Improving the Incentive Framework and Capacity for Green, Climate-related Investments in Eastern Partnership Countries and Central Asia
As of: April 2021
The potential for green investments and innovations is still largely untapped in the partner countries in Eastern Europe, the Caucasus and Central Asia. One of the main reasons behind this is the lack of regulations and market incentives. The project supports investment-enhancing reforms for climate-friendly economic activities and infrastructure measures, both public and private. To this end, it analyses investment, corporate and environmental strategies aimed at deriving political recommendations for action at national and international levels. The focus here is on small and medium-sized enterprises and private commercial banks. The project is also working on knowledge transfer to ensure that the countries in the region make the best possible use of the international climate financing mechanisms. Supported by the OECD, the project also introduces effective approaches to regional strategy dialogues at national level, disseminating experiences and success models. The project is part of the IKI Corona Response Package.
State of implementation/results
- The Green Recovery concept consisting of short-term economic stimulus packages and long-term response programmes will primarily be addressed by seconding economic advisors to relevant political institutions.
- A survey of 410 SMEs (in the Poltava region) covering the sectors agriculture, fisheries and forestry, mining and quarrying, food and non-food manufacturing, construction, and hotels and restaurants was conducted. Based on the results a guidance on simplified environmental regulation for SMEs will be developed.
- A follow up stakeholder workshop was offered, where stakeholders discussed the draft pilot project report containing policy recommendations, guidance on several simplified regulatory regimes suitable for installations with low environmental impact, as well as general binding rules and registration. In addition, specific recommendations were presented for environmental regulation of small combustion installations and petrol storage and handling facilities.
- The project started to analyze the conditions that enable commercial banks to support investments in green projects and the mode of access to private finance for green investments on the side of SMEs.
- Launch of the project “Promoting better environmental performance of small and medium-sized enterprises in Georgia” with the Ministry of Environment and Natural Resources Protection as key counterpart.
- A survey of 400 SMEs covering the same activity sectors as in Ukraine was conducted, showing that only approximately 13% of SMEs have an environmental permit or license but must comply with general environmental protection requirements, while the majority of enterprises (74%) complies with national environmental legislation, but does not wish to go beyond these requirements. In response to the survey a further in-depth study on the adaptation of existing SME support tools, as they are envisaged in a SME Development Strategy, is being requested.
- Key policy recommendations had been developed in view of a third stakeholder workshop in February 2016.
- The report "Access to Green Finance for SMEs in Georgia" was published in English and Georgian. Language.
- Environmental, Social and Governance (ESG) disclosure principles" were developed and published in cooperation with the Central Bank of Georgia
- As part of the project, green public investment programmes will be designed in line with international good practices; training sessions on medium-term environmental investment planning and management for environmental authorities will be conducted; a summary report will be prepared; and the contribution to and participation in an international conference on access to finance for green investments being organized by the OECD will be offered.