Georgia Can Unlock Potential for Green Growth, Says World Bank

The World Bank and the Government of Georgia held today a virtual event focused on the findings and recommendations of a recent World Bank report, Georgia: Towards Green and Resilient Growth. The report examines the potential for Georgia’s transition to green and resilient growth – a model of economic development that efficiently uses natural resources, minimizes pollution and environmental impacts, and is resilient against climate change impacts.

The report estimates losses associated with pollution and degradation of agricultural and forest land and coastal zones. In 2018, air pollution in Georgia contributed to more than 4,000 lives lost, while its economic costs were estimated at $560 million, or 3% of GDP. The cost of agricultural and forest land degradation, which disproportionately impacts the rural poor who derive their livelihoods from land, was estimated at $128 million. Restoring landscapes is projected to reduce the poverty gap by 6%.

Climate change will further exacerbate environmental degradation, particularly in Georgia’s coastal zones. In 2018, climate-driven flooding, erosion, waste, and damage to soil were estimated at 5% of coastal zone GDP. The report emphasizes the importance of natural assets for Georgia’s long-term development and outlines how recovery from the COVID-19 pandemic presents an opportunity for the country to build back better, fairer, and greener.

“The World Bank Group stands with the Government of Georgia on its green pathway to economic recovery. We are delighted that our technical expertise and analysis is shaping Georgia’s green transition, addressing natural resource degradation, reducing the vulnerabilities of resource-dependent people, and identifying a green growth strategy that is just and works for all of Georgia – from the coast, plains, and mountains to urban centers,” said Sebastian Molineus, World Bank Regional Director for the South Caucasus. “The Government of Georgia has shown that it is ready to embrace this unique opportunity and we are committed to supporting all of Georgia on this green pathway.”

The World Bank’s global knowledge leadership and support for green growth provide an important contribution to Georgia’s approximation to the European Union. Becoming an EU member state means greening the country’s growth and aligning with the European Green Deal, soon to be a defining feature of the EU’s approach to development.

“The Government of Georgia recognizes the green economy opportunities for the country and its potential for sustainable economic growth, job creation and poverty reduction. Despite the challenges brought on by the pandemic, we are trying to approximate our legislation with best international practices in green development,” said Ekaterine Mikabadze, First Deputy Minister of Economy and Sustainable Development of Georgia. “Considering the significance of the impacts of climate change on economic development, we highly appreciate the assistance of our international partners, including the World Bank, for supporting us throughout our green transition.”

Under the 2015 Paris Agreement, Georgia has pledged to enhance sustainable development and to curb global warming through its recently updated Nationally Determined Contribution (NDC), which sets forth specific measures for greenhouse gas emission reductions and climate-change adaptation. As part of its updated NDC, Georgia pledged a 35-percent reduction of greenhouse gas emissions by 2030 as compared to 1990. At the Conference of the Parties (COP) in Glasgow later this year, Georgia and all Paris Agreement signatories will be reporting on progress made towards these targets.

“I commend the Government of Georgia for recognizing the importance of the country’s unique coastal and marine resources and emphasizing in its updated NDC climate adaptation measures in its coastal zone. The resilient use of natural resources, including those in coastal areas, and bringing back tourism after the COVID-19 pandemic, are among the priority interventions,” said Steven Schonberger, World Bank Sustainable Development Regional Director.

The report emphasizes that the green growth model will require a mix of bold policy actions that strengthen forest and landscape management, develop a climate-resilient coastal zone, manage pollution, and build a multi-sectoral approach to sustainable development.

Looking to the future, the World Bank is supporting the Green Transition Platform that will outline a green growth path for Georgia to achieve its climate targets (NDC). Among the priority actions on this path are implementing policies to enhance efficient resource use, decarbonizing and adapting to climate change, and promoting technological innovation and environmentally friendly industries and jobs.

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