Georgia’s 2030 Climate Change Strategy and 2021-2023 Action Plan

1. In accordance with the requirements of the UNFCCC, the commitment of GHG reduction shall exclude emissions from land-use, land-use change and forestry (LULUCF) sector. 6 explore the options for adapting to the adverse effects of climate change and plan the appropriate measures, Georgia is preparing National Adaptation Plan (NAP) on the basis of updated Nationally Determined Contribution. Climate Strategy and Action Plan set out the national climate change mitigation policy in the following sectors:     Energy Generation Energy Consumption Energy Consumption Energy Consumption and Transmission in Transport in Buildings in Industry and Industrial Processes    Agriculture Waste Management Forestry The document was elaborated under the coordination of the Ministry of Environmental Protection and Agriculture of Georgia (MEPA) and with the participation of multiple stakeholders across various sectors and levels. The process involved the representatives of different sectors of the Georgian economy, including private and civil sectors. A broad range of the stakeholders is already playing a significant role, while others have an increasing role in ensuring and achieving the goals of Georgia’s development agenda, climate change mitigation, and low-emission development. Drafting of the climate strategy and action plan involved all line ministries and several municipalities (the EU Initiative – Covenant of Mayors (CoM) Signatories), which are the entities responsible for the implementation of assigned activities set out under the climate action plan, within their competence. The Climate Strategy and Action Plan do not include direct guidelines for the representatives of private sector, however the document aims to strengthen and encourage their participation. Georgia’s updated NDC and Climate Strategy and Action Plan are the first documents to be reviewed by the newly established Climate Change Council (CCC) of Georgia. The CCC involves six ministries and is mandated to coordinate the joint efforts towards climate 7 change adaptation and mitigation. Several ministries and institutions accountable to the Climate Change Council of Georgia are responsible for implementing the activities set out in the Action Plan. Such a strong foundation for national engagement and dialogue provides the opportunity to attract more support and broaden the engagement of different municipalities, initiative groups, non-governmental organizations, and the private sector in the future update process of the Climate Action Plan. On September 18, 2018, the Ministry of Environmental Protection and Agriculture organized Georgia’s First Climate Change Conference. The conference was held in an open dialogue format, with the participation of the Deputy Ministers from the Ministry of Environmental Protection and Agriculture, the Ministry of Economy and Sustainable Development and the Ministry of Regional Development and Infrastructure, as well as the Deputy Mayor of Kutaisi Municipality, the Director of the Energy Efficiency Centre - the official supporting organization of the Covenant of Mayors in Georgia, the representative of the Policy Planning and Coordination Department of the Administration of the Government of Georgia, and others. The event was dedicated to the development of Georgia’s National Climate Policy, in particular, the conference officially initiated the Updated NDC and the Climate Action Plan development. The conference was attended by up to 100 participants, including representatives of the governmental and non-governmental sectors, international organizations and the private sector. The next phase included intensive bilateral meetings with sectoral stakeholders and the technical working group meetings, where sectoral priorities, measures and indicators were identified and agreed upon. After completion of work on the draft Climate Strategy and Action Plan, the document was sent out for feedback and validation to the members of the Technical Working Group and public institutions, including those from Georgia’s Climate Change Council. Majority of the comments received were reflected in the document, while for those not reflected, feedback was provided to the commenters. Subsequently, the updated draft was published on the web and social media pages of the Ministry of Environmental Protection and Agriculture and the LEPL Environmental Information and Education Centre. Stakeholders were given 2 weeks to submit comments, some of which were reflected, while for those not reflected, feedback was provided to the commenters. The following phase included planning a final public consultation event. The updated documents and information about the public hearing events were published on the web and social media pages of the LEPL Environmental Information and Education Centre. Due to the COVID-19 pandemic, the public hearing event of December 24, 2020, was held via Zoom online video conferencing 8 platform. Representatives of the Ministry of Environmental Protection and Agriculture presented Georgia’s Updated NDC and Climate Strategy and Action Plan drafts, including the comments received for both documents, reflected or not reflected, and the respective arguments. The public hearing lasted 3 hours and was attended by up to 96 participants. Stakeholders engagement and public consultation process      2018 2018 2018-2019 2020 2020 Climate Analysis of Technical Publishing of Public Change the Sectors Working the Document Consultation Conference and Intensive Group on the Web- Event Bilateral Meetings Page for Meetings Feedback Further details on the stakeholder engagement in the Climate Strategy and Action Plan development process can be found in the annexed document: Summary Report on Stakeholders Engagement and Public Consultation of Georgia’s Updated Nationally Determined Contribution (NDC), Georgia’s 2030 Climate Strategy and Action Plan. The Climate Strategy and Action Plan provide a means of demonstrating to the international partners and investors that Georgia is committed to the implementation of its Updated NDC. At the same time, it clearly sets out the visions and ways for implementation of the NDC. The Government of Georgia expresses its willingness to actively cooperate in the implementation process of the Climate Strategy and Action Plan and to seek funding from international partners. In addition to the specific activities set out in the Action Plan, the document provides information on priority areas for each sector. Georgia explicitly requests support from the international community to advance in these priorities, leading to the identification of new activities for the next Action Plan and enabling enhanced climate change mitigation ambition. Georgia recognises the importance and role of technologies in improving climate change resilience and reducing GHG emissions and openly expresses its willingness to cooperate in development and transfer of the technology. 9 The Climate Strategy and Action Plan are directly derived from other objectives and international commitments of the country. It is in line with the European Union legal acts considered under the Association Agreement between the European Union (EU) and Georgia, of the one part, and EU and the European Atomic Energy Community and their Member States, of the other part (EU-AA). The ambitious reforms set out in the EU-AA involve the gradual approximation of Georgian legislation to EU legislation in the areas of climate change mitigation, energy efficiency, air pollution and renewable energy. Since 2017, Georgia is a member of the Energy Community, and as a member, it is preparing an integrated National Energy and Climate Plan (NECP) to identify 2030 targets. This, in turn, will require the elaboration of consistent policies and measures for reducing GHG emissions in all key energy-related sectors. The Climate Strategy and Action Plan contribute to the decarbonisation component of the NECP. The Climate Strategy and Action Plan also support the implementation of Georgia’s commitments under the Sustainable Development Goals (SDGs). The measures set out in the Action Plan will significantly contribute to the achievement of SDG goal 13, which is specific to climate action. Furthermore, Climate Action Plan measures, such as reducing emissions from the transport sector or transforming the energy sector, and increasing the share of renewable energy therein, are not directly connected to SDG 13, but they help improve air quality, increase energy security, create more jobs, etc. Consequently, this will have a positive impact on fulfilling other SDGs that are indirectly related to climate change. Further information on the interrelation between the Climate Strategy and Action Plan and other strategies, action plans, and laws can be found in Annex 1 (see Annex 1), while the information on SDGs and EU-AA is available in Annexes 2 and 3 (see. Annex 2; Annex 3). 10 2 OVERVIEW OF THE CURRENT SITUATION ANALYSIS: THE SITUATION WITH GREENHOUSE GAS EMISSIONS Overview of the Current Greenhouse Gas Emissions 2.1 Situation Analysis According to 2015 data, the GHG emissions in Georgia amounted to 17.6 MtCO 2e. GHG emissions are generated in seven sectors: energy generation and transmission, transport, buildings, industry, agriculture, waste management, and the forest. Therefore, the Climate Strategy and Action Plan are divided in accordance with these sectors. This division slightly differs from the categorization of emission sources identified by the National Greenhouse Gas Inventory, which puts all energy-related emissions in one group. Under the Climate Strategy and Action Plan, the energy sector is divided into several key subcategories, as most of the Climate Action Plan measures are aimed at rational energy use and, consequently, the structure is formulated according to the energy production and consumption sectors. The assumptions and methodologies applied to calculate and process statistical data for each sector, together with the methodology of calculating the reference scenario, are described in Annex 4 (Annex 4). The transport sector is growing rapidly off the back of growing road-based passenger transportation. Private vehicles, most of which are old and environmentally inefficient models, made up nearly 70% of passenger transport activity in 2015, while the shares of buses, minibuses and rail (including Tbilisi metro) accounted for 13%, 14% and 4%, respectively. In 2015 GHG emissions from the transport sector accounted for about 24% of total national GHG emissions (see Figure 1) (MEPA, 2019). Road passenger transport emissions accounted for approximately 68% of the transport sector emissions in 2015, with light-duty vehicles (LDVs) accounting for 88%, buses for 5%, and minibuses for 6%. Freight transport, consisting of trucks, rail, and off-road vehicles (mainly for agriculture), accounted for the remaining 32% of the sector’s emissions, with emissions from heavy trucks responsible for the majority (29%). 11 FIGURE 1: Transport sector GHG emissions breakdown in 2015 (PROSPECTS+, MEPA, 2019) Passenger transport Light duty (direct emissions) vehicles 14.0% Electricity for Bus and transport minibus 2015 GHG emissions 0.3% Trucks 2015 emissions National (excl LULUCF) Freight rail 17.6 MtCO2e and other Transport (direct Freight transport and indirect) (direct emissions) 4.21 MtCO2e 6.8% Off-road vehicles  (direct emissions) 2.8% Transportation activity in Georgia generally remains low compared to other countries in the region and in Europe, however is projected to steadily increase in the coming years. Emissions in the transport sector are projected to increase by approximately 71% (to 7.11 MtCO2e) by 2030 under a reference scenario (see Figure 2), driven primarily by the continuing growth of passenger transport. From 2015 to 2030, passenger activity is expected to increase by almost 60% and freight activity by 240%. 12 FIGURE 2: Transport sector GHG emissions projections to 2030 (modelling conducted by sector experts and later integrated in LEAP model; see Annex 4 for further details and information on methodologies) (MEPA, 2019)  Indirect emissions  Passenger transport  Off-road vehicles  Freight transport 2030 GHG emission trajectory 10,000 2030 emissions 7.11 MtCO2e direct emissions GHG emissions (MtCO2e) 8,000 7.21 MtCO2e incl. indirect electricity emissions 6,000 4,000 2,000 0 1990 1995 2000 2005 2010 2015 2020 2025 2030  Use of electricity for transport in Georgia is limited to mainly rail, including Tbilisi metro services. In 2015, electricity use in the transport sector accounted for less than 1% of total electricity. Total domestic passenger transportation activity is approximately 13 billion vehicle-kilometres (v-km) in 2020, which is equivalent to 3,900 v-km per capita and approximately 50% lower than per capita transportation activity projected for the countries of the EU in 2020 (ICCT, 2017). The majority of passenger transport activity comes from LDVs, representing an estimated 70% of the passenger-kilometres in 2020. Public transport accounts for the remaining motorised passenger-kilometres (30%), with buses, minibuses, and rail accounting for 12%, 14%, and 4% of the share, respectively. 13 The projected average emissions intensity for non-electric private LDVs in Georgia is 189 gCO2e/v-km. By comparison, the EU Emissions Standards will require a fleet average for new cars in the EU to be 96 gCO2e/v-km emissions in 2020 (European Commission, 2018). High-level emissions intensity in Georgia is caused by an aging car fleet primarily consisting of second-hand models. As of 2019, over 87% of car fleet registered in Georgia were over 10 years old. For internal combustion engine vehicles, gasoline accounts for 68% of energy demand, while diesel supplies the majority of buses, minibuses, trucks, and light trucks. The share of electric vehicles (EVs) on market is still negligible (less than 1% of all LDVs), but the number of low emissions vehicles is on the rise, mainly on account of hybrid vehicles. Rail transport is mostly electrified (78%), and certain plans are being implemented to integrate electric buses into the bus fleet in the coming years. Freight transport activity reached 9 billion v-km in 2020 on average, with rail accounting for 45% of activity, heavy trucks for 49%, and light trucks for 6%. Activity for both passenger and freight transport has been gradually increasing in Georgia, following a large fall in transport activity in 1991, and is projected to continue increasing in the future. Passenger transport, including LDVs, buses, minibuses, rail, metro, and two-wheelers, will increase from 3,900 to 4,000 v-km per capita, still three times lower than per capita transportation activity projected for the EU in 2020 (ICCT, 2017). Georgia’s freight activity is being pushed by international drivers as international travel and trade between Central Asia and Europe. Due to Georgia’s geographical location as a transit country, international transit represents a considerable commercial opportunity. Infrastructure development for international transit is a key priority for the country (Government of Georgia, 2020). The energy generation and transmission sector is the second largest contributor to greenhouse gas emissions, after the transport sector. It accounted for roughly 21% of total national GHG emissions (3.65 MtCO2e) in 2015 (MEPA, 2019). In 2015, the energy generation and transmission sector emissions were predominantly CO2 from fuel combustion and CH4 fugitive emissions with a small share of nitrous oxides from incomplete combustion. Fugitive emissions from the transmission and distribution of oil and gas accounted for approximately 56% of total emissions in the sector, while fuel combustion for electricity generation accounted for approximately 44% (see Figure 3). 14 FIGURE 3: Energy generation and transmission sector GHG emissions breakdown for 2015 (MEPA, 2019) Electricity generation Other energy industries Fugitive emissions 2015 GHG emissions from solid fuels 2015 emissions National (excl LULUCF) Fugitive 17.6 MtCO2e emissions from oil and gas Energy generation and transmission 3.65 MtCO2e Energy generation and transmission  21% Electricity consumption in Georgia is significantly lower compared to other countries in Europe but is projected to steadily increase in the coming years. In Georgia, per-capita electricity consumption was 2,870 kWh in 2018, which is approximately half that of the EU countries’ average, but slightly higher than that of neighbouring countries Armenia and Azerbaijan. Over the past decade, electricity consumption was increasing at a rate of approximately 4.8% per year (GNERC, 2019). Emissions in the sector are expected to increase by approximately 77% from 2015 levels to 6.69 MtCO2e in 2030 under a reference scenario (see Figure 4). 15 FIGURE 4: Energy generation and transmission sector GHG emissions projections to 2030 (projections conducted using LEAP model), (MEPA, 2019)  Fugitive emissions from oil and gas  Other energy industries  Fugitive emissions from solid fuels  Electricity generation 2030 GHG emission trajectory 20,000 2030 emissions 18,000 6.69 MtCO2e direct emissions GHG emissions (MtCO2e) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1990 1995 2000 2005 2010 2015 2020 2025 2030  The electricity generation sector consists of hydro power, wind power and thermal power plants, with a total installed capacity of 4,179 MW. In 2018 renewable energy accounted for 83% of Georgian electricity production, including 82.3% from all types of hydro power plants and 0.7% from wind power plants (GNERC, 2019). The other 17% was generated by thermal power plants. The high share of hydropower in the total electricity generation mix leads to a seasonal supply in which surplus electricity can be exported in summer, while in winter, there is a need for electricity import. Decrease in hydropower generation due to a weakened water inflow has led to a significant increase in electricity imports in recent years. Developing the ability to deliver an uninterruptible supply of electricity generated with national resources and thus, improving energy security is an objective of national importance (Government of Georgia, 2020). In 2018, total losses in the electricity transmission and distribution network amounted to 6.5% of electricity received in the network. Compared to 2017, transmission losses have decreased by 2.5%, whereas distribution losses have increased by 1.2%. Losses in gas supply equalled 6.1% of total final gas consumption (GeoStat, 2019). Increase of emissions 16 in this sector is driven primarily by extraction of solid fuels, fugitive emissions from oil and gas. Increased electricity demand is driven by growing GDP, tourism, cryptocurrency mining activities, and higher temperatures in summer, which lead to increased electricity consumption due to frequent use of air conditioners. It should be noted that the latter factor is partially evened out with warmer temperatures in winter (TBC Capital, 2019). The dominant role of imported energy resources in winter months, as well as the low energy efficiency in thermal power plants and losses in the power distribution system, pose considerable barriers for development of the low carbon approaches in the sector. Another source of GHG emissions is buildings. The poor energy efficiency performance of the existing building stock is a considerable economic, social and environmental issue in Georgia. Energy demand in the buildings sector accounted for approximately 18% of all energy- related emissions and 11% of the country’s total national GHG emissions in 2015. Of this, 79% was from residential buildings (see Figure 5) (MEPA, 2019). FIGURE 5: Buildings sector GHG emissions breakdown for 2015 (MEPA, 2019) Electricity for buildings Residental GgCO2e buildings 4.6% 2015 GHG emissions Other buildings 2015 emissions National (excl LULUCF) Direct building 17.6 MtCO2e emissions GgCO2e Buildings (direct and indirect) 11.1% 2.76 MtCO2e  17 Energy demand in buildings is expected to increase considerably by 2030, leading to a large increase in GHG emissions, according to the reference scenario. Emissions from energy demand in the buildings sector in 2030 may be twice as high as the 2015 levels, under the reference scenario. This trend is in stark contrast to the projected figures for the EU and other European countries, where energy demand in the buildings sector is expected to plateau, and in many cases, decrease, under a reference scenario between 2015 and 2030 (see Figure 6) (IEA, 2019). FIGURE 6: Building sector GHG emissions projection to 2030 (modelling conducted using LEAP), (MEPA, 2019)  Indirect emissions  Commercial and service buildings  Residential buildings 2030 GHG emission trajectory 10,000 2030 emissions 4.63 MtCO2e direct emissions GHG emissions (MtCO2e) 8,000 5.65 MtCO2e incl. indirect electricity emissions 6,000 4,000 2,000 0 1990 1995 2000 2005 2010 2015 2020 2025 2030  18 The energy consumption of the existing buildings is high in Georgia, as majority of them were constructed in the Soviet period when low-cost constructions were prioritised over energy efficiency and comfort. The amount of fuel consumed for heating would be even higher in Georgia, if not poverty. The average urban household spent the equivalent of USD 45 per month on utility bills in 2015, approximately 25% of the average monthly income (GEOSTAT, 2016). Energy demand in buildings will increase considerably up to 2030, leading to a large increase in GHG emissions. In this part of the sector, direct and indirect energy emissions are expected to increase by 150%. The major driver of this increase is the fact that current energy demand in the residential sector is suppressed due to economic situation of the consumers, as the building structures are inefficient and spatial heating is expensive. Currently, many houses and apartments heat only one room, however the heated area of residential buildings is expected to increase as a result of GDP growth in the coming decade. The energy demand in commercial and public buildings is expected to increase at a lower rate, though still significantly, by approximately 50% between 2015 and 2030 (See Figure 6). The industry sector is another contributor to GHG emissions that accounted for 24.8% of Georgia’s GDP and 23.6% of Georgia’s final energy consumption in 2018 (GeoStat, 2018, 2019). Emissions attributable to the industry sector are divided into two groups: direct industrial emissions, including energy use-related emissions and non-energy emissions, and indirect emissions from electricity consumption, representing about 11% of the sector emissions. In 2015 the industry sector accounted for about 18% of national GHG emissions (3.12 MtCO2e) (MEPA, 2019). Electricity-related emissions represented close to 35% of the total industrial emissions, and emissions from industrial processes accounted for the remaining 65%. Production of non-metallic mineral products, chemical industry, and cast iron and steel production accounted for 24%, 23% and 14% of the sector’s emissions, respectively (see Figure 7) (MEPA, 2019). 19 FIGURE 7: Industry sector GHG emissions breakdown for 2015 (MEPA, 2019) Electricity for Direct industry industry energy Non-metallic 2.5% 6.1% mineral products Chemical 2015 GHG emissions industry Cast iron 2015 emissions and steel National (excl LULUCF) Other 17.6 MtCO2e Industry Industrial (direct and indirect) processes 3.12 MtCO2e 11.7%  Emissions in the industry sector could increase by about 90% compared to 2015 levels, reaching almost 6.00 MtCO2e in 2030. Two-thirds of the projected emissions would be generated from industrial processes, and one-third would be from energy con- sumption. The non-metallic mineral and chemical industries are expected to account for the majority of this growth in emissions. By 2030, cast iron and steel industry emissions are expected to increase by 40%, given the increasing demand for metal and ferroalloy products (see Figure 8). 20 FIGURE 8: Industry sector GHG emissions projections to 2030 (conducted by sector experts and later integrated in LEAP, see Annex 4 for further details on methodologies) (MEPA, 2019) 20,000  Indirect electricity emissions  Indistrial processes  Direct energy-use 18,000 2030 GHG emission trajectory 16,000 GHG emissions (MtCO2e) 2030 emissions 14,000 5.99 MtCO2e direct emissions from 12,000 energy and processes 10,000 0.74 MtCO2e inc. indirect electricity emissions 8,000 6,000 4,000 2,000 0 1990 1996 2001 2006 2011 2016 2021 2026  As mentioned above, energy-related emissions represented close to 35% of the total industrial emissions and non-energy emissions accounted for approximately 65% in

2015. The main contributors to non-energy emissions were: production of cement, ammonia and nitric acid, cast iron and steel, and ferroalloys. Production of non- metallic mineral products, chemical industry and cast iron and steel production accounted for 24%, 23% and 14% of the sector’s emissions, respectively (MEPA, 2019). Other industrial processes include emissions from products used as substitutes for Ozone Depleting Substances (ODS), non-energy products from fuels and solvent use, and other product manufacture and use. In 2015, the total domestic cement production activity was approximately 1.75 million tonnes, equivalent to 472 kg cement per capita and about 21% lower than average world demand (IEA, 2018). All three major cement manufacturing factories operating in Georgia belong to Heidelberg Cement. Looking at chemical production, the Rustavi Azot plant is the centre for ammonia and nitric acid (used 21 in the production of fertilizers) production in Georgia. Its current production capacity is 5 to 7 times lower than some of Europe’s top ammonia producers (e.g., Germany, Poland and the Netherlands). Finally, the domestic cast iron and steel industry activity was approximately 0.3 million tonnes in 2016, equivalent to 77 kg per capita and approximately 44% higher than average world crude metal production intensity via electric arc furnace (EAF) (IEA, 2019). Activity and associated emissions from the industrial sector fell drastically between 1990 and 1994 after the restitution of independence in Georgia and continued to decline until 2002, when activity in the sector started to pick up once more. By 2015, industry emissions tripled those reported in 2001. Old technology lines and gears still account for the majority of industry activity, with limited penetration of modern and more efficient technologies. In 2015, the production level of the non-metallic mineral and chemical industries in Georgia nearly reached that of 1990 (MoENRP, 2016). The growing levels of production in these industries indicate the increase dynamics in the coming years. The agriculture sector employs up to 40% of the Georgian working population, however, most of them are categorized as “self-employed,” which means that they are small- scale subsistence farmers (MESD, 2019). Despite the high employment rate, the sector’s contribution to GDP has been on a declining trend. For example, it went from 25% in 1999 to 7.2% in 2019 (World Bank, 2020). 43% of Georgia’s total land area is agricultural land, including 324,000 ha of arable land, 120,800 ha of perennial plants and more than 2 million ha of pasture and meadows (FAOStat, 2020). According to the National GHG Inventory report, the agriculture sector accounted for approximately 19% of national GHG emissions (3.31 MtCO2e) in 2015. (MEPA, 2019). The emissions are related to manure management, enteric fermentation, agricultural soils and energy use in agriculture, fishing and forestry. Since the agriculture sector experiences steady growth, agricultural soil emissions include direct emissions from synthetic and organic nitrogen fertilizer use, agricultural residue decomposition, pastures and paddocks (see Figure 9). 22 FIGURE 9: Agriculture sector GHG emissions breakdown for 2015 (MEPA, 2019) Electricity for Enteric Fermentation agriculture GgCO2e Manure Management 0.04% Agricultural soils (direct) 2015 GHG emissions Agricultural soils (indirect) 2015 emissions Energy use National (excl LULUCF) 17.6 MtCO2e Agriculture Direct agriculture (direct and indirect) emissions GgCO2e 3.31 MtCO2e 18.8%  Emissions in the agricultural sector are projected to increase by approximately 40% compared to baseline to 4.62 MtCO2e in 2030, under the reference scenario (See Figure 10). Cattle was the source of 92% of emissions from enteric fermentation and 82% of emissions from manure management in 2015 and would remain the major source of these emissions up to 2030. 23 FIGURE 10: Agriculture sector GHG emissions projections to 2030 (modelling conducted by sector experts and later integrated in LEAP model. See Annex 4 for further details on methodologies), (MEPA, 2019)  Indirect emissions  Enteric Fermentation  Agricultural  Energy-use  Manure Management soils 2030 GHG emission trajectory 10,000 2030 emissions 4.62 MtCO2e direct emissions GHG emissions (MtCO2e) 8,000 4.63 MtCO2e incl. indirect electricity emissions 6,000 4,000 2,000 0 1990 1995 2000 2005 2010 2015 2020 2025 2030  Agricultural development is one of the priorities of the Georgian Government, as outlined in the Agriculture and Rural Development Strategy of Georgia 2021-2027. The strategy puts a special focus on the implementation of climate-smart agriculture practices (MEPA, 2019). Considering the expected rise in production levels and the development of large-scale commercial agriculture, embedding sustainable business practices from the beginning onwards will have an impact on emissions levels. Various projects are in place to make the Georgian agriculture sector more productive. Enhanced activity, on the one hand, will increase GHG but, on the other, will decrease future emissions through high productive livestock farming. 24 In 2015, emissions from enteric fermentation accounted for the majority of the sector’s GHG emissions (44%), followed by emissions from application of organic fertilizers (manure) and agricultural soils, accounting for 41% and 14% of emissions, respectively (Figure 9) (MEPA, 2019). Energy-related emissions represented about 1% of the sector emissions. This does not include emissions from agricultural vehicles (tractors and others). Emissions from these vehicles are included in the transport sector under “off-road vehicles” since more detailed information is required to attribute specific emissions to the transport sector or agricultural sector. Emissions from agricultural soils are projected to account for the majority of the overall projected growth in emissions and increase by 60% between 2015-2030 (MEPA, 2019; Georgia’s Low Emission Development Strategy Coordination Committee, 2017). The main source of agriculture soil emissions projected for 2030 are pastures and livestock stalls with 32% (2015: 29%), nitrogen leaching and runoff with 26% (2015: 31%), and the use of synthetic fertilizers with 19% (2015: 23%). (MEPA, 2019; Georgia’s Low Emission Development Strategy Coordination Committee, 2017). The anticipated industrialisation of livestock farming is a major driver in the increase of emissions from the livestock sector. Cattle livestock is projected to increase by 18%, swine livestock by 250%, and poultry livestock by 133% as industrialized livestock farming is assumed to grow steadily. Enteric fermentation emissions may increase by 17% between 2015 and 2030, while emissions from use of organic fertilizers (manure) increase by 47%. The waste management sector is another contributor of GHG emissions. This sector accounted for approximately 8% (1.39 MtCO2e) of total national GHG emissions in 2015 (MEPA, 2019). In 2015, emissions from solid waste disposal accounted for 67% of the sector’s GHG emissions, while emissions from wastewater management represented 33% of the sector’s emissions, split almost evenly between domestic and industrial wastewater (see Figure 11). 25 FIGURE 11: Waste management sector GHG emissions breakdown for 2015 (MEPA, 2019) Solid waste Domestic disposal Industrial 5.3% Wastewater 2015 GHG emissions 3% 2015 emissions National (excl LULUCF) 17.6 MtCO2e Waste 1.39 MtCO2e  Over the years, the waste management sector in Georgia has experienced slow but steady growth, and it is expected to continue this trend in the future. Emissions in the sector are expected to increase by approximately 33% to up to 1.85 MtCO2e in 2030, under a reference scenario (see Figure 12). 26 FIGURE 12: Waste sector GHG emissions projections to 2030 (modelling conducted by sector experts and later integrated in LEAP model, see Annex 4 for further details on methodologies), (MEPA, 2019)  Solid waste disposal  Domestic 2,500  Industrial wastewater wastewater 2030 GHG emission trajectory 2030 emissions 2,000 1.85 MtCO2e direct GHG emissions (MtCO2e) emissions from waste 1,500 1,000 500 0 1990 1995 2000 2005 2010 2015 2020 2025 2030  In recent years, adequate waste management has become one of the priorities of the country. In 2016, Georgia approved the National Waste Management Strategy and its Action Plan in accordance with the Waste Management Code. Relevant directives are also set out under the Georgia-EU Association Agreement. However, waste management remains a significant challenge for Georgia. The amount of waste produced grows alongside the country’s economic development. Problems with waste management in Georgia include disposal of household and hazardous waste without proper regulations and landfills that do not meet quality standards and therefore pollute the environment. A significant part of the country’s municipal waste is disposed at dumpsites and improperly arranged landfills. Many landfills were built in the past century with outdated technologies (e.g., they do not use geomembranes to ensure waste containment; most landfills do not have gas collection systems in place). 27 Emissions sources in the waste management sector include non-hazardous waste landfills and domestic and industrial wastewater. Waste incineration and composting emissions have not been recorded in the national inventory yet, although these activities are actually carried out in the country. There are 57 non-hazardous waste landfills in the country (34 of them active, 23 closed and non-operational). Only two of them have passed an environmental impact assessment process and will be built in line with international standards. In accordance with the national waste management legislation, the Solid Waste Management Company of Georgia is in charge of closing the existing regional landfills and constructing new regional landfills. Construction of 8-9 regional landfills includes installation of gas collection systems. At present, a gas collection system is already installed at the Rustavi Non-hazardous Waste Landfill, including gas flare, where gases released from the landfill are burned, thus reducing GHG emissions. Around 900,000 tonnes of municipal waste are generated every year in Georgia, of which about 700,000 tonnes are disposed at official landfills and the remaining 200,000 tonnes are disposed in dumpsites (dumped in ravines, riverbeds) or burnt in open spaces (Government of Georgia, 2016). Apart from polluting adjacent areas and the environment in general, dumpsites pose a significant threat to human health. According to the National Waste Management Strategy and Action Plan, all existing dumpsites in the country should be closed by the end of 2020 (Government of Georgia, 2016). The process has already started on a municipal level. There is no complete data on the share of the population with access to waste collection services, however according to the National Waste Management Strategy and Action Plan, the waste collection rate should be at 90% by 2020 and at 100% by 2025, with all municipal waste being collected, part of it recycled and part of it disposed at non-hazardous waste landfills. 49% of the population is connected to sewerage systems (GeoStat, 2019), however, these systems were built between 25-40 years ago and are outdated, most of them do not provide proper treatment. Majority of the cleaning facilities are not capable of efficient sewage cleaning and none is providing biological treatment since the technical facilities are out of order (MEPA, 2019). LLC United Water Supply Company of Georgia is constructing wastewater treatment plants in several cities of Georgia with biological treatment. The company is also implementing projects to improve water supply and sewerage systems in several cities. 28 As for the forestry sector, the net removal from the forest sector accounted to approximately 32% (-5.62 MtCO2e) of total national GHG emissions in 2015 (MEPA, 2019). In 2015, emissions from the forestry sector amounted to 1.08 MtCO2e, while total removal was 6.71 MtCO2 (see Figure 13, MEPA, 2019). FIGURE 13: Forestry sector GHG emissions and removals breakdown for 2015 (MEPA, 2019) 2015 GHG emissions 17.59 Total emissions excl. LULUCF MtCO2e 11.97 Total emissions incl. LULUCF MtCO2e -5.62 Net removal from MtCO2e forest sector Forest sector 1.08 emissions MtCO2e -6.71 Total removal MtCO2e from forest sector  Nearly 43.5% of Georgia’s total territory is covered with forests, of which 95- 98% are natural forests. The total area of the Forest Fund of Georgia is 3,023,261 ha with approximately 500,000 ha of so-called ‘primary forests’, the last of their kind in the temperate climate zone (GeoStat, 2019). Forests of Georgia provide the population and national economy with wood, firewood, timber and non-timber products, including medicinal plants. Moreover, they carry soil-protecting, water-preserving and water- regulating functions. During the last decades, processes in the forestry sector were marked by frequent institutional and legislative changes. In the absence of a clear strategy and action plan, processes were not developing coherently. In May 2020, the Parliament of Georgia adopted the new Forest Code which sets the solid legal basis for sustainable forest management in the future (Parliament of Georgia, 2020). 29 While adoption of the new Forest Code relieves some pressure on deforestation and forest degradation, and the general sector development trend is positive, the forestry sector in Georgia continues to face several challenges and would not use its full potential for emissions removal under a reference scenario. Figure 14 shows the projected GHG emissions and removals in the forestry sector of Georgia up to

2030. Emissions in the sector are expected to decrease by approximately 8% to 0.98 MtCO2e in 2030, while net removal is projected to increase by approximately 3% to 6.91 MtCO2e under a reference scenario. Degradation is the major challenge for Georgia’s forests, which is reflected in the decrease of their quality and volume, ultimately leading to reduced emission removal potential of Georgian forests. Key drivers for degradation are the population’s dependence on firewood due to limited access to alternative energy resources, as well as draught and forest fires accelerated by the impacts of climate change. FIGURE 14: Forestry sector GHG removals and emissions up to 2030 (modelling conducted using EX-ACT)  Emissions 2030 emissions  Removal -5.93 MtCO2e net removal 2030 GHG emission trajectory 2,000 GHG emissions and removal (MtCO2e) 1,000 0 1990 1995 2000 2001 2005 2010 2011 2015 2020 2025 2030 -1,000 -2,000 -3,000 -4,000 -5,000 -6,000 -7,000  30 One of the reasons for the growing trend of GHG emissions is the lack of adequate institutional capacity for effective, efficient and evidence-based policy analysis and development. The consultation processes revealed that almost all sectors lack technical capacity, human resources, climate change mitigation awareness, data necessary for climate change mitigation, country-specific research and analysis, monitoring, modelling and technological capabilities. 2.2 Environmental Impacts of Climate Change in Georgia According to the Intergovernmental Panel on Climate Change, “Human influence on the climate system is clear, and recent anthropogenic emissions of greenhouse gases are the highest in history”. Furthermore, it is stated that climate change will significantly increase the current risks for both environmental and human systems, and the amount of damage caused by climate change depends on the scope and quality of global response. (IPCC, 2014). Therefore, according to the IPCC, climate change mitigation (GHG reduction) measures are urgent and necessary to halt climate change as far as possible and reduce existing risks for the environment and society (IPCC, 2018). It should be noted that the climate change processes have significantly intensified in Georgia, with a wide range of adverse impacts (MEPA, 2020). In particular:  AVERAGE TEMPERATURE Between 1986 and 2015, as compared to 1956-1985, average annual air temperatures have increased almost throughout the country within the range of up to 1°C with average increase of 0.5°C.  PRECIPITATION Between 1986 and 2015, as compared to 1956–1985, annual precipitation has increased in most parts of western Georgia, while it decreased in some areas of eastern Georgia. More specifically, 5 to 15% increase in precipitation was recorded for a significant part of western Georgia. The upward trend in precipitation in western Georgia seems to be caused by the increase in rainfall. In contrast to western Georgia, precipitation has decreased by 5 to 15% in most parts of eastern Georgia over the last 30 years. In the south and east of the country (especially in Kakheti and Mtskheta-Mtianeti), precipitation indices reflect a decrease in precipitation due to the increase in the duration of the dry periods. 31  HUMIDITY Relative humidity has increased throughout the country, with fluctuations between (-1%) – (5%). High humidity is observed in winter months in western Georgia and should be driven by extremely humid days (10-12 days/year), with decreasing trends most intensely observed in early summer-autumn.  AVERAGE WIND SPEED Average wind speed has decreased throughout the country during all seasons by about 1-2 m/s. It should be noted that observations show the most significant decline in the areas (Mount Sabueti, Poti), which are considered in the Wind Atlas as the most prospective sites for wind energy development. While average wind speed is decreasing, the number of days with strong winds is increasing in some areas, which should be attributed to the increasing frequency of such days over the last 15 years and is most frequently observed in River Mtkvari Valley (Gori, Tbilisi). The expected adverse effects will amplify even more in the future. Without the development of climate-resilient practices, climate change mitigation measures, and the improvement of the country’s preparedness and capabilities, the most climate-sensitive sectors will become more vulnerable, and other negative impacts of climate change will also increase, in particular: Increase of the frequency and intensity of extreme hydrometeorological  events in the context of climate change, a trend already observed in Georgia; Increase of the scales and frequencies of landslide/gravity and mudflow processes, a trend already observed in Georgia;  Intensive melting of glaciers, a trend already observed in Georgia; Accelerated processes of flooding and loss of coastal areas due to anthropogenic  impacts. Sea level rise – the major adverse effect of global warming for coastal areas – makes Georgia’s coastline particularly vulnerable; 32 Soil erosion, one of the main causes of degradation of agricultural, forest and alpine lands. Temperature rise affects livestock farming and its productivity, as well as peren-  nial and grain crops and biodiversity; Rising temperatures are contributing to the reduction of water resources, a trend  already observed in Georgia; The adverse climate impact on forests is evident in terms of both the progression  of existing pests and diseases, as well as the emergence of new harmful insects and diseases. According to the quantitative survey conducted by the Regional Environmental Centre for the Caucasus (REC Caucasus) on behalf of the EU and United Nations Development Pro- gramme (UNDP) in 2020, more than 91% of Georgia’s population believes that climate change is a real process that poses a danger for life on Earth. Among the adverse impacts of climate change, the people are most concerned about global warming and droughts (96.11%), natural disasters (92.84%), melting of glaciers, and shrinking of ice layers in the oceans (91.83%). 2.3 Climate Change Impacts on Human Health Climate change has a significant impact on human health, healthcare, and social security systems. According to the data from the National Center for Disease Control and Public Health of Georgia, cardiovascular diseases remained the leading cause of death in Georgia in 2017. Respiratory diseases were the second leading cause of death in 2005 but moved to fifth place in 2017. However, number of diseases (chronic obstructive pulmonary disease, asthma) that may be associated with climate change and high emissions steadily remain at the leading positions. Cases of infectious and parasitic diseases doubled between 2008 and 2017 (MEPA, 2020). 33 3 LONG-TERM VISION AND GOALS OF LOW-EMISSION DEVELOPMENT 3.1 Vision of the Climate Change Strategy and Action Plan Long-term vision of the Climate Strategy and Action Plan involves reducing the total GHG emissions to 35% below 1990 levels by 2030 for all the key sectors of the economy relevant to climate change mitigation. This vision derives from Georgia’s updated NDC, prepared for submission to the UNFCCC Secretariat in 2021. The document communicates Georgia’s pledge to reduce GHG emissions across all the key sectors of the economy. It includes one unconditional commitment and two additional conditional scenarios for further emission reductions, implementation of which would be dependent on international support: Georgia undertakes an unconditional commitment to reduce its national greenhouse gas emissions to 35 % below the 1990 level by 2030. This target does not include emissions from land-use, land-use change and forestry (LULUCF). This would imply that total national emissions, excluding LULUCF, should be limited to no more than 29.25 MtCO2e in 2030. Georgia undertakes a conditional commitment to reduce its total national green- house gas emissions by 50-57% compared to the 1990 level by 2030. In the case, if the world follows the scenario of limiting the average global temperature increase to 2°C or 1.5°C, respectively, with international support. As opposed to continuing with the current situation, the measures identified in this Climate Strategy and Action Plan will have an impact on greenhouse gas emissions reduction at the national level. The GHG emissions projection exercise was conducted with different models, while aggregation was performed in the LEAP model (see Figure 15). Further details on the methodology can be found in Annex 4 (Annex 4). 34 According to the modelling results, emissions from all the key sectors of the economy (excluding LULUCF) are projected to increase on average 4% per year between 2020 and 2030, if measures to reduce emissions would not be implemented, i.e., under the reference scenario. Emissions would reach 30.8 MtCO2e in 2030, 75% more compared to 2015 level (17.6 MtCO2e). The measures listed in the Climate Action Plan (assumptions made during calculation of measures to be noted) would reduce the emissions in 2030 by approximately 11%, compared to the reference scenario, resulting in emissions of 27.5 MtCO2e in 2030. Achievement of the NDC, which sets the target to reduce the emissions growth by 35% in 2030, would require the implementation of relevant measures to limit the emissions to a maximum of 29.25 MtCO2e by that time (see Figure 16). In addition to the activities already funded by the government and included in the Climate Action Plan, identification and implementation of additional climate change mitigation measures not included in 2021-2023 Climate Action Plan, with support from the international community, could help Georgia to strengthen the ambition set by the NDC. FIGURE 15: GHG emissions trajectory in all the major sectors of the Georgian economy (2015-2030). Note that some assumptions have been made when calculating the measures. See Annex 4 for additional information on projection methodologies. The figure compiles emissions from all the major sectors of the economy, excluding carbon sinks from LULUCF. Reduction in 2030, compared to 1990 Baseline: 31% reduction 35 NDC target: NDC target: 35% Below 29.25 Gg CO2e in 2030 30 reduction (35% below 1990 levels) 25 2021-2023 CSAP: 39% reduction Gg CO2e 20 15 Baseline 10 NDC 2021-2023 CSAP 5 measures 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 35 FIGURE 16: Updated NDC Targets, submitted to the UNFCCC Seceretariat (2021) 50,000 1990 Level 45,000 GHG Emissions CO2 eq. Gg. 40,000 NDC Unconditional NDC 2deg. Scenario 35,000 NDC 1.5 deg. Scenario 35% from 1990 30,000 25,000 20,000 15,000 2015 2018 2021 2024 2027 2030 3.2 Goals of the Climate Strategy and Action Plan To achieve the long-term vision declared for 2030, which means reducing GHG emissions to 35% below 1990 levels by 2030 for all sectors of the economy, the Climate Strategy and Action Plan set the following goals for each sector:2  GOAL 1: Reduce greenhouse gas emissions in the energy generation and transmission sector to 15% below the reference scenario projections by 2030;   GOAL 2: Reduce greenhouse gas emissions in the transport sector to 15% below the reference scenario projections by 2030; 

2. An internal analysis of further potential and ambition, and negotiations with potential partners on the declared conditional commitment target are in progress 36  GOAL 3: Support development of low-carbon approaches in the buildings sector by promoting climate-smart and energy-efficient technologies and services;   GOAL 4: Support development of the low-carbon approaches in the industry sector by promoting climate-smart and energy-efficient technologies and  services to reduce greenhouse gas emissions to 5% below the reference scenario projections by 2030;  GOAL 5: Support the low carbon development of the agriculture sector by encouraging the climate-smart and energy-efficient technologies and services;   GOAL 6: Support the low carbon development of the waste sector by promoting climate-smart and energy-efficient technologies and services;   GOAL 7: Increase the carbon capturing capacity of the forestry sector by 10% for 2030 compared to 2015.  It should be noted that according to the results of the CAP mitigation measures modelled with SCAN Tool and various international studies, the fulfilment of the goals and objectives set out in the document will improve following in the long run: economic condition and development, air and water quality, public health, availability and quality of jobs, quantitative and qualitative aspects of biodiversity, and number of the new and clean technologies integrated into everyday life. 37 4 SECTORAL PRIORITIES, GOALS AND OBJECTIVES The goals, objectives and activities set for the priority sectors of the Climate Strategy and Action Plan have been identified with participation of various stakeholders. The selection of priority sectors for the Climate Strategy and Action Plan was based on the Kyoto Protocol Annex A and the IPCC 2006 National Greenhouse Gas Inventory Methodology. According to these documents, greenhouse gas emissions and their inventory take place in the following sectors: energy, industrial processes, and product consumption, waste, agriculture, land use, changes in land use and forestry. All GHG emission sectors were prioritized for the Climate Change Strategy and Action Plan, however, considering the country’s context, the energy sector was broken down into sub-sectors (energy generation and transmission, transport, buildings) due to high levels of emissions and high emission reduction potential of actions in these sub-sectors. The priorities were agreed upon by the technical working groups set up specifically for this process, and then by the coordinating consultative body – the Interagency Council on Climate Change (see Chapter 6). The coordination mechanism involves the governing institution of the coordinating body (MEPA) and all responsible and partner institutions. The results of meetings of the technical working groups and meetings with stakeholders organized by the Secretariat of the Climate Change Council identified the sectoral priorities, goals, objectives, relevant targets and the logical framework. Given the potential for greenhouse gas reductions, the working groups were set up for the following sectors: energy generation and transmission, transport, buildings, waste management and forestry. The MEPA’s Climate-smart Agriculture Working Group covered the agricultural sector. The drafts of the sector-relevant chapters were validated by the working groups. Identification of alternative solutions to the problems/challenges in the sectors and selection of the optimal alternatives took account of the GHG reduction potential, best international practices, and national capacities. The document identifies two general alternatives for interventions in each sector: 1) an existing/ongoing policy, program, or measure (alternative); and 2) a new, most realistic, financially and technically feasible policy, program, or measure (alternative). Consequently, the strategy reflects both interventions planned by various sectoral ministries and/or organizations (unconditional and conditional actions that require additional funding) and interventions with potential 38 to reduce emissions but were not included in the Climate Action Plan due to high financial deficit/needs. These interventions are described in the subsections titled “Other Priority Directions for the Future” under each sector. The sectoral alternatives, as well as their respective activities, were approved by both the working groups and the Climate Change Council. 4.1 SECTORAL PRIORITY: Energy Generation and Transmission  This section of the Climate Strategy and Action Plan describes emissions from the energy industries, including electricity production and other energy industries (e.g., consumption of coke in the cast iron and steel plants), as well as fugitive emissions, including those from solid fuel exploitation, oil, and gas.  4.1.1 GOALS AND OBJECTIVES To implement the vision from the NDC, the goal of the energy generation and transmission sector is to reduce GHG emissions to 15% below the reference scenario projection by 2030. This goal is implemented through the following objectives: OBJECTIVE 1.1. Support renewable energy (wind, solar, hydro, biomass) generation This objective will be achieved by increasing the share of renewable energy (wind, solar, hydro) in Georgia’s electricity production by up to 87% by 2030. In cooperation with the private sector, the government will support the generation of renewable energy. The government will provide continuous technical and procedural support for energy production in all three directions, with a view to promote a balanced generation of renewable energy. Installed capacity and power generation of wind plants will be increased. The JSC Georgian Energy Development Fund under the Ministry of Economy and Sustainable Development will be responsible for this objective. The Energy Development Fund supports development of renewable energy capacities in the country through the following activities: conducting preliminary research work, preliminary project feasibility and environmental impact assessments, finding investors, and promoting the projects among potential investors. In particular, a plan is to support construction of the following wind power plants: Imereti (104 MW), Rikoti-Phona (20 MW), Kartli-2 (250 MW), Tbilisi (54 MW), Zestaponi (50 MW), 39 Nigoza (50 MW), Kaspi (54 MW), Didebula (21 MW) and Ruisi (8 MW). Following solar power plants are planned to be built by 2023: Udabno (5 MW), Phlavi (7 MW), Gardabani (50 MW), Marneuli (20 MW), Geosolar (9 MW), and Sagarejo (25 MW). A plan is also to increase the installed capacities and production potential of hydropower plants by 2023 and to construct the following hydropower plants with capacities of more than 13 MW: Kirnati (51.25 MW), Khobi (46.7 MW), Mtkvari (53 MW), Mestiachala 1 (20 MW), Stori (20.03 MW), Samkuristskali 2 (26.28 MW), Metekhi 1 (36.73 MW), Ghebi (14.34 MW), Chiora (14.15 MW) and Zoti (44.31 MW). Consequently, through the production of wind, solar and hydro power, emissions will be reduced by 399 ktCO2e, 5 ktCO2e and 146 ktCO2e compared to the reference scenario. OBJECTIVE 1.2. Improve average efficiency of thermal power plants The strategy also involves improvement of the average efficiency of thermal power plants. The objective will be measured by increase in the efficiency of electricity generation in thermal power plants with more than 50% by 2030. It is planned to carry out technical works on thermal power plants, strengthen the infrastructure of national transmission systems, and equip the new, combined-cycle thermal power plants with up-to-date technologies to double their energy efficiency. Gardabani 3 combined cycle gas thermal power plant will be built by 2023. OBJECTIVE 1.3. Strengthen the capacities of renewable energy integration in the transmission network of Georgia This objective includes implementation of a ten-year plan of Georgia’s transmission network development for power transmission companies, strengthening the infrastructure of national transmission systems, solving existing problems, responding to future challenges, and utilising the network capacities, including integration of renewable energy sources (wind and solar) into the network. Fulfilment of this objective will increase the share of renewable energy (wind and solar power plants) in the installed capacity of the Georgian energy system, reaching 18.2% by 2030. 40 OBJECTIVE 1.4. Develop new policy documents and legislation for the energy sector This objective includes development of a long-term vision for the energy sector by the government institutions and initiation of new policy documents, laws and secondary legal acts based on this vision. Beyond development of a long-term vision for Georgia’s energy policy, a long-term, comprehensive state vision will be formulated, which will later serve as the basis for short-, medium- and long-term strategies focusing on Georgia’s use of renewable energy resources and minimizing the losses. This objective will not directly affect reduction of emissions, but it is important for building institutional and policy development capacities. Table 1 provides an overview of the base year (2015) GHG emissions in the energy generation and transmission sector and reference and target scenarios and indicators for their reduction (by 2030, according to NDC and CSAP). Figure 17 shows that the GHG emissions target can be exceeded through the implementation of the Action Plan and taking account of the modelling assumptions. TABLE 1: Emission reduction targets and trajectories in the energy generation and transmission sector 2030 strategic goal for 2015 2030 emission reduction  Energy generation Reference with CSAP NDC target and transmission sector scenario measures 15% reduction in GHG emissions below the 3.65 6.69 5.62-5.47 5.69 reference scenario by 2030 MtCO2e MtCO2e MtCO2e MtCO2e 41 FIGURE 17: Energy generation and transmission sector GHG emissions reduction to 2030 under different scenarios 8,000 TOTAL EMISSIONS 7,000 2030 reference: 6.69 MtCO2e GHG emissions (MtCO2e) 6,000 2030 target (NDC): 5,000 5.69 MtCO2e 15% reduction 4,000 2030 with CAP actions: 5.47 MtCO2e 18% reduction 3,000 2,000 Reference scenatio 1,000 Strategic target (NDC) 0 Planned measures 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 The sectoral emissions reduction target of the NDC could be successfully achieved through the implementation of the Climate Strategy and Action Plan activities by the relevant central and municipal government institutions.  4.1.2 OTHER PRIORITY DIRECTIONS FOR THE FUTURE In addition to the above objectives, Georgia is interested in exploring other potential areas for reducing emissions that will eventually enhance the country’s progress in complying with the Paris Agreement temperature target of “holding the increase in the global average temperature to well below 2°C above pre- industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels” (Article 2. 1. a). 42 In addition to the above objectives, Georgia is interested in exploring other potential areas for reducing emissions that will eventually enhance the country’s progress in complying with the Paris Agreement temperature target of “holding the increase in the global average temperature to well below 2°C above pre- industrial levels and to pursue efforts to limit the temperature increase to 1.5°C above pre-industrial levels” (Article 2. 1. a). The section titled Other Priority Directions for the Future under each sector describes the areas that will potentially be included in the Climate Strategy and Action Plan in the future. Georgia seeks international support with these priority directions in parallel to the measures already identified in the Climate Action Plan. The priority directions have been elaborated by the relevant sector stakeholders during the consultation process carried out in the framework of the Climate Strategy and Action Plan. For the energy generation and transmission sector, these directions include: Further promotion of renewable energy: The main energy policy direction  of the Government of Georgia is to increase energy security and independence of the country, gradually reduce the dependence on imported energy resources through the utilization of national energy resources, diversification of supply sources and routes (Government of Georgia, 2020). To that end, utilization of renewable energy sources could further improve energy security of the country and decrease the dependence on imports. Future measures should therefore include exploring geothermal and solar energy potential in Georgia as well as further utilization of water and wind energy and exploring incentives to attract further investments in renewable energy. Hydro: Only 20-22% of the technical potential of the water resources in Georgia  is utilized to date and the total assumed potential is 1,450 MW (TBC Capital, 2019). Solar: Due to its geographical location, solar radiation in Georgia is quite high.  The total solar energy potential is on average 108 MW per year, with 1,900 – 2,200 sunlight-hours (Invest in Georgia, 2020). 43 Wind: Annual wind power generation potential is estimated at 4 TWh (Invest  in Georgia, 2020). Wind power is a valuable addition to hydro power as its generation is higher during winter months when hydro generation is typically lower. Feasibility study for a biogas power station: The Georgian Energy  Development Fund has been actively developing wind, solar, and biomass projects in recent years. The Fund is also interested in construction of a power station operating on biogas that will use amaranth3 as fuel. As this technology is not yet developed in Georgia, the initial work will involve assessment of the project feasibility by international experts. 4.2 SECTORAL PRIORITY: Transport This section of the Climate Strategy and Action Plan cover the emissions from  the energy consumption in the transport sector. The main sources of emissions are passenger and freight transport over road, rail and off-road vehicle (e.g., agricultural) use. This section includes the direct emissions (direct combustion of fuels in transport) as well as indirect emissions (electricity consumption).  4.2.1 GOALS AND OBJECTIVES To implement the vision from the NDC, the identified goal is to reduce the greenhouse gas emissions in the transport sector by 15% below the reference scenario projection by 2030. This goal can be achieved through the fulfilment of the following objectives: OBJECTIVE 2.1. Increase the share of low- and zero-emission and roadworthy private vehicles in the vehicle fleet This objective includes increasing the share of electric and hybrid vehicles in the total registered vehicles in Georgia with 5% and 20%, respectively, by 2030, since the vehicles with this type of engine do not consume or consume less gasoline and diesel, resulting

3. Amaranthus, a plant 44 in zero or low emissions. The objective also involves increasing the share of roadworthy vehicles to reduce greenhouse gas emissions, including in terms of exhaust fumes. This will be measured by reduction of the share of vehicles failing the first technical inspection, from the current 55% to 30% by 2030. The strategy includes making amendments to the normative acts on technical inspection of transport and the Administrative Offences Code to reduce the tendency of avoiding inspections and making one-time manipulations. The objective also includes more effective enforcement of fines and road control of vehicle exhausts using modern technologies. These activities serve to remove non-roadworthy and environmentally inefficient vehicles from operation and reduce emission intensities. The strategy also aims to encourage the use of low- and zero-emission vehicles and elec- tric transport and reduce the activity of gasoline and diesel engine vehicles and imports of older, environmentally inefficient vehicles. In order to encourage the use of electric vehicles, the government will identify additional optimal tax incentive alternatives based on cost-benefit analysis, improve infrastructure for electric vehicles in Tbilisi, examine the option of increasing the import tax on old light-duty vehicles on the basis of an economic feasibility study and will introduce an emission standard for imported vehicles based on cost-effectiveness analysis (Engine EUR4 / EUR5). Removing the least efficient vehicles from the vehicle market and upgrading the vehicle fleet will increase not only its average efficiency but also the air quality in general. An increase in the incoming electric vehicles (as well as improvement of the infrastructure for electric vehicles) and the gradual replacement of the existing fleet will be ensured. In parallel to the reduction of vehicle activity, part of the drivers will switch to using public transport as their main means of transportation. OBJECTIVE 2.2. Encourage the reduced demand on fossil fuel and the use of biofuels Since fossil fuel use in transport has a negative impact on greenhouse gas emissions, this objective aims to reduce its consumption, promote the use of environmentally friendly fuels and increase the share of energy from renewable sources, including biofuels in the total consumed fuel in transport with up to 10% by 2030. The option of increasing the fuel tax will be examined and biodiesel production will be supported and encouraged to that end. 45 OBJECTIVE 2.3. Promote non-motorized means of mobility and public transport The objective includes encouraging alternative forms of transportation/mobility - walking, cycling and public transport (bus, metro, and minibus) - instead of using private cars. The high rate of private vehicles use is associated with the high intensity of greenhouse gas emissions. 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 for this objective. The identified 2030 targets for these indicators are the respective average values for Europe - 35% and 45%, respectively. This will automatically reduce the use of private vehicles by up to 20%. In addition to the activities focusing on private vehicles, the strategy encourages the increased use of public and non-motorized transport. By increasing the efficiency and capacity of public transport and developing infrastructure for non-motorized transport, the share of private vehicles will be taken over by public and non-motorized transport. To achieve this, it is important to increase the capacity of metro trains and buses, effectively improve bus routes, reduce the traffic of private vehicles in central districts, improve the parking system, arrange bike lanes, and more. The strategy includes development of a Sustainable Urban Mobility Plan (SUMP) for Tbilisi, Tbilisi bus reform (bus fleet upgrade, introducing a new route network), modernization and capacity increase of the metro, construction of cable lines, the introduction of a smart transport system, the introduction of zonal hourly parking and rehabilitation of the streets in line with the multimodal planning principles in Tbilisi. Similarly, in Batumi, improving the efficiency of bus routes, increasing bus capacity and number of passengers, introducing zonal hourly parking in central districts, planning and implementing reduced vehicle activity, upgrading/enhancing the municipal transport company vehicle fleet, including purchasing fully electric buses, which will contribute to environmental protection and the proper functioning of the municipal transport system. OBJECTIVE 2.4. Implement innovative, evidence-based initiatives in the transport sector This objective includes conducting analysis and studies and raising financial resources to implement additional, evidence-based initiatives for reducing greenhouse gas emissions in the transport sector. This will help to identify new measures for the next version of the Climate Action Plan, based on a cost-benefit analysis of existing alternatives. 46 Table 2 shows the baseline greenhouse gas emissions in the transport sector (2015) and reference and target scenarios and indicators for their reduction. With implementation of the Action Plan, the effect of 22% reduction in sectoral emissions will be visible by 2030. Figure 18 illustrates the emission trajectory to achieve the sectoral targets by 2030. While the reference scenario projects the increase of emissions, implementation of the Climate Strategy and Action Plan measures will significantly contribute to successful achievement of the targets set out in the updated NDC for the transport sector in Georgia. TABLE 2: Emission reduction targets and trajectories in the transport sector 2030 strategic target for 2015 2030 emission reduction  Transport sector Reference with CAP NDC target scenario measures 15% reduction in GHG emissions below the 4.16 7.11 5.57 6.04 reference scenario in 2030 MtCO2e MtCO2e MtCO2e MtCO2e FIGURE 18: Transport sector GHG emissions reduction to 2030 under different scenarios 7,000 DIRECT EMISSIONS 6,000 2030 reference: GHG emissions (MtCO2e) 7.11 MtCO2e 5,000 2030 target (NDC): 4,000 6.04 MtCO2e 15% reduction 3,000 2030 with CAP actions: 5.57 MtCO2e 22% reduction 2,000 1,000 0 2015 2020 2025 2030 Reference scenario (direct emissions) Planned measures (direct emissions) Reference scenario (indirect emissions) Planned measures (indirect emissions) 47 The NDC target of sector emissions reduction could be successfully achieved with implementation of CSAP actions by the relevant central and municipal government institutions.  4.2.2 OTHER PRIORITY DIRECTIONS FOR THE FUTURE More research and data collection can help identify new directions and the best policy for climate change mitigation in the transport sector in the future. Georgia seeks additional international support for the priority measures identified for the 2021-2023 Climate Action Plan. Replacing urban passenger transport with public and non-motorised  transport: Several plans are currently being implemented in major cities (particularly Tbilisi and Batumi) to renew and upgrade public transport infrastructure and services, as well as the infrastructure for non-motorised transport, including bicycle; however there is more potential for climate change mitigation in this area. The Climate Action Plan includes an activity for development of project proposals to attract funding from various financial institutions or funds. This activity is in line with the Green Climate Fund (GCF) Country Program of Georgia and its priorities. Replacing inter-city passenger transport with public transport:  Improvements are being made to passenger rail services, including purchasing of new and modern trains. Improvement of inter-city passenger transport quality and railway system is a national priority for climate change mitigation, as indicated in Georgia’s Country Programme with the GCF. 48 Improving energy efficiency of private light-duty vehicles: The energy  efficiency of private light-duty vehicles will be improved with several actions from the Climate Action Plan, but due to old age and low efficiency of the current vehicle fleet, improvement will remain a priority in the future. The 2021-2023 Climate Action Plan includes conducting of a cost-benefit analysis and (technical and economic) feasibility study in order to identify the most suitable policy options in this area. Shifting freight from road to rail transport: Several potential plans and  strategies have been developed 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 the cost-benefit analysis and the (technical and economic) feasibility study in order to assess what would be the most suitable policy options in this area. 4.3 SECTORAL PRIORITY: Buildings This section of the Climate Strategy and Action Plan addresses the energy  demand in residential, commercial and public buildings. The objectives set by the state for this sector are related to both direct emissions, such as direct combustion of fuel in buildings for energy supply, as well as indirect emissions – consumption of electricity in buildings and other related issues. A comprehensive inventory of buildings has never been carried out in Georgia. There is no aggregated, structured database in place with engineering-technical information about the building stock. Thus, the information provided in the Climate Action Plan is based on the data compiled from the reports issued by various research projects and by the government. 49  4.3.1 GOALS AND OBJECTIVES To implement the vision from the NDC, one of the identified goals is to support development of the low carbon approaches in the building sector through encouraging the climate-smart and energy efficient technologies and services. This goal will be achieved through the following objectives: OBJECTIVE 3.1. Develop a system for energy efficiency certification of buildings The strategy includes certification of buildings for energy efficiency by developing, approving, and ensuring implementation of the necessary methodology, relevant standard and secondary normative acts. The certification methodology developed by the government will allow it to prepare reference construction projects for thermal insulation of external layering structures of buildings, for different climatic conditions and regions, in accordance with the energy efficiency standards, and to develop and approve relevant secondary normative acts. The outcome indicator for this objective is 100% of newly constructed buildings subject to certification being certified for energy efficiency by 2030, in accordance with the Law of Georgia on Energy Performance of Buildings. OBJECTIVE 3.2. Raising consumer awareness about energy efficiency The strategy includes standardization and labelling of energy-efficient appliances and providing more information to the customers in order to increase the share of energy- efficient appliances on the market. This objective involves creating standards, norms, and labelling for the schemes needed for the appliances, as well as informing consumers about the importance of energy efficiency through an awareness-raising campaign and shifting their choices towards energy-efficient products. In addition, this objective also includes implementation of information campaigns on incandescent light bulbs and solar- powered water heating. As a result, society will be informed about cost-effective and easily applicable changes and energy efficiency measures in the process of energy use. According to the strategy, the percentage of consumers who identify the energy efficiency of buildings and household appliances as an important factor in consumer decision-making will reach 80% by 2030. 50 OBJECTIVE 3.3. Encourage energy-efficient approaches and installation of energy- efficient lighting in residential, commercial and public buildings In addition to conducting an information campaign on incandescent light bulbs, the government will introduce tax regulations, which will result in 100% replacement of such light bulbs with energy-efficient light bulbs in residential and commercial buildings by 2023. The strategy also includes installation of energy-efficient lighting in buildings owned/used by public institutions. With the exception of schools and kindergartens, light bulbs in all public buildings will be gradually replaced by energy-efficient light bulbs. For the energy efficiency of school buildings, it is important to improve the external layering structures, install energy-efficient light bulbs and upgrade/replace solid fuel heaters. As for other national and municipal public sector buildings, it is planned to create information systems on the features and energy consumption of buildings. Outcome indicators for this objective are the number of buildings of more than 500 m2, occupied and owned by central and municipal governments, with 1% of the total area annually upgraded according to energy efficiency standards, and the percentage of public buildings, including public schools that use energy-efficient light bulbs. OBJECTIVE 3.4. Support use of solar energy for water heating and use of energy- efficient stoves Solar-powered heating systems and energy-efficient stoves have a positive impact in reducing greenhouse gas emissions. The government plans to introduce incentives for individuals and legal entities for purchasing solar-powered water heating systems in individual residential and commercial buildings for replacing non-energy efficient stoves with energy-efficient stoves. OBJECTIVE 3.5. Train high professional standard personnel in energy efficiency In terms of human resources, it is planned to systematize certification (create a system) of energy service providers working on installation of energy appliances in the buildings sector (e.g., auditors, managers and developers). The government will develop a system for certification of energy service providers, auditors, managers and developers working in 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. Moreover, it is important to develop education and training programs for energy consultants. Achievement of the objective will be measured by the total percentage of certified and degree-holding specialists in energy efficiency of heating, cooling and ventilation systems of buildings and electrical appliances. 51 Table 3 provides an overview of the reference and target scenarios and figures for the buildings sector. It shows that by implementing the Climate Action Plan, emissions directly attributed to the buildings sector will be reduced at limited extent. The goal of some measures given in Figure 19 is to create an enabling environment for improvements in the future without direct and immediate impact. The majority of measures with direct impact are associated with energy savings in the electricity supply sector, however their total effect would only be approximately 2.5% reduction of emissions associated with energy in the buildings sector. TABLE 3: Emission reduction targets and trajectories in the buildings sector 2030 strategic target for 2015 2030 emission reduction  Buildings sector Reference with CAP NDC target scenario measures Support the low carbon development of the 1.95 4.63 4.60 No quantitative buildings sector MtCO2e MtCO2e MtCO2e target FIGURE 19: Buildings sector GHG emissions reduction to 2030 with implementation of CAP 5,000 DIRECT EMISSIONS GHG emissions (MtCO2e) 2030 reference: 4.63 MtCO2e 4,000 2030 with CAP actions: 4.60 MtCO2e <1% reduction 3,000 2,000 INDIRECT EMISSIONS (FROM ELECTRICITY) 2030 reference: 1.03 MtCO2e 1,000 2030 with CAP actions: 0 1.00 MtCO2e 2.5% reduction 2015 2020 2025 2030 Reference scenario (direct emissions) Planned measures (direct emissions) Reference scenario (indirect emissions) Planned measures (indirect emissions) 52  4.3.2 OTHER PRIORITY DIRECTIONS FOR THE FUTURE More detailed consultations, research and analysis, will enable the directions listed below to become an integral part of the buildings sector-related mitigation activities in the future. Georgia seeks international support for the above- mentioned priority directions, in parallel to the measures already identified in the Climate Action Plan. These directions include: Creating information system for energy efficiency of buildings:  Comprehensive residential building inventory records would allow for a better evaluation of the climate change mitigation potential and designing of an efficient and targeted policy. Improving energy efficiency of residential buildings: The biggest potential  for energy saving and climate change mitigation in the buildings sector lies in improving the energy efficiency of the residential buildings sector. More developments, national programmes and financing instruments are needed in this area for the future. Heating supply in residential buildings: It would be useful to conduct a (technical and economic) feasibility study for identification of economic and climate change potential for autonomous heating systems in existing multi- apartment buildings. Waste-to-energy technology was identified in the ongoing programme financed by the GCF in Georgia as a potentially attractive technology option to examine further. Updating climate-specific standards of construction: Updating technical  regulations in the construction sector, including climatic standards of construction, and their harmonization with the Eurocodes, which is an important and necessary tool for engineering/thermal-technical calculations and reliable evaluation of energy consumption in buildings, and improvement of energy efficiency in the buildings sector. 53 Introduction of energy-efficient approaches in the tourism sector: Supporting the tourism sector, being on a growing trend for recent years, is one of the priorities of the Government of Georgia. The sector should grow further with the introduction and encouragement of sustainable development and energy-efficient approaches. Priority direction is carbon-free buildings in the resorts of Georgia. This direction aims at supporting the development of ecotourism in Georgia by providing alternative energy resources and improving the energy efficiency of residential houses. To that end, the introduction of relevant financial instruments will enable access to the climate-friendly technologies available on the market. This direction is in line with Georgia’s Country Programme submitted to the GCF. 4.4 SECTORAL PRIORITY: Industry This section of the Climate Strategy and Action Plan covers emissions generated  in the industry sector from industrial energy use and industrial processes. In this context, energy use includes emissions from the direct combustion of fuels on industrial sites, as well as indirect emissions from consumption of electricity generated off-site. Although the provided information and emission trajectories cover all major industrial sectors, the industry part of the 2021-2023 Action Plan itself includes only few sub-sectors of industry. It is being planned to add other areas of industry and identify relevant activities in the next update of the Climate Action Plan.  4.4.1 GOALS AND OBJECTIVES To implement the vision from the NDC, the identified goal is to support the low carbon development of the industry sector by promoting climate- friendly, smart and innovative technologies and services to achieve a 5% emissions reduction compared to emissions projected under a reference scenario. This goal can be achieved through the following objectives: 54 OBJECTIVE 4.1. Reduce the level of greenhouse gas emissions from industrial processes and from energy consumption of industrial facilities by introducing modern technologies This objective includes reduction of emissions from industrial processes and from energy consumption by industrial facilities by replacing the current method of cement production with the energy-saving dry method of production and equipping the nitric acid producing enterprise with modern technologies. The latter removes about 95% of N2O emissions from their production cycle. The emissions reduction from cement and nitric acid production will amount to 571 ktCO2e by 2030, of which 352 ktCO2e accounted for cement and 416 ktCO2e to nitric acid. OBJECTIVE 4.2. Develop a system for studying the emission factors in the industry sector and for data management Designing the sector-specific emission factors in the industrial sector is important in terms of institutional and policy development capacity building. Moreover, in order to identify the emissions and mitigation potential of the sector, it was deemed important to create a data management system that includes individual emission factors for production. The greenhouse gas emissions reduction targets and trajectories by 2030 in the industry sector are given in Table 4 and Figure 20. TABLE 4: Emission reduction targets and trajectories in the industry sector, reference and target reduction scenarios 2030 strategic target for 2015 2030 emission reduction  Industry sector Reference with CAP NDC target scenario measures Support the low carbon development of the industry 3.12 5.99 5.19-5.69 5.69 sector MtCO2e MtCO2e MtCO2e MtCO2e 55 FIGURE 20: Industry sector GHG emissions reduction to 2030 with implementation of CAP 6,000 DIRECT EMISSIONS 2030 reference: 5.99 MtCO2e GHG emissions (MtCO2e) 5,000 2030 target for NDC: 5.48 MtCO2e 5% reduction 4,000 2030 with CAP actions: 3,000 5.19-5.69 MtCO2e 5%-13% reduction 2,000 INDIRECT EMISSIONS 1,000 (FROM ELECTRICITY) 0 2030 reference: 0.74 MtCO2e 2015 2020 2025 2030 Reference scenario Planned measures Strategic target (NDC) Indirect electricity emissions  4.4.2 OTHER PRIORITY DIRECTIONS FOR THE FUTURE Georgia seeks international support for the mentioned priority directions, in parallel to the measures already identified in the Climate Action Plan. These directions include: In addition to the actions related to reducing energy consumption in cement  production and reducing emissions from nitric acid production that are listed in the CAP, future priorities include actions related to reducing emissions from steel production or supporting measures for the introduction of energy audits and certification schemes. These directions are in line with the national priorities identified under Georgia’s Country Programme with the GCF and are not considered in the Action Plan. Consultations carried out in the framework of the Climate Strategy and Action  Plan have formulated the direction of shifting cement manufacturing industry towards the efficient use of waste (for heat production). 56 4.5 SECTORAL PRIORITY: Agriculture This section of the Climate Strategy and Action Plan covers emissions from live-  stock and crop production sectors, including manure management, enteric fer- mentation, agricultural soils, and energy use in agriculture, fishing, and forestry. Emissions from agricultural soils include direct emissions from synthetic and organic nitrogenous fertilizer use, decomposition of crop residues and emissions from pastures and paddocks, as well as indirect emissions from atmospheric deposition and nitrogen leaching and run off. Energy use in off-road vehicles, including the use of agricultural machinery, is not accounted in this section but rather within the transport chapter.  4.5.1 GOALS AND OBJECTIVES In order to implement the vision from the NDC, the identified goal is to support the low carbon development of the agriculture sector through encouraging climate-smart agriculture technologies and services. This goal is accomplished through the following objectives: OBJECTIVE 5.1. Implement sustainable management of soil and pastures and support the introduction of sustainable domestic animal feeding practices The Government’s objective is to reduce greenhouse gas emissions from the agriculture sector and, to that end, improve as much as possible the cattle nutritional quality for its 20%, which will lead to reduced greenhouse gas emissions from the enteric fermentation. Furthermore, in order to preserve the biodiversity of pastures and reduce the costs of cattle maintenance for the beneficiaries, they will be provided with intensive grass production equipment through a project. A climate-resilient multifunctional windbreak and agroforestry ecosystem (mWAE) will be established, which will reduce soil degradation, increase soil and agricultural productivity and diversification. 57 OBJECTIVE 5.2. Build capacities of generating scientific evidence for development of climate-smart approaches in the agriculture sector The objective includes conducting of a cost-benefit analysis and a feasibility study, which will reveal the most suitable measures in terms of improving domestic animal feeding. These studies will also identify the most suitable measures for manure management, which are likely to be planned and implemented under the following Climate Action Plan. It also includes providing support to the existing and emerging cooperatives in implementing sus- tainable practices in pasture and hay-land management and replicating the success factors of the successful cooperatives in others of their kind. It is planned to conduct research and consultations to identify climate-smart agricultural activities (CSA) economically and so- cially relevant for Georgia and to support implementation of CSA practices through exten- sion and awareness-raising campaigns. Fulfilment of the objective will increase the share of climate-smart technologies, and/or initiatives developed on the grounds of the cost-benefit analysis and other evidence, in governmental and donor agricultural programs. Table 5 and Figure 21 provide an overview of the emission reduction targets and trajectories in the agricultural sector by 2030. TABLE 5: Emission reduction targets and trajectories the agriculture sector, reference and target reduction scenarios 2030 strategic goal for 2015 2030 emission reduction  Agriculture sector Reference with CAP NDC target scenario measures Support the low carbon development of the 3.31 4.62 4.62 No quantitative agriculture sector MtCO2e MtCO2e MtCO2e target 58 FIGURE 21: Agriculture sector GHG emissions reduction to 2030 with CAP measures 5,000 DIRECT EMISSIONS GHG emissions (MtCO2e) 2030 reference: 4.62 MtCO2e 4,000 2030 with CAP actions: 4.62 MtCO2e <1% reduction 3,000 2,000 INDIRECT EMISSIONS 1,000 (FROM ELECTRICITY) 0 2030 reference: 0.01 MtCO2e 2016 2021 2026 Reference scenario (direct emissions) Planned measures (direct emissions) Reference scenario (indirect emissions)  4.5.2 OTHER PRIORITY DIRECTIONS FOR THE FUTURE Georgia seeks international support in the priority directions, in parallel to the measures already included in the Climate Action Plan. These directions include: Improved data collection system: Further improvement of data collection  in the agriculture sector of Georgia will allow for more accurate and reliable calculations of current and future emissions of the sector (e.g., related to livestock growth or future fertilizer use). This would make the calculations less dependent on assumptions and outside sources. Regulating the burning practices and replanting the windbreaks: Field  burning is a common practice in Georgia, particularly in the Kakheti region. The farmers use to burn fields after harvesting, as this is the cheapest way to get rid of plant residues, rodents, and pests before the next tillage. This adversely affects windbreaks which have been reduced significantly due to the burning practices (Gönner, Weigel, Kodiashvili, Kolbin, & Muzafarova, 2019). Further negative effects of burning practices include desertification and wind erosion. Future action, therefore, includes replanting of windbreaks, regulation of burning practices, as well as incentives for farmers to start processing residues and straw instead. 59 Regulating the irrigation practices: In the Eastern regions of Georgia,  irrigation water is needed mainly from April to September. Irrigation practices can have negative effects because of waterlogging and water erosion, as well as the salination (treatment) of fields with dissolving salts and carbonates. Raising groundwater levels increases the risk of water contamination with mineral fertilizers and pesticide residues. To date, there are no quality requirements for irrigation water in Georgia. Further, a significant amount of irrigation water is lost during transportation via old or malfunctioning ditches and channels. Future action, therefore, focuses on the improvement of transportation channels, as well as regulating the use of irrigation water. Regulating the overgrazing and the unsustainable use of soils:  Overgrazing/trampling is induced by intensive use of pastures over the years that negatively affects plants, soil and biodiversity. In Georgia, overgrazing by livestock causes deterioration of winter pastures in particular. Limited regulation, a lack of opportunities, as well as low awareness of livestock owners are the main causes of this problem. Future actions, therefore, focus on the regulation of overgrazing/trampling. Agroforestry direction: Agroforestry is a land-use management system in  which trees or bushes are grown around crops or pastures. This combination of two systems can have a great benefit for increasing biodiversity or reducing erosion. Research is needed to identify how these practices could be applied in Georgia. This low-emission agriculture approach, as well as climate-smart agriculture practices, are highlighted in Georgia’s Country Programme with the GCF as a national mitigation priority. 4.6 SECTORAL PRIORITY: Waste Management This section of the Climate Strategy and Action Plan covers GHG emissions from  solid waste disposal and wastewater treatment, including wastewater from domestic and industrial sources. 60  4.6.1 GOALS AND OBJECTIVES To implement the vision from the NDC, the identified goal is to support the low carbon development of the waste sector through the improvement of solid municipal waste management and wastewater treatment systems. This goal will be achieved through the following objectives: OBJECTIVE 6.1. Reduce GHG emissions from existing unauthorized dumpsites and non-hazardous landfills The objective involves replacing a number of unauthorized dumpsites in Tbilisi and in the regions with non-hazardous waste landfills and equipping existing landfills with modern technologies, which will reduce emissions from landfills from approximately 1,091 GgCO2e in 2020 to 840 GgCO2e in 2030. The existing landfills and dumpsites will be gradually closed by 2024. Furthermore, regional non-hazardous waste landfills will be constructed, and gas collection and recycling systems will be installed at landfills in Tbilisi, Kutaisi, and Batumi. OBJECTIVE 6.2. Support waste recycling Supporting of waste recycling will significantly reduce emissions. Paper recycling, recycling and composting of biodegradable waste (green waste) is of particular importance. The Climate Strategy includes the introduction of the paper waste separation practices and encouraging paper recycling by the municipalities in order to increase the capacities of paper recycling and composting; recycling of biodegradable (organic and orchards) waste, and raising knowledge and awareness on waste management, implemented by the municipalities. Encouraging and supporting recycling of waste, such as paper and biodegradable (organic and of orchards) waste, as well as raising public awareness, will reduce the amount of greenhouse gas emissions. As a result of waste recycling, emissions will be reduced with approximately 150 GgCO2e by 2030. OBJECTIVE 6.3. Reduce greenhouse gas emissions from wastewater The objective of reducing greenhouse gas emissions from wastewater involves construction of urban wastewater treatment plants. This objective also includes arranging gas collection and treatment systems at several plants, including Tbilisi, Batumi, and Kobuleti wastewater treatment plants. 61 OBJECTIVE 6.4. Develop a data-based waste management system In order to monitor waste policy and make more reliable calculations, it is important to improve the systematic methodology of the existing waste management database and the National Statistics Office of Georgia to start producing the waste statistics. Table 6 and Figure 22 show the greenhouse gas emissions reduction targets and trajectories in the waste management sector by 2030. TABLE 6: Emission reduction targets and trajectories in the waste management sector, reference and target reduction scenarios 2030 strategic goal for 2015 2030 emission reduction  Waste management Reference with CAP NDC target sector scenario measures Support the low carbon development of the waste 1.38 1.85 1.37-1.10 No quantitative management sector MtCO2e MtCO2e MtCO2e target FIGURE 22: Waste management sector GHG emissions reduction to 2030 with CAP measures 2,000 DIRECT EMISSIONS GHG emissions (MtCO2e) 2030 reference: 1.85 MtCO2e 2030 CAP actions: 1,000 1.37-1.10 MtCO2e 26%-41% reduction Reference scenario 0 Planned measures (unconditional) 2015 2020 2025 2030 62  4.6.2 OTHER PRIORITY DIRECTIONS FOR THE FUTURE Georgia seeks international support for these priority directions in parallel to the measures already included in the Climate Action Plan. The following directions are being discussed with relevant stakeholders in the waste sector as potential areas to be integrated into the future Climate Action Plan: Improved data collection system: Improvement of data collection capacities  in the waste sector of Georgia could allow for more accurate and reliable calculations of current and future emissions of the sector, including through the addition of emissions from medical waste management, waste incineration, and composting. Activity indicators could include: ɯ Operationalizing waste collection services at the municipal level; ɯ Amount of municipal waste being generated at the source; ɯ Identifying the shares of waste disposed at existing landfills, waste discarded in dumpsites, and incinerated waste; ɯ Locations and sizes of all landfills (official and unofficial) and dumpsites; ɯ Share of waste that goes into composting. Biodegradable waste management: By implementation of the action  (awareness-raising) from the Climate Action Plan, more companies and stakeholders should have an official permit on composting (by July 2020, only two companies in Georgia held one). In terms of climate change mitigation, it may be helpful to implement a pilot project for composting biodegradable waste from wine production and agriculture. Establishing Maximum Permissible Limits (MPL): The Law of Georgia on  Environmental Protection establishes the rules for determining the permitted threshold values of harmful substances in the environment. A useful next step in this field would be to determine Maximum Permissible Limits (e.g., atmospheric air; surface water) for each specific source of pollution, in line with the guidelines of environmental protection legislation. 63 Moving towards reducing and recycling: Georgia’s long-term vision for  the waste sector strongly focuses on waste reduction and recycling. National legislation introduces a five-step hierarchy system: a) waste prevention; b) preparation for re-use; c) recycling; d) other recovery; and e) disposal. It would be beneficial in the context of climate change mitigation in the future to consolidate strategies to raise awareness on these five steps among citizens and companies, with clear dates for entering into force. 4.7 SECTORAL PRIORITY: Forestry This section of the Climate Strategy and Action Plan covers GHG emissions and  removals from Georgia’s forestry sector.  4.7.1 GOALS AND OBJECTIVES To implement the vision from the NDC, the identified goal is to increase carbon capture capacity of forests by 10% compared to 2015. This goal will be achieved through the following objectives: OBJECTIVE 7.1. Restore degraded forests This objective includes both, restoration of the areas damaged by fire and supporting the natural regeneration of forest. The government will ensure restoration of 625 ha of degraded forest through reforestation, as well as restoration of areas damaged by fire – through reforestation, and restoration of 2,411 ha of degraded forest by supporting their natural regeneration. Sustainable forest management practices will be introduced by covering 402,109 ha of forest area with Sustainable Forest Management Plans, which will be developed and approved by 11 municipalities. This includes activities such as arranging the necessary infrastructure, maintenance, logging, reforestation, sanitary cuts, etc. 64 OBJECTIVE 7.2. Support sustainable forest management The objective involves the introduction of sustainable forest management practices by implementation of sustainable forest management plans and supervision and capacity development, supporting sustainable forest management by promoting multifunctional forestry, public awareness-raising and supporting community involvement in the forest reform processes, development of Emerald Network management plans for the forest areas falling within the designated Emerald sites in Georgia. As a result of this objective, 450,000 ha will be managed according to sustainable management principles by 2030, compared to 0 in 2020. OBJECTIVE 7.3. Develop a forest management system adequate to climate change challenges The objective involves discussing, developing, and gradually integrating climate change issues, including mitigation, into protected area management plans. As a result of this objective, climate change mitigation measures will be integrated in 100% of the Sustainable Forest Management Plans of protected areas by 2030, compared to 0 in 2020. Furthermore, more than 50% of sustainable forest management plans will be gender-sensitive by 2030. The reference level of greenhouse gas emission removals in the forestry sector by 2030, as well as reference and target figures and trajectories, are shown in Table 7 and Figure 23. TABLE 7: Emission reduction targets and trajectories in the forestry sector 2030 strategic goal for 2015 2030 emission reduction  Forestry sector Reference with CAP NDC target scenario measures By 10% in 2030 compared to 2015 level -5.62 -5.93 -6.40 -6.18 MtCO2e MtCO2e MtCO2e MtCO2e 65 FIGURE 23: Forestry sector GHG emissions reduction to 2030 with CAP measure 2010 2015 2020 2025 2030 -5,000 -5,200 -5,400 GHG emissions (MtCO2e) -5,600 2030 reference: -5,800 -5.93 MtCO2e -6,000 2030 CAP actions: -6,200 -6.41 MtCO2e 8% reduction -6,400 2030 strategic target (NDC): -6.52 MtCO2e 10% reduction -6,600 -6,800 Reference scenario Planned measures Strategic target (NDC)  4.7.2 OTHER PRIORITY DIRECTIONS FOR THE FUTURE Georgia seeks international support for the priority directions in parallel to the measures already included in the Climate Action Plan. These priority directions are: Improved data collection system: The absence of comprehensive data on  the condition of the forest sector in Georgian puts an obstacle for developing long-term forest management plans. This complicates the planning and implementation of measures, including their identification and prioritisation, and consequently the effective and sustainable long-term use of forests. 66 Reduce illegal logging: Due to limited access to alternative energy options,  firewood is the main source of energy for the population. This increases the risk of unsustainable and illegal logging of forests. Since the cuttings are carried out by unqualified and inexperienced people without relevant equipment, the forest ecosystems experience substantial damage. Reducing the practice of illegal logging is identified as one of the priorities in Georgia’s Country Programme with the GCF. This process may also have a positive effect in terms of safety and tax revenues. Access to alternative energy resources and technologies: Energy-  efficient technologies and energy-efficient fuel (briquettes and pellets) have a quite high potential in terms of saving firewood in Georgia. This could be achieved through financial support mechanisms, informing the users about the advantages of energy-efficient alternatives, and other policy incentives. Energy-efficient building envelopes: There remains a significant dependence  on firewood as an energy source. Approximately 78% of harvested firewood is used for heating residential houses (CENN, 2016). Addressing the energy efficiency of residential building envelopes could lead to reduced firewood use. Forest fires: Future actions could also involve the measures for reducing forest  fires and responding to forest fires. Current trends indicate that forest fires are becoming more frequent and intense due to climate change impacts. 67 5 LOGICAL FRAMEWORK logical framework of the Climate Strategy and Action Plan outlines the vision, goals, objectives, and impact and objective outcome indicators. Reduce GHG emissions to 35% below 1990 levels in 2030 (as per updated VISION NDC 2021) Reduce greenhouse gas emissions in the energy generation and GOAL 1  transmission sector to 15% below the reference scenario projections by 2030 Link to SDGs SDGs 1 2 3 7 9 11 GHG emissions from the energy generation and transmission sector IMPACT INDICATOR 1.1 (ktCO2e) Reference Historical Baseline Medium-term target scenario Final target projection Year 1990 2015 2024 2028 2030 2030 5,687 Value 19,855 3,654 4,425 5,212 6,691 (-15%) Sources of verification 2030 National GHG inventory Proportion of the population that predominantly uses clean energy IMPACT INDICATOR 1.2 sources and technologies Reference Historical Baseline Medium-term target scenario Final target projection Year 2018 2022 2026 2028 2030 Value 92,1% 93% 96% 97% 98% Sources of verification Multiple Indicator Cluster Survey of Georgia (MICS) 68 OBJECTIVE 1.1 Support renewable energy (wind, solar, hydro, biomass) production OBJECTIVE OUTCOME Share of renewable energies in Georgia’s electricity generation INDICATOR 1.1.1 Baseline Medium-term target Final target Year 2018 2022 2024 2026 2028 2030 Value 78% 72% 76% 82% 85% 87% Sources of verification Ten-year network development plan of Georgia Delay/cancellation of works by construction companies/investors due to community Risk protests; Delay in research required for projects (including mobilization of a group of foreign experts) due to pandemic OBJECTIVE 1.2 Improve average efficiency of thermal power plants OBJECTIVE OUTCOME Efficiency of electricity generation in thermal power stations INDICATOR 1.2.1 Baseline Medium-term target Final target Year 2018 2022 2024 2026 2028 2030 More than Value 44% 45% 48% 48% 49% 50% National Statistics Office of Georgia Sources of verification (Energy Balance of Georgia) Risk Lack of financial resources Strengthen the capacities of renewable energy integration in the OBJECTIVE 1.3 transmission network of Georgia OBJECTIVE OUTCOME Share of renewable energy (wind and solar power plants) in the installed INDICATOR 1.3.1 capacity of the Georgia’s energy system 69 Baseline Medium-term target Final target Year 2019 2022 2024 2026 2028 2030 Value 0.5% 0.6% 7.1% 12.2% 10.6% 18.2% Sources of verification Ten-year network development plan of Georgia Delay/cancellation of works by construction companies/investors due to community Risk protests; Delay in research required for projects (including mobilization of a group of foreign experts) due to pandemic OBJECTIVE 1.4 Develop new policies and legislation in the energy sector OBJECTIVE OUTCOME Number of new policy documents, laws and secondary legal acts INDICATOR 1.4.1 developed, discussed and agreed with stakeholders in the energy sector Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than Value 7 9 12 20 26 30 Annual Report of the Ministry of Economy and Sustainable Development Sources of verification of Georgia Lack of human resources, non-adoption of documents due to political or other external Risk factors  Reduce greenhouse gas emissions in the transport sector to 15% below GOAL 2 the reference scenario projections sector by 2030 Link to SDGs SDGs 3 8 11 IMPACT INDICATOR 2.1 GHG emissions from the transport sector (GgCO2.e) 70 Reference Historical Baseline Medium-term target scenario Final target projection Year 1990 2015 2024 2028 2030 2030 < 6,044 Value 3,823 4,139 4,563 5,257 7,110 (-15%) Sources of verification 2030 National GHG Inventory Increase the share of low- and zero-emission and roadworthy private OBJECTIVE 2.1 vehicles in the vehicle fleet OBJECTIVE OUTCOME Share of electric vehicles in the registered vehicles fleet in Georgia INDICATOR 2.1.1 Baseline Medium-term target Final target Year 2019 2022 2024 2026 2028 2030 Value 0.14% 0.5% 1% 2% 3% 5% Sources of verification Registered vehicle fleet database of the Ministry of Internal Affairs OBJECTIVE OUTCOME Share of hybrid vehicles in the registered vehicles fleet in Georgia INDICATOR 2.1.2 Baseline Medium-term target Final target Year 2019 2022 2024 2026 2028 2030 Value 4.91% 5.5% 6.7% 9.8% 15% 20% Sources of verification Registered vehicle fleet database of the Ministry of Internal Affairs OBJECTIVE OUTCOME Percentage of vehicles failing first technical inspection INDICATOR 2.1.3 71 Baseline Medium-term target Final target Year 2019 2022 2024 2026 2028 2030 Value 55% 54% 50% 45% 40% 30% Sources of verification Database of Periodic Technical Inspection (PTI) Centres Non-implementation of incentive measures for electric vehicles due to reduced public funds inflicted by the pandemic; Failure to develop a market for affordable and high- Risk coverage used electric vehicles; Declined affordability of vehicle maintenance/purchase of new vehicles due to reduction of incomes among population OBJECTIVE 2.2 Encourage the reduced demand on fossil fuel and the use of biofuels OBJECTIVE OUTCOME Share of renewable energy consumed by all types of transport in the INDICATOR 2.2.1 final energy consumption on the territory of Georgia Baseline Medium-term target Final target Year 2018 2022 2024 2026 2028 2030 Value 2% 3% 4% 6% 8% 10% National Statistics Office of Georgia (Energy Balance of Georgia); Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Low interest of the private sector; Non-implementation of incentive measures for electric Risk vehicles due to reduced public funds inflicted by the Coronavirus pandemic; Failure to develop a market for affordable and high-coverage used electric vehicles; OBJECTIVE 2.3 Promote non-motorized means of mobility and public transport OBJECTIVE OUTCOME Percentage of transportation with non-motorized transport (bicycle and INDICATOR 2.3.1 pedestrian) in Tbilisi 72 Baseline Medium-term target Final target Year 2016 2022 2024 2026 2028 2030 Value 27.15% 30% 32% 33% 34% 35% Sources of verification Tbilisi Sustainable Transport Survey OBJECTIVE OUTCOME Percentage of transportation with public transport (metro, bus, minibus) INDICATOR 2.3.2 in Tbilisi Baseline Medium-term target Final target Year 2016 2022 2024 2026 2028 2030 Value 39% 40% 41% 42% 43% 45% Sources of verification Tbilisi Sustainable Transport Survey Reduced public investment in public transport and planned infrastructural works due to Risk reduced public funds inflicted by the pandemic OBJECTIVE 2.4 Implement innovative evidence-based initiatives in the transport sector OBJECTIVE OUTCOME Number of additional evidence-based initiatives for reducing GHG INDICATOR 2.4.1 emissions in the transport sector Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 Value 0 1 2 3 4 5 Sources of verification Climate Strategy and Action Plan Progress Report Non-implementation of cost-benefit analysis of proposals on reducing emissions from the Risk transport sector due to lack of human and research resources 73  Support development of low-carbon approaches in the buildings sector by GOAL 3 promoting climate-smart and energy-efficient technologies and services Link to SDGs SDGs 7 9 11 IMPACT INDICATOR 3.1 Amount of GHG emissions from the buildings sector (ktCO2e) Reference Historical Baseline Medium-term target scenario Final target projection Year 1990 2015 2024 2028 2030 2030 Less than Value N/A 1,954 3,635 4,277 4,625 4,625 Sources of verification 2030 National GHG Inventory OBJECTIVE 3.1 Develop a system for energy efficiency certification of buildings OBJECTIVE OUTCOME Percentage of newly constructed buildings subject by law to certification INDICATOR 3.1.1 that are certified for energy efficiency Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 Value 0% 0% 100% 100% 100% 100% Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Shifting of time periods defined by law for entry into force of secondary legal acts on Risk certification 74 OBJECTIVE 3.2 Raising consumer awareness about energy efficiency Percentage of consumers who identify the energy efficiency of buildings OBJECTIVE OUTCOME and household appliances as an important factor in consumer decision INDICATOR 3.2.1 making Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 40% 55% 60% 70% 80% Value N/A of the target contingent Sources of verification Household Consumption Survey of the National Statistics Office Non-implementation / postponing of information campaigns due to lack of financial Risk resources and pandemic restrictions Promote energy-efficient approaches and installation of energy-efficient OBJECTIVE 3.3 lighting in residential, commercial and public buildings Number of buildings of more than 500 m2, occupied and owned by OBJECTIVE OUTCOME central and municipal governments, which have 1% of their total area INDICATOR 3.3.1 annually upgraded according to energy efficiency standards Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than Value 0% 10% 30% 50% 70% 90% Sources of verification Annual Report of the Ministry of Economy and Sustainable Development OBJECTIVE OUTCOME Percentage of public buildings that use energy-efficient light bulbs INDICATOR 3.3.2 75 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than Value N/A 20% 30% 40% 60% 70% Sources of verification Annual Report of the Ministry of Economy and Sustainable Development Risk Non-implementation of projects depending on donor funding Support use of solar energy for water heating and use of energy-efficient OBJECTIVE 3.4 stoves Percentage of solar water heating systems in the systems purchased by OBJECTIVE OUTCOME individuals / legal entities for water heating in individual residential and INDICATOR 3.4.1 commercial buildings after implementation of the incentive measures Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 Value N/A 10% 20% 30% 50% 60% Residential Sector Survey of the National Statistics Office Sources of verification National Energy Balance Risk Postponement of the incentive measures OBJECTIVE 3.5 Train high professional standard personnel in energy efficiency Total percentage of certified and degree-holding specialists in energy OBJECTIVE OUTCOME efficiency of heating, cooling and ventilation systems of buildings and INDICATOR 3.5.1 electrical appliances 76 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 0% 0% 30% 60% 80% 100% Value of the target contingent Database of independent experts on the website of the Ministry of Sources of verification Economy and Sustainable Development Risk Postponed enactment of the secondary legal acts Support development of the low-carbon approaches in the industry  sector by promoting climate-smart and energy-efficient technologies and GOAL 4 services, to reduce greenhouse gas emissions to 5% below the reference scenario projections by 2030 Link to SDGs SDGs 8 9 11 12 IMPACT INDICATOR 4.1 GHG emissions from the industry sector (ktCO2e) Reference Historical Baseline Medium-term target scenario Final target projection Year 1990 2015 2024 2028 2030 2030 < 5,690 Value 11,445 3,123 4,474 5,289 5,986 (-5%) Sources of verification 2030 National GHG Inventory Reduce the level of greenhouse gas emissions from industrial processes OBJECTIVE 4.1 and from energy consumption of industrial facilities, by introducing modern technologies OBJECTIVE OUTCOME Amount of emissions from cement production (ktCO2e) INDICATOR 4.1.1 77 Baseline Medium-term target Final target Year 2020 2022 2023 Value 968 1083 1139 Annual Progress Report and Sources of verification Climate Action Plan Evaluation Report OBJECTIVE OUTCOME The amount of emissions from chemical industry (ktCO2e) INDICATOR 4.1.2 Baseline Medium-term target Final target Year 2020 2022 2023 Value 2547 2919 3105 Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Low interest from the private sector; Delay in conducting necessary research within Risk the project (including mobilization of a group of foreign experts) and introduction of technologies due to the Corona virus pandemic Develop a system for studying the emission factors in the industry sector OBJECTIVE 4.2 and for data management OBJECTIVE OUTCOME The number of industries in which specific emission factors are studied INDICATOR 4.2.1 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 Value 0 1 2 3 4 5 Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Lack of sectorial expertise; Low interest from the private sector; Provision of confidential Risk information for setting up a data management system and determining the individual emission factors 78 Support the low carbon development of the agriculture sector by GOAL 5  encouraging the climate-smart and energy-efficient technologies and services Link to SDGs SDGs 2 6 12 15 The amount of greenhouse gas emissions from the agriculture sector IMPACT INDICATOR 5.1 (GgCO2e) Reference Historical Baseline Medium-term target scenario Final target projection Year 1990 2015 2024 2028 2030 2030 Less than Value 4,102 3,326 3,635 4,203 4,533 4,533 Sources of verification National Greenhouse Gas Inventory Implement sustainable management of soil and pastures and support OBJECTIVE 5.1 the introduction of sustainable domestic animal feeding practices Percentage of farmers who have improved information on sustainable OBJECTIVE OUTCOME domestic animal feeding practices and sustainable soil management out INDICATOR 5.1.1 of the farmers informed by the extension centres and the National Food Agency Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 0% 50% 50% 50% 50% 50% Value of the target farmer contingent Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Risk Low interest from farmers 79 Build capacities of generating scientific evidence for development of OBJECTIVE 5.2 climate-smart approaches in the agriculture sector Share of climate-smart technologies and/or initiatives based on OBJECTIVE OUTCOME cost-benefit analysis and other evidence in governmental and donor INDICATOR 5.2.1 agricultural programs Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 Value Unknown 10% 30% 40% 50% 60% Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Delays in obtaining funding and resources; Quality of documents prepared by Risk implementing entities and donors  Support the low carbon development of the waste sector by promoting GOAL 6 climate-smart and energy-efficient technologies and services Link to SDGs SDGs 8 11 12 IMPACT INDICATOR 6.1 The amount of GHG emissions from the waste sector (GgCO2e) Reference Historical Baseline Medium-term target scenario Final target projection Year 1990 2015 2024 2028 2030 2030 Less than Value 1,105 1,389 1,556 1,339 1,850 1,850 Sources of verification 2030 National GHG Inventory 80 Reduce greenhouse gas emissions from the existing unauthorized, OBJECTIVE 6.1 non-hazardous waste dumpsites OBJECTIVE OUTCOME The amount of GHG emissions from landfills/dumpsites (GgCO2e) INDICATOR 6.1.1 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 Value 1,091 1,063 1,056 908 822 840 Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Risk Delays in arranging new landfills due to site selection process OBJECTIVE 6.2 Support waste recycling OBJECTIVE OUTCOME The amount of emissions reduced through waste recycling (GgCO2e) INDICATOR 6.2.1 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than Value 0 10 40 100 130 150 Sources of verification Annual Progress Report and Climate Action Plan Evaluation Report Risk Low interest from the waste processing companies 81 OBJECTIVE 6.3 Reduce greenhouse gas emissions from wastewater OBJECTIVE OUTCOME The amount of reduced emissions from wastewater (GgCO2e) INDICATOR 6.3.1 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than More than More than More than More than Value 0 150 200 300 400 500 Sources of verification Report of the United Water Supply Company of Georgia Risk Failure to find the financial resources needed to implement the action OBJECTIVE 6.4 Develop a data-based waste management system OBJECTIVE OUTCOME Percentage of data-based waste management reports INDICATOR 6.4.1 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 Value 0% 50% 70% 80% 90% 100% Sources of verification Reports of the National Statistics Office of Georgia Risk Defective waste management system 82  Increase the carbon capturing capacity of the forestry sector by 10% for GOAL 7 2030 compared to 2015 Link to SDGs SDGs 6 11 15 ᲒᲐᲕᲚᲔᲜᲘᲡ Carbon capture potential of forests (GgCO2e) ᲛᲐᲩᲕᲔᲜᲔᲑᲔᲚᲘ 7.1 Reference Historical Baseline Medium-term target scenario Final target projection Year 1990 2015 2024 2028 2030 2030 More than Value -6,353 -5,621 -5,950 6,000 -5,931 -6,183 (+10%) Sources of verification 2030 National GHG Inventory OBJECTIVE 7.1 Restore degraded forests OBJECTIVE OUTCOME Area of forests where restoration works have been carried out, in ha INDICATOR 7.1.1 Baseline Medium-term target Final target Year 2019 2022 2024 2026 2028 2030 More than Value 190 ha 890 ha 2090 ha 2690 ha 3290 ha 4000 ha Sources of verification Annual report of the Ministry of Environmental Protection and Agriculture Reduced state budget and/or other revenues; Delay in the adoption of the Forest Code’s Risk secondary legal act - Rule of Forest Maintenance and Restoration 83 OBJECTIVE 7.2 Support sustainable forest management OBJECTIVE OUTCOME Area of forests managed with sustainable management principles, in ha INDICATOR 7.2.1 Baseline Medium-term target Final target Year 2019 2022 2024 2026 2028 2030 Value 0 150,807 ha 300,000 ha 350,000 ha 402,000 ha 450,000 ha Sources of verification Annual report of the Ministry of Environmental Protection and Agriculture Reduced state budget and/or other revenues; Non-allocation of funds for newly created protected areas; Postponement of launching of the GCF project - Enabling Implementation Risk of Forest Sector Reform in Georgia to Reduce GHG Emissions from Forest Degradation; Extension of procedures for approval of the secondary legal acts of the Forest Code. Develop a forest management system adequate to climate change OBJECTIVE 7.3 challenges OBJECTIVE OUTCOME The number of forest related projects developed through inter-agency INDICATOR 7.3.1 coordination and cross-sectoral projects Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than Value 10 20 25 28 30 30 Annual report of the Ministry of Environmental Protection and Sources of verification Agriculture; National Forest Program Plenary Report 84 OBJECTIVE OUTCOME The percentage of protected area management plans that integrate INDICATOR 7.3.2 climate change mitigation measures Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than More than More than More than Value 0 100% 65% 80% 85% 90% Sources of verification Protected Areas Management Plans OBJECTIVE OUTCOME The number of gender-sensitive sustainable forest management plans INDICATOR 7.3.3 Baseline Medium-term target Final target Year 2020 2022 2024 2026 2028 2030 More than Value 0 15% 30% 40% 50% 50% Implementation report of the project - Enabling Implementation of Sources of verification Forest Sector Reform in Georgia to Reduce GHG Emissions from Forest Degradation Risk Reduced state budget and/or other revenues 85 6 IMPLEMENTATION AND COORDINATION OF THE CLIMATE STRATEGY AND ACTION PLAN 6.1 Organizational Structure Inter-Agency Climate Change Council (CCC) – a consultative body established in January 2020 by the Government of Georgia – will oversee and coordinate the implementation of the Climate Strategy and Action Plan. The CCC is in charge of coordinating the effective implementation of the national climate policy, Paris Agreement and other international commitments. It has nine members and two advisory bodies: the Coordination Team of the Covenant of Mayors (CoM) signatory municipalities and Thematic Working Groups (See Figure 24). The Minister of Environmental Protection and Agriculture of Georgia is the chairperson of the council. The CCC meetings are held at least once in 6 months or as needed (see Figure 3). FIGURE 24: Composition of the Climate Change Council of Georgia (approved with Decree #54 of Government of Georgia, from January 15, 2020, On Establishing the Climate Change Council of Georgia) CLIMATE CHANGE COUNCIL OF GEORGIA Advisory bodies COMPOSITION OF THE COUNCIL Coordination Team of the Covenant of Mayors Minister of Environmental Protection and Agriculture Signatory Municipalities (Chairman) Minister of Internally Thematic Working Groups Displaced Persons from Minister of Economy and Minister of Finance Occupied Territories, Labour, Sustainable Development Health and Social Affairs Minister of Regional Executive Director of the Minister of Education, Development and National Statistics Office of MANDATE: Science, Culture and Sport Infrastructure Georgia (LEPL) To coordinate effective implementation of Georgia’s climate change policy and climate- Chairman of the Chairman of the Chairman on the related international Government of the Government of the Coordination Team of commitments. Autonomous Republic Autonomous Republic the Covenant of Mayors of Adjara of Abkhazia Signatory Municipalities 86 The CCC is responsible for overseeing all the national strategies and plans, as well as the development, implementation and evaluation of the Climate Strategy and Action Plan and the NDC. In addition, the CCC reviews climate-related projects to be submitted to relevant funds and financial institutions and recommends MEPA whether to support these projects. Considering the cross-sectoral nature of climate change mitigation and GHG emissions reduction, several ministries and agencies have a role in the identification and implementation of sectoral mitigation measures. MEPA’s competence lies with the issues related to environmental protection, agriculture and rural development, waste and chemicals, forest, atmospheric air, water and land resources management and protection. The Climate Change Division (CCD) of the Environment and Climate Change Department of MEPA, which also acts as the Secretariat of the CCC, is the structural unit responsible for the preparation and periodical update of the NDC, preparation and coordination of the implementation of national climate change policy and action plans, and participation in the fulfilment of climate change-related international commitments. The exclusive competencies of the CCC member autonomous republics of Adjara and Abkhazia include the management of land, forest, and water resources. The autonomous republics may exercise authority in various areas, including economy, agriculture, and environmental protection. Out of 69 municipalities in the territory of Georgia, including five self-governing cities and 64 self-governing communities, 24 municipalities 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, municipalities are responsible for municipal waste management and municipal transport services, amongst other responsibilities and competencies imposed by law. The 24 CoM signatory municipalities are represented in the CCC by the coordination team of the Covenant of Mayors. There are realistic, positive and pessimistic implementation scenarios considered for the strategy implementation period. More specifically, the realistic scenario implies implementation of non-deficit activities without delay. The positive scenario implies the implementation of a deficit activity together with all non-deficient activities. To this end, the Ministry of Environmental Protection and Agriculture, together with partner agencies, is already working with potential donors to attract international funding and support for implementation of the specific deficit activities. As for the pessimistic scenario, it implies that the identified risks will delay and/or obstruct the process of implementation of non- deficit activities. 87 The Climate Change Council – the Council itself and its advisory bodies: the Coordination Team of the CoM signatory municipalities and the Working Groups will serve as one of the tools for stakeholder engagement in the implementation process. (See Figure 24). The Coordination Team is a mechanism for coordination between the government and self- governing bodies in the field of climate change, consisting of the mayors of CoM signatory municipalities, the deputy mayor of Tbilisi Municipality and the state representatives; while working group is a mechanism set up to address specific issues of climate change policy in the economic and social sectors, consisting of public officials, experts, NGOs and academics. The Ministry of Environmental Protection and Agriculture and the LEPL Environmental Information and Education Center will be communicating with the general public through digital communication, remote and physical meetings. 88 6.2 Cycles of climate change response planning The Climate Strategy and Action Plan is part of a consolidated and recurring climate change response planning process. This process begins with the updated NDC – a document at the top of the hierarchy, dictating the long-term vision. Its integral parts are other climate and energy action plans and strategies, which will be submitted to international organizations after their approval by the government (See Figure 25): FIGURE 25: Links between climate and energy action plans and strategies  Vision Updated NDC 2020  Strategy / Action Plan 2021-2023 Climate Action Plan Other relevant strategies and action plans Energy and Climate Action Plan 2021 1 Energy security, solidarity and trust National Energy Strategy 2021 National Renewable Energy 2 Complete and intergral energy market Action Plan National Energy Efficiency 3 Energy efficiency Action Plan 2019 4 Decarbonisation of the economy Policies and Measures to achieve the 2030 GHG Emissions Target for the Energy Society and NDC Perspective of transforming into a low-carbon country Long-term Strategy by 2050 5 Research, Innovation and Competitiveness 89 THESE DOCUMENTS ARE: The Nationally Determined Contribution (NDC). The document is revised  every 5 years, in line with the Paris Agreement. The Climate Strategy and Action Plan (CSAP). The Action Plan will be  revised around 2023. Precise timeline of future iterations to be determined later in order to be aligned with the updated NDC. The Integrated National Energy and Climate Plan (NECP). This plan is  prepared in accordance with the recommendation from the Ministerial Council of the Energy Community. It will be aligned with the NDC and the CSAP, and could potentially be consolidated into a single document with the CSAP in the future. Figure 25 and Figure 26 visualise the process of alignment and revision of these documents in the 2020-2030 period, as requested by the international climate community. As part of the recurring planning cycle, regular evaluation of these policy documents and reporting of progress plays an important role in updating targets and action plans. 90 FIGURE 26: Visualisation of the climate and energy actions planning process cycle CLIMATE AND ENERGY PLANNING PROCESS CYCLE 2020-2030 TARGETS AND ACTION PLANS PROGRESS REPORTS NDC Nationally Determined Contribution BUR Biennial Update Report CSAP Climate Strategy and Action Plan BTR Biennial Transparency Report CAP Climate Action Plan NC National Communication NECP National Energy and Climate Plan NECP-PR NECP Progress Report The NDC, CAP and NECP are regularly updated outputs Several progress are regularly submitted to the UNFCCC from a continuous and recurring process. or the Ministerial Council of the Energy Community. For future iterations, the CAP and NECP could be These can be consolidated into single documents. consolidated into a single document. The CAP will be revised every 2.5 years, to align with the 5 year cycle of the NDC revision. NECP- NDC CSAP NECP 2020 BUR PR 2021 NECP- 2022 NC BUR PR CAP 2023 NECP- 2024 BTR PR NDC CAP NECP 2025 NECP- 2026 NC BTR PR 2027 CAP NECP- 2028 BTR PR 2029 NECP- NDC CAP NECP 2030 NC BTR PR 91 7 BUDGET AND FUNDING This section provides information on the general framework for financing climate action in Georgia, existing and planned domestic budgets, funds, and mechanisms, as well as access to international funding in climate change. As mentioned above, climate change mitigation measures in Georgia are implemented through and with the help of various institutions across different sectors. Implementation of these measures is primarily funded by the existing state budget, reviewed and drafted annually by the Ministry of Finance of Georgia. Notably, the State Budget was increased in 2020 for the Ministry of Regional Development and Infrastructure (MRDI), Ministry of Environmental Protection and Agriculture (MEPA), Ministry of Economy and Sustainable Development (MESD), Ministry of Internal Affairs (MIA), and Ministry of Finance (MoF) which together account for a quarter of the national budget. These ministries house the majority of agencies involved in the Climate Strategy and Action Plan, however, this does not mean that their budget was increased due to climate change mitigation measures (Civil., 2019; Parliament of Georgia, 2019). The JSC Georgian Energy Development Fund, founded by MESD in 2010, supports exploring and development of promising renewable energy projects and, within this framework, makes relevant procurements for further development of pilot projects on renewable energy. The LEPL Municipal Development Fund of Georgia, coordinated by MRDI, makes procurements for projects related to municipal infrastructure. Georgia has a large portfolio of projects sourced from international climate finance. It should be noted that Georgia’s recently developed Country Programme with the GCF focuses on renewable energy, low emission transport, energy-efficient buildings, appliances, industries, forestry and land use as emissions reduction priorities for the country. Table 8 further lists other international climate finance sources engaged in funding climate change mitigation activities in Georgia since 2009. For more details on the type of projects and dollar amounts funded, see Table 26 of Georgia’s 2nd Biennial Update Report (MEPA, 2019), while Climate Action Plan includes details on budgets and sources of finance for mitigation activities identified for each sector in the Climate Action Plan. 92 TABLE 8: List of major international donors financing climate change mitigation related activities in Georgia since 2009 Donors financing climate change action in Georgia Germany’s Federal Ministry of the Environment, Nature Asian Development Bank (ADB) Korea Development Bank* Conservation and Nuclear Safety of Germany (BMU)* Austrian Development Agency Global Environmental Facility Kingdom of Norway* (ADA)* (GEF)* Swiss Agency for Development Austrian State Funding Government of Finland and Cooperation (SDC)* Czech Development Agency Swedish International Green Climate Fund (GCF)* (CzechAid) Development Agency (SIDA)* International Bank for United Nations Development European Union (EU)* Reconstruction and Development Programme (UNDP)* (IBRD)* United States Agency for EU Neighbourhood Investment International Development International Development Facility (NIF) Association* (USAID)* European Bank for Reconstruction International Finance Corporation World Bank (WB)* and Development (EBRD)* (IFC) International Fund for Agricultural Nordic Environment Finance European Investment Bank (EIB) Development (IFAD)* Corporation (NEFCO) Federal Ministry of Economic German Reconstruction Credit French Development Agency Cooperation and Development of Bank KfW* (AFD) Germany (BMZ)* Note: Asterisk (*) highlights projects still in operation 93 It is recognized that through the international carbon market mechanisms, for example, through the use of mechanisms established by Article 6 (Voluntary Cooperation) of the Paris Agreement, direct foreign investment could be channelled to support the implementation of climate change mitigation actions in Georgia. While the specific rules and procedures for the implementation of the mechanism established by Article 6 of the Paris Agreement are not yet finalised, and still subject to international negotiations on climate change, it is understood that as a result of this cooperation, the outcomes of GHG emission reductions, would need to be transferred to the investor through the International Transfer of Mitigation Outcomes (ITMOs) and could therefore not be counted towards the achievement of the domestic NDC target. Therefore, this is not considered as an action to achieve the NDC targets of the host country. The total budget of the Climate Strategy and Action Plan is GEL 3,537,118,642.0, of which GEL 208,948,960.0 is the deficit. As mentioned above, the Government of Georgia is al- ready in negotiations with potential donors to fill the deficit and find additional climate funding. Moreover, due to the specifics of climate change mitigation measures, the Climate Action Plan includes some actions that are mainly implemented by the private sector, with their own funds, including investments. Although these funds are indicated alongside the relevant measures in the Climate Action Plan, they are not included in the overall budget of the Climate Change Strategy and Action Plan. According to the Climate Action Plan, the total budget of private sector involvement amounts to GEL 4,392,477,936.0. 94 8 MONITORING AND EVALUATION Implementation of the Climate Strategy and Action Plan will be monitored and evaluated in line with the official requirements for actions plans, as per the Policy Planning, Monitoring and Evaluation Handbook of Georgia. Table 9 presents a calendar overview of the monitoring and evaluation responsibilities. TABLE 9: Calendar of monitoring and evaluation actions and institutions responsible RESPONSIBLE  ACTION  TIMING  INSTITUTIONS Every 6 months after the approval of the Strategy and Action Plan, upon Progress report MEPA receipt of the status reports for each individual action By January of each year except the Annual report MEPA last one First interim evaluation report By January 2024 MEPA Second interim evaluation By January 2028 MEPA report Final evaluation report By January 2030 MEPA (Final report) In coordination with the Secretariat of the Climate Change Council, the  implementing/responsible institutions shall prepare the information on each action of the Climate Action Plan once in every six months and submit it to the MEPA (Secretariat). This information shall contain the minimum information set out for status reports in Annex 7 of the Policy Planning, Monitoring and Evaluation Handbook of the Government of Georgia. 95 Upon receipt of relevant reports from the implementing/responsible institutions,  the Ministry of Environmental Protection and Agriculture (Secretariat) has to prepare a progress report, indicating the aggregated level of progress across all of the activities set out in the Action Plan. The progress reports have to be prepared every six months and contain the minimum information set out in

Annex 7 of the Policy Planning, Monitoring and Evaluation Handbook. In addition to the six-monthly reports, the Ministry of Environmental Protection  and Agriculture has to prepare an annual monitoring report, including monitoring findings about the indicators of activity outcomes and objective outcomes. The annual monitoring report shall contain the minimum information set out in the Policy Planning, Monitoring and Evaluation Handbook. About the fourth year from operationalization of the Climate Strategy and at the  end of the Climate Action Plan implementation, at the end of 2023 and early 2024, the Ministry of Environmental Protection and Agriculture shall prepare an interim evaluation report that should provide grounds for development of the next Climate Action Plan document. The second interim report has to be prepared after four years, in 2028. The final evaluation report, as set out Planning, Monitoring and Evaluation  Handbook, will be prepared in 2030. The monitoring and evaluation process will be conducted with stakeholder  participation and in a transparent manner. Annual, interim evaluation and final evaluation reports will be published. 96 Draft monitoring and evaluation reports will be published on the websites of the MEPA and the LEPL Environmental Information and Education Centre. Both physical meetings and virtual means will be used as tools for stakeholder engagement in the monitoring and evaluation process. The Secretariat will provide the drafts of annual monitoring reports to the members of the technical working group set up within the Council, for comments, which, together with the comments from stakeholders will be further discussed at a joint meeting. In addition, the scale, criteria, questions, research design and methodology of interim and final evaluations will be agreed with the members of the same platform. If feasible, priority will be given to the mixed evaluation, which will involve stakeholders in addition to the coordinating body and external independent consultants. After publishing of the monitoring and evaluation report drafts, as well as information on the issues to be evaluated and evaluation outlines, all the stakeholders and members of civil society will have 2 weeks to submit their comments electronically. 97 ANNEXES

ANNEX 1: Other Strategies, Action Plans and Laws relevant to the Climate Strategy and Action Plan 2021 Updated Nationally Determined Contribution (NDC)  OBJECTIVE: Communicate climate-related targets by 2030 within the current cycle  PURPOSE: Reported to the UNFCCC (required) Under its commitment to the Paris Agreement, Georgia has communicated to the UNFCCC secretariat in 2021 a GHG emissions reduction target, which is to reduce GHG emissions to 35% below the 1990 level in 2030. The Climate Action Plan is a short-term action plan to achieve the 2030 target. The Updated NDC is due to be updated again by 2025. Long-term Low Emissions Development Strategy (LT- LEDS)  OBJECTIVE: Identify 2050 vision for climate change mitigation  PURPOSE: Reported to the UNFCCC (recommended) Under the Paris Agreement “All parties should strive to formulate and communicate long-term low greenhouse gas emission development strategies” (UNFCCC, 2016; Paris Agreement, Article 4, Paragraph 19). These strategies – also known as Long-term strategies (LTS) – set out a country’s vision for emission reduction by 2050. The UNFCCC Conference of the Parties (COP-21) invited Parties to communicate their LTS to the UNFCCC registry (decision 1/CP, paragraph 35). Development of an LTS is also a requirement for EU member countries under new rules laid out in the EU Regulation on Governance of the Energy Union and Climate Action. Currently, the Energy Community discusses the option for these rules to become binding for Contracting Parties. Thus, they may become binding for Georgia as a Contracting Party of the Energy Community. Georgia is currently developing a Long-term Low-emission Development Strategy, which will be completed by the end of 2021. 98 National Energy and Climate Plan (NECP) Set out climate and energy-related plans, covering the period from 2021 to 2030  OBJECTIVE: and including prospects to 2050  PURPOSE: Reported to the Ministerial Council of the Energy Community (recommended) Georgia is in the process of developing its integrated NECP, as recommended through membership of the Energy Community Treaty. In line with the recommendations by the Ministerial Council of the Energy Community, Georgia’s integrated NECP should cover the period from 2021 to 2030. It should set targets and an action plan for improving energy security, strengthening the energy market, improving energy efficiency and decarbonising the economy, by promoting research and innovations. The NECP will be aligned with the Climate Strategy and Action Plan, as the latter will be used for the NECP’s fourth chapter on decarbonising the economy. Depending on whether the timings of the revision cycle of NECPs coincide in the future, the Climate Strategy and Action Plan and the NECP could continue to be closely aligned or could even be merged into one document. Progress reports on the achievement of NECP targets and objectives are recommended to be submitted every two years, which could occur simultaneously to the Climate Action Plan implementation reporting (see Monitoring and Evaluation). 2019-2020 National Energy Efficiency Action Plan (NEEAP) Set out targets for improved energy efficiency for 2020, 2025 and 2030, with  OBJECTIVE: concrete energy efficiency actions for energy generation and transmission and buildings sectors in the years 2019-2020.  PURPOSE: For national policy planning The 2019-2020 NEEAP, which was adopted by the Government of Georgia in 2019, sets national energy- saving targets for the public and private sectors and proposes specific measures to meet these targets. The plan includes financial, regulatory and informational measures set for energy efficiency in all key energy demand sectors, including transport, buildings, electricity transmission and industry, as well as cross-sector and institutional measures. 99 2020 National Renewable Energy Action Plan (NREAP) Set out targets for renewable energy for 2030, with specific actions for electricity  OBJECTIVE: generation and transport fuels.  PURPOSE: For national policy planning The NREAP was adopted by the Ministry of Economy and Sustainable Development of Georgia in 2019. It describes the target set for the renewable energy sector. Specific actions planned for 2020 include enhanced incentives for solar and wind energy generation, integration of new and existing renewable energy sources into the existing grid, as well as enhanced support of use and exploitation of clean fuels in the transport sector. Municipal Action Plans for Sustainable Energy and Climate (SEAP and SECAP) Develop targets and action plans for emission reduction in the energy sector  OBJECTIVE: at the municipality level; target years and implementation periods may vary between municipalities.  PURPOSE: For submission to the Covenant of Mayors (CoM), municipal policy planning By December 2020, 24 municipalities in Georgia were signatories to the Covenant of Mayors, committing themselves to the development and implementation of Sustainable Energy Action Plans (SEAPs) or Sustainable Energy and Climate Action Plans (SECAPs). The SEAPs include set targets and actions for GHG emission reduction, as well as for reducing energy demand and increasing energy efficiency over a period up to 2020. SECAPs cover the same issues for a period up to 2030. Some existing SEAPs have a direct overlap with the targets of the 2021-2023 Climate Action Plan, and the actions are thus reflected in the Climate Action Plan. In some cases, direct overlaps were not found since the SEAPs of some municipalities are older and cover a period up to only 2020. However, future updates of the SECAPs, intended by number of signatory municipalities, will be considered in the following iteration of the Climate Action Plan; should be aligned with. 100 OTHER HORIZONTALLY AND VERTICALLY LINKED STRATEGIES AND NORMATIVE ACTS In addition to the climate and energy strategies and action plans mentioned above, there are other national and municipal action plans and strategic documents, as well as normative acts that are related to the Climate Strategy and Action Plan. Below is a brief overview of the most relevant ones. Third National Environmental Action Programme (NEAP-3) of Georgia 2017-2021 NEAP-3 identifies the environmental priorities of Georgia and establishes the strategic long-term goals, targets and activities required to improve the environment. The NEAP-3 includes a separate chapter on climate change, with actions to create enabling environment for GHG reductions, including development of a Climate Action Plan, an updated NDC and an LTS. The NEAP-3 also includes specific targets for reduction of water and air pollution, which could be achieved through the implementation of several Climate Action Plan measures. Agriculture and Rural Development Strategy of Georgia 2021-2027 The strategy and action plan set out priorities, strategic goals and measures for agriculture and rural development. Three priorities and three major goals are identified in the strategy for 2027. These goals will contribute to higher productive livestock, decreased use of synthetic fertilizers and will promote research and education for implementing sustainable and climate smart agriculture practices. With regard to climate change, the strategy focuses mostly on climate change adaptation, however some components of the strategy are relevant to climate change mitigation targets. National Environment and Health Action Plan (NEHAP-2) of Georgia 2018-2022 NEHAP-2 outlines the country’s current approach to preservation of safe environment and defines priorities for a 5-year period. One of the strategic objectives of the NEHAP-2 is to integrate healthcare issues into climate change adaptation and mitigation strategy. NEHAP-2 puts a particular focus on climate change adaptation, although some components of the strategy are relevant to climate change mitigation targets. 101 The new 2020 Forest Code of Georgia and National Forest Concept 2013 The goal of the new Forest Code is to protect the forest biodiversity of Georgia, preserve and improve the characteristics of forest, and increase the quantity and quality of forest resources in order to preserve its ecological, social and economic functions. The new Forest Code defines the main principles for forest management to ensure that forests are managed sustainably. The goal of the National Forest Concept for Georgia is to establish a system for sustainable forest management, providing that Georgia’s forest resources are used in a way, and at a rate, that maintains their ecological health and ensures the better and more effective use of their socio-economic potential. With regards to climate change, the concept focuses mostly on responding to the risks of climate change through adaptation. These measures from the Code and the Concept will be relevant for increasing the carbon capture capacity of forests and climate change mitigation. National Biodiversity Strategy and Action Plan (NBSAP) of Georgia 2014 – 2020 The NBSAP sets out priority actions to address the most critical and urgent threats to biodiversity and provides a framework for further action planning. Climate change is identified in the NBSAP as a key threat to national biodiversity. The NBSAP contains actions related to awareness raising on the risks associated to Georgia’s national biodiversity and climate change. Such actions will create and strengthen enabling environment for the subsequent update of the Climate Action Plan. Waste Management Code and National Waste Management Strategy 2016-2030 and Action Plan 2016-2020 The goal of the Waste Management Code is to establish a legal framework in the field of waste manage- ment to implement measures that will facilitate waste prevention, re-use and recycling, as well as safe disposal of waste. In order to improve the waste management system, the Waste Management Strategy and Action Plan defines goals and objectives for waste collection and transportation, ensuring safe land- filling and reduced production of waste. Climate change is not directly referred to in the Code, Strategy and Action Plan, although implementation of the objectives of the Code and measures in the Strategy and Action Plan has an effect for climate change mitigation. 102 Law of Georgia on Energy Efficiency and Law on Energy Efficiency of Buildings The general goal of the Law on Energy Efficiency is to provide the legal foundation for promoting and implementing energy efficiency in the country, to establish a procedure for developing national energy efficiency targets, and to coordinate, control, supervise and monitor the energy efficiency policy. The general goal of the Law on Energy Efficiency of Buildings is to promote the rational use of energy resources and to improve the energy efficiency of buildings, taking into account the external climatic and local conditions of buildings; and to create internal climatic conditions and cost-effectiveness. The law also sets the methodology for calculating the energy efficiency of buildings and the liability mechanism for non-completion. Climate change is not directly referred to in the laws, however their implementation has an effect on climate change mitigation. The Law of Georgia On Promotion of Production and Utilization of Energy from Renewable Sources The goal of the law is to establish the legal basis for promotion of the use of energy from renewable sources, and to set a binding national renewable energy target or share in total final energy consumption. The Law further establishes relevant promotion schemes. While climate change is not directly referred to in the law, implementation of the law has an effect for climate change mitigation.

ANNEX 2: Links to Sustainable Development Goals In 2015, all member states of the United Nations adopted the 2030 Agenda, including 17 Sustainable Development Goals (SDGs) and 169 targets. SDGs are not legally binding; however, each government is expected to establish an integrated, national SDG strategy with an aim to implement the sustainable development agenda by 2030 (United Nations, 2018). Georgia submitted its first Voluntary National Report on the implementation of the SDGs following the adoption of the 2030 UN Sustainable Development Agenda in 2015, and second Voluntary National Report in 2020. Georgia’s SDG implementation is coordinated by the Policy Planning Division within the Policy Planning and Coordination Department of the Government of Georgia Administration. The Government of Georgia set up the technical working groups in 2016 to work on different thematic areas of the SDGs and also established country-specific adjusted national SDG targets and indicators (Government of Georgia, 2019). The Government of Georgia has set all of the 17 SDGs as national priorities, prioritised 98 of 169 global targets and 204 of 244 global indicators. 103 Georgia has also established a SDG council to monitor implementation of SDGs and have identified priorities to enhance monitoring and evaluation of SDGs and to increase involvement of local self-governments, private sector, and civil society (Government of Georgia, 2020a). The Climate Strategy and Action Plan will fully support implementation of SDG goal 13 which is specific to climate action. Furthermore, climate mitigation activities, such as reducing emissions from transport or transitioning the energy sector towards higher renewable energy shares, deliver many other benefits such as improving air quality, increasing energy security and adding more jobs to the economy, which help fulfil other SDG targets prioritised by Georgia. All the targets listed below constitute global and national targets at the same time, except for targets 9.4 and 11.2, which are only global targets. TARGET 1.2: By 2030, reduce at least by half the proportion of men, women and children of all ages living in poverty in all its dimensions according to national definitions. Energy efficiency improvements in buildings will increase energy access and reduce energy expenditure. While the promotion of renewable energy will help remote settlements increase their access to energy (energy poverty reduction), and will support productive economic activities. TARGET 1.4: By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources. Sustainable forests management can lead to the diversification of incomes from additional forestry programs. TARGET 2.3: By 2030, double the agricultural productivity and incomes of small-scale food producers. The measures include changing and improving livestock feeding practices and research on further actions such as organic fertilizer (manure) management system, which can enhance the productivity of agricultural activities. Successful operation of agricultural cooperatives could further support small-scale food producers. TARGET 2.4: By 2030, ensure sustainable food production systems and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, and that progressively improve land and soil quality. 104 The measures include reduction of fertilizer use, implementation of improved irrigation systems and feasibility study of climate-smart agriculture. All of those support the implementation of sustainable and resilient practices. TARGET 3.4: By 2030, reduce by one-third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being. The transport sector measures reduce air pollution through reduced fuel use and the use of clean technologies. The measures related to renewable energy resources (solar, wind and hydro resources) reduce air, water and soil pollution and thus non-communicable diseases risks and incidences when replacing polluting energy sources (oil and bioenergy). TARGET 3.6: By 2030, reduce the number of deaths and injuries from road traffic accidents. Reduction of private vehicle activity will lead to reduced number of vehicles and consequently decrease the number of road traffic accidents, deaths and injuries. TARGET 3.8: By 2030, achieve universal health coverage, access to quality healthcare services and access to safe, effective, quality and essential medicines. The energy related measures facilitate access to better equipped local healthcare and communication services. Local electricity supply leads to better operation of relevant facilities. TARGET 3.9: By 2030, reduce the mortality rate attributed to hazardous chemicals and air, water and soil pollution and contamination. By improving the energy efficiency of buildings, less fuel use will be required, leading to reduction of air pollution in buildings and urban areas. The measures listed in the industry chapter aim at increasing resource and energy efficiency in the industrial processes, contributing to reduced respiratory diseases, decreasing the use of fossil fuels in their processes or facilitating the movement towards waste-heat recovery systems. Closing of dumpsites and modernising existing landfills directly contribute to reducing respiratory diseases through adequate waste management and avoiding waste burning. Adequate waste management also contributes to less air, soil and water 105 pollution (caused by burning or runoff). The promotion of renewable energy reduces air, water and soil pollution and contamination when replacing polluting energy sources (fossil fuels and bioenergy). TARGET 4.4: By 2030, substantially increase the number of youth and adults who have relevant skills, including technical and vocational skills, for employment, decent jobs and entre- preneurship. Some of the building and agriculture sector measures in the Climate Action Plan will improve the availability of training and certification schemes for developing vocational skills in both sectors. TARGET 6.2: By 2030, achieve access to adequate and equitable sanitation and hygiene for all. Closing of dumpsites and modernising existing landfills increase access to adequate sanitation and hygiene through efficient management of water treatment and sewage systems. The actions focusing on reduced use of fertilizers and the implementation of improved irrigation systems will also lead to reduced water contamination. TARGET 7.1: By 2030, Georgia achieves significant progress in ensuring access to affordable, reliable and modern energy services. Improved energy efficiency of buildings can decrease energy poverty through the enhanced energy accessibility. Investments in renewable energy generate modern and sustainable energy services and increase energy security by reducing the dependence on imports for energy supply. TARGET 7.2: By 2030, increase substantially the share of renewable energy in the energy system of Georgia. The relevant measures include wind and solar energy installations, and increasing the number of small and large hydroelectric power plants, which leads to increased share of renewable energy sources in the energy system. TARGET 7.3: By 2030, significantly increase the rate of improve- ment in energy efficiency. The energy efficiency improvements in the buildings and energy sectors directly affect this target. 106 TARGET 8.3: Promote development-oriented policies that sup- port productive activities, decent job creation, entrepreneur- ship, creativity and innovation. Energy efficiency of buildings can support decent job creation and entrepreneurship, and forming of small enterprises, which will be enabled through the support of improved en- ergy efficiency programs. Strengthened sustainable forest management leads to creation of decent jobs (e.g., in the field of nature conversation), which will further support the decoupling of economic growth from environmental degradation. TARGET 8.5: By 2030, implement effective state policy in order to achieve productive employment and decent work for all. The transport sector measures create decent jobs through the development of major infrastructure projects and the operation of public transport services. Further, improvements of the mobility between cities, in particular through strengthened public transport sector, can support accessibility to better economic opportunities and jobs in cities. Closing dumpsites, modernising existing landfills and formalising waste recycling activities contribute to the creation of decent jobs and formalising the jobs of persons involved in these activities (mostly lower income population). TARGET 8.9: By 2025, devise and implement policies to promote sustainable tourism that creates jobs and promotes local culture and products. Sustainable forests management supports sustainable tourism through preserving Georgia’s natural landscape. TARGET 9.4: By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource- use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities. The measures for energy efficiency in buildings may lead to modernised and improved industrial processes, increased resource efficiency, and adoption of environmentally sound technologies through more efficient industrial buildings and appliances. 107 Building new landfills as well as modernising the existing ones, leads to resource efficiency, while developing sustainable and resilient infrastructure for waste management to support economic development and human well-being. TARGET 9.5: Enhance scientific research, upgrade the techno- logical capabilities of industrial sectors in all countries, in par- ticular developing countries, including, by 2030, encouraging innovation and substantially increasing the number of research and development workers per 1 million people and public and private research and development spending. The building sector measures support research and development and upgrading of indus- trial capabilities by creating demand for new energy-efficient building methods and materials and energy-efficient technologies. Reducing non-energy emissions and adopting and developing low emission pro- cesses, as suggested the industry chapter, requires further research, supporting the upgraded technological capabilities and encouraging innovations in the sector. TARGET 11.1: Ensure safe living conditions for displaced per- sons living in Georgia. The measures for energy efficiency in build- ings effectively improve access to adequate housing and reduce energy poverty by increasing affordability. TARGET 11.2: Increase the proportion of the population that has convenient access to public transport. The relevant measures include extension of public transport services, leading to substantial increase in the use of these services. TARGET 11.6: By 2030, reduce the adverse (per capita) environ- mental impact of cities, including by paying special attention to air quality and municipal and other waste management. Clos- ing dumpsites and modernising existing landfills contribute to sustain- able urbanization and human settlements planning. Adequate waste management also reduces environmental impact of cities. Air pollution can be reduced through energy-efficient urban infrastructure solutions (public transport) – by improving air quality and reducing noise, trans- port sector measures – by the reduced fuel use and the use of cleaner 108 technologies, and renewable energy promotion – by replacing pollut- ant energy resources (fossil fuel and bioenergy). Reducing non-energy emissions and adopting and developing low emission processes in in- dustry reduces the impact of industrial activity in cities. Further, moving on to waste-heat recovery systems reduces the overall primary energy demand, which also allows towns and cities grow more sustainably. TARGET 13.2: Integrate climate change measures into national policies, strategies and planning. Actions listed in the Climate Action Plan directly contribute to the integration of climate change issues in national policies. The link between climate actions and other development areas is explicitly represented in the assessed sectoral mitigation actions. TARGET 15.1: By 2030, ensure the conservation, restoration and sustainable use of terrestrial and inland freshwater ecosystems and their services, in particular forests, wetlands, mountains and drylands. Implementation of the identified actions, i.e., sustainable forest management and afforestation, directly leads to achievement of this target. TARGET 15.2: By 2030, promote the implementation of sustain- able management of all types of forests, reduce deforestation (destruction of forests), restore degraded (damaged) forests, increase afforestation and artificial and natural regeneration of forests. Implementation of the identified actions, i.e., sustainable forest management and afforestation, directly leads to achievement of this target. TARGET 15.3: By 2030, combat desertification and restore degraded land and soil. The agriculture actions include reduced use of fertilizers and improved farming practices that may reduce land degradation. Implementation of the identified forestry measures contributes to the restoration of degraded land and soil as well as soil quality improvement. 109

ANNEX 3: Links to the Association Agreement between Georgia and the European Union An Association Agreement between the European Union and Georgia (EU-AA) was signed in June 2014 and fully entered into force in July 2016. The Association Agreement aims to provide a framework that allows for deeper political and economic integration between the EU and Georgia, including through the approximation of Georgian legislation to that of the EU. The EU-AA commits Georgia to a significant reform agenda that not only identifies a list of EU Legislation to which national legislation is to be approximated but also sets out a timetable for adoption of national legislation and fulfilment of the provisions of EU legislative acts, including directives/regulations on energy efficiency, air pollution, and renewable energy, which are also priorities for climate policy planning in Georgia. Implementation of many mitigation measures outlined in the Climate Action Plan have high synergies with fulfilling EU legislative acts under the Association Agreement. ARTICLES Article 302 of the Association Agreement, among other areas, establishes the  cooperation on nature protection including forest protection. Georgia and the EU aim to cooperate for preserving, protecting, improving and rehabilitating the quality of the environment as well as for sustainable management of natural resources, including forests. Sustainable forest management and adoption of the new Forest Code of Georgia contribute to fulfilment of requirements of Article 233 of the EU-Georgia Deep and Comprehensive Free Trade Area (DCFTA) agreement which is part of the Association Agreement. Article 314 of the Association Agreement specifies the need to facilitate the  modernisation and restructuring of the EU and Georgian industry in sectors, where appropriate; and developing and strengthening the cooperation in the mining industries, and production of raw materials, with the objective of promoting information exchange and cooperation in the area of non-energy mining, in particular metallic ores and industrial minerals. The exchange of information includes developments in mining and raw materials sector, trade in raw materials, best practices in relation to sustainable development of mining industries as well as training, skills development, health and safety. 110 Articles 332 and 333 of the Association Agreement establish the cooperation  on issues regarding agriculture and rural development. Georgia aims to harmonize its legislation regarding agriculture and rural development with that of the EU. In exchange, the EU has agreed to support Georgia in modernization and sustainable development of its agricultural production, improving competitiveness and efficiency of Georgia’s agricultural sector. DIRECTIVES Council Directive 1991/271/EEC of May 21, 1991, concerning urban wastewater  treatment, with the amendments by Directive 1998/15/EC and Regulation No. 1882/2003, refer the identification of sensitive areas and agglomerations; and the preparation of technical and investment programs for the urban wastewater collection and treatment. Council Directive 1999/31/EC of April 26, 1999, on the Landfills, with the  amendment by Regulation (EC) No. 1882/2003, includes: classification of landfill sites; preparation of a national strategy for reducing the amount of biodegradable municipal waste going to landfill; establishment of an application and permit system and of waste acceptance procedures; establishment of control and monitoring procedures in the operation phase of landfills and of closure and after-care procedures for landfills; establishment of conditioning plans for existing landfills; establishment of a costing mechanism covering setting-up and operation of a landfill; and ensuring the relevant waste is subject to treatment before landfilling. Directive 2008/50/EC of the European Parliament and of the Council of 21 May  2008 on ambient air quality and cleaner air for Europe specifies clear targets, including limit values for harmful substances concentrations in the atmospheric air, including an annual mean limit for particulate matter (PM10) in any given location of 40 μg/m3. Measurements conducted in Tbilisi in 2017 showed an av- erage annual PM10 concentration of 46 μg/m3 (WHO, 2018), however apparently in some locations it exceeds this value. 111  LINKS TO THE TRANSPORT SECTOR: It is estimated that 80% of local air pollution in Tbilisi is attributable to road transport (Karchkhadze, 2017). Several of the measures listed in Table aim at improving the efficiency of vehicles and reducing their emissions intensity, reducing the local air pollutant concentrations.  LINKS TO THE INDUSTRY SECTOR: The measures listed in the Table aim at reducing the amount of energy required in the industrial processes, thus, reducing or replacing the fossil fuels currently used in the cement industry. This will reduce the air pollutant concentrations.  LINKS TO THE ENERGY GENERATION AND TRANSMISSION SECTOR: The measures listed in Table 3 include the renewable energy development capacity that reduces air pollution when replacing polluting energy sources, such as fossil fuels. Directive 2008/98/EC of the European Parliament and of the Council of 19  November 2008 on waste supports the preparation of the following waste management plans: the establishment of a cost recovery mechanism in accordance with the polluter pays principle; the establishment of a permit system for facilities that carry out waste disposal or recovery operations, with specific obligations for the management of hazardous waste; and the introduction of a register of waste collection and transport enterprises. Directive 2009/40/EC of the European Parliament and of the Council of May  6 2009 on roadworthiness tests for motor vehicles and their trailers requires regular vehicle inspection including verification that emission control systems are functioning correctly, and monitoring of major air pollutants. This requirement is directly fulfilled by Action: Design and implement technical regulations for vehicle roadworthiness. 112 Directive 2009/28/EC of the European Parliament and of the Council of 28 April  2009 on the promotion of the use of energy from renewable sources requires that EU Member States derive at least 10% of their energy use in the transport sector from renewable energy sources, including biofuels, by 2020. The Energy Community Treaty Protocol indicates that the specific target for Georgia will be determined by a study carried out by the Energy Community Secretariat, based on a predetermined approach given in the Directive.  LINKS TO THE ENERGY GENERATION AND TRANSMISSION SECTOR: The measures for energy generation and transmission listed in Table 3 include the installation of renewable energy capacity.  LINKS TO THE TRANSPORT SECTOR: The identified measures incentivise transitioning to electric vehicles and penalise fossil fuel powered vehicles, supporting the implementation of this directive. Directive 2009/33/EC of the European Parliament and of the Council of April 23  2009 on the promotion of clean and energy-efficient road transport vehicles requires that public entities in Georgia evaluate and consider environmental impacts, emissions of CO2 and other air pollutants, and take into account lifetime costs of vehicles when purchasing them. This may lead to the reduced emission intensity of non-electrified vehicles as well as increased number of electrified transport and other low-carbon vehicles. Several identified measures restrict the imports of more polluting vehicles and promote penetration of electrified transport, making clean and energy-efficient vehicle options more available and competitive for public entities in Georgia to acquire them. Directive 2012/27/EC of the European Parliament and of the Council of October  25 2012 on energy efficiency calls for the development and implementation of an action plan for energy efficiency, as already implemented by Georgia through its 2020 National Energy Efficiency Action Plan (NEEAP). 113 Directive 2010/30/EU of the European Parliament and of the Council of May 19  2010 on the indication by labelling and standard product information of the consumption of energy and other resources by energy-related products. The Directive requires Georgia to implement a labelling and certification scheme for appliances. Directive 2010/31/EU of the European Parliament and of the Council of May 19  2010 on the energy performance of buildings requires Georgia to strengthen building-related regulations and introduce energy efficiency certification of buildings. Directive 2010/75/EU of the European Parliament and of the Council of  November 24 2010 on industrial emissions involves the possibility of preparing a transitional national plan to reduce total annual emissions from existing plants. The listed measures represent a transition plan towards lower emissions in the industry sector, in line with the Directive’s objective.

ANNEX 4: Methodology PROJECTIONS OF GHG EMISSIONS UP TO 2030 AND ESTIMATION OF SECTOR ACTIVITY AND EMISSION INTENSITY INDICATORS The projections of GHG emissions up to 2030 under a reference scenario (business-as-usual (BAU), without actions scenario) have been provided by the respective sector experts that coordinated the process for the Climate Strategy and Action Plan development in each sector. They build on the data and estimates reported in Georgia’s Second Biennial Update Report (BUR) and Georgia’s latest National Inventory Report, both published in 2019. The LEAP4 model was used as the overarching platform for collecting and calibrating the data from all individual sectors, excluding LULUCF. This model has also been used to develop the estimations and projections and assess the impact of mitigation actions in the buildings and the energy generation and transmission sectors, and to assess the impacts on the energy supply sector from the measures planned in different sectors. 4. Long-range Energy Alternatives Planning system 114 The main drivers for projecting future sector activity and emissions intensity up to 2030 are GDP and population growth rates. Additional drivers for individual sectors and key individual assumptions are outlined in the table. Wherever possible, national statistics and projections reported by GeoStat or other national entities have been used as the basis for calculations. TABLE 10: GDP, projections and assumptions of GDP, population and population growth Population, million Population growth, YEAR Real GDP, mill. GEL GDP growth, % people % (incl. tourists) 2015 22 819 3.2 3.71 0.5 2016 23 528 3.1 3.72 0.5 2017 24 636 4.7 3.75 0.5 2018 25 798 4.7 3.77 0.5 2019 26 959 4.5 3.79 0.5 2020 28 307 5.0 3.80 0.5 2021 29 864 5.5 3.83 0.5 2022 31 655 6.0 3.85 0.6 2023 33 284 5.1 3.87 0.6 2024 35 024 5.2 3.90 0.6 2025 36 906 5.4 3.92 0.6 2026 38 917 5.4 3.94 0.6 2027 41 034 5.4 3.97 0.6 2028 43 220 5.3 3.99 0.6 2029 45 538 5.4 4.02 0.6 2030 47 993 5.4 4.04 0.6 115 TABLE 11: Key assumptions by the sectors  SECTOR  ENERGY GENERATION AND TRANSMISSION The demand for electricity is the sum of electricity consumptions in the reference  KEY ASSUMPTIONS scenarios of all relevant sectors. Technical losses of electricity and the proportions of thermal and hydro energy generation have not changed in 2014-2015. Projected coke consumption values follow the demand for coke in iron and steel production given in the industry sector projections. Fugitive emissions from solid fuels follow the growth rate of lignite consumption, while for fugitive emissions from gas transmission and distribution network it is assumed that the proportion of losses remains constant from 2014-2015 whereas gas demand is equal to the sum of natural gas consumption calculated in different scenarios. Fugitive emissions from oil extraction remain almost constant up to 2030, over the whole period. Effects of mitigation measures on electricity sector load and seasonal demand on electricity are not calculated. Capacity factors assumed for different technologies are: 30% for wind, 20% for solar and 35% for hydropower. The efficiency of thermal energy generation reached 44% by 2018 and is assumed to reach 48% by 2030. ADDITIONAL  MATERIALS No additional materials available  SECTOR  TRANSPORT Light-duty vehicle ownership projections for the transport sector reference  KEY ASSUMPTIONS scenario is modelled using the methodology developed by Dargay et al. (2007), which employed a Gompertz function S-curve to model light-duty vehicle ownership for 45 countries. The model uses population density and percentage of urbanisation as independent variables to estimate the maximum traffic flow density and vehicle saturation levels of a specific country, and GDP per capita to build the vehicle ownership growth elasticity curve (the speed at which a country reaches maximum saturation). For the reference case projections, population density statistics were calculated using national (GeoStat) and United Nations Population Fund (UNFPA) statistics. Statistics of urbanisation percentage were taken from UN Urbanization Prospects (World Urbanization Prospects, 2018), and GDP per capita were calculated from World Bank (2017) data. 116 For more details see analysis conducted specifically for the purposes of the  ADDITIONAL MATERIALS Climate Strategy and Action Plan development (NewClimate, 2020).  SECTOR  BUILDINGS Main drivers are GDP growth rates, population and tourism growth rates and GDP  KEY ASSUMPTIONS per capita growth. Other significant drivers include increased gasification (assumed 75% of the buildings to be gasified by 2030), switching from biomass to gas (where gas is available), and an increase in heated areas in residential buildings. ADDITIONAL  MATERIALS No additional materials available  SECTOR  INDUSTRY Main drivers are GDP growth rates and population in conjunction with sub-  KEY ASSUMPTIONS sectoral assumptions as listed in the following: ɯ Emissions from mineral products mostly correlates with construction market development; ɯ Emissions from chemical industry depend on international market demands; ɯ Steel will be produced with electric arc furnace technology in the upcoming decade; ɯ GDP growth will increase demand on devices using f-gasses as cooling agents; Reference scenario of production of mineral, chemical and metal products takes into consideration the infrastructural capacity and construction market saturation and distribution since 2026. ADDITIONAL  MATERIALS No additional materials available  SECTOR  AGRICULTURE To estimate emissions from organic fertilizers (manure) management and enteric  KEY ASSUMPTIONS fermentation, livestock numbers are quantified based on values from the Second BUR and GeoStat growth rates for 2016-2018 for all livestock categories. For projections up to 2030 growth rates developed by FAO (2019) are applied for cattle livestock, and year-specific growth rates from the low-emission development strategy for all other livestock categories (MEPA, 2019; Georgia’s Low Emission Development Strategy Coordination Committee). Emission factors for both enteric fermentation and organic fertilizers (manure) management are taken from Georgia’s latest national GHG inventory report (2019) in line with IPCC recommendations. 117 Emissions from agricultural soils are quantified based on the values from the Second BUR and FAO for each category up to 2030. For synthetic fertilizer use, updated estimates from GeoStat (2019) are used for 2016-2018 values. Fuel consumed in the agriculture sector is based on values calculated in 2015 which grow in line with GDP growth. For more details see analysis conducted specifically for the purposes of the  ADDITIONAL MATERIALS Climate Strategy and Action Plan development (NewClimate, forthcoming in 2021)  SECTOR  WASTE CH4 from Municipal Solid waste and CH4 and N2O from wastewater systems  KEY ASSUMPTIONS sub-sectors are calculated based on the latest National GHG Inventory Report and figures from Georgia’s Second Biennial Update Report for 2014 and 2015, and using the population increase and annual flow of tourists as drivers. The calculation was performed with both, reference and mitigation scenarios. For the Solid Waste sub-sector the actual data of landfilled waste (tons) from existing sites for 2017 was used for verification. For calculation of the CH4 emissions the advanced version of the IPCC Waste Model (V5 IPCC Model Advance) was used. Separate calculations were conducted for big cities and regions using the local/regional data for waste compositions. For the wastewater system emissions (CH4 and N2O) the 2006 IPCC Guidelines were used. The CH4 emissions from domestic & commercial wastewater systems were calculated based on the actual plant-specific activity data (from Gardabani- Tbilisi and Batumi wastewater systems) allowing to calculate biological oxygen demand (BOD) country-specific coefficient. For calculation of the N2O from domestic and commercial wastewater systems the only activity data in the formula are connected to population number and protein intake per capita. The former was based on the wastewater systems’ plant-specific data for recent years, according to population growth projections. The data on protein intake per capita has been taken from the latest GHG inventory report (2015) and the projection was based on the annual growth rate from the same source, assuming that the rate will be kept invariant. For the industrial wastewater systems only CH4 is calculated. The base figures for 2014 and 2015 are taken from the latest GHG inventory report (2019) and Georgia’s second BUR. The projections since 2015 are calculated based on the GDP projected growth rate. ADDITIONAL  MATERIALS No additional materials available 118 CALIBRATION CHECK The table below compares the emissions calculated for 2015 in LEAP with the estimates reported in Georgia’s National Inventory Report for the same year. The total emissions of 2015 differ by 0.24%. The reasons for this slight mismatch can be found in rounding methods and in accounting certain emissions under different source categories. TABLE 12: Calibration Unit: GHG Inventory GHG Inventory Difference (%) Gg CO2e (NIR) –modelled (CAP) SECTOR 2015 2015  Energy 10,873 10,858 A - Fuel Combustion 8,841 8,833 1. Energy Industries 1,622 1,654 2. Processing Industries and 1,064 1,065 Construction 3. Transport 4,163 4,115 4. Other Sectors 1,992 1,998 4a. Commercial and Public 413 413 Services 4b. Residential Buildings 1,541 1,547 4c. Agriculture, Fishing and 38 38 Forestry 5. Other B - Fugitive Emissions from Fuels 2,032 2,025 1. Solid Fuels 137 136 2. Oil and Natural Gas 1,895 1,889  Industrial Processes 2,058 2,058  Agriculture 3,271 3,326  Waste 1,388 1,389 TOTAL 17,590 17,632 119 ESTIMATION OF THE GHG EMISSION REDUCTION IMPACT The estimation of the GHG emissions reduction impact from the CAP measures has been provided by the respective sector experts that led the process for the Climate Strategy and Action Plan development in each sector. For some of the sectors, additional tools have been used for the quantification of impacts. A short description of these tools is given in the following section. TOOLS AND MODELS The following gives a short description of tools and models that were used for individual sectors to project reference emissions and to quantify the impact of proposed measures, as well as for accounting total emissions and reductions from all sectors. LEAP The Long-range Energy Alternatives Planning system (LEAP) model developed by the Stockholm Environment Institute (SEI) was used as the overarching platform for collecting, processing and combining the data from all individual sectors, excluding LULUCF. This model has also been used to develop the projections and assess impact of mitigation actions in buildings and energy supply sectors. LEAP is an integrated, scenario-based modelling tool that can be used to track energy consumption, production and resource extraction in all sectors of an economy. It is a convenient tool to account for both, energy sector and non-energy sector greenhouse gas emission sources and sinks. As a bottom-up accounting model, LEAP is used for systematically analysing energy-environment interdependence, from primary energy development (extraction, production, transformation, distribution) to end-use energy consumption. Each reference and mitigation scenario used in final LEAP calculation was developed by the respective sector experts that coordinated the process for the Climate Action Plan development in each sector. Fuel consumption from other sectors was entered into LEAP, which then calculated the emissions according to the consumption and other respective factors and estimated cross-sectoral impacts on the energy supply sector. 120 PROSPECTS+ (A tool for projecting greenhouse gas emission scenarios) PROSPECTS+ was used to estimate emissions in the transport sector and to calculate the emissions reduction impact of the different transport related measures. PROSPECTS+ is a sector-level, bottom-up Excel tool developed by NewClimate Institute and the Climate Action Tracker (CAT) which uses decarbonisation relevant activity and intensity indicators to identify and project overall and sectoral GHG emissions trends. PROSPECTS+ system is driven by key indicators that shape emission trends on sectoral level for each country (e.g., emission intensity of electricity generation for the energy sector or distance travelled per passenger for the transport sector). EX-ACT The Ex-Ante Carbon-balance Tool (EX-ACT) was used to quantify emissions in the forestry sector and to estimate the emissions reduction impact of the proposed measures in both, the forestry and the agriculture sectors. EX-ACT is an appraisal system developed by the Food and Agriculture Organization of the United Nations (FAO) providing estimates of the impact of agriculture and forestry development projects, programmes and policies on the carbon-balance. The calculations are carried out with the method of so-called ‘C Stock Changes’, by observing the changes identified from comparing the carbon stocks for various periods of time. EX-ACT takes into consideration the Guidelines for National Greenhouse Gas Inventories from the IPCC (2006). In line with those guidelines, the calculations in the forestry sector include five reservoirs of carbon: above-ground biomass, below-ground biomass, litter, deadwood and soil organic carbon. EX-ACT uses geographic, climate and agro-ecological variables for processing information related to land use and agriculture methods. EX-ACT’s computation logic is based on comparing the results of planned measures with the results of a reference scenario without these measures. EX-ACT by default uses emission coefficients for first-level computations according to the IPCC methodology. For the agriculture sector national-level emission coefficients in line with Georgia’s National Inventory Report (2019) were entered. 121 IPCC Waste Model (enhanced in 2019) IPCC Waste Model calculates CH4 emissions related to waste disposal sites according to their composition. The model is based on FAO methodology (first order decay methodology), recommended by the 2006 IPCC Guidelines, and allows modelling of the parameters, climate type, waste composition in terms of energy efficiency, population and the number of municipal waste landfills.

ANNEX 5: Effects of the Major Interventions of the Strategy on Emissions Reduction by 2030 TABLE 13: Direct Impact of Climate Action Plan’s Energy Generation and Transmission Sector Measures on Emissions Reduction by 2030 Direct Impact of Major Interventions of the Strategy (2021-2023) on Emissions  Reduction by 2030 (Energy Generation and Transmission Sector) Area of intervention Direct reduction effect by 2030 Wind energy production 399 ktCO2e Solar energy production 5 ktCO2e Hydropower plants 146 ktCO2e Thermal power plants 423 ktCO2e TABLE 14: Direct Impact of Climate Action Plan’s Transport Sector Measures on Emissions Reduction by 2030 Direct Impact of Major Interventions of the Strategy (2021-2023) on Emissions  Reduction by 2030 (Transport Sector) Area of intervention Direct reduction effect by 2030 Regulations related to technical inspection 150 ktCO2e of vehicles 122 Emission quality standard for imported 265 ktCO2e (EUR4) / 370 ktCO2e (EUR5) vehicles (EUR4 / EUR5) Increase of fuel tax rate 416 ktCO2e Biodiesel production and sale 32 ktCO2e Public transport measures 141 ktCO2e Tbilisi transport policy measures 90 ktCO2e Batumi Sustainable Urban Mobility Plan 7 ktCO2e measures TABLE 15: Direct Impact of Climate Action Plan’s Buildings Sector Measures on Emissions Reduction by 2030 Direct Impact of Major Interventions of the Strategy (2021-2023) on Emissions  Reduction by 2030 (Buildings Sector) Direct and indirect reduction effects by Area of intervention 2030 48.7 GWh of electricity savings (indirect, Tax regulations and replacement of in the energy generation and transmission incandescent light bulbs sector) 1.4 GWh of electricity savings (indirect, in Energy-efficient light bulbs in public the energy generation and transmission buildings sector) Direct: 18.8 ktCO2e School buildings Indirect: 53.9 GWh of electricity savings Direct: 18.7 ktCO2e Solar water heating systems Indirect: 477 terajoule of energy savings 123 TABLE 16: Direct Impact of Climate Action Plan’s Industry Sector Measures on Emissions Reduction by 2030 Direct Impact of Major Interventions of the Strategy (2021-2023) on Emissions  Reduction by 2030 (Industry Sector) Area of intervention Direct reduction effect by 2030 Dry process of cement manufacturing 352 ktCO2e Nitric acid manufacturing 416 ktCO2e TABLE 17: Direct Impact of Climate Action Plan’s Agriculture Sector Measures on Emissions Reduction by 2030 Direct Impact of Major Interventions of the Strategy (2021-2023) on Emissions  Reduction by 2030 (Agriculture Sector) Area of intervention Direct effect by 2030 Changing the food of domestic animals 7 ktCO2e 100 ktCO2e (Not included in the full Rehabilitation of windbreaks calculation) TABLE 18: Direct Impact of Climate Action Plan’s Waste Sector Measures on Emissions Reduction by 2030 Direct Impact of Major Interventions of the Strategy (2021-2023) on Emissions  Reduction by 2030 (Waste Sector) Area of intervention Direct effect by 2030 Closing of official non-hazardous waste 70 ktCO2e landfills Closing of dumpsites 29 ktCO2e 124 Building regional non-hazardous waste 220-238 ktCO2e landfills Renovation/upgrading of Tbilisi landfill 136 ktCO2e 33 ktCO2e Kutaisi non-hazardous waste landfill (Assuming methane emissions will decrease by 59% after closing) 29 ktCO2e Batumi non-hazardous waste landfill (Assuming methane emissions will decrease by 59% after closing) Recycling of paper waste 54 ktCO2e 1 ktCO2e Recycling of biodegradable waste Total reduced emissions in 2021-2030: 9.16 ktCO2e (or 0.436 ktCH4) 12 ktCO2e Total reduced emissions in 2021-2030: 118 ktCO2e (or 5.62 ktCH4) Municipal wastewater Assuming new wastewater treatment plants are in place at 6 stations; 80% of methane is captured in Poti and Zugdidi 81-87 ktCO2e (or 3.85-4.14 ktCH4); Tbilisi wastewater Assuming 80% of the produced methane is removed (captured) 23.5-28 ktCO2e (or 1.12-1.32 ktCH4); Batumi wastewater Assuming 80% of the produced methane is removed (captured) 7.1-7.9 ktCO2e (or 0.34-0.38 ktCH4); Kobuleti wastewater Assuming 80% of the produced methane is processed 125 TABLE 19: Direct Impact of Climate Action Plan’s Forest Sector Measures on Emissions Reduction by 2030 Direct Impact of Major Interventions of the Strategy (2021-2023) on Emissions  Reduction by 2030 (Forest Sector) Area of intervention Direct reduction effect by 2030 Reforestation of degraded forests 11.5 ktCO2e Natural regeneration of degraded forest 6.9 ktCO2e Sustainable forest management plans 560 ktCO2e Forest supervision with sustainable 393 ktCO2e management Emerald Network forest fund 51.2 ktCO2e Expanding protected areas 43 ktCO2e New protected areas 213 ktCO2e

ANNEX 6: Abbreviations, Definitions, Tables and Figures ABBREVIATIONS ADB Asian Development Bank AFD French Development Agency AR Autonomous Republic BAU Business as Usual BOD Biological Oxygen Demand BUR Biennial Update Report CAP Climate Action Plan CENN Caucasus Environmental NGO Network CH4 Methane 126 CO2 Carbon dioxide CoM Covenant of Mayors COP UNFCCC Conference of the Parties CSA Climate-smart Agriculture CSAP Climate Strategy and Action Plan DANIDA Danish International Development Agency DCFTA Deep and Comprehensive Free Trade Agreement e Equivalent E5P The Eastern Europe Energy Efficiency and Environment Partnership Fund EBRD European Bank for Reconstruction and Development Etc. Et cetera EU European Union EU Twinning EU Twinning Project EU-AA Association Agreement between the European Union and Georgia EU-NIF European Union's Neighbourhood Investment Facility EX-ACT The Ex-Ante Carbon-balance Tool FAO Food and Agriculture Organization of the United Nations GCF Green Climate Fund GDP Gross Domestic Product GEF Global Environment Facility GeoStat National Statistics Office of Georgia Gg Gigagram GHGs Greenhouse Gases Deutsche Gesellschaft für Internationale Zusammenarbeit | German GIZ Society for International Cooperation GNERC Georgian National Energy and Water Supply Regulatory Commission ha Hectare ICCT International Council on Clean Transportation IEA International Energy Agency IEA International Energy Agency 127 IPCC Intergovernmental Panel on Climate Change ITMOs Internationally Transferred Mitigation Outcomes JSC Joint Stock Company KfW German credit bank for reconstruction km/h Kilometre per Hour kWh Kilowatt Hour LDVs Light-duty vehicles LEAP Long-range Energy Alternatives Planning System LEPL Legal Entity of Public Law LLC Limited Liability Company LT- LEDS Long-term Low Emission Development Strategy LULUCF Land Use, Land Use Change and Forestry MEPA Ministry of Environmental Protection and Agriculture of Georgia MESD Ministry of Environment and Sustainable Development of Georgia MIA Ministry of Internal Affairs of Georgia MICS Multiple Indicator Cluster Survey of Georgia Former MEPA, Ministry of Environment and Natural Resources Protection MoENRP of Georgia MOF Ministry of Finance of Georgia MRDI Ministry of Regional Development and Infrastructure of Georgia MW Megawatt mWAE Windbreak and Agroforestry Ecosystem N2O Nitrous Oxide NBSAP National Biodiversity Strategy and Action Plan NDC Nationally Determined Contribution NEAP-3 Third National Environmental Action Programme of Georgia 2017-2021 NECP Integrated National Energy and Climate Plan NEEAP National Energy Efficiency Action Plan 128 NEFCO Nordic Environment Finance Corporation NEHAP-2 National Environment and Health Action Plan of Georgia 2018-2022 NIR National Greenhouse Gas Inventory Report NNLE Non-entrepreneurial (Non-commercial) Legal Entity NREAP National Renewable Energy Action Plan PROSPECTS+ A tool for analysis and modelling of greenhouse gas emissions scenario PTI Periodical Technical Inspection SDG Sustainable Development Goal SEAP Sustainable Energy Action Plan SECAP Sustainable Energy and Climate Action Plan SEI Stockholm Environment Institute SIDA Swedish International Development Cooperation Agency SUMP Sustainable Urban Mobility Plan UN United Nations UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFCCC United Nations Framework Convention on Climate Change UNFPA United Nations Population Fund USAID United States Agency for International Development v-km Vehicle-kilometre WB World Bank 129 KEY DEFINITIONS5 CO2 Equivalent (CO2e) - conversion of other greenhouse gases to CO2 equivalent, calculated based on global warming potentials of the GHGs. Anthropogenic Impact on Climate - since the industrial revolution, human activity has released unprecedented amounts of greenhouse gases into the atmosphere, increasing their concentration and enhancing the ‘greenhouse effect’. Consequently, the temperature also rises. Human-induced warming has already reached 1°C compared to the pre-industrial level. See also: Greenhouse Gases and Emissions. Anthropogenic emissions - in the context of climate change, emissions mean the release of greenhouse gases, precursors of GHGs and aerosols into the atmosphere in a certain area and over a specific period of time. Emissions are caused by human activities, like burning of fossil fuels, deforestation, land use, industrial livestock production, waste management, industrial processes, etc. See also: Greenhouse Gases. Biofuel - a liquid or gas fuel produced from biomass, mostly used in transport. United Nations Framework Convention on Climate Change (UNFCCC) – international treaty adopted in 1992. The Convention’s objective is stabilisation of greenhouse gas concentrations in the atmosphere at a level that would prevent dangerous anthropogenic interference with the climate system. Such a level should be achieved within a time- frame sufficient to allow ecosystems to adapt naturally to climate change, to ensure that food production is not threatened, and to enable economic development to proceed in a sustainable manner. The supreme body of the Convention is the Conference of the Parties (COP), which regularly reviews the implementation of the Convention and any legal document relating to the Convention that may be adopted by the COP. See also: Non-Annex I Country. Afforestation - planting of new forests on lands that historically have not contained forests. Deforestation - destruction, clear-cutting of forest, clearing of soil that is then used for different purposes. In short, conversion of forest area to non-forest area. 5. The definitions are adopted from the Glossary of the IPCC Special Report on Global Warming of 1.5°C, IPCC 2006 methodology, ‘Short Glossary of Climate Change Related Terminology’ of the Institute of Hydrometeorology of the Georgian National Academy of Sciences, relevant legislation. 130 Global Warming Potential (GWP) – a measure of impact of a particular greenhouse gas in causing greenhouse effect. Reference value for GWP measurement is Carbon dioxide GWP for a 100 year period. According to the IPCC Fifth Assessment Report from 2014, for other gases it varies in a very broad range and amounts to, for example, 21 for methane, 310 for nitrous oxide. For HFC group hydro fluorocarbons GWP varies from 140 to 11,700; while for sulphur hexafluoride (SF6) it reaches 23,900. Non-Annex I Country - United Nations Framework Convention on Climate Change divides countries into three categories: Annex I countries, Non-Annex I countries and Annex II countries. The first category includes developed/industrialized countries, second category - developing/non-industrial countries, and the third category includes developed countries, which provide support to developing countries particularly vulnerable to climate change, to cover the costs for adapting to adverse effects of climate change. See also: United Nations Framework Convention on Climate Change. Decarbonisation - the process by which countries, individuals or companies aim to achieve zero emissions from fossil fuels. The term is generally used in the context of reducing greenhouse gas emissions related to electricity, transport and industry. Zero emission refers to the balance of emissions and sinks, equalling zero. Electric vehicle (EV) - a mechanical, motorized vehicle powered not by an internal combustion engine but fully or mostly by an electric engine. Emission scenario - a representation of the future development of emissions based on a consistent and logical assumptions and expectations. See also: Mitigation scenario. Alternative Energy - energy from non-fossil fuel sources (e.g. solar, water and wind energy). Utilization of alternative energy sources is widely considered to be one of the most promising ways for reducing greenhouse gas and aerosol emissions into the atmosphere. Energy Efficiency - the ratio of performed work, a provided service, product and/or energy, to the energy consumed. Energy Efficient Technologies - technologies that provide significant reductions in fossil fuel or electricity consumption to achieve a target level of energy consumption, or economic efficiency. The technical potential of energy efficient technologies is unquestionable, however their economic potential varies and depends on market resistance. 131 Climate Smart Agriculture - an approach that supports transforming and reorienting agricultural activities and systems to ensure food security and supply in a changing climate. Climate Smart Agriculture aims to tackle three main objectives: sustainably increasing agricultural productivity and incomes; building resilience to climate change; and reducing greenhouse gas emissions from the sector, where possible, including through their absorption. Adaptation - the process of adjustment to new or changing environment in natural and human systems. Adaptation to climate change involves the response of a natural or anthropogenic system to actual or expected climate change in order to moderate harm or exploit beneficial opportunities. There are several types of adaptation, including adaptation in expected climate change and responding to actual climate change. Climate mitigation/Greenhouse Gases reduction - a human intervention to reduce emissions or enhance the sinks of greenhouse gases. Words ‘Action’, ‘Intervention’, ‘Measure’ and ‘Activity’ are used as synonyms in the context of climate change mitigation. Climate neutrality – anthropogenic emissions of greenhouse gases are balanced by their sinks over a period of time and the balance of greenhouse gas emissions comes to zero. The IPCC defines climate neutrality as ‘Concept of a state in which human activities result in no net effect on the climate system’. Climate System - the combination of and interaction between the atmosphere, the hydrosphere, the biosphere and the geosphere. Climate Change – greenhouse gas emissions and, consequently, the increase of greenhouse gas concentrations in the atmosphere, which blocks the reflection of heat from the Earth’s surface and thus enhances the ‘greenhouse effect’. UNFCCC Article 1 (2) defines climate change as: ‘a change of climate which is attributed directly or indirectly to human activity that alters the composition of the global atmosphere and which is in addition to natural climate variability observed over comparable time periods’. Composting - a biochemical process in which solid organic waste is transformed into a humus-like product. The material obtained from composting is used as soil fertilizer. Sustainable Development - a system of society’s development that ensures human well-being, enhancement of life quality and the right of future generations to use natural resources and the environment that are protected from reversible quantitative and qualitative changes, considering the interests of society’s economic development and environmental protection. 132 Sink – a reservoir (natural or human, in soil, ocean, and plants) where a greenhouse gas, an aerosol or a precursor of a greenhouse gas is stored. Note that UNFCCC Article 1.8 refers to a sink as any process, activity or mechanism which removes a greenhouse gas, an aerosol or a precursor of a greenhouse gas from the atmosphere. In the Earth’s surface, the major sink of the key greenhouse gas - carbon dioxide - is the vegetation cover, which absorbs CO2 from the atmosphere through photosynthesis and converts it into carbohydrates, releasing oxygen (O2). Waste – any substance or object that the holder discards, intends to discard or is obliged to discard. Household waste – waste generated by households. Landfill – a waste disposal facility where waste is placed on or under the ground. A landfill includes an internal waste disposal facility (a waste landfill where a waste producer disposes its own waste at the place of production), but it does not include a temporary storage facility and a waste transfer station. Waste Management – collection, temporary storage, pre-treatment, transportation, recovery and disposal of waste, and the supervision of such activities, measures, operations and the later maintenance of waste disposal facilities. Waste Management Hierarchy - prevention; preparation for re-use; recycling; other recovery, including energy recovery; disposal. Enteric fermentation - one of the main components of the digestive process, which, in the case of ruminant animals, results in methane emissions. In countries where livestock farming plays an important role in the economy, the methane emissions from this process make significant contributions to global warming. Soil Degradation - unfavourable physical, biological or chemical process, resulting in the soil losing its organic matter - humus, leading towards decrease of soil fertility with 55-65% and thus reducing its economic value. Paris Agreement - a global agreement (international treaty) under the United Nations Framework Convention on Climate Change adopted on December 12, 2015. Goals of the Paris Agreement are: 1) to keep the increase in the global average temperature to well below 2°C above pre-industrial levels and to limit the temperature increase to 1.5°C above pre-industrial levels; 2) to increase the ability to deal with the adverse impacts of climate change and to support climate resilient and low-emission development; 3) to make finance flows consistent with a low GHG emissions and climate-resilient pathway. 133 Pre-industrial level - in developed countries or in general, the period prior to the onset of largescale industrial activity. This is not specified in either the Paris Agreement text or the COP decision, however, the IPCC uses the reference period 1850–1900, as this is the earliest period for which data on (almost) global temperature dynamics are available. Baseline Scenario/Reference Scenario/Without Measures Scenario/Business As Usual - depicting the development of emissions based on assumptions without planned and implemented policies to reduce emissions and mitigate climate change. The baseline scenarios are developed to demonstrate the emission development paths that would occur without planned measures. Greenhouse Gases - those gaseous constituents of the atmosphere, both natural and anthropogenic, that absorb and emit infra-red radiation. The main greenhouse gases regulated by the international climate change regime are: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydro chlorofluorocarbons (HFCs, PFCs), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). Greenhouse Gas Inventory - calculation and accounting of greenhouse gases according to the methodology adopted by the IPCC, by years and sectors, including source-categories of sectors. Industrial Processes – according to the methodology adopted by the IPCC and in the context of Georgia, industrial processes include: Mineral Industry (2A), Chemical Industry (2B), Metal Industry (2C), Non-Energy Products from Fuels & Solvent Use (2D); Product Uses as Substitutes for Ozone Depleting Substances (2F); Other Product Manufacture and Use (2G); Other industrial processes such as paper production, food and beverage production (2H). Sequestration - a process aimed at increasing the carbon content in carbon reservoirs other than the atmosphere. Forest - the area inside a forest contour covered with forest forming species and other area which is an integral part of the forest ecosystem. Tree-dominated vegetation. Forest Management - planning and implementation of measures for using the useful properties of forest and forest resources, as well as for the protection, tending, reforestation and afforestation of forests; 134 Sustainable Forest Management - the management and use of forest in a manner and extent so as to maintain forest biodiversity, productivity, regeneration capacity, vitality and potential, such that the environmental, social and economic functions of forests are performed at local, national and global levels both at present and in the future, and whereby other ecosystems are not damaged; Chemical Industry - according to the methodology established by the IPCC and in the context of Georgia, chemical industry refers to the source-categories of ammonia and nitrous oxide production and relevant emissions from these categories. Mitigation scenario – a representation of the future development of emissions under climate change mitigation policies and planned mitigation measures based on consistent and logical assumptions and expectations. Fossil fuel - carbon-based fuels from fossil deposits, including coal, oil, and natural gas. Wastewater system/Sewerage system - a technological process that provides collection of wastewater discharged by users, carrying it and delivering to a treatment plant. Sewage system is an infrastructure facility designed for wastewater passage and treatment. E.g., Treatment Plant. Source - any process or type of activity that results in the release of greenhouse gases, aerosols, or precursors of greenhouse gases into the atmosphere. Reforestation - Planting/recreating of forests on deforested lands that historically contained forests. 135 FIGURES AND TABLES FIGURE 1: Transport sector GHG emissions breakdown in 2015 (PROSPECTS+, MEPA, 2019)................................................................................................................................. 12 FIGURE 2: Transport sector GHG emissions projections to 2030 (modelling conducted by sector experts and later integrated in LEAP model; see Annex 4 for further details and information on methodologies) (MEPA, 2019).................................................................... 13 FIGURE 3: Energy generation and transmission sector GHG emissions breakdown for 2015 (MEPA, 2019)..................................................................................................................... 15 FIGURE 4: Energy generation and transmission sector GHG emissions projections to 2030 (projections conducted using LEAP model), (MEPA, 2019)................................................. 16 FIGURE 5: Buildings sector GHG emissions breakdown for 2015 (MEPA, 2019)................. 17 FIGURE 6: Building sector GHG emissions projection to 2030 (modelling conducted using LEAP), (MEPA, 2019).......................................................................................................... 18 FIGURE 7: Industry sector GHG emissions breakdown for 2015 (MEPA, 2019). ................. 20 FIGURE 8: Industry sector GHG emissions projections to 2030 (conducted by sector experts and later integrated in LEAP, see Annex 4 for further details on methodologies) (MEPA, 2019)................................................................................................................................. 21 FIGURE 9: Agriculture sector GHG emissions breakdown for 2015 (MEPA, 2019).............. 23 FIGURE 10: Agriculture sector GHG emissions projections to 2030 (modelling conducted by sector experts and later integrated in LEAP model. See Annex 4 for further details on methodologies), (MEPA, 2019)........................................................................................... 24 FIGURE 11: Waste management sector GHG emissions breakdown for 2015 (MEPA, 2019) .......................................................................................................................................... 26 FIGURE 12: Waste sector GHG emissions projections to 2030 (modelling conducted by sector experts and later integrated in LEAP model, see Annex 4 for further details on methodologies), (MEPA, 2019)........................................................................................... 27 FIGURE 13: Forestry sector GHG emissions and removals breakdown for 2015 (MEPA, 2019)................................................................................................................................. 29 136 FIGURE 14: Forestry sector GHG removals and emissions up to 2030 (modelling conducted using EX-ACT).................................................................................................................... 30 FIGURE 15: GHG emissions trajectory in all the major sectors of the Georgian economy (2015-2030). Note that some assumptions have been made when calculating the measures. See Annex 4 for additional information on projection methodologies. The figure compiles emissions from all the major sectors of the economy, excluding carbon sinks from LULUCF .......................................................................................................................................... 35 FIGURE 16: Updated NDC Targets, submitted to the UNFCCC Seceretariat (2021)............ 36 FIGURE 17: Energy generation and transmission sector GHG emissions reduction to 2030 under different scenarios................................................................................................... 42 FIGURE 18: Transport sector GHG emissions reduction to 2030 under different scenarios .......................................................................................................................................... 47 FIGURE 19: Buildings sector GHG emissions reduction to 2030 with implementation of CAP .......................................................................................................................................... 52 FIGURE 20: Industry sector GHG emissions reduction to 2030 with implementation of CAP .......................................................................................................................................... 56 FIGURE 21: Agriculture sector GHG emissions reduction to 2030 with CAP measures....... 59 FIGURE 22: Waste management sector GHG emissions reduction to 2030 with CAP measures........................................................................................................................... 62 FIGURE 23: Forestry sector GHG emissions reduction to 2030 with CAP measure............. 66 FIGURE 24: Composition of the Climate Change Council of Georgia (approved with Decree #54 of Government of Georgia, from January 15, 2020, On Establishing the Climate Change Council of Georgia)............................................................................................................ 86 FIGURE 25: Links between climate and energy action plans and strategies...................... 89 FIGURE 26: Visualisation of the climate and energy actions planning process cycle......... 91 137 TABLE 1: Emission reduction targets and trajectories in the energy generation and transmission sector............................................................................................................ 41 TABLE 2: Emission reduction targets and trajectories in the transport sector. .................. 47 TABLE 3: Emission reduction targets and trajectories in the buildings sector.................... 52 TABLE 4: Emission reduction targets and trajectories in the industry sector, reference and target reduction scenarios................................................................................................. 55 TABLE 5: Emission reduction targets and trajectories the agriculture sector, reference and target reduction scenarios................................................................................................. 58 TABLE 6: Emission reduction targets and trajectories in the waste management sector, reference and target reduction scenarios.......................................................................... 62 TABLE 7: Emission reduction targets and trajectories in the forestry sector...................... 65 TABLE 8: List of major international donors financing climate change mitigation related activities in Georgia since 2009......................................................................................... 93 TABLE 9: Calendar of monitoring and evaluation actions and institutions responsible...... 95 TABLE 10: GDP, projections and assumptions of GDP, population and population growth ........................................................................................................................................ 115 TABLE 11: Key assumptions by the sectors...................................................................... 116 TABLE 12: Calibration....................................................................................................... 119 TABLE 13: Direct Impact of Climate Action Plan’s Energy Generation and Transmission Sector Measures on Emissions Reduction by 2030.......................................................... 122 TABLE 14: Direct Impact of Climate Action Plan’s Transport Sector Measures on Emissions Reduction by 2030........................................................................................................... 122 TABLE 15: Direct Impact of Climate Action Plan’s Buildings Sector Measures on Emissions Reduction by 2030........................................................................................................... 123 138 TABLE 16: Direct Impact of Climate Action Plan’s Industry Sector Measures on Emissions Reduction by 2030........................................................................................................... 124 TABLE 17: Direct Impact of Climate Action Plan’s Agriculture Sector Measures on Emissions Reduction by 2030........................................................................................................... 124 TABLE 18: Direct Impact of Climate Action Plan’s Waste Sector Measures on Emissions Reduction by 2030........................................................................................................... 124 TABLE 19: Direct Impact of Climate Action Plan’s Forest Sector Measures on Emissions Reduction by 2030........................................................................................................... 126 139 9 REFERENCES CENN (2016). 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GHGs National In- ventory Report of Georgia 2010-2013. Retrieved from: https://unfccc.int/files/national_re- ports/non-annex_i_parties/biennial_update_reports/application/pdf/ghg_national_invento- ry_report___georgia.pdf Gönner, C., Weigel, O., Kodiashvili, A., Kolbin, G., & Muzafarova, A. (2019). Approach for “Rehabilitation of Windbreaks in East Georgia.” (September) European Commission (2018). Reducing CO2 emissions from passenger cars. Retrieved from: https://ec.europa.eu/clima/policies/transport/vehicles/cars_en European Commission (2020). Association Implementation Report on Georgia. Retrieved from: https://www.europarl.europa.eu/doceo/document/A-9-2020-0136_EN.pdf 140 IEA (2019). World Energy Outlook. Retrieved from: https://doi.org/10.1049/ep.1977.0180 TBC Capital (2019). Energy Sector Overview. Retrieved from: https://georgien.ahk.de/file- admin/AHK_Georgien/Publikationen/energy_sector_overview_2019_0.pdf REC Caucasus (2020) “What does the Georgian population think about climate change?” Retrieved from: https://www.ge.undp.org/content/georgia/ka/home/library/environment_en- ergy/eu4climate-climate-change-survey.html Intergovernmental Panel on Climate Change (2018). Special Report on Global Warming of 1.5°C. Retrieved from: https://www.ipcc.ch/sr15/ United Nations Framework Convention on Climate Change (2016). Paris Agreement. Government of Georgia (2020) Government Program 2021-2024 - Toward Building a European State. Retrieved from: http://gov.ge/files/68_78117_645287_govprogramme2021-2024.pdf Government of Georgia (2020 (a)) Decree #54 of the Government of Georgia on Establishment of the Climate Change Council. Retrieved from: https://www.matsne.gov.ge/ document/view/4780380?publication=0 Government of Georgia (2019). Nationalization of the SDGs . Retrieved from: https://www. matsne.gov.ge/document/view/4732470?publication=0 Government of Georgia (2016 წ. (b)). National Waste Management Strategy for 2016-2030. Retrieved from: https://mepa.gov.ge/Ge/PublicInformation/20 Parliament of Georgia (2020). Forest Code of Georgia. Retrieved from: https://www.matsne. gov.ge/document/view/16228?publication=30 Parliament of Georgia (2019). On the 2020 State Budget of Georgia. Retrieved from: https:// matsne.gov.ge/document/view/4734727?publication=0 141 GeoStat (2019). Energy Balance of Georgia 2018. Retrieved from: https://www.geostat.ge/ media/28553/ENERGY-BALANCE-of-GEORGIA_2018.pdf GeoStat (2019) Natural Resources of Georgia and Environmental Protection - Statistical Publication. Tbilisi GeoStat (2018). Gross Output, at current prices. Retrieved from: https://www.geostat.ge/en/ modules/categories/624/system-of-national-accounts-1993-sna-1993 GeoStat (2016). National Statistics Office of Georgia: Household expenditures. 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Tbilisi. 142 2021-2023 Action Plan of Georgia’s 2030 Climate Strategy Action Plan is prepared in accordance with the Government of Georgia Ordinance No 629, 20 December 2019, on the “Approval of Planning, Monitoring and Evaluation of Policy Documents.” Historical and Baseline indicators of the impact values are taken from 1990-2015 Georgia’s National GHG Inventory. “Reference Scenario Projection” is calculated in different models, and the results are aggregated in the LEAP model. It refers to the indicator’s expected index in case the intervention is not implemented, and it is compared with the desired “Final Target Value” of the indicator. The “Baseline” of output indicator of the objective refers to the latest existing and available data, and it is compared to intermediate and final target indexes of the output indicator of the objective. For more information on assumptions and methodologies, see Appendix IV of Georgia’s 2030 Climate Change Strategy. Although many activities in the Climate Action Plan are carried out by the private sector, they are implemented with the high involvement of the public sector, particularly the efforts of the public servants. In the budget part, only the approximate amount of direct, additional costs is included. Consequently, the budget does not indicate indirect costs, including time allocated by the public servants. Due to the specifications of climate change mitigation measures, in some cases, private sector investments are indicated, although these amounts are not included in the total budget of the Climate Change Strategy and Action Plan. Vision Reduce the domestic GHG emissions to 35% below 1990 levels in 2030 (as per 2021 Updated NDC) Goal 1 Reduce the GHG emissions to 15% in the energy generation and transmission sector compared to reference scenario projection Link to SDGs SDGs 1, 2, 3, 7, 9, 11 Impact indicator 1.1: Amount of GHG emissions from energy generation and Historical Baseline Medium-term Mediu Reference Final target Sources of verification transmission sector (ktCO2e) target m-term scenario target projection Year 1990 2015 2024 2028 2030 2030 2030 National GHG Inventory Value 19,855 3,654 4,425 5,212 6,691 5,687 (-15%) Impact indicator 1.2: Proportion of the population that predominantly uses Sources of verification clean energy sources and technologies Year 2018 2022 2026 2028 2030 Multiple Indicator Cluster Survey (MICS) of Georgia Value 92,1% 93% 96% 97% 98% Objective 1.1 Renewable energy (wind, solar, hydro, biomass) generation support Outcome indicator of the Share of renewable energy in Georgia’s electricity Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 1.1.1: generation term target -term target term target target Year 2018 2022 2024 2026 2028 2030 Ten-year network development plan of Georgia Value 78% 72% 76% 82% 85% 87% Risk Delay/cancellation of works by construction companies/investors due to population protests; Delays in conducting research required for projects due to the pandemic (including mobilization of a group of foreign experts) Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organization 1.1.1. Technical and Until 2024 includes the Support implementation Until 2024, 9 Annual report Ministry of Economy and JSC “Georgian Energy 2023 Q4 2,178,000,000.0 GEL 2,178,000,000.0 Imereti WPP procedural support for wind following WP plants: of Directive 2009/28/EC Wind Power of the Ministry Sustainable Development Development Fund” GEL – ltd power (WP) generation Imereti -104 MW of the Association Plants (WPP) of Economy “Usasrulo Rikoti-Phona - 20 MW Agreement; are constructed. and Sustainable Companies running the power (Investment) Energia”; Tbilisi - 54 MW SDG 3 (Good Health and Development plants that will implement this Rikoti-Phona Dirbula - 21 მგვტ Well-Being); SDG 7 (MESD) action WPP – ltd Ruisi - 12.6 MW (Affordable and Clean “Taba”; Samgori - 8 MW Energy); Energy Balance Tbilisi WPP – Zestaponi - 50 MW SDG 11 (Sustainable Cities of Georgia JSC Nigoza - 50 MW1 and Communities) “Caucasian Kaspi - 54 MW Wind Company”; Kaspi WPP – “Caucasian Wind Company”; Samgori WPP – ltd “Vento”; Zestaponi WPP – lts “Zestaponi Wind Power Plant”; 1 Environmental decision on Nigoza WPP isn’t made so far (Status: 24.02.2021) Nigoza WPP – JSC “Chalik Georgia Wind”; Ruisi WPP – ltd “Ruisi Wind Power Plant”; Dirbula WPP – ltd “Sinte”. 1.1.2. Technical and Until 2024 includes the Support implementation Until 2024, 7 Annual report Ministry of Economy and JSC “Georgian Energy 2023 Q4 209,880,000.0 GEL 209,880,000.0 Udabno SPP procedural support for solar following SP plants: of Directive 2009/28/EC; Solar Power of the Ministry Sustainable Development Development Fund” GEL ltd “Georgia power (SP) generation Udabno -5 MW SDG 3 (Good Health and Plants (SPP) are of Economy solar Unspeified solar plant-1 Well-Being); SDG 7 constructed. and Sustainable Companies running the SP company”; MW (Affordable and Clean Development power plants that will (Investment) Gardabani Plavi - 7 MW Energy); implement this action SPP– EBRD; Gardabani - 50 MW SDG 11 (Sustainable Cities Energy Balance Marneuli SPP (EBRD) and Communities) of Georgia – ltd “New Marneuli - 20 MW Generation”; Geosolar - 9 MW Sagarejo SPP Sagarejo - 25 MW – JSC “Georgian Energy Development Fund.” 1.1.3. Technical and Until 2024 includes the Support implementation Until 2024. 10 Annual report Ministry of Economy and JSC “Georgian Energy 2023 Q4 1,980,000,000.0 GEL 1,980,000,000.0 Kirnati HPP – procedural support for hydro following HP plants of Directive 2009/28/EC; Hydro Power of the Ministry Sustainable Development Development Fund” GEL lts “Adjara power (HP) generation (more than 13 MW SDG 3 (Good Health and Plants (HPP) are of Economy Energy 2007”; capacity): Well-Being); SDG 7 constructed. and Sustainable Companies running the power Khobi HPP – Kirnati - 51.25 MW (Affordable and Clean Development plants that will implement this (Investment) ltd “Kartli Khobi - 46.7 MW Energy); action Investment Mtkvari - 53 MW SDG 11 (Sustainable Cities Energy Balance Group Mestiachala 1 - 20 MW and Communities) of Georgia Energy“; Stori 1 - 20.03 MW Mtkvari HPP Samkuritskali 2 -26.28 – ltd “Mtkvari MW HPP”; Metekhi 1 - 36.73 MW Mestiachala 1 Ghebi - 14.34 MW HPP – JSC Chiora - 14.15 MW “Svaneti Zoti - 44.31 MW Hydro”; Stori 1 HPP – ltd “Gota 21”; Samkuristskal i 2 HPP – ltd “Peri”; Metekhi 1 HPP – ltd “Phazisi Energy and Yenigun”; Chiora HPP – ltd “Chiora HPP”; Zoti HPP Cascade – JSC “Georgian Renewable Energy Company.” Objective 1.2 Improvement of average efficiency of thermal power plants Outcome indicator of the Indicator of electricity generation efficiency in thermal Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 1.2.1: electricity plants term target -term target term target target 2 Year 2018 2022 2024 2026 2028 2030 National Statistics Office of Georgia (Georgian Energy Balance) Value 44% 45% 48% 48% 49% More than 50% Risk Lack of financial resources Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 1.2.1. implementation of There will be works done SDG 3 (Good Health and By 2024 one Annual report Ministry of Economy and JSC “Georgian Oil and Gas 2023 Q4 531,200,000.0 GEL 332,000,000.0 Oil and Gas 199,200,000.0 GEL technical work of thermal on every existing thermal Well-Being); SDG 7 combined-cycle of JSC Sustainable Development Corporation” Corporatio power plants power plants for (Affordable and Clean gas thermal “Georgian Oil n improvement of the Energy); power plant is and Gas average efficiency. In SDG 11 (Sustainable Cities constructed. Corporation” addition, new combined- and Communities). cycle thermal plants will Energy Balance be equipped with new of Georgia technologies to improve their energy efficiency. By 2023 Gardabani 3 – combined-cycle gas thermal power plant will be constructed. Objective 1.3. Strengthen the capacities of renewable energy integration in the transmission network of Georgia Outcome indicator of the Share of renewable energy (wind and solar power Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 1.3.1. plants) in Georgian energy systems installed capacity term target -term target term target target Year 2019 2022 2024 2026 2028 2030 Ten-year network development plan of Georgia Value 0.5% 0.6% 7.1% 12.2% 10.6% 18.2% Risk Delay/cancellation of works by construction companies/investors due to population protests; Delays in conducting research required for projects due to the pandemic (including mobilization of a group of foreign experts) Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 3 1.3.1. Implementation of Reinforcement of SDG 3 (Good Health and Until 2024, Annual report Ministry of Economy and JSC “Georgian State 2023 Q4 771,804,000.0 GEL 109,692, 24 14 662,112,000.0 GEL EBRD, WB, Ten-year network national transmission Well-Being); SDG 7 approximately of the Ministry Sustainable Development Electosystem” 000.0 KFW, EU- development plan of Georgia system infrastructure, (Affordable and Clean 1659 MW of Economy GEL (loan, grant) NIF for electricity distribution addressing the existing Energy); electrical and Sustainable companies problems, responding to SDG 11 (Sustainable Cities substation will Development the future challenges, and and Communities). be constructed implementing the and/or Ten-year opportunities, including renovated; network the integration of development renewable energy sources Approximately plan of Georgia into the network. 490 km long transmission lines will be constructed and/or renovated; Wind and solar power plants with in total 435 MW installed capacities will be integrated. Objective 1.4. Development of new policy documents and legislation in the energy sector Outcome indicator of the Number of initiated new policy documents, laws, and Baseline Medium- Medium Medium- Medium-term Final target Sources of verification objective 1.4.1. secondary legislature elaborated in the energy sector, term target -term term target target discussed and agreed with relevant stakeholders. target Year 2020 2022 2024 2026 2028 2030 Annual report of the Ministry of Economy and Sustainable Development Value 7 9 12 20 26 More than 30 Risk Lack of human resources, non-approval of the documents in time due to political or other external factors Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 1.4.1. Development of a long- Support implementation The strategic Annual report Ministry of Economy and 2023 Q4 198,000.0 GEL 198,000.0 GEL EU, Development of a long-term term (2030) of Directive 2009/28/EC document, of the Ministry Sustainable Development Governmen comprehensive multisectoral comprehensive state discussed and of Economy (grant) t of strategy document for energy policy strategic agreed with and Sustainable Sweden, Georgia’s energy policy document, which will stakeholders, is Development UNDP later become the basis for elaborated and the development of short, approved. medium, and long-term strategies with a particular emphasis on the utilization of Georgia’s renewable energy resources. Goal 2 Reduce of GHG emissions to 15% in transport sector compared to reference scenario projection Link to SDGs SDGs 3, 8, 11 Impact indicator 2.1: Amount of GHG emissions from the transport Historical Baseline Medium-term Mediu Reference Final target Sources of verification sector(GgCO2e) target m-term scenario target projection Year 1990 2015 2024 2028 2030 2030 2030 National GHG Inventory Value 3,823 4,139 4,563 5,257 7,110 < 6,044 (- 15%) Objective 2.1 Increase the share of low and zero emissions and road-worthy private vehicles in the vehicle fleet 4 Outcome indicator of the Share of electric vehicles in Georgia’s registered Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 2.1.1: vehicles fleet term target -term target term target target Year 2019 2022 2024 2026 2028 2030 Registered vehicle fleet database of the Ministry of Internal Affairs Value 0.14% 0.5% 1% 2% 3% 5% Outcome indicator of the Share of hybrid cars in Georgia’s registered vehicles Baseline Medium- Medium Medium-term Medium- Final Goal Sources of verification objective 2.1.2: fleet term target -term target term target target Year 2019 2022 2024 2026 2028 2030 Registered vehicle fleet database of the Ministry of Internal Affairs Value 4.91% 5.5% 6.7% 9.8% 15% 20% Outcome indicator of the Percentage of vehicles failing first technical inspection Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 2.1.3: term target -term target term target target Year 2019 2022 2024 2026 2028 2030 Periodic Technical Inspection (PTI) data base Value 55% 54% 50% 45% 40% 30% Risk Failure of implementing incentive measures for electric vehicles due to the reduced state financial resources caused by a pandemic; Failure of developing affordable and high-coverage second-hand electric vehicle market; Due to the reduced income of the public, reduction of the costs for technical maintenance of the cars/purchase of the new car. Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 2.1.1. Implementing Implementation of legal Support implementation At least one Secondary legal Ministry of Economy and Ministry of Internal Affairs 2023 Q2 Administrative costs changes in existing and administrative of Directive 2009/28/EC; legal/secondary act published Sustainable Development regulation related to the measures for reducing the SDG 3 (Health and well- legal act for on the website Periodic Technical Inspection technical inspection of tendency of bypassing the being). reducing of Legislative (PTI) centers vehicles. technical inspection. bypassing the Herald of technical Georgia inspection is “Matsne” ltd “Georgian Accreditation approved. Center” 5 2.1.2. More efficient Take legislative and/or Support implementation By 2024 Annual report Ministry of Internal Ministry of Economy and 2023 Q1 120,000.0 GEL 120,000. 30 08 execution of fines foreseen administrative measures of directive 2009/28/EC; additional 150 of the Ministry Affairs Sustainable Development 0 GEL under the Administrative to reduce the tendency of SDG 3 (Health and well- video cameras of Internal Offences Code of Georgia in bypassing the technical being). equipped with a Affairs terms of technical inspection inspection, as well as technical of the vehicles. install video cameras on inspection Secondary legal the main highways, undergo act published urban and rural roads for function have on the website the control of the been purchased of Legislative vehicles that haven’t and are in Herald of passed the technical operation; Georgia inspection. It is planned “Matsne” to purchase a total of 150 Relevant video cameras, which will normative act enable technical and/or inspection and control of administrative the vehicles that haven’t measure is passed the technical adopted that inspection. The activity imposes fine for serves to increase the vehicle that referrals for technical hasn’t passed the inspections, remove the technical least efficient vehicles inspection at from the roads/ market, least 4 times a and renew the fleet, month. which will increase its average efficiency. 2.1.3. Control of the exhaust Activity envisages the Support implementation By 2024 3 field Annual report Ministry of Internal Ministry of Environmental 2023 Q4 498,000.0 GEL 498,000.0 GEL fumes from the vehicles on establishment and of directive 2009/28/EC; measuring of the Ministry Affairs Protection and Agriculture the roads. implementation of the SDG 3 (Health and well- devices are of Internal technical mechanism for being). purchased and Affairs Ministry of Economy and controlling vehicle used by the Sustainable Development exhaust fumes on the Ministry of Annual report street in real-time. Internal Affairs of the Ministry LEPL “Land Transport Agency” and the Ministry of of Environmental Environmental Protection and The State Sub-Agency Protection and Agriculture Department of Environmental Agriculture in Supervision the streets of big cities, which automatically, in real-time, measures the level of exhaust fumes from vehicles and identifies the disturbing vehicle. 2.1.4. For the promotion of Conduct cost-benefit Support implementation A research The research Ministry of Finance Ministry of Economy and 2023 Q3 Administrative costs electric vehicles, analysis to identify how of directive 2009/28/EC; report on the report on cost- Sustainable Development identification of optimal tax imposing additional tax SDG 3 (Health and well- cost- effectiveness. incentive alternatives based incentives (except for being). effectiveness of LEPL “Service Agency” on the cost-benefit analysis. excise tax) for electric new tax vehicles will increase the incentive entry rate of electric alternatives for vehicles in the market to electric vehicles gradually replace the fleet is published. and estimate the fiscal effect. 6 2.1.5. Improve infrastructure Constructing charging Support implementation By 2024 15 new Annual report Tbilisi City Hall Companies of electric vehicles 2023 Q1 Administrative costs for electric vehicles in spots, parking lines, and of directive 2009/28/EC; charging spots of Tbilisi City Tbilisi. other supporting SDG 3 (Health and well- for electric Hall Construction companies infrastructure for the being). vehicles are electric vehicles. constructed in Private companies the streets; State entities At least 3500 places are added within the system of zonal- hour parking of Tbilisi that envisages zero tariffs for electric vehicles. 2.1.6. Discussion on the Discuss and impose high SDG 3 (Health and well- The study has The (economic) Ministry of Finance Ministry of Environmental 2023 Q4 300,000.0 GEL 300,000.0 GEL possibility of increase in import progressive tax in being). been conducted feasibility study Protection and Agriculture import duty for old vehicles case of economic that examines report based on (economic) feasibility. the economic LEPL “Service Agency” feasibility study. (From 2017, a double feasibility of import tax rate above 10 imposing LEPL “Revenue Service” years and a triple import progressive tax above 14 years is in import duty on force, which reduces 5-year, 6-10- imports of old, inefficient year, and above vehicles and the active 10-year old entry of new models, vehicles’ import hybrids, and electric taxes in point of vehicles into the market). vehicle’s age and engine capacity at a directly proportional growing rate. 2.1.7. Emission standards on Restriction of imported SDG 3 (Health and well- Until 2024 cost- Normative act Ministry of Economy and LEPL “Service Agency” 2022 Q4 1,203,840.0 GEL 213,840.0 GEL UNEP 990,000.0 GEL the import of vehicles based vehicles according to being). benefit analysis published on Sustainable Development on the cost-effectiveness their emissions rates will document is the website of (grant) analysis (EUR4 / EUR5) dramatically improve published; Legislative emissions intensities in Herald of new vehicle stocks and EUR4 / EUR5 Georgia gradually replace the (engine) “Matsne” existing vehicle fleet with standards more efficient models. conformable regulations are introduced and established. Objective 2.2 Encourage the reduced demand on fossil fuels and the use of biofuels Outcome indicator of the Share of renewable energy consumed by all types of Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 2.2.1: transport in the final energy consumption on the term target -term target term territory of Georgia target target Year 2018 2022 2024 2026 2028 2030 National Statistics Office of Georgia (Georgia’s Energy Balance); Value 2% 3% 4% 6% 8% 10% Annual progress reports and evaluation report for the Climate Action Plan. Risk Low interest of private sector; Failure of implementing incentive measures for electric vehicles due to the reduced state financial resources caused by the pandemic; Failure of developing affordable and high-coverage second-hand electric vehicle market. Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit 7 Amount Code Amount Organizatio n 2.2.1. Discuss the increase in Discuss and prepare the Support implementation Report on the Feasibility Ministry of Finance Ministry of Economy and 2023 Q4 300,000.0 GEL 300,000.0 GEL taxes for fuels possibility to increase in of directive 2009/28/EC; feasibility of Study Report Sustainable Development taxes for fuels for SDG 3 (Health and well- potential decreasing activity of being). increase in taxes Ministry of Environmental gasoline and diesel-driven for fuels in Protection and Agriculture cars, with a proportion of terms of drivers making the shift economic and to using public transport environmental systems as a primary impact, mode. including tax ad administration perspectives. 2.2.2. Support and From 2019, production Support implementation A database Annual report Ministry of Ltd “Biodiesel Georgia” 2023 Q4 Administrative costs encouragement of the and sale of B5, i.e., 5% of directive 2009/28/EC; about biodiesel of the Ministry Environmental biodiesel production biodiesel and 95% diesel SDG 3 (Health and well- production and of Protection and The Biomass Association of mixture (blend) and B7, being). realization is Environmental Agriculture Georgia or 7% biodiesel and 93% created; Protection and diesel mixture (blend), Agriculture are being carried out by the private sector, One information construction of one large- brochure is scale biodiesel developed and (Renewable, alternative, published. clean energy production) factory is planned by 2023. The activity involves promoting biodiesel production, collecting biodiesel production and sales data, and monitoring trends to reduce carbon dioxide emissions. Also, prepare an information brochure about biodiesel to encourage its utilization. Objective 2.3 Promote non-motorized means of mobility and public transport Outcome indicator of the Percentage of share of travel done by non-motorized Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 2.3.1: transport (cycling and walking) in Tbilisi term target -term target term target target Year 2016 2022 2024 2026 2028 2030 Tbilisi Sustainable Transport study Value 27,15% 30% 32% 33% 34% 35% Outcome indicator of the Percentage of share of travel done by the public Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 2.3.2: transport (metro, bus, minibus) in Tbilisi term target -term target term target target Year 2016 2022 2024 2026 2028 2030 Tbilisi Sustainable Transport study Value 39% 40% 41% 42% 43% 45% Risk Reduced state investments in public transport and planned infrastructural works due to the reduced state financial resources caused by the pandemic Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 8 2.3.1. Implement the Activity envisages: SDG 3 (Health and well- Sustainable Monitoring Tbilisi City Hall ltd “Tbilisi Transport Company” 2023 Q4 1,762,200,000.0 GEL 1,762,200,000.0 EBRD, measures included in being); Urban Mobility reports of GEL ADB, Tbilisi’s Green Transport Development of the SDG 11 (Sustainable cities Plan (SUMP) is Tbilisi’s Green ltd “Tbilisi Minibus” KfW, AFD, Policy Plan Sustainable Urban and communities). developed; Transport Mobility Plan of Tbilisi Policy Plan Tbilisi Parking (loan, grant) (SUMP); Bus fleet is Tbilisi bus reform (fleet upgraded; upgrade, introduction of a new route network); Modernizing the metro At least 3500 and increasing its places are added capacity; Cable car/rope within the construction; system of zonal- Introduction of a smart hour parking; transport system; Introduction of zonal- In accordance hour parking; with the Rehabilitation of streets principles of in accordance with the multimodal principles of multimodal planning, at planning. least one street is rehabilitated. 2.3.2. Implement the Activity envisages: SDG 3 (Health and well- Until 2024 more Monitoring Batumi City Hall Ltd “Batumi Autotransport” 2023 Q4 8,800,000.0 GEL 8,800,000.0 GEL EBRD measures listed in Batumi’s being); than 20% of report of E5P Sustainable Urban Mobility Improve the efficiency of SDG 11 (Sustainable cities measures Batumi’s (loan, grant) Plan (SUMP) bus routes; Increase bus and communities). included in the Sustainable capacity and number of plan are Urban Mobility passengers; Introduction implemented; Plan (SUMP) of zonal-hour parking in central districts; Planning Until 2024 8 and implementation of new electric reduced vehicle activity; buses are Purchase the buses operating; operated on modern standard diesel (euro 5) Until 2024 and fully electric buses, zonal-hour renewal/replenishment of parking is the municipal transport established at company fleet with new least on 6 adapted buses, which will locations. contribute to environmental protection and the proper functioning of the municipal transport system. Objective 2.4. Implement innovative, evidence-based initiatives in the transport sector Outcome indicator of the Number of additional GHG emissions reduction Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 2.4.1. initiatives based on the evidence in the transport sector term target -term target term target target Year 2020 2022 2024 2026 2028 2030 Progress report of the Climate Strategy and Action Plan Value 0 1 2 3 4 5 Risk Failure to conduct cost-benefit analysis of the proposal for GHG emissions reduction in the transport sector due to the lack of human and research resources Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 9 2.4.1. Develop international Activity envisages SDG 3 (Health and well- In the total Project proposal Ministry of Ministry of Finance 2022 Q3 178,200.0 GEL 178,200.0 GEL climate finance proposals for seeking financial being); project proposal document Environmental the improved public, inter- resources for the SDG 11 (Sustainable cities was developed Protection and Ministry of Economy and city, and non-motorised implementation of and communities). at least for 1 Agriculture Sustainable Development transport means. specific new policies and measure; (Environment and measures for the next Climate Change iteration of the Climate The project Department) Action Plan. proposal was presented to 3 potential financiers. 2.4.2. Develop cost-benefit Activity envisages SDG 3 (Health and well- At least of Cost-benefit Ministry of LLC “Georgian Railway” 2023 Q4 257,400.0 GEL 257,400.0 GEL analysis and feasibility study conducting the cost- being) technical analysis Environmental to identify best options for benefits analysis that can analysis document Protection and Ministry of Economy and shifting road freight to rail. facilitate the document is Agriculture Sustainable Development identification of the most developed. (Environment and attractive measures to Climate Change pursue in the next Department) iteration of the Climate Action Plan. Goal 3 Support the low carbon development of the building sector through encouraging climate-goals oriented energy-efficient technologies and services Links to SDGs SDGs 7, 9, 11 Impact indicator 3.1: Amount of GHG emissions from building sector Historical Baseline Medium-term Mediu Reference Final target Sources of verification (ktCO2e) target m- scenario term projection target Year 1990 2015 2024 2028 2030 2030 2030 National GHG inventory Value N/A 1,954 3,635 4,277 4,625 Less than 4,625 Objective 3.1 Develop a system for energy efficiency certification of buildings Outcome indicator of the Percentage of newly constructed buildings subject by Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 3.1.1: law to certification that are certified for energy term target -term target term efficiency target target Year 2020 2022 2024 2026 2028 2030 Annual progress reports and evaluation report for the Climate Action Plan Value 0 0% 100% 100% 100% 100% Risk Reschedule enacting the legal act requiring mandatory certification or delay in deadlines set by the act Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 10 3.1.1. Elaborate the Elaborating the Support implementation Methodology Annual report Ministry of Economy and Ministry of Environmental 2023 Q2 88,715,880.0 GEL 1,136,52 25 03 06 87,579,360.0 GEL EBRD, methodology for of Directive 2009/28/EC- supporting the of the Ministry Sustainable Development Protection and Agriculture 0.0 GEL DANIDA, methodology for certification of buildings EPBD; energy of Economy (loan, grant) KfW, EU certification of buildings Directive 2012/27/EU efficiency of and Sustainable Relevant municipaliteis that will enable the state EED; buildings is Development. to create exemplary Directive 2010/31/EU. created and thermal insulation SDG 11 (Sustainable cities agreed with Document of projects of the exterior and communities); NGOs operating methodology enclosures of buildings SDG 12 (Responsible in the supporting the for different climate consumption and environmental energy conditions per region and production). and energy efficiency of the in accordance with sector as well as buildings. constructing energy efficiency companies and standards and make the is in full results available for the accordance with wider public. EU Directive 2010/31/EU. 11 3.1.2. Elaborate, approve, Elaborating and Support implementation Following Secondary legal Ministry of Economy and Relevant municipalities 2023 Q4 33,264,000.0 GEL 33,264,000.0 GEL EU, and implement secondary approving relevant of Directive 2009/28/EC- secondary legal acts published Sustainable Development KfW legislation on the energy secondary legislation. EPBD; acts that are on the website (grant) efficiency of buildings. Directive 2012/27/EU discussed with of Legislative EED; NGOs as well as Herald of Directive 2010/31/EU. constructing Georgia SDG 11 (Sustainable cities companies are “Matsne” and communities); created, agreed SDG 12 (Responsible and adopted in consumption and accordance with production). the timeframe specified in the law of Georgia on the energy performance of buildings, By 20 June 2021 National methodology for calculating the energy performance of buildings; Minimum energy performance requirements for buildings, parts of buildings, or building elements; Comparative methodology of calculating the cost-optimal level of minimum energy performance requirements; Rule of creation and use of one or several programs for calculation of energy performance; Rules of the total energy performance of a new building/existing building, the procedures for correct selection and installation, and the regulation and management of a building the engineering and technical support systems. 12 By 1 January 2022 - The procedure for certifying the energy performance of buildings; - Procedures for the regular inspection of heating and air conditioning systems in buildings; - The procedures for the accreditation and certification of an independent expert issuing energy performance certificates of buildings and inspecting heating and air conditioning systems in buildings; - „The procedures for the examination and verification of the energy performance certificates of buildings and the inspection reports of heating and air conditioning systems. “ By 30 June 2023: - National plan to increase the number of nearly zero- energy buildings By 1 January 2022: - Energy Performance Certificates of Buildings, Inspection Reports, and the procedure for the maintenance of the Databases 13 of Independent Experts. Objective 3.2 Raising consumer awareness about energy efficiency Outcome indicator of the Percentage of the costumers who identify energy Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 3.2.1: efficiency of building and household appliances as an term target -term target term important factor in consumer decision making target target Year 2020 2022 2024 2026 2028 2030 Household expenditure survey of the National Statistics Office Value N/A 40% of target 55% of 60% of target 70% of 80% of target contingent contingent target contingent target continge contingen nt t Risk Failure of implementation/delay of information campaigns due to the lack of financial resources and pandemic constraints Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 14 3.2.1. Development of Providing more Support implementation Supporting Annual report Ministry of Economy and Relevant municipalities 2023 Q4 411,840.0 GEL 411,840. 2401 standards, norms, and information to customers of Directive 2009/28/EC- schemes for of the Ministry Sustainable Development 0 GEL labelling schemes for when buying or replacing EPBD; Directive appliances that of Economy Relevant private sector appliances. home appliances with 2012/27/EU EED; take into and Sustainable increasing the market Directive 2010/30/EU; account the Development. share of energy-efficient SDG 3 (Good health and approaches of appliances. The measure well-being); NGOs and will be implemented private SDG 7 (Affordable and gradually. At the first companies and clean energy); stage, only certain part of are in energy-based appliances SDG 11 (Sustainable cities accordance with will be labeled. At and communities). EU Directive subsequent stages, the list 2010/30/EU are of labeled products will developed; significantly increase. To this end, European (CEN) and international By 2024, based standards for testing the on the scheme energy efficiency of created for the house appliances should energy be translated and efficiency of adopted. The adoption of appliances, the the energy labeling market share of regulations package labelled should be accompanied products by information campaign amounts to 100 on energy labeling. % of total products. By 30 September, the following technical regulations shall be adopted: a) Rules for energy labelling household dishwasher s; b) Rules for energy labelling household refrigerator s and freezers; c) Rules for energy labelling household clothes washers; d) Rules for energy labelling televisions; e) Rules for energy labelling of 15 ventilation appliances; f) Rules for energy labelling household air conditione rs; g) Rules for energy labelling for cold storage rooms; h) Rules for energy labelling household heating appliances; i) Rules for energy labelling solid fuel boilers and necessary appliances for solid boilers; j) Rules for energy labelling kitchen stoves and stove ventilation; k) Rules for energy labelling vacuum cleaners; l) Rules for energy labelling water heaters, hot water tanks, and solar panel complete sets; m) Rules for energy labelling heaters, heater complete sets, combined complete 16 sets for temperatur e control, solar panels and heaters, temperatur e control and solar panels; n) Rules for energy labelling bulbs and lamps; o) Rules for energy labelling; p) Rules for energy labelling household dryers; q) Rules for energy labelling combined clothes dryers. 3.2.2. Implementation of Informing the public Support implementation According to the Annual report Ministry of Economy and 2022 Q4 299,376.0 GEL 299,376. 2401 energy efficiency awareness- about financially effective of the directive public opinion of the Ministry Sustainable Development 0 GEL raising programmes for the and easily achievable 2009/28/EC-EPBD; research before of Economy public. changes in the energy Directive 2012/27/EU and after and Sustainable consumption process EED; implementation Development. and/or dissemination of SDG 1 (No poverty); of the campaign, information about SDG 4 (Quality awareness of the energy-efficient education); target auditory measures, which will SDG 5 (Gender equality); is improved at encourage them to select SDG 7 (Affordable and least by 50%. energy-effective home clean energy); appliances. SDG 8 (Decent work and economic growth); SDG 10 (Reduced inequalities). 3.2.3. Implementation of Implementation of Support implementation According to the Annual report Ministry of Economy and Relevant municipalities 2023 Q3 Administrative costs information campaign about information and of the directive public opinion of the Ministry Sustainable Development incandescent bulbs. awareness campaigns 2009/28/EC-EPBD; research before of Economy Relevant private sector targeting 100% Directive 2012/27/EU and after and Sustainable replacement of EED; implementation Development. incandescent light bulbs SDG 7 (Affordable and of the campaign, with energy-efficient clean energy); awareness of the bulbs in commercial SDG 9 (Industry, target auditory buildings by 2023. innovation, and on energy- infrastructure); efficient bulbs is SDG 11 (Sustainable cities improved at and communities); least by 30%. SDG 12 (Responsible consumption and production). 17 3.2.4. implementation of Implementation of Support implementation According to the Annual report Ministry of Economy and Ministry of Environmental 2023 Q4 Administrative costs information campaigns for information campaigns of Directive 2009/28/EC- public opinion of the Ministry Sustainable Development Protection and Agriculture of solar water heater systems in for solar water heater EPBD; Directive research before of Economy Georgia buildings. systems and energy 2012/27/EU EED; and after and Sustainable efficiency in buildings Directive 2010/30/EU; implementation Development. will raise users’ SDG 3 (Good health and of the campaign, awareness. well-being); awareness of the SDG 7 (Affordable and target auditory clean energy); on solar water SDG 11 (Sustainable cities heater systems is and communities); improved at (Responsible consumption least by 50%. and production). Encourage energy-efficient approaches and installation of energy-efficient lighting in residential, commercial, and public buildings. Objective 3.3 Outcome indicator of the Number of buildings of more than 500 m2 occupied and Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 3.3.1: owned by the central and municipal governments, with term target -term target term 1% of their total area renewed annually in accordance target target with the energy efficiency standards Year 2020 2022 2024 2026 2028 2030 Annual report of the Ministry of Economy and Sustainable Development Value 0 10% 30% 50% 70% More than 90% Outcome indicator of the Percentage of the public buildings that use energy- Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 3.3.2: efficient light bulbs term target -term target term target target Year 2020 2022 2024 2026 2028 2030 Annual report of the Ministry of Economy and Sustainable Development Value N/A 20% 30% 40% 60% More than 70% Risk Failure of implementation of the projects dependant on donor funding Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 3.3.1. Introducing tax Introducing tax Support implementation The tax burden Annual report Ministry of Economy and Ltd “Revenue Service” 2023 Q4 Administrative costs regulations on incandescent regulations on of the directive on incandescent of the Ministry Sustainable Development bulbs. incandescent bulbs with 2009/28/EC-EPBD; bulbs is of Economy Relevant municipalities the target of 100% Directive 2012/27/EU increased by and Sustainable increase the share of new EED; 100%; Development. Relevant private sector energy-efficient bulbs in SDG 7 (Affordable and procured light bulbs for clean energy); By 2023 share of residential and SDG 9 (Industry, energy-efficient commercial buildings by innovation, and bulbs in new 2023. infrastructure); light bulbs SDG 11 (Sustainable cities procured for and communities); residential and SDG 12 (Responsible commercial consumption and buildings is production). increased by 100%. 18 3.3.2. Installation of energy- This activity envisages Support implementation By 2023 share of Annual report Ministry of Economy and Ministry of Regional 2022 Q4 621,720.0 GEL 621,720. 25 03 06 efficient lighting in the 100% increase of the of Directive 2009/28/EC- energy-efficient of the Ministry Sustainable Development Development and Infrastructure 0 GEL buildings owned/used by share of energy-efficient EPBD; Directive bulbs in new of Economy public institutions. bulbs in procured new 2012/27/EU EED; light bulbs and Sustainable Relevant municipalities light bulbs for all public Directive 2010/30/EU; procured for all Development. buildings. SDG 3 (Good health and public buildings well-being); is increased by SDG 7 (Affordable and 100%. clean energy); SDG 11 (Sustainable cities and communities); (Responsible consumption and production); SDG 12 (Responsible consumption and production). 3.3.3. Establish energy Compile information on Support implementation Information Annual report Ministry of Economy and Ltd “Municipal Development 2023 Q4 178,200.0 GEL 178,200.0 GEL efficiency information buildings characteristics of the directive system of the Ministry Sustainable Development Fund” systems for public buildings. and energy consumption 2009/28/EC-EPBD; containing of Economy for national and Directive 2012/27/EU information and Sustainable municipal public sector EED; about 50% of Development. buildings, excluding SDG 7 (Affordable and public buildings kindergartens and clean energy); is created. schools. SDG 11 (Sustainable cities and communities); SDG 12 (Responsible consumption and production). 3.3.4. Improvement of Improvement of exterior Support implementation Annually 10% Annual report Ministry of Economy and Ltd “Municipal Development 2023 Q4 9,808,920.0 GEL 154,440. 25 03 06 9,654,480.0 GEL E5P, exterior enclosure of school enclosure of school of the directive of schools of the Ministry Sustainable Development Fund” 0 GEL NEFCO buildings, installation of buildings, installation of 2009/28/EC-EPBD; implement at of Economy (grant, loan) energy-efficient bulbs, energy-efficient bulbs, Directive 2012/27/EU least one out of and Sustainable retrofit/replacement of solid retrofit/replacement of EED; three initiatives Development. fuel heaters. solid fuel heaters. SDG 3 (Health and well- of energy being); efficiency – SDG 7 (Affordable and improvement of clean energy); exterior SDG 11 (Sustainable cities enclosure, and communities); installation of SDG 12 (Responsible energy-efficient consumption and bulbs, production). retrofit/replace ment of solid fuel heaters. Objective 3.4 Support use of solar energy for water heating and use of energy-efficient stoves Outcome indicator of the The percentage of the solar water heating systems in Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 3.4.1: systems purchased by individuals/legal entities for term target -term target term individual residential and commercial buildings after target target the implementation of incentive measures. Year 2020 2022 2024 2026 2028 2030 Household survey of the National Statistics Office Value N/A 10% 20% 30% 50% 60% National Energy Balance Risk Delay in implementation of incentive measures Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs) tion State Other Deficit Amount Code Amount Organizatio n 19 3.4.1. Elaboration of Elaboration of financial Support implementation A financial Annual report Ministry of Economy and Ministry of Finance 2023 Q3 178,200.0 GEL 178,200.0 GEL financial incentives incentives mechanism for of the directive incentive of the Ministry Sustainable Development mechanism for installation using solar for heating the 2009/28/EC-EPBD; mechanism is of Economy Ministry of Environmental of solar water heater systems water that will reduce Directive 2012/27/EU introduced. and Sustainable Protection and Agriculture in buildings. pressure on forests and EED; Development. represents an energy- SDG 3 (Health and well- efficient alternative. being); SDG 7 (Affordable and clean energy); SDG 11 (Sustainable cities and communities); SDG 12 (Responsible consumption and production). 3.4.2. Encourage using of Until 2027 mechanism of Support implementation Voucher Report on the Ministry of Ltd “Environmental Information 2023 Q4 33,660,000.0 GEL 33,660,000.0 GEL GCF, energy-efficient firewood financial of directives 2009/28/EC- programme for implementation Environmental and Education Center” Governmen stoves. stimulus/incentives will EPBD and 2012/27/EU energy-efficient of the Protection and (grant) t of be elaborated and EED; stoves is project “Suppor Agriculture ltd “National Forestry Agency” Germany, introduced by the state SDG 3 (Health and well- elaborated; ting Governmen and financial institutions. being); Forest Sector Re NNLE “Agriculture and Rural t of Sweden Information campaigns SDG 7 (Affordable and At least 2 form in Development Agency” will be implemented for clean energy); information Georgia to the encouragement of SDG 11 (Sustainable cities campaign about Reduce using energy-efficient and communities); energy-efficient Greenhouse Gas stoves that will reduce SDG 12 (Responsible stoves and Emissions Due pressure on forests and consumption and supporting to Forest Degra will improve utilization production). financial dation” of waste biomass. programmes are implemented Objective 3.5. Train highly professional personnel in energy efficiency Outcome indicator of the Total percentage of the certified and diplomaed Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 3.5.1: specialists in heating, cooling, ventilation systems, and term target -term target term energy efficiency issues of the buildings. target target Year 2020 2022 2024 2026 2028 2030 Database of independent experts published on the website of the Ministry of Economy and Value 0% of target 0% of target 30% of 60% of target 80% of 100% of target contingent Sustainable Development contingent contingent target contingent target continge contingen nt t Risk Postponing the enactment of the mentioned secondary legal acts Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 20 3.5.1. Development of Development of the Support implementation With the Monitoring Ministry of Economy and Accreditation centers 2023 Q4 1,073,160.0 GEL 1,073,160.0 GEL qualification, accreditation, certification system for of directive 2009/28/EC- involvement of report of Sustainable Development and certification schemes for energy service providers, EPBD; Directive stakeholders National Training centers energy sector experts. energy auditors, energy 2012/27/EU EED; (energy sectors Energy managers, and Directive 2010/31/EU; NGOs, energy Efficiency assemblers, working on SDG 4 (Quality providers, Action Plan. the installation of energy education); construction and appliances in buildings SDG 5 (Gender equality); audit sector. SDG 7 (Affordable and companies), clean energy); qualification, SDG 9 (Industry, accreditation, innovation, and and certification infrastructure); schemes are SDG 11 (Sustainable cities developed and and communities). adopted and are in full accordance with EU Directive 2009/28/EC. 3.5.2. Development of Development of Support implementation With the Monitoring Ministry of Economy and Accreditation centers 2023 Q2 Administrative costs educational programs and programmes to improve of directive 2009/28/EC- involvement of report of Sustainable Development trainings for energy the skills and competency EPBD; Directive stakeholders, at National Training centers consultants. of energy engineers, 2012/27/EU EED; least two Energy energy auditing SDG 1 (No poverty); educational and Efficiency companies, and energy SDG 4 (Quality training Action Plan. service providers. education); programmes are SDG 5 (Gender equality); developed in SDG 7 (Affordable and Tbilisi and clean energy); region. SDG 8 (Decent work and economic growth); SDG 10 (Reduced inequality). Goal 4 Support the low carbon development of the industry sector by encouraging climate-friendly innovative technologies and services to achieve a 5% emissions reduction compared to emissions projected under a reference scenario by 2030 Links to SDGs SDGs 8, 9, 11, 12 Impact indicator 4.1: GHG emissions of the industry sector (ktCO2e.) Historical Baseline Medium-term Mediu reference Final target Sources of verification target m- scenario term projectio target n Year 1990 2015 2024 2028 2030 2030 2030 National GHG Inventory Value 11,445 3,123 4,474 5,289 5,986 < 5,690 (- 5%) Objective 4.1 Reduce the level of greenhouse gas emissions from industrial processes and energy consumption of industrial facilities by introducing modern technologies Outcome indicator of the GHG emissions of cement production (ktCO2e.) Baseline Medium-term target Final target Sources of verification objective 4.1.1: Year 2020 2022 2023 Annual progress reports and evaluation report for the Climate Action Plan Value 968 1083 1139 Outcome indicator of the GHG emissions of chemical production (ktCO2e.) Baseline Medium-term target Final target Sources of verification objective 4.1.2: Year 2020 2022 2023 Annual progress reports and evaluation report for the Climate Action Plan 21 Value 2547 2919 3105 Risk Low interest of the private sector; Due to the Coronavirus pandemic, delay in conducting necessary research within the project (including mobilization of a group of foreign experts), and introduction of technologies. Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 4.1.1. Substitute wet with Switch cement Support implementation The new Annual report ltd “Heidelberg” Ministry of Environmental 2022 Q4 15,687,936.0 GEL 15,687,936.0 GEL ltd the dry method in cement production method to the of directives 2008/50/EC technology that of ltd Protection and Agriculture “Heidelber production dry method (reducing and 2010/75/EU; reduces energy “Heidelberg” (private) g” energy use and, SDG 3 (Health and well- use by 20-40% is accordingly, emissions) being); introduced; SDG 9 (Industry, innovation, and 100% of cement infrastructure); SDG 11 production is (Sustainable cities and carried out by communities). utilization of the new technology. 4.1.2. Supporting the low- From 2020 through Support implementation The factory is Implementation Ltd “Rustavi Azoti” Ministry of Environmental 2023 Q4 17,820,000.0 GEL 8,910,000.0 GEL Ltd emission production of cooperation with the of directives 2008/50/EC equipped with report of the Protection and Agriculture (Ltd “Rustavi “Rustavi Nitric Acid with German Federal Ministry and 2010/75/EU; new technology project Azoti”, private) Azoti” for the Environment, SDG 3 (Health and well- that emits at “Support of Nature Conservation, and being); least 95% less Nitric Acid 8,910,000.0 GEL Governmen Nuclear Safety (BMU), SDG 9 (Industry, N2O; Climate Action (grant) t of the joined the initiative innovation, and Group Federal aimed at equipping the infrastructure); SDG 11 100% of Nitric (NACAG).” Republic of Nitric Acid producer (Sustainable cities and Acid is produced Germany companies in the member communities). with the new countries with nitrous equipment. oxide absorbing technologies that cause climate change. Ltd “Rustavi Azoti” is a Nitric Acid producer factory that will be equipped with modern technology for reducing N2O from its production cycle. Objective 4.2 Develop a system of studying the emissions factors and data management in the industry sector Outcome indicator of the Number of the industries where specific emissions Baseline Medium- Medium Medium-term Medium- Final target Sources of verification objective 4.2.1: factors were studied term target -term target term target target Year 2020 2022 2024 2026 2028 2030 Annual progress reports and evaluation report for the Climate Action Plan Value 0 1 2 3 4 5 Risk Lack of field expertise; Low interest of the private sector; Provision of confidential information for the development of data management system and identification of individual emission factor. Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amount Code Amount Organizatio n 22 4.2.1. Develop individual Introduction of a data Support implementation Specific Report of the Ministry of Ltd “Rustavi Azoti” 2023 Q2 99,600.0 GEL 99,600.0 GEL GEF/UNEP emission factors per management system that of directive 2010/75/EU emissions factor project Environmental production. includes plant-specific and article 314 of at least for two “Capacity- Protection and Ltd “Heidelberg Cement” (grant) emission factors to better Association Agreement; productions is building Agriculture (Climate estimate sector’s SDG 9 (Industry, introduced. Initiative for Change Division) emissions and mitigation innovation, and Transparency potentials. infrastructure); SDG 11 (CBIT).” (Sustainable cities and communities). Goal 5 Support the low carbon development of the agriculture sector through encouraging climate-smart agriculture technologies and services. Links to SDGs SDGs 2, 6, 12, 15 Impact indicator 5.1: GHG emissions of the agriculture sector (GgCO2e.) Historical Baseline Medium-term target Medium-term Reference Final target Sources of verification target scenario projection Year 1990 2015 2024 2028 2030 2030 GHG National Inventory Value 4,102 3,326 3,635 4,203 4,624 Less than 4,533 Objective 5.1 Implement sustainable management of soil and pastures and support the introduction of sustainable domestic animal feeding practices ამოცანის შედეგის Value Percentage of farmers who have improved information on Baseline Medium- Medium Medium- Medium-term Final target Sources of verification 5.1.1: sustainable domestic animal feeding practices and term target -term term target target sustainable soil management out of the farmers informed target by the extension centres and the National Food Agency Year 2020 2022 2024 2026 2028 2030 Annual progress reports and evaluation report for the Climate Action Plan Value 0% 50% of the 50% of 50% of the 50% of the 50% of the farmers of farmers of the farmers of farmers of target target contingent target farmers target contingent contingent of target contingent continge nt Risk Low interest of the farmers Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementat and SDGs ion State Other Deficit Amou Code Amount Organizatio nt n 23 5.1.1. In order to reduce The objective of the SDG 2 (Zero hunger); SDG Methodology is Developed Ministry of Ltd “Scientific-Research Center 2023 Q2 574,200.0 GEL 574,200.0 GEL the emissions generated measure is to maximize feed 6 (Clean Water and introduced and Methodology Environmental of Agriculture” by enteric fermentation quality for up to 20% of Sanitation); SDG 15 (Life agreed with document Protection and of the cattle, develop a cattle by 2021, leading to on land). stakeholders; Agriculture NNLP “Rural Development methodology for lower emissions from Annual report of (Environment and Agency” changing the feed for the enteric fermentation. (For At least one the Ministry of Climate Change cattle and run a additional information, recommendatio Environmental Department; LEPL “Environmental recommendation Georgia has enough n campaign is Protection and Information and Education campaign. diversity in terms of forage carried out in Agriculture Department of Center” plants, limiting rumination every region Agriculture, Food and while increasing or keeping with the Rural Development;) livestock productivity. participation of Optimal feed mixes need to at least 50 be identified and then farmers. communicated to dairy farmers through a manual. Further, Georgian grape map should be explored since grape peel, and stone can be used as an alternative cheap dietary supplement for tackling ruminant emissions). 5.1.2. Develop legislation The aim of the project is to SDG 2 (Zero hunger); SDG The project Annual report of Ministry of NNLP “Rural Development 2023 Q4 237,600.0 GEL 237,600.0 GEL and prepare a project increase the quality of 6 (Clean Water and concept is the Ministry of Environmental Agency” proposal with the aim of livestock nutrition for cattle Sanitation); SDG 15 (Life developed, and Environmental Protection and increasing the quality of as well as the conservation on land). international Protection and Agriculture livestock nutrition and of pasture biodiversity and finances for its Agriculture; LEPL “National Agency for conservation of pasture to reduce maintenance implementation (Department of Sustainable Land Management biodiversity costs for cattle livestock for is requested; Secondary legal Hydrology and Land and Land Use Monitoring” beneficiaries by handing act about pasture Management; over intensive grass Pasture management production equipment to management published on the Environment and beneficiaries. Accordingly, legislation is website of the Climate Change the activity includes the developed. Legislative Department; development of the bill Herald of about pasture management Georgia. Department of and preparing the project Agriculture, Food and proposal. Rural Development;) 5.1.3. Rehabilitation and The overarching aim of the SDG 15 (Life on land) Project proposal Secondary legal Ministry of LEPL “National Agency for 2023 Q4 498,000.0 GEL 498,000.0 GEL GEF, transformation of project is to establish a about the act published on Environmental Sustainable Land Management IFAD windbreaks to minimize climate-resilient and multi- rehabilitation of the website of Protection and and Land Use Monitoring” (grant) climate-related land functional Windbreak & windbreaks is the Legislative Agriculture degradation. Agroforestry Ecosystem submitted to Herald of (Department of (mWAE), reducing land international Georgia. Hydrology and Land Ministry of Environmental degradation, increasing soil donors for Management) Protection and Agriculture and agricultural financing; Project proposal (Environment and Climate productivity, and about the Change Department) diversification. Legislative rehabilitation of regulation about windbreaks. the windbreak zones is prepared/adopte d. Objective 5.2 Build capacities of generating scientific evidence for the development of climate-smart approaches in the agriculture sector Outcome indicator of the Share of smart climate technologies and/or initiatives Baseline Medium- Medium Medium-term Medium-term Final target Sources of verification objective 5.2.1: based on cost-benefit analysis and other evidence in term -term target target agricultural, state, and donor programs. target target Year 2020 2022 2024 2026 2028 2023 Annual progress reports and evaluation report for the Climate Action Plan Value N/A 10% 30% 40% 50% 60% Risk Delays in finding the funding and resources; Quality of the document developed by implementer and donor. 24 Activity Short description Links to EU-Georgia Output indicator Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement of the activity verification implementa and SDGs tion State Other Deficit Amou Code Amount Organizatio nt n 5.2.1. Develop cost- The cost-benefits analysis SDG 2 (Zero hunger); SDG Conclusion of Document of Ministry of Ltd “Scientific-Research Center 2023 Q2 237,600.0 GEL 237,600.0 GEL benefit analysis and and feasibility study can 6 (Clean water and the technical technical Environmental of Agriculture” feasibility study to facilitate the identification sanitation); SDG 15 (Life analysis report analysis Protection and identify best options to of the most attractive on earth). that analyses at Agriculture NNLP “Rural Development increase further change in measures for further least two (Environment and Agency” livestock feed for the next improving feed quality to alternatives of Climate Change iteration of the Climate pursue in the next iteration improving feed Department; Action Plan. of the Climate Action Plan. quality is developed. Department of Agriculture, Food and Rural Development;) 5.2.2. Develop cost- The cost-benefits analysis SDG 2 (Zero hunger); SDG Conclusion of Document of Ministry of Ltd “Scientific-Research Center 2023 Q3 237,600.0 GEL 237,600.0 GEL benefit analysis and and feasibility study can 6 (Clean water and the technical technical Environmental of Agriculture” feasibility study to inform the identification of sanitation); SDG 15 (Life analysis report analysis Protection and identify best options in the most attractive measures on earth). that analyses at Agriculture NNLP “Rural Development which manure in Georgia (per region) for least two (Environment and Agency” management systems can manure management alternatives of Climate Change be implemented. systems to pursue in the manure Department; next iteration of the Climate management is Action Plan. developed. Department of Agriculture, Food and Rural Development;) 5.2.3 Support existing and Of the 37 existing SDG 2 (Zero Hunger) Project proposal Developed Ministry of Ltd “Scientific-Research Center 2023 Q3 996,000.0 GEL 996,000.0 GEL emerging cooperatives to cooperatives, 23 have including the project proposal Environmental of Agriculture” implement sustainable transferred pastures from introduction of Protection and pasture management the State for 25 years, sustainable Agriculture Ministry of Environmental practices and replicate the although, in many cases, pasture NNLP “Rural Protection and Agriculture success factors of sustainable pasture management Development Agency” (Department of Agriculture, successful cooperatives management is not principles to the Food and Rural Development; for other cooperatives. implemented. Therefore, it farmers is is important to strengthen developed. Environment and Climate the capacity of the Change Department;) representatives of existing cooperatives in terms of sustainable pasture management. Activity includes the preparation of a project proposal for the introduction of the principles of sustainable pasture management. 25 5.2.4 Research and Economic and socially SDG 2 (Zero hunger); SDG A technical Document of Ministry of Ltd “Scientific-Research Center 2023 Q4 356,400.0 GEL 356,400.0 GEL consultation processes to feasible Climate-Smart 6 (Clean water and analysis report is technical Environmental of Agriculture” define economic and Agriculture (CSA) actions sanitation); SDG 15 (Life developed analysis report Protection and socially feasible Climate- research (per crops and on earth). containing Agriculture NNLP “Rural Development Smart Agriculture (CSA) regions that aren’t covered recommendatio Document of (Environment and Agency” actions in the context of yet) can facilitate the ns for at least agricultural Climate Change Georgia identification of the most two measures practice guide Department; Ministry of Environmental promising measures for that are most Protection and Agriculture implementing Climate promising for Department of (Department of Policy- Smart Agriculture (CSA) the Agriculture, Food and Analysis;) practices to pursue in the implementation Rural Development;) next iteration of the Climate of the Climate- Action Plan. Smart Agriculture (CSA) practices; Annually at least two consultation meetings are organized by the CSA working group; By 2024, a good agricultural practice guide is developed for at least 5 agricultural crops. 5.2.5. Promoting the The campaign can help SDG 2 (Zero hunger); SDG At least 12 Analytics Ministry of LEPL “Environmental 2023 Q4 356,400.0 GEL 356,400.0 GEL introduction of climate- guide farmers in 6 (Clean water and awareness- reports of the Environmental Information and Education friendly agricultural implementing sustainable sanitation); SDG 15 (Life raising event is Facebook and Protection and Center” practices through practices. on earth). organized. Google of the Agriculture extension and awareness- LEPL NNLP “Rural Development raising campaigns. Environmental Agency” Information and Education. Goal 6 Support the low carbon development of the waste sector through encouraging climate-smart technologies and services. Links to SDGs SDGs 8, 11, 12 Impact indicator 6.1: GHG emissions of the Waste sector (GgCO2e.) Historical Baseline Medium-term Mediu Referenc Final target Sources of verification target m- e scenario term projectio target n Year 1990 2015 2024 2028 2030 2030 2030 National GHG Inventory Value 1,105 1,389 - 1,339 1,850 Less than 1,850 Objective 6.1 Reduce GHG emissions from existing unauthorized dumpsites and non-hazardous landfills Outcome indicator of the objective GHG emissions from landfills (GgCO2e.) Baseline Medium- Medium- Medium- Medium-term Final target Sources of verification 6.1.1: term target term target term target target Year 2020 2022 2024 2026 2028 2030 Annual progress reports and evaluation report for the Climate Action Plan Value 1,091 1,063 1,056 908 822 840 Risk Delay in constructing new landfills due to the selection of the area Activity Short description Sources of Responsible institution Partner institution Period of Budget Financing source verification implementation 26 Links to EU-Georgia Output State State Deficit Association Agreement and indicator of the SDGs activity Amoun Code Amount Organization t 6.1.1. Closing official Closing existing official Support implementation of Until 2024 at Annual report Ministry of Regional LEPL “Solid Waste 2023 Q4 6,520,000.0 GEL 2,520, 25 05 01 4,000,000.0 EBRD (unauthorized) non-hazardous (unauthorized) municipal directive 2008/98/EC; least 4 of the Ministry Development and Management Company of 000.0 GEL landfills. landfills. Directive 1999/31/EC; unauthorized of Regional Infrastructure Georgia” GEL SDG (Health and well- landfills are Development (loan) being); SDG 6-თან (Clean closed. and LEPL “Municipal Development water and sanitation); SDG Infrastructure Fund of Georgia” 11 (Sustainable cities and communities). Government of Autonomous Republic of Adjara Ministry of Environmental Protection and Agriculture Relevant municipalities 6.1.2. Closing dumpsites. Closure of up to 400 existing Support implementation of Until 2024 Reports of the Municipality City Halls Ministry of Environmental 2023 Q4 2,800,000.0 GEL 2,800,000. dumpsites in the regions. directive 2008/98/EC; 100% of municipalities Protection and Agriculture 0 GEL Directive 1999/31/EC; In dumpsites are accordance with the closed. Ministry of Regional changes caused by Development and regulations (EC) No Infrastructure 1882/2003. SDG 3 (Health and well- LEPL “Solid Waste being); SDG 6 (Clean water Management Company” and sanitation); SDG 11 (Sustainable cities and communities). 6.1.3. Construction of regional By the end of 2030, seven regional Support implementation of By 2024 3 new Annual report Ministry of Regional LEPL “Solid Waste 2023 Q4 47,520,000.0 GEL 47,520,000.0 EBRD non-hazardous landfills non-hazardous landfills directive 2008/98/EC; landfills are of the Ministry Development and Management Company” GEL KfW corresponding to the standards Directive 1999/31/EC; In constructed of Regional Infrastructure will be constructed (Adjara, accordance with the (Adjara, Kvemo Development Government of Autonomous (loan) Kvemo Kartli, Samegrelo, Imereti, changes caused by Kartli, and Republic of Adjara Kakheti, Central, Georgia – 2). regulations (EC) No Samegrelo). Infrastructure 1882/2003. Ministry of Environmental Protection and Agriculture SDG 3(Health and well- being); SDG 6 (Clean water and sanitation); SDG 8 (Decent work and economic growth); SDG11 (Sustainable cities and communities). 27 6.1.4. Upgrade and improvement Procurement of waste collection Support implementation of A gas collection Report of Tbilisi City Hall Ministry of Environmental 2023 Q2 4,000,000.0 GEL 4,000,000.0 EBRD of Tbilisi’s landfill. trucks to upgrade existing waste- directive 1999/31/EC; In and leaked Tbilisi City Protection and Agriculture GEL disposal vehicles fleet. accordance with the water Hall Modernization of existing solid changes caused by management (loan) waste unloading stations. Improve regulations (EC) No system is leak management system of Tbilisi 1882/2003. installed in the landfill. Construction of gas Tbilisi landfill collection and capturing system at SDG 3 (Health and well- that fully Tbilisi landfill. being); SDG 6 (Clean water complies with and sanitation); SDG 8 the technical (Decent work and regulation on economic growth); SDG 11 "landfill (Sustainable cities and construction, communities). operation, closure and further maintenance" approved by the Government of Georgia. 6.1.5. Utilization of landfill gas in Installing a gas capture and Support implementation of A gas recovery Report of LEPL LEPL “Solid Waste Ministry of Environmental 2023 Q4 4,000,000.0 GEL 4,000,000.0 KfW, Kutaisi’s non-hazardous waste recovery system in Kutaisi’s directive 1999/31/EC; In system is “Solid Waste Management Company of Protection and Agriculture GEL EU/NIF landfill. landfill. accordance with the installed in the Management Georgia” changes caused by Kutaisi landfill Company of (loan, regulations (EC) No that fully Georgia” grant) 1882/2003. complies with the technical SDG 3 (Health and well- regulation on being); SDG 6 (Clean water "landfill and sanitation); SDG 8 construction, (Decent work and operation, economic growth); SDG 11 closure and (Sustainable cities and further communities). maintenance" approved by the Government of Georgia. 6.1.6. Utilization of landfill gas in Installing a gas capture and Support implementation of A gas capture Annual report Batumi City Hall Ministry of Environmental 2022 Q4 4,000,000.0 GEL 4,000,000.0 EBRD Batumi’s non-hazardous waste recovery system in Batumi’s directive 1999/31/EC; In and recovery of Batumi City Protection and Agriculture GEL landfill. landfill. accordance with the system is Hall changes caused by installed in Ministry of Finance and (loan) regulations (EC) No Batumi landfill Economy of the Autonomous 1882/2003. that fully Republic of Adjara complies with SDG 3 (Health and well- the technical being); SDG 6 (Clean water regulation on and sanitation); SDG 8 "landfill (Decent work and construction, economic growth); SDG 11 operation, (Sustainable cities and closure and communities). further maintenance" approved by the Government of Georgia. Objective 6.2 Support waste recycling Outcome indicator of the objective Amount of reduced emission from waste recycling (GgCO2e.) Baseline Medium- Medium- Medium- Medium-term Final target Sources of verification 6.2.1: term target term target term target target Year 2020 2022 2024 2026 2028 2030 Annual progress reports and evaluation report for the Climate Action Plan Value 0 10 40 100 130 More than 150 28 Risk Low interest of waste recycling companies Activity Short description Links to EU-Georgia Output Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement and indicator of the verification implementation SDGs activity State Other Deficit Amoun Code Amount Organization t 6.2.1. Introduce the practice of The activity involves separating Support implementation of Annually the Waste Ministry of Municipalities 2023 Q4 Administrative separating paper waste from the one of the municipal directive 2008/98/EC; SDG number of management Environmental Protection costs source by the municipalities and biodegradable waste streams from 8 (Decent work and recycled paper database and Agriculture encourage paper recycling. the source by municipalities, economic growth); SDG 9 equals to collecting information, and Private companies (Industry, innovation and minimum 30% of preparing brochures about paper infrastructure). produced paper recycling to achieve the paper waste; recycling rate. For more information: paper fraction of the municipal waste Paper separation presented at the landfill is a source practice from the of GHG emissions, and collection source is and recycling of mentioned waste introduced at is important. least in 2 municipalities; Informational brochure is developed. 6.2.2. Biodegradable (organic and Organic and garden waste Support implementation of Amount of Waste Relevant municipalities Ministry of Environmental 2023 Q4 1,188,000.0 GEL 1,188,000.0 EU garden waste) recycling by the composting in Marneuli and directive 2008/98/EC; SDG annually management Protection and Agriculture GEL municipalities. Kutaisi municipalities by the 8 (Decent work and recycled database municipal composting facilities. economic growth); SDG 9 biodegradable Imereti Scientists’ Union (grant) (Industry, innovation and organic and “SPECTRI” infrastructure). garden waste equals 600 tons; The amount of compost obtained is 40 tons. 6.2.3. Education and awareness- Implement an awareness-raising SDG 4 (Quality Education); At least 5 Analytic Municipalities Ministry of Environmental 2023 Q4 118,800.0 GEL 118,800.0 Government raising on waste management. campaign for the population and SDG 9 (Industry, awareness- reports of Protection and Agriculture GEL of Sweden, other stakeholders. innovation and raising Facebook and Government infrastructure); SDG 11 campaign is Google of LEPL “Environmental (grant) of Norway, (Sustainable cities and conducted. LEPL Information and Education Government communities); SDG 12- “Environmenta Center” of Great (Responsible consumption l Information Britain and production). and Education Center” Objective 6.3. Reduce GHG emissions from wastewater Outcome indicator of the objective Amount of reduced emissions from wastewater (GgCO2e.) Baseline Medium- Medium- Medium- Medium-term Final target Sources of verification 6.3.1: term target term target term target target Year 2020 2022 2024 2026 2028 2030 Report of the United Water Supply Company of Georgia Value 0 More than More than More than More than 400 More than 500 150 200 300 Risk Failure in finding financial resources necessary for the implementation of the activity 29 Activity Short description Links to EU-Georgia Output Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement and indicator of the verification implementation SDGs activity State State Deficit Amoun Code Amount Organization t 6.3.1. Construction of municipal Completion of construction of 6 Support implementation of By 2024 six Report of the ltd ltd “United Water Supply Ministry of Environmental 2023 Q4 183,120,618.0 GEL 250401 ADB wastewater treatment plants. municipal wastewater treatment directive 91/271/EEC; In municipal “United Water Company of Georgia” Protection and Agriculture 34,214, 148,906,274.0 plants (Abastumani sewage accordance with the treatment station Supply Company 344.0 GEL treatment plant, Zugdidi changes caused by directive is constructed; of Georgia” Ministry of Regional GEL wastewater treatment plant, Poti 98/15/EC and Regulation N Development and (loan) wastewater treatment plant, 1882/2003. By 2024 project Infrastructure Marneuli wastewater treatment procurement for plant, Mestia wastewater SDG 3 (Health and well- the construction treatment plant, Gudauri being); SDG 6 (Clean water of 7 stations is wastewater treatment plant). Also, and sanitation); SDG 8 announced. construction of 7 treatment (Decent work and facilities is planned (Kvareli, economic growth); SDG 11 Mukhrani, Martvili, Dusheti, (Sustainable cities and Zhinvali, Pasanauri, Khashuri). communities). 6.3.2. Capture and recovery of Installing a gas capture and Support implementation of Tbilisi Report of ltd ltd ”Georgian Water and Ministry of Environmental 2023 Q4 21,000.0 GEL 21,000.0 ltd GHGs in Tbilisi’s wastewater recovery system in Tbilisi’s directive 91/271/EEC; In treatment plant ”Georgian Power” Protection and Agriculture GEL ”Georgian treatment plants. wastewater treatment plant. accordance with the is equipped Water and Water and changes caused by directive with gas Power” Power” 98/15/EC and Regulation N Tbilisi City Hall collection and 1882/2003. treatment systems that SDG 3 (Health and well- fully comply being), SDG 6 (Clean water with the and sanitation), SDG 8 Council (Decent work and Directive economic growth), and 91/271 / EEC. SDG 11 (Sustainable cities and communities) 6.3.3. Capture and recovery of Installing a gas capture and Support implementation of Batumi Report of ltd Ltd “Batumi Water” Ministry of Environmental 2023 Q4 17,500.0 GEL 17,500.0 Ltd “Batumi GHGs in Batumi’s wastewater recovery system in Batumi’s directive 91/271/EEC; In treatment plant “Batumi Protection and Agriculture GEL Water” treatment plants. wastewater treatment plant. accordance with the is equipped Water” changes caused by directive with gas Batumi City Hall 98/15/EC and regulation N collection and 1882/2003. treatment systems that SDG 3 (Health and well- fully comply being); SDG 6 (Clean water with the and sanitation); SDG 8 Council (Decent work and Directive economic growth); SDG 11 91/271 / EEC. (Sustainable cities and communities). 30 6.3.4. Capture and recovery of Installing a gas capture and Support implementation of Kobuleti Report of ltd ltd “Kobuleti Water” Ministry of Environmental 2023 Q4 17,500.0 GEL 17,500.0 ltd “Kobuleti GHGs in Kobuleti’s wastewater recovery system in Kobuleti’s directive 91/271/EEC; In treatment plant “Kobuleti Protection and Agriculture GEL Water” treatment plant. wastewater treatment plant. accordance with the is equipped Water” Kobuleti Minucipality changes caused by directive with gas 98/15/EC and regulation N collection and 1882/2003. treatment systems that SDG 3 (Health and well- fully comply being); SDG 6 (Clean water with the and sanitation); SDG 8 Council (Decent work and economic Directive growth); SDG 11 91/271 / EEC. (Sustainable cities and communities). Objective 6.4. Develop the data-based system of waste management Outcome indicator of the objective Percentage share of the data-based reports on waste management Baseline Mediu Medium- Medium- Mediu Final target Sources of verification 6.4.1: m- term term m-term term target target target Reports of the National Statistics Office of Georgia target Year 2020 2022 2024 2026 2028 2030 Value 0% 50% 70% 80% 90% 100% Risk Waste Management System Malfunction Activity Short description Links to EU-Georgia Output Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement and indicator of the verification implementation SDGs activity State State Deficit Amoun Code Amount Organization t 6.4.1. Establish a consolidated Activity envisages improving SDG 4 (Quality Education); The National Website of the National Statistics Office Ministry of Environmental 2022 Q4 62,500.0 GEL 62,500.0 EU process for collecting and updating system methodology of waste SDG 8 (Decent work and Statistics Office National of Georgia (GeoStat) Protection and Agriculture GEL (TWINNIN data for the waste sector. management database and economic growth); SDG 11 of Georgia has Statistics Office G) production of waste statistics by (Sustainable cities and started of Georgia (grant) the National Statistics Office of communities); SDG 16 producing Georgia (GeoStat). (Peace, justice and strong waste statistics; institutions). Emission reports are based on the sources and data (including incineration and composting). Goal 7 Increase carbon capture capacity of forests by 10% by 2030 compared to 2015 Links to SDGs SDGs 6, 11, 15 Impact Value 7.1: Carbon capture potential of forests (GgCO2e) Historical Baseline Medium-term target Mediu Referenc Final target Sources of verification m-term e target scenario projectio n Year 1990 2015 2024 2028 2030 2030 2030 National GHG Inventory Value -6,353 - 5,621 - 5950 6000 -5,931 More than -6,183 (+10%) Objective 7.1 Restoration of degraded forest Outcome indicator of the objective Forest area in ha, where restoration works were carried out Baseline Medium- Medium- Medium-term Medium- Final target Sources of verification 7.1.1: term target term target target term target 31 Year 2019 2022 2024 2026 2028 2030 Annual report of the Ministry of Environmental Protection and Value 190 ha 890 ha 2090 ha 2690 ha 3290 ha More than 4000 ha Agriculture Risk Reduction of the state budget and/or other incomes; Delays in approval of secondary legal act of Forest Code on “Forest Maintenance and Restoration rule.” Activity Short description Links to EU-Georgia Output Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement and indicator of the verification implementation SDGs activity State Other Deficit Amoun Code Amount Organization t 7.1.1. Restoration of 625 ha of Total of 250 ha and 375 ha of the Association Agreement: By 2024 625 ha Report of ltd Ministry of ltd “National Forestry Agency” 2023 Q4 6,585,000.0 2,625,0 31 09 02 3,960,000.0 GCF, degraded forest area (including degraded forest territories Article 302; of forest area is “National Environmental Protection GEL 00.0 GEL Government fire-sites) through forestation. (including fire-sites) will be SDG1 (No poverty), SDG8 restored Forestry and Agriculture GEL of Germany restored through forestation in (Decent work and through Agency” (grant) 2021-2023 (125 ha per annum). economic growth), and forestation. The exact areas will be chosen by SDG15 (Life on land). the end of each year. 7.1.2. Restoration of the degraded Various authorities responsible for Association Agreement: By 2024 Annual reports Ministry of ltd “National Forestry Agency” 2023 Q4 4,758,260.0 1,125,0 31 09 02 3,633,260.0 GCF, forest through supporting natural forest sector management will Article 302; approximately of the Ministry Environmental Protection GEL 00.0 GEL Government restoration. restore degraded areas through SDG1 (No poverty), SDG8 1,300 ha of of and Agriculture Ltd “Forestry Agency of GEL (grant) of Germany supporting natural restoration. (Decent work and forest area is Environmental Adjara” The following actions will be economic growth), and restored Protection and carried out: SDG15 (Life on land). through natural Agriculture N(n)LE “Tusheti Protected restoration. Areas Administration” under In 2020-2023 in total, 800 ha of the Akhmeta Municipality degraded forests will be restored by the National Forest Agency (200 ha per annum); In 2019-2024, Adjara Forest Agency will restore 600 ha of degraded forest territory (subalpine); 991 ha of forest territory will be restored by Akhmeta Municipality in 2020-2024. Objective 7.2 Support Sustainable Forest Management Outcome indicator of the objective Forest area in ha managed with sustainable management Baseline Medium- Medium- Medium-term Medium- Final target Sources of verification 7.2.1: principles term target term target target term target Year 2019 2022 2024 2026 2028 2030 Annual report of the Ministry of Environmental Protection and Value 0 150, 807 ha 300, 000 ha 350, 000 ha 402, 000 ha 450, 000 ha Agriculture Risk Reduction of the state budget and/or other incomes; No allocation of funds for newly established protected areas; Delays in starting date of the GCF project “Enabling Implementation of Forest Sector Reform in Georgia to Reduce GHG Emissions from Forest Degradation”; Delays in approval procedures of forest code normative act. Activity Short description Links to EU-Georgia Output Sources of Responsible institution Partner institution Period of Budget Financing source Association Agreement and indicator of the verification implementation State Other Deficit SDGs activity Amoun Code Amount Organization t 32 7.2.1 Introduction of sustainable Until 2027 introduction and Association Agreement: Sustainable Annual reports of the Ministry of ltd “National Forestry 2023 Q4 12,512,960.0 2,510,0 31 09 04 10,002,960.0 GCF, forest management practice implementation of sustainable Article 302; forest Ministry of Environmental Agency” GEL 00.0 GEL Government through the implementation of forest management practice on SDG1 (No poverty) and SDG15 management Environmental Protection and GEL of Germany sustainable forest management 402,209 ha of forest territory (Life on land). plan is Protection and Agriculture The State Sub-Agency (grant) plans. (including 270,807 ha within the developed and Agriculture Department of framework of the project funded approved in at Environmental by GCF, and 131,302 ha within least 7 Supervision the budget funding) through municipalities supporting supervision, supply of (Lanchkhuti, sustainably produced and Chokhatauri, obtained firewood, the legislative Dedoplistskaro- framework, management of Sighnaghi, knowledge and capacities, and Adigeni, strengthening the measurement, Lentekhi, reporting, and verification Lagodekhi, (MRV) system. Akhmeta); This intervention also includes the support of measures like the 269,954 ha of development of necessary forest area is infrastructure/maintenance/cutti sustainably ng/forest restoration/sanitary managed in the cutting etc. municipality. 7.2.2. Introduction of sustainable By 2027 introduction and Association Agreement: 14 Business Annual reports of the Ministry of ltd “National Forestry 2023 Q4 411,123.0 GEL 411,123.0 GCF, forest management practice implementation of sustainable Article 302; yards are entities of the Ministry Environmental Agency” GEL Government through supervision and capacity forest management practice and Support implementation of established and of Environmental Protection and of Germany development. carrying out the supervision on directive 92/43/EC; staffed; Protection and Agriculture The State Sub-Agency (grant) 270,807 ha of forest territory by Directive 97/62/EC; Agriculture Department of supplying sustainably harvested Directive 2006/105/EC, in Supervision Environmental and produced firewood, accordance with the changes based on the Supervision strengthening the legal caused by regulation principles of framework, managing (EC) N 1882/2003; sustainable LEPL “Environmental knowledge, and development SDG1 (No poverty), SDG8 forest Information and Educati capacities, supporting the (Decent work and economic management on Centre” enhancement of measurement, growth), and SDG15 (Life on principles reporting, and validation (MRV) land). covers 270,807 ltd “Agency of Protected systems. ha of forest area. Areas” 7.2.3. Promoting sustainable Reducing pressure on the forests Association Agreement: The annual Annual reports of the Ministry of ltd “National Forestry 2023 Q4 1,445,400.0 GEL 1,445,400.0 GCF, management of forests by by supporting the Article 302; Amount of cases entities of the Ministry Environmental Agency” GEL Government supporting the multifunctionality multifunctional use of forests, SDG1 (No poverty) and SDG15 of illegal logging of Environmental Protection and (grant) of Germany, of forests, raising public raising public awareness, and (Life on land). and use of Protection and Agriculture ltd “Agency of Protected Government awareness, and supporting public supporting public involvement in timber by the Agriculture Areas” of Sweden, involvement in the forest reform the forest reform processes. population in Government processes. Assess non-timber forest the target areas LEPL “Environmental of potential, including touristic and is reduced by Information and Educati Switzerland recreational, set the priorities and 30%; on Centre” develop/implement the action plan; By 2024, at least Ltd “Forestry Agency of 10 permits have Adjara” Develop/implement been issued for Communication Strategy and the use of non- Action Plan on multifunctional timber use of forests, technologies, and resources, and at benefits of its sustainable use by least 3 permits the local population. for the use of recreational resources; A public awareness campaign plan is developed. 33 7.2.4. Develop emerald network Until 2030 Sustainable Association Agreement: By 2024, Annual reports of the Ministry of ltd “National Forestry 2023 Q4 60,000.0 GEL 60,000.0 GEL Government management plans for the management and protection of Article 302; emerald entities of the Ministry Environmental Agency” of Germany territory of the forest of Georgia the 643,100 ha of special SDG1 (No poverty), SDG8 network of Environmental Protection and within the approved emerald conservation areas (SAC) within (Decent work and economic management Protection and Agriculture ltd “Agency of Protected network sites. the adopted and nominated growth), and SDG15 (Life on plans have been Agriculture Areas” Emerald Network sites (590,103 land). developed for at ha adopted; 52,997 ha least 100,000 ha nominated). Sustainable of emerald management of the forest area network forest approved by the management area. body responsible for the management of a specific forest area and within the Emerald Network sites by developing and implementing a sustainable management plan (including supporting activities such as constructing the necessary infrastructure, maintenance, logging, forestation, sanitary cuttings, etc. .). 7.2.5. Protection and/or Until 2030 protection and/or Association Agreement: Protected/sustai Annual report of ltd ltd “Agency of 2023 Q3 185,845.0 GEL 185,845 31 08 02 sustainable management of forest sustainable management of Article 302; nably managed “Agency of Protected Protected Areas” .0 GEL areas within the new protected 162,895 ha of forest area within SDG1 (No poverty), SDG8 forest area Areas” territories. the new protected territories. (Decent work and economic within the 7 393 ha within the Erusheti growth), and SDG15 (Life on newly National Park, 17 230 ha within land). established Racha National Park, 28 835 ha territories within the Racha-Lechkhumi amounts to Protected Areas, 41 759 ha 150,000 ha. within the Aragvi Protected Landscape, 22 325 ha within the Svaneti Protected Areas, 8 208 ha within the Trialeti Protected Areas, 16 571 ha within the protected areas of Dzama, 12 366 ha within the protected areas of Samegrelo, 8 208 ha within the protected areas of Ateni with the special protection regime. Objective 7.3 Develop forest management system adequate to climate change challenges Outcome indicator of the objective Number of the forest-related projects that are intersectoral and Baseline Medium- Medium- Medium- Medium- Final Sources of verification 7.3.1: created through interagency coordination term term term target term target target target target Year 2020 2022 2024 2026 2028 2030 Annual report of the Ministry of Environmental Protection and Agriculture; Value 10 20 25 28 30 More Plenary report of the National Forest Program than 30 Outcome indicator of the objective Percentage share of the protected areas management plans, where Year 2020 2022 2024 2026 2028 2030 Management plans of the protected areas 7.3.2: climate change mitigation measures are integrated Value 0 More More More than More than 100% than than 80% 85% 90% 65% Outcome indicator of the objective Number of the gender-sensitive sustainable forest management plans Year 2020 2022 2024 2026 2028 2030 Implementation report of the project “Enabling Implementation of Forest Sector Reform in Georgia to Reduce GHG 7.3.3: Value 0 15% 30% 40% 50% More Emissions from Forest Degradation” than 50% Risk Reduction of the state budget and/or other incomes. Activity Short description Links to EU-Georgia Association Output Sources of verification Responsible Partner institution Period of Budget Financing source Agreement and SDGs indicator of the institution implementatio activity n State Other Deficit 34 Amoun Code Amount Organizatio t n 7.3.1. Integration of the climate For ensuring the sustainable SDG 15 (Life on land) Until 2024 Management plans of Ministry of ltd “Agency of 2021 Q1 -2023 Administrative costs change issues, including management of protected areas, climate change protected areas Environmental Protected Areas” Q2. mitigation into management discussion, development, and mitigation issues Protection and plants of the protected areas. gradual integration of climate are integrated in Agriculture change issues, including more than 50% mitigation to be carried out. of protected area management plans. 35