BAKU, Azerbaijan, July 4. Georgia continues to prepare for the launch of a carbon market.
This was announced in the Asian Development Bank (ADB) report "Exploring the Impact and Opportunities of Carbon Pricing in the Transport Sector in CAREC Countries".
The report noted that Georgia's carbon market is in the early stages of development.
According to the report, at the national level, neither a carbon tax nor an emissions trading system (ETS) has yet been introduced.
The report said that the government of Georgia has focused on establishing fundamental infrastructure for a future carbon market, including a national monitoring, reporting, and verification (MRV) system for greenhouse gas emissions, as well as developing cooperation within international carbon trading mechanisms.
The publication emphasized that in September 2024, the Georgian government approved amendments to the Law on Environmental Protection, providing for the introduction of an MRV system for greenhouse gas emissions.
"Under the adopted regulations, from 1 January 2026, certain industrial and aviation companies will be required to obtain a GHG emissions permit, for which they will need to prepare an emissions monitoring plan and report regularly to an authorized body. A national emissions accounting infrastructure is being established; all major emitters will measure and verify their emissions, which is necessary for the launch of market mechanisms and accurate tracking of progress. Thus, between 2024 and 2026, the legal framework for the functioning of the carbon market in Georgia and participation in international emissions trading will be established," the bank information said.
The ADB also noted that Georgia's regulatory and strategic framework is gradually being aligned with European Union policies under the Association Agreement.
"The European Commission’s 2023 report notes that Georgia has adopted a climate change strategy and action plan for 2030. However, overall alignment with the EU acquis in the climate field is still at an early stage," the report explained.
Furthermore, the document emphasized that Georgia doesn't yet have a national carbon market or sectoral emissions trading systems.
"The creation of a domestic ETS is seen as a long-term task," the report said.
According to the ADB, in its 2021 updated Nationally Determined Contribution (NDC), Georgia stated its intention to participate in international and voluntary carbon markets, including under Article 6 of the Paris Agreement.
"Accordingly, the country is focusing on cross-border carbon trading mechanisms rather than on creating an isolated domestic market," the report mentioned.
In addition, the report noted that Georgia has already concluded its first bilateral agreements under Article 6 of the Paris Agreement with Switzerland and Japan.
