Improving the Incentive Framework and Capacity for Green, Climate-related Investments in Eastern Partnership Countries and Central Asia

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 supported investment-enhancing reforms for climate-friendly economic activities and infrastructure measures, both public and private. To this end, it analysed investment, corporate and environmental strategies aimed at deriving political recommendations for action at national and international levels. The focus wasis on small and medium-sized enterprises and private commercial banks. The project was 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 introduced effective approaches to regional strategy dialogues at national level, disseminating experiences and success models. The project was part of the IKI Corona Response Package.

Project data

Countries: Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Ukraine, Uzbekistan
IKI funding: 4,989,578.92 €
Duration: 08/2014 till 09/2023
Status: completed
Implementing organisation: The Organisation for Economic Co-operation and Development (OECD)
Political Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
Implementing Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
Online: http://www.green-economies-eap.org/

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State of implementation/results

Project completed.
Aligning green recovery concepts with short-term stimulus packages and longer-term response programs will be addressed primarily through the secondment of economic advisors to relevant policy institutions.
In Armenia, the project supported the preparation of a report to UNEP on fossil fuel subsidies and SDG 12. As part of this work, a meeting on subsidies in Armenia was organized in November 2021. The work under the project resulted in the preparation of a report "Aligning short-term recovery measures with longer-term climate and environmental goals in EECCA." The analysis tracked and assessed more than 100 such measures in 11 EECCA economies for potential environmental impacts.
It also provided an overview of existing policies with environmental and climate goals in each country. The report and discussions at the GREEN Action Task Force meeting provided guidance to EECCA country governments to create a greener, more resilient, and inclusive economy.
An updated report on fossil fuel subsidies in EECCA Eastern Partner Countries with 2020 data was prepared. Fossil fuel subsidy data for all six Eastern Partner Countrieswere entered into the OECD database. The publication an important milestone on the road to transparency in this area. It also recognized the efforts of Eastern Partnership governments to disclose information on the extent of government support to the energy sector in these countries. the energy sector in these countries. Green public investment programs are currently being developed in Georgia, Moldova, and Azerbaijan. This work equips government officials and experts with know-how and practical skills to obtain adequate funding from public budgets and leverage international financing to implement the programs. Assistance to Moldova focuses on implementation of the Clean Public Transport program, Georgia is developing a program for biowaste management, and Azerbaijan on water resources.
As part of this work are carried out training on the design public investment programs:
- Training on implementation Clean Public Transport in Moldova
- Workshop on design and implementation of green public investment programs in Azerbaijan. --Design and implementation of green public investment programs
- Experiences of EU countries with water supply and wastewater treatment in rural and remote areas
- Recycling of agricultural residues: experiences from European countries. Completion is expected in Q2 2022.
Moldova and Ukraine are revising their national fiscal authorities: Moldova has a process to reform its National Ecological Fund by developing a new manual and regulation for the Fund's operations. Under the leadership of the Minister of Environment, a new Law 1515/1993 was amended and approved by the Parliament of Moldova in March 2022. The amendments to the law include a significant reform of the now renamed National Environmental Fund. In Ukraine, an analysis of the reform of the system of environmental taxes and charges is being carried out. Completion is expected in the third quarter of 2022, subject to changes due to the conflict.
Ukraine was selected as one of 10 countries to participate in the OECD's large-scale, nationally representative survey designed to gauge public acceptance of climate change Understanding Policy.
Work to unlock the potential of the green bond market was initiated in six Eastern Partner Countries (Armenia, Azerbaijan, Belarus, Georgia, Moldova, Ukraine) to analyze the possibility of using green bonds to leverage additional resources for the transition to a low-carbon and resilient economy.-- In Uzbekistan, an advisory team was established to work with the Ministry of Economic Development and Poverty Alleviation on linkages between COVID-19 recovery and green economic development. In addition to providing short-term advice on green recovery, the ministry is interested in developing and applying green indicators to measure progress in greening the economy. In the Kyrgyz Republic, a consultant was appointed and worked with the Ministry of Economy on ways to attract green financing to the country.

Latest Update:
04/2024