biosafety (train- ing of staff in controlling agencies, elaboration and adoption of relevant guidelines and instructions).196 193 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52020DC0102 194 EUR-Lex - 52020DC0380 - EN - EUR-Lex (europa.eu) 195 CBD Strategy and Action Plan - Georgia (English version) 196 Georgia, Sixth National Report to the Convention on Biological Diversity 2014-2018 89 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL إ There is a need for human and technical capacity building for the research, protection, promotion and revitalization of the traditional knowledge on biodi- versity conservation and use.197 N Topic Protection of Species and Habitats 31 Gaps Priority  Medium Databases, identification, classification, accounting (census), monitoring, conservation of endangered species and habitats need to be strengthened.
Description/Justification (with sources) Recommendations The EU has to have (by 2020) a Guidance on the selec- إ The Georgian Red List is to be updated.
tion of species and habitats to ensure that at least 30% of the protected species and habitats not currently in a favorable status are in that category by 2030 or show a strong positive trend.198 Georgia’s biodiversity Strategy199 considers and reflects problems facing certain species, their checklist, their recovery and reintroduction, species-specific conser- vation activities (for some species), the National Red List and the classification of habitats and their prior- itization.
However, all of these areas and the data need enhancement and update.

Assessment of the conservation status of the species listed in the Red List has not been undertaken since 2006.

The conservation status of economically valuable species has not been assessed, something which would ensure the sustainable use of these species.200 إ An electronic database of plant and animal species found in Georgia should be created and periodically updated.
إ National legislation based on EU directives on birds (2009/147/EC) and habitats (92/43/EC) should be transposed into national legislation.

إ Georgian habitats need to be classified according to the internationally recognized classification systems.

إ A biodiversity monitoring system is to be developed (elaboration began in 2007 but still needs comple- tion).

إ A strategy for invasive alien species is to be devel- oped to prevent their invasion and spread.
إ Species recovery and reintroduction activities, on- going in the country for some species, need better research and planning and should be scaled up.
197 Georgia, Sixth National Report to the Convention on Biological Diversity 2014-2018 198 communication-annex-eu-biodiversity-strategy-2030_en.pdf (europa.eu) 199 Georgia’s Biodiversity Strategy and Action Plan 2014-2020 200 Sixth National Report to the Convention on Biological Diversity, 2014-2018, Georgia 90 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  DEPOLLUTION N Topic Zero Pollution Action Plan (EU Action Plan: Towards Zero Pollution for Air, Water and Soil201 32 Gaps Priority  Medium Lack of proper functioning/operationalization of the legislation on sanitary norms for water, wastewater and soil, aimed at their protection from pollution.
Description/Justification (with sources) Recommendations Georgia’s legislation regarding ambient air202,203,204,205 as well as water-, waste- and wastewater-related leg- إ There is a need to study the level of operationaliza- tion of the Extended Producer Responsibility (EPR) islation, including technical and sanitary norms,206,207,208 principle of the National Waste Management Code.
seems to ensure meeting the targets; however, there is no full evidence that they work/function properly, espe- cially the Extended Producer Responsibility (EPR)209 as a part of the National Waste Management Code.210 N Topic Zero Pollution Action Plan (EU Action Plan: Towards Zero Pollution for Air, Water and Soil211 33 Gaps Priority  High Absence of normative limits for chemical pesticides used in agricultural soils in Georgia.
201 Commission aims for zero pollution in air, water and soil (europa.eu) / www.eubusiness.com/topics/environ/ zero-pollution-action-plan 202 277 (eiec.gov.ge) 203 Ministry of Foreign Affairs of Georgia - National Action Plans for the implementation of the Association Agreement and Association Agenda (mfa.gov.ge) 204 2021-2023 EU-Georgia work plan for the implementation of the Trade and sustainable development chapter (europa.eu) 205 EU-Georgia Association Agreement and Agenda, old.civil.ge/files/files/annex_ii_-_eu-georgia_association_ agenda_text.pdf 206 Order No 297/N of 2001 of Minister of Labor, Health and Social Affairs of Georgia on Environmental Quality Requirements | InforMEA 207 On Water | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 208 On the approval of the technical regulation on the conditions of discharge and reception of water in the sewage system and the maximum allowable norms of polluting substances | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 209 Strategic Documents | Ministry of Environmental Protection and Agriculture of Georgia (mepa.gov.ge) 210 Waste Management Code | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 211 Commission aims for zero pollution in air, water and soil (europa.eu) / www.eubusiness.com/topics/environ/ zero-pollution-action-plan 91 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description/Justification (with sources) Recommendations The zero pollution policy with respect to soils implies the improvement of soil quality by reducing nutrient إ It is recommended for the MEPA to identify types and normative limits for chemical pesticides used losses and chemical pesticide use by 50%.
Georgia’s for agricultural soils.

Law on Soil Protection212 is dealing with soil pollution with radionuclides, toxic, hazardous and non-hazardous waste, chemical pesticides and nutrient loss but does إ A system of accounting chemical pesticides used in agricultural soils should be created and a database for monitoring purposes vis-à-vis these pesticides not identify the norms for chemical pesticides used in should be developed.

agricultural soils.
agricultural soils.

إ Improve the Law on Soil Protection, adding a regu- lation on prohibiting the burning of agricultural resi- dues in the fields.

N Topic Chemicals Strategy for Sustainability (Annexed with Action Plan for 2021-2024)213 34 Gaps Priority  High Need to ensure consistency with EU principles and objectives in the use of chemicals.

Georgia does not have a chemical strategy for sustainability yet.
Description/Justification (with sources) Recommendations Georgia does not yet have a chemical strategy for sus- It is recommended to assess the consistency of Geor- tainability.
However, it has adopted the Law on Environ- gian legislation with the EU directives and regulations in mental Protection214 and a resolution on the procedure the use of chemicals to ensure: for the export-import of certain hazardous chemicals and pesticides and the procedure of prior informed consent215 with annexes – A list of chemicals and pes- ticides under ban or strict restriction for export and import (Annex I) and a list of hazardous chemicals and pesticides prohibited for production, export and import under the Stockholm Convention.
إ Phasing out the most harmful substances from con- sumer products such as toys, childcare articles, cos- metics, detergents, food contact materials and tex- tiles which include endocrine disruptors, chemicals that affect the immune and respiratory systems and persistent substances such as per- and polyfluoro- alkyl substances (PFAS), among others, unless their In 2014, Georgia took an obligation under the EU- use is proven essential for society.
Georgia AA about chemicals management, embracing the elaboration of corresponding legislation and its harmonization with the EU’s legislation, accounting and reporting of chemicals and dangerous/hazardous waste and the creation of a register of chemicals.

إ Minimizing and substituting as far possible the pres- ence of substances of concern in all products.

Pri- ority will be given to those product categories that affect vulnerable populations and those with the highest potential for a circular economy.
212 On Soil Protection | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 213 Commission adopts new Chemicals Strategy (europa.eu) / Chemicals strategy (europa.eu) / resource.html (europa.eu) / resource.html (europa.eu) / chemicals-strategy-factsheet.pdf (europa.eu) 214 On Environmental Protection | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 215 On the procedure for export-import of certain hazardous chemical substances and pesticides and the procedure for prior informed consent | LEPL “Legislative Herald of Georgia” (matsne.gov.ge) 92 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL إ Addressing the combination effect of chemicals (cocktail effect) by taking better account of the risk that is posed to human health and the environment by daily exposure to a wide mix of chemicals from different sources.
Ensuring that producers and consumers have access to information on chemical content and safe use by introducing information requirements in the context of the Sustainable Product Policy Initiative.

N Topic Industrial Emissions Directive (IED)216 35 Gaps Priority  High Lack of rules to prevent and to reduce industrial emissions.
Description/Justification (with sources) Recommendations Industrial production processes account for a consider- able share of the overall pollution in Europe due to their إ The MEPA should develop rules to prevent or, where that is not practicable, reduce industrial emissions emissions of air pollutants, discharges of wastewater into the air, water and land and prevent the genera- and the generation of waste.
tion of waste in order to achieve a high level of envi- Directive 2010/75/EU of the European Parliament and ronmental protection.

the Council on industrial emissions (the Industrial Emis- sions Directive or IED) is the main EU instrument regu- إ The MEPA should accelerate the finalization and the adoption (as expected, by the end of the 2022) of a lating pollutant emissions from industrial installations.
On April 5, 2022, the European Commission adopted corresponding legislation about industrial emissions that is under development and ensure its timely proposals for revised EU measures to address pollution implementation.

from large industrial installations.

These proposals concern the revision of the IED.


In line with the European Green Deal, the overall aim of the proposal is to progress towards the EU’s zero pollution ambition for a toxic-free environment and support climate, energy and circular economy policies.

According to the EU-Georgia Association Agreement,217 Directive 2010/75/EU shall be implemented within four years of the entry into force of this Agreement.
216 The Industrial Emissions Directive - Environment - European Commission (europa.eu) / EUR-Lex - 32010L0075 - EN - EUR-Lex (europa.eu) 217 association_agreement.pdf (europa.eu) 93 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL N Topic EU Rules on National Emissions of Certain Atmospheric Pollutants 36 Gaps Priority  High Need to transpose Directive (EU) 2016/2284 on the reduction of national emissions of certain atmospheric pollutants into national legislation.
Description/Justification (with sources) Recommendations Directive (EU) 2016/2284 aims to reduce the health risks and environmental impact of air pollution by إ Promote the elaboration and the adoption of corre- sponding legislation regarding the pollutants cov- establishing national emission reduction commitments.

ered by EU Directive 2016/2284 in order to have it in The legislation was proposed as part of the EU’s 2013 place well before 2030.
Clean Air Policy Package which included a Clean Air Program for Europe.

The Directive covers five air pollutants: إ Sulphur dioxide إ Nitrogen oxides إ Non-methane volatile organic compounds إ Ammonia إ Fine particulate matter The Directive sets emission reduction commitments per pollutant by 2030.
Although Georgia is a signatory of the Convention on Long-Range Transboundary Air Pollution (CLRTAP), its commitments do not cover the regulation/prohibition/ limitation of the emissions of the listed substances.

 SUSTAINABLE FOOD SYSTEMS AND RURAL AREAS From Farm To Fork (Farm To Fork for a Fair, Healthy and Environmentally Friendly Food System)218 Organic Action Plan219 - A sustainable food system is at the heart of the European Green Deal.
Priority  Medium N Topic 37 Gaps Precision agriculture, organic farming, agro-ecology, agro-forestry, low-intensive permanent grassland and stricter animal welfare standards under the Farm to Fork Strategy and the new Common Agricultural Policy (CAP)1 are fragmented in Georgia’s agriculture development strategies.220 218 f2f_action-plan_2020_strategy-info_en.pdf (europa.eu) 219 Organic action plan | European Commission (europa.eu) / resource.html (europa.eu) / resource.html (europa.
eu) 220 Agriculture Development Strategy of Georgia / Agriculture and Rural Development Strategy of Georgia 2021- 2027 94 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Description/Justification (with sources) Recommendations Under the Green Deal’s Farm to Fork strategy, the European Commission has set a target of at least 25% إ It is recommended that the MEPA consider modern agricultural practices, implied in the EU’s Farm to of the EU’s agricultural land under organic farming and Fork Strategy and the Common Agricultural Policy a significant increase in organic aquaculture by 2030.
(CAP), in updating the Agriculture Development To achieve this target and to help the organics sector Strategy and its action plan.

reach its full potential, the European Commission de- veloped an action plan for organic production in the EU.
إ A data collection system should be established to monitor agricultural practices which could be also used as a basis for financial support schemes Georgian strategies (last two: 2015-2020 and 2021-2027) for agriculture and the corresponding APs consider modern methods and practices under the climate-smart agriculture (CSA) approach; however, modern agricul- tural practices, such as precision agriculture, organic farming, agro-ecology, agro-forestry, low-intensive per- manent grassland and stricter animal welfare standards mentioned in the EU Biodiversity Strategy and the AP, are not explicitly considered (included) in relevant sec- toral strategies of Georgia.
N Topic Strategic Guidelines for Sustainable and Competitive EU Aquaculture221 38 Gaps Priority  Medium There is a lack of a strategic vision for the development of aquaculture as a sector that supplies nutritious and healthy food with a low environmental and climate footprint, creating economic opportunities and jobs in Georgia.
Description/Justification (with sources) Recommendations Georgia has adopted the Law on Aquaculture222 and with the support of the EU and the FAO and it is devel- إ It is recommended that the principles of the strategic guidelines for sustainable and competitive aquacul- oping the National Aquaculture Development Strategy.

ture be considered in the National Aquaculture De- However, the country lacks a strategic vision for the de- velopment Strategy of Georgia.

velopment of aquaculture.


221 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2021:236:FIN 222 https://matsne.gov.ge/en/document/view/4901055?publication=0 95 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Best Practice Examples of Georgia This section provides best practice examples of Georgia, showing the strengths of the national/ regional or local ambitions in becoming a more resilient, low carbon and viable economy.
These are (community projects, technological innovations, smart mobility concepts, awareness raising initiatives, financing concepts) projects, policies or initiatives which are effective and repro- ducible in contributing to less GHG emissions and a healthier environment.

Each example is described in detail, including information on the type of implementation instrument, the status of implementation, impact, co-benefits, financing and the implementing body, etc.
Name of the project/policy/initiative  NET-METERING, REGULATORY MECHANISMS OF MICRO-GENERATORS223 Status of implementation (implemented, ongoing, planned) ⏳ Ongoing Implementing body and level of implementation (national, regional, municipal) Georgian National Energy and Water Supply Regulatory Commission (GNERC), national level The articles related to the micro-generator in the GNERC Resolution on Approving Network Rules Type of implementation instrument (community project, technological innovation, smart mobility concept, awareness raising initiative, financing concept) Regulatory mechanism, financing concept  Objective of the Project An owner of solar, wind, hydro and/or other renewable energy, the micro-generator with a ca- pacity below 500 kW, can apply for connection to the electricity distribution network and pro- vide excess electricity to a distribution company.
This will allow the owners to satisfy their own 223 GNERC - Net Metering 96 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEALLOCALNETWORKREVERSALMETERENERGYRECEIVED FROMTHE NETWORKEXCESS ENERGYAN OBJECTINVERTERENERGYSOURCE7654231 consumption needs, save on their utility bills and even get a reimbursement from the distribu- tion company.

Moreover, they will generate clean energy without an adverse environmental impact.
Net metering is a process of the reverse metering of the outflows of excess electricity generated by micro-generator and the electricity received from the network, whereby the generated and consumed electricity offset each other.

Any natural person, house-owner partnership, urban or rural resident can use the net metering mechanism.

It is not an entrepreneurial activity.


The micro-generating power plant may not be the property of this consumer(s), although it can be under his (their) temporary ownership in the form of a lease, rent or other type of agreement.

Electricity generation by the micro-generator and the consumption of the generated electricity can take place in different locations where it and its customer/group of customers are connected to the same distribution company.
If the generation and consumption points are different from each other, both reverse meters and smart meters can be installed for each customer.

The applicant seeking connection of the micro-generating power plant to the electricity network can apply to the distribution license holder.

Connection of the micro power plant to the network is provided by a simple procedure – a one-stop shop principle.
After receiving the customer’s application, the company is obliged to install a reverse meter or a smart meter for the customer or for each customer in the case of a group of customers using a micro-generator.

The distribution license holder can receive the electricity generated by the micro power plant and bill the customer on the balance remaining after offsetting the received and consumed electricity.
97 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEALLOCALNETWORKREVERSALMETERENERGYRECEIVED FROMTHE NETWORKEXCESS ENERGYAN OBJECTINVERTERENERGYSOURCE7654231 The issues related to renewable energy and energy efficiency are regulated by the Georgian Law on Energy and Water Supply and the regulation adopted by the Parliament of Georgia on the Main Directions of State Policy in the Energy Sector of Georgia.
In 2016, an amendment was made to the Law in order to promote renewable energy use by which the status of the micro- generating power plant (a renewable energy source owned by retail customer) and its maximum capacity were defined.

The law also determined the principles for the supply of electricity generated by micro power plants to the distribution network.
On the basis of these changes, the Commission in its Rules for Electricity (Capacity) Supply and Consumption defined the status of the micro generating power plant, the terms for connecting it to the distribution network, fees (including VAT) and the billing/net metering rules for retail customers of the micro generating power plants.
file-circle-check Results/co-benefits The policy has the following co-benefits: ׌ The policy has stimulated the renewable energy technology business and its development in Georgia.

As of April 2022, 397 micro generating power plants with 20.4 MW of installed capacity are in operation.224 ׌ The policy has increased the employment of electricians and engineers in the sector.

׌ It has significant benefit for the commercial sector in terms of electricity cost saving.
׌ The policy has stimulated the local production of raw materials (cables, structural materials, etc.).

 Financing scheme The electricity supplied by the owner of the micro generating power plant to the electricity network and the electricity received from the distribution network are metered separately by a reverse meter.
ު If the micro generating power plant generates excess energy and the amount of electricity supplied to the network exceeds the amount of energy received from the network, the dif- ference; that is, the excess energy, will be deemed as the energy supplied by the consumer to the network and will be credited to the next month’s bill.
ު If the total amount of electricity generated by the micro generating power plant and billed to the customer (supplied to the network) as a credit is lower than the amount of electricity received from the distribution network, the difference will be deemed as electricity purchased from the network and will be billed by the consumer tariff of the relevant voltage/ level.
224 GNERC, 13 April 2022 FB post 98 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL ު The electricity reflected as a credit in the bill of the final month at the end of the reporting year (from May to May) will be deemed as electricity purchased by the distribution network.

Respectively, the company will make the final billing in accordance with the electricity purchase tariff set by the Commission for the distribution license holder.
ު After the end of the calendar year, the amount credited to the bill for the electricity supplied to the network may be reflected on the Subscriber’s Card and used for the next bill or upon request.

The company may also transfer this amount to a bank account specified by the customer within three workdays.

ު In the case of a group of customers, the distribution license holder will bill each member of the group individually.
Electricity generated by the micro generating power plant will be distributed equally to the group members unless otherwise agreed among the group members.

Name of the project/policy/initiative  NIKO KETSKHOVELI PRIZE225 A school competition raising young people’s awareness on forest ecosystems and spurring environmental activism.
Status of implementation (implemented, ongoing, planned) ⏳ Ongoing Implementing body and level of implementation Ministry of Environmental Protection and Agriculture, (national, regional, municipal) Ministry of Education and Science, Environmental Caucasus Environmental NGO Network (CENN), Georgia Other Involved stakeholders: Committee of the Georgian Parliament The project is implemented at the national level.
Type of implementation instrument (community project, technological innovation, smart Education and capacity building and awareness raising mobility concept, awareness raising initiative, financing initiative concept)  Objective of the Project In 2016, the Niko Ketskhoveli Prize was established as an environmental youth award in the scope of the project Promoting Sustainable Forest Governance in Georgia with financial assistance from the Austrian Development Cooperation.
The annual national school competition aims to 225 https://www.climateactionstories.com/education-capacity-building/niko-ketskhoveli-prize 99 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL foster environmental education with a special emphasis on forest-related issues and engaging youth in civil life.

Registered youth groups can collect points for organizing activities, events or small-scale research projects according to the challenges and tasks provided on forestry.

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At the end of each competition year, an expert jury selects three out of several hundred participating “eco clubs” to receive the Niko Ketskhoveli Prize named after a famous Georgian biologist, scientist and writer.

The project raises schoolchildren’s awareness on the importance of the forest ecosystem and cross-cutting issues, thereby contributing to a positive and responsible attitude towards forests and nature in general.
Moreover, it spurs concrete environmental activism such as the adoption and care of recreational forest sites, the organization of hundreds of clean-up actions and tree planting activities in cooperation with the National Forestry Agency, bans on single-use plastic at schools, etc.

file-circle-check Results/co-benefits The activism coming from the schoolchildren even initiated the Krtsanisi Forest Park development program, resulting in the conservation of 210 hectares of urban forests near Tbilisi.
To top it off, the program is supported by extra-curricular Green Camps for active eco clubs, special summer trainings for schoolteachers and printed and digital knowledge materials which are distributed for free to rural communities, rural women’s clubs, universities, etc.

More than 4,000 people have directly benefitted from this initiative since 2016.

 Financing scheme Applied financing solutions - grants.
Project Volume: 10,000-100,000 EUR 100 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Name of the project/policy/initiative  BIODIESEL GEORGIA Status of implementation (implemented, ongoing, planned) ⏳ Ongoing Implementing body and level of implementation (national, regional, municipal) Private company Type of implementation instrument (community project, technological innovation, smart Technological innovation, example of a circular mobility concept, awareness raising initiative, financing economy concept)  Objective of the Project In 2018, Biodiesel Georgia LLC launched a biodiesel plant for the first time in Georgia and the South Caucasus region based on innovative technology and started the production of clean, renewable, environmentally friendly fuel – biodiesel (www.biodiesel.ge).
Since then, the plant has been operating successfully, constantly increasing production.

The plant uses both new and secondary (used) cooking oil as raw materials for biodiesel production.

The plant has already collected and processed almost 465 thousand liters of used cooking oil and produced more than 345 tons of clean, eco-friendly fuel – biodiesel, and consequently saved more than 950 tons of CO2 from being released into the atmosphere.
The company’s biodiesel has already gained loyal customers in Georgia and more and more clients are choosing biodiesel as environmentally friendly and high-quality fuel.

101 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL file-circle-check Results/co-benefits The amount of used cooking oil (UCO) may not seem significant at first glance, but with the proper management and organization, more than 100 of tons of UCO can be collected in Georgia and turned into biodiesel every month.
Production of biodiesel from recycled oil will bring double environmental benefit: used cooking oil, which is a liquid waste, will no longer be disposed in waste landfill sites, thereby polluting the environment.

Further, the used oil is removed from the food chain again and turned into the most environmentally friendly fuel - biodiesel.
When Biodiesel Georgia LLC began the regular production of biodiesel in 2018, it had just 25 UCO supplier companies and the total production of biodiesel was just 10-12 tons per month.

Today, the company has 355 UCO suppliers in Tbilisi (the capital of Georgia) alone and 507 suppliers countrywide.

As a result, monthly production has increased and reached 55 tons per month.
Suppliers are all major brands working in the food industry – KFC, McDonalds, Burger King, many hotels, fast food restaurants, other restaurants and they willingly cooperate and supply UCO to Biodiesel Georgia LLC.

Biodiesel Georgia has successfully reached an agreement with newly opened Iveria Oil International plant which was established in Batumi.

The plant processes sunflowers and produces cooking oil.
During the working process, the plant collects a certain amount of oil which cannot be used in the food industry but which is a perfect raw material for biodiesel production.

This supplier provides 6.5-7 tons of oil every month.

The potential for UCO collection in Georgia according to the company’s research totals 120 -130 tons per month.
In addition, the company carries out negotiations with several large UCO suppliers in neighboring countries which has the potential to increase UCO collection up to 220-240 tons per month.

Even though more than one-third of fertile land in Georgia is not cultivated, the company decided to collaborate with farmers to grow rapeseed as a crop rotation culture in Georgia.
As a trial project, Biodiesel Georgia cultivated 65 hectares of rapeseed in Eastern Georgia (Latin: Brassica napus) whose oil is an excellent feedstock for biodiesel production with the oil cake by- product used for livestock.

The company has given a new impulse to agribusiness development in Georgia and has supported the further development and diversification of agribusiness in the country.
Based on consultations with agricultural specialists, farmers and the Farmers’ Association, Biodiesel Georgia decided to use only rapeseed as a crop rotation culture.

This means that farmers who grow wheat and corn can fallow their land with rapeseed for two years which will also maintain the chemical composition and fertility of their fields.

102 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Rapeseed is an excellent crop rotation culture.
Rapeseed plants have special bacteria on their roots which absorb nitrogen from the atmosphere and enrich the soil with nitrate, actually acting as a bio-fertilizer.

This brings a very positive effect – the land is fallowed from wheat and corn and planted with rapeseed which will bring a better harvest when the main crops are planted again , by as much as 10-12% more owing to the newly fertilized land.
This approach will bring benefits to both parties: the farmers will increase their productivity and the volume of the harvest of their main crops while also having the opportunity to grow a new crop purchased in full for biodiesel production.

At the same time, Biodiesel Georgia LLC will receive more raw materials and more feedstock to develop further biodiesel production in Georgia.
 Financing scheme Private financing 103 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Name of the project/policy/initiative  REDUCING THE RISK OF CLIMATE- DRIVEN DISASTERS IN GEORGIA Status of implementation (implemented, ongoing, planned) ⏳ Ongoing Implementing body and level of implementation UNDP and the Government of Georgia (national and (national, regional, municipal) community level) Type of implementation instrument (community project, technological innovation, smart Technological innovation, awareness raising, community mobility concept, awareness raising initiative, financing project concept)  Objective of the Project To reduce the exposure of Georgia’s communities, livelihoods and infrastructure to climate- induced natural hazards through a well-functioning nation-wide multi-hazard early warning system and risk-informed local action.
104 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL file-circle-check Results/co-benefits Expected results: ު Multi-hazard and risk maps for 11 river basins in Georgia.

ު Extended Hydromet observation network including up to 140 monitoring equipment, upgraded ICT system, HPC.

ު Multi-Hazard Disaster Risk Information System (MHDRIS).

ު Multi-Hazard Early Warning Systems established with appropriate coordination mechanisms and supporting enhanced legal framework in place.
ު MH Risk Management Planning at basin and municipal levels.

ު Enhanced climate information services and products.

ު Community-based disaster risk management activities and community-based early warning systems to be implemented in 100 of the most vulnerable communities.

ު Awareness raising and education at national and community levels.

ު Implementation of flood protection measures at 15 sites.

 Financing scheme Donor funding from GCF, SDC and SIDA and GOG contribution, overall, 74 mln.
USD Name of the project/policy/initiative  WASTE MANAGEMENT TECHNOLOGIES IN THE REGIONS (WMTR-II) Status of implementation (implemented, ongoing, planned)  Implemented Duration: 16/3/17 - 15/3/20 Implementing body and level of implementation (national, regional, municipal) Caucasus Environmental NGO Network (CENN), Georgia The project is implemented at the national level.
Type of implementation instrument (community project, technological innovation, smart mobility concept, awareness raising initiative, financing concept) Community project, awareness raising initiative.

105 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Objective of the Project WMTR assisted the Government of Georgia to improve the waste management system in the county and make it comply with international standards.
The support included the development of a legislative framework via participatory and inclusive approaches to policymaking as well as assistance in implementing the requirements of the legislation to establish modern waste management practices, improve natural resource management of biologically significant areas and build the capacity of various stakeholders.
 WMTR had four overarching objectives:  Implement an Integrated Waste Management System (Tbilisi City, Adjara AR, Shida Kartli and Kakheti regions),  Build the capacity of the recycling sector,  Implement a cost recovery tariff methodology and  Build the capacity and increasing the awareness of the general public and other stakeholders about modern waste management practices.
file-circle-check Results/co-benefits Circular economy and resource efficiency With the program’s support, 19 waste management plans for municipalities and three waste management plans for protected areas have been developed and adopted by the Government of Georgia.
The program helped to develop three regulations on Extended Producers Responsibility (EPR) and addressed the challenges posed to biodiversity by rampant littering and groundwater pollution by closing ten illegal dumpsites in the project’s target regions.

WMTR II also launched a nationwide campaign, Keep Georgia Beautiful, to preserve Georgia’s biodiversity and maintain a clean environment through long-term partnerships with the public and private sectors.
The WMTR II program forged a new Public-Private Partnership (PPP) in waste separation and recycling which introduced the country’s first public waste separation schemes.

As of 2020 with the program’s support, Georgia had 47 waste separation corners located in public places where citizens can deposit their separated waste - paper, plastic bottles, glass and aluminum - to be recycled.

Private companies collect the separated waste and provide it to recycling companies.
In addition, 28 schools in the regions of Georgia started paper waste separation and various institutions started waste separation on their premises.

The program focused on making the waste management sector self-reliant via establishing a proper tariff and cost-recovery system and establishing an effective fines system in case of illegal dumping.
106 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Enabling business environment for an inclusive economy The program helped Georgia strengthen emerging recycling businesses to improve their business operations and increase sales through technical support and sub-grants.
As a result, 15 waste aggregating and recycling companies improved their supply chains and accessed raw materials more easily by establishing strong business connections with large waste generators, optimizing recyclable waste collection schemes and being involved in public waste recycling systems established by the program.
WMTR II also supported companies in improving management practices and business performance by helping them comply with legislative requirements, improving financial systems and marketing processes as well as introducing product quality standards.

Moreover, the sub-grants disbursed to five recycling companies enabled them to upgrade equipment, increase their production capacity and significantly improve the quality of recycled products.
The program established and strengthened the Georgian Waste Management Association (GWMA) through institutional capacity building, facilitating their communication and cooperation with various stakeholders as well as helping them to lobby legislative changes at the governmental level.
Strengthening of education systems The program succeeded in incorporating a modern course about the circular economy in the curriculum of one of the most prestigious universities in Georgia, ISET, as well as built the capacity, educated and raised awareness of different stakeholders to ensure that they are aware of and able to apply proper waste management practices.

 Financing scheme USAID grant.
107 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL Name of the project/policy/initiative Status of implementation (implemented, ongoing, planned)  UDABNO LLC226 ⏳ Ongoing Implementing body and level of implementation (national, regional, municipal) Regional - Sagarejo Municipality Type of implementation instrument (community project, technological innovation, smart mobility concept, awareness raising initiative, financing Community project concept)  Objective of the Project Several years ago, Udabno LLC owners decided to transform a literally semi-desert area into a place which would be a pioneer of organic production and eco-innovations in the region.
Udabno LLC manages one of the biggest agricultural developments in Georgia’s eastern region of Kakheti.

The almond orchard (2,000 ha), berry farms (2,020 ha) and vineyard with endemic grape varieties (8 ha) as well as a dairy farm (buffalos, goats, chicken), all of which are part of the agricultural direction of the holding, are setting new standards in the industry.

Further, the company plans to develop a hotel and a restaurant in the remote area and offer farm-to-fork service to the customers.
226 Agriculture | Adjara Group 108 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL The 2,000-hectare almond orchard is managed using technologies of the highest quality and serves as a platform of knowledge exchange between Georgian professionals in the field and international experts.

The orchard is expanding every year and by developing an almond nursery, the company plans to fully cultivate the plants in-house.
file-circle-check Results/co-benefits By developing up to 8,000 hectares of land in Kakheti, Udabno is playing a pivotal role in fighting desertification while bringing biodiversity to the region.

Importantly, with more than 25 kilometers of water pipes already in place as well as efficient and automated irrigation systems, Udabno has been establishing modern, efficient and sustainable agricultural practices in Georgia.
Employing local populations and creating a gender-balanced work environment is highly prioritized in the company’s agricultural work.

Considering that some portion of the region’s inhabitants are ethnic and religious minorities, the Udabno team makes sure that work opportunities are created for people of diverse backgrounds.

Currently, the following Spanish and Italian almond varieties are grown; Supernova, Genco, Guara, Soleta and Lauranne.
By the year 2021-2022, the harvest from the orchard will be exported and also sold on the Georgian market, thereby making Udabno one of the biggest almond producers in the South Caucasus region.

The Udabno livestock and poultry farms include 60 Mediterranean buffalos, 50 alpine goats and 120 chickens with the numbers set to increase each year.

The animals, all of which are only used for obtaining milk and eggs, are being cared for by the team.
Moreover, the company plans to construct a milk processing plant for producing cheese, almond milk and further utilizing the farm’s dairy products.

Udabno provides fresh produce for the Adjara Group Holding’s restaurants straight from Kakheti.

Moreover, cheese and matsoni produced by the holding’s restaurants use goat and buffalo milk from the company’s dairy and poultry farm.
Local populations play an integral role in ensuring that the value chain created within the holding system is consistent and fresh products of the highest quality are provided for Adjara Group Holding’s establishments.

The company plans to build a 15-km-long irrigation canal to supply water to the farm.

The canal will also be available for the local farmers.

To process harvested almonds and other products, there are plans to build a factory which will also offer service to local farmers.
The company aims to create a waste-free production line and use accumulated waste from the farm and almond gardens to produce biodiesel, fertilizers, mulch and briquettes.

Organic fuel will be used in the greenhouses.

109 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL  Financing scheme Since the major share of the project is almond gardens and it takes up to four to five years until harvest, the project has no cash inflows during this period.
The project finance comes from both the equity contributions of the founder and debt.

The company has an approved credit line from local banks and finances various capital and operational expenses.227,228 227 Management report.

Available at https://reportal.ge/ka/Reports/GetFile/8366 228 https://bit.ly/3shXs4v 110 ASSESSING THE READINESS OF GEORGIA FOR ALIGNMENT WITHTHE EU GREEN DEAL