EBRD facilitates first carbon credit deal in Georgia

A Georgian Hydro Power Plant (HPP) has slashed its energy emissions and is now "well-positioned” to generate additional financial revenues and bolster the economy, says a top European investment bank.

By reducing its energy emissions, the state-owned operator of Enguri Hydro Power Plant (HPP) Engurhesi Ltd was able to conclude the first sale of carbon credits, putting the company in a favourable state to generate additional financial revenues from the sale of its emission reductions going forward, said the European Bank for Reconstruction and Development (EBRD), who supported the deal through its Carbon Project and Asset Development Facility (CPADF).

The deal comes after years of investment, which led to the project’s registration under the Kyoto Protocol’s Clean Development Mechanism (CDM) towards the end of 2012.

EBRD provided technical assistance to help Engurhesi Ltd decide on a sales strategy as well as verification of emission reductions realised between January 2013 and August 2014. As a result, over 400,000 carbon credits were subsequently issued and sold by Engurhesi to Norwegian energy company Statkraft.

The EBRD financed the rehabilitation of Enguri HPP, which now produces over 40 per cent of the electricity consumed in Georgia.

As a result of the refurbishment, the overall output from Enguri HPP has increased by 10-15 percent, leading to significant emission reductions.

Today the EBRD said part of the emission reductions also compensated for the environmental impacts of the Bank’s 2015 Annual Meeting and Business Forum in Tbilisi, which was recently certified as a carbon neutral event.