UNDP and Switzerland assist Georgia to enact Article 6.2 of the Paris Climate Agreement
New opportunities emerge for public-private partnerships to combat climate change
February 9, 2023
More than 50 representatives from the Government of Georgia, the Georgia Climate Finance Working Group, regional authorities, and the private sector attended a strategy session and training this week to accelerate the implementation of the Paris Agreement on Climate Change. The event, organized by UNDP with the support of the Government of Switzerland and the Ministry of Environmental Protection and Agriculture of Georgia, introduced new opportunities for businesses that work for profit, people and the planet.
Georgia has committed to unconditionally reducing its total greenhouse gas (GHG) emissions to 35 percent below its 1990 baseline level (an approximately 16 percent per capita reduction) by 2030. Article 6 of the Paris Climate Agreement provides a viable way to achieve this through incentives for businesses to innovate new ways to create products or deliver services while simultaneously reducing carbon emissions.
“This is a great opportunity for Georgian investors and entrepreneurs to develop new businesses that serve the public and the planet while earning profits. Once the reduction has been documented, the enterprise can receive back up to 25 percent of its initial investment as an ex-post subsidy.”Nick Beresford, UNDP Resident Representative in Georgia
“Carbon trade creates new prospects in our global effort to mitigate climate change. Access to carbon trade markets will support climate-friendly business development in Georgia, promote a low-emission economy and contribute to fulfilling Georgia’s ambitious climate agenda.”Maia Tskhvaradze, Head of the Climate Change Division at Georgia’s Ministry of Environmental Protection and Agriculture
In this market-oriented approach, a private or state-owned enterprise must first identify and invest in a market opportunity that provides a product or service while helping to reduce Georgia’s GHG emissions. This could be anything from developing a new solar power plant to launching an e-mobility transportation service to renovating old buildings with improved insulation. Once the initiative has demonstrated proven success in reducing carbon emissions, it can receive up to 25 percent of its originally invested capital from the specialized global facility created to mobilize funds for carbon trading systems. The Swiss Federal Office for the Environment and the Swiss carbon procurement programme have contributed US$120 million to the Facility to be used for this purpose.
Georgian companies interested in entering carbon markets can contact the Ministry of Environmental Protection and Agriculture for more information: ClimateChange@mepa.gov.ge