World Bank suggests policy package of reforms to support Georgia in improving energy efficiency

The World Bank on Wednesday said it had launched Greening Firms in Georgia, a report serving as a “call to action” for policymakers, businesses and stakeholders to prioritise and invest in improving energy efficiency across the country.

The report notes emissions in Georgia have “significantly increased” over the last 15 years from businesses engaged in industry, transport services, commerce and construction and cautions that without “urgent” action, industry emissions could be 90 percent higher in 2023 compared to levels recorded in 2015 in the country.

Photo from the World Bank's report Greening Firms in Georgia

Highlighting the importance of strengthening institutional and regulatory framework to align with EU legislation and standards, the Bank stresses several key elements important for Georgia’s green transition:

• The need for improved incentives and opportunities for business investments in energy efficiency and renewables
• The importance of productivity as a driver of energy efficiency at the firm-level
• The importance of information and knowledge spillovers from more efficient firms to less efficient ones when these are in close-by locations and in similar sectors
• The importance of technology adoption and quality green and general management practices, that are key ingredients for a successful green transition 

In its recommendations for supporting the green transition, the report recommends a policy package of reforms and programmes, such as “raising firms’ awareness about potential benefits of becoming more energy efficient, helping them identify opportunities for improvement of management, organisation and skills, as well as easing access to financial resources required for upgrading their technology”.

Read the full report here.