Improving the Incentive Framework and Capacity for Green, Climate-related Investments in Eastern Partnership Countries and Central Asia
As of: September 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
- Anchoring green recovery concepts in short-term stimulus packages and longer-term response programs will be addressed primarily through the secondment of economic advisors to relevant policy institutions.
- A survey was conducted among 410 SMEs from the sectors of agriculture, fisheries, mining, food production and processing, construction, hotels and restaurants (in Poltava region). Recommendations for improved environmental standards for SMEs will be developed based on the results of this survey.
- A stakeholder workshop was held where a project analysis was discussed. The analysis contains policy recommendations for an improved regulatory framework for climate-friendly industrial facilities. Specific recommendations on environmental requirements for smaller incinerators and storage facilities were also presented.
- The project analyzed framework conditions to enable commercial banks to finance investments in climate-friendly projects. Access to appropriate private financing on the part of SMEs is also being assessed.
- A survey was conducted among 400 SMEs covering the same sectors as in Ukraine. The results of the survey showed that only about 13% of SMEs possess an environmental permit. As a result, a study on adapting already existing regulations and strategies to promote climate and environmentally friendly SMEs is underway.
- 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.
- Two stakeholder meetings on 'Greening Public Expenditure' were held. The meeting discussed the proposed project 'Designing Green Public Investment Programs and Conducting Training in Georgia', which will serve as a model for preparing further low-carbon public investment programs within the national Medium Term Expenditure Frameworks (MTEFs).
- A workshop on national environmental funds for promoting green investments was held to share experiences with other regional environmental funds and to derive lessons learned for the national ecological fund.
- Another workshop on the implementation of the designed Clean Public Transport (CPT) program was held virtually. It included a presentation of the project as well as a discussion of the key findings of the draft report on potential funding sources. Further steps in the implementation of the CPT program were also identified.
- A background paper focused on 'Greening Public Expenditure' was prepared and submitted to the Ministry of Ecology and Natural Resources.
- The project will design green public investment programs according to international best practices; provide training sessions on medium-term environmental investment planning and management for environmental agencies.
- The annual meeting of the GREEN Action Task Force discussed the environmental impacts of the COVID-19 crisis and policies that can be applied for a resilient, sustainable and inclusive economic recovery.
- Implementation of the project 'Greening debt capital markets in the countries in Eastern Europe, Caucasus and Central Asia: the role for green bonds' started in March 2021.
- Two case studies on 'Designing and Greening Public Investments Programs and Conduct Trainings in EaP countries' were conducted.-- An online seminar organized by UNDP on NDC financing and investment strategies for Eastern Europe, Caucasus and Central Asia presented key events and conclusions from the draft analysis on fossil fuel subsidies in EaP countries.