The Country Climate and Development Report (CCDR) for Armenia provides an analysis of the country's climate and development challenges, offering a roadmap towards a cleaner environment, energy security, and economic resilience. The report emphasizes Armenia's dependence on imported natural gas, which contributes significantly to its greenhouse gas emissions. This reliance makes the country vulnerable to climate change impacts such as floods, droughts, and landslides.
The CCDR outlines that by 2060, climate change could shrink Armenia's economy by up to 3% and increase poverty by 2.7 percentage points by 2030. To counter these effects, the report suggests transitioning from gas to solar energy as crucial for energy security. It also stresses improvements in food and water security as essential for economic growth.
Achieving a low-carbon future will require an estimated $8 billion investment between 2025 and 2060. "Climate mitigation and adaptation are essential for Armenia's long-term economic resilience," states the report. It recommends fiscal reforms alongside changes in sectors like energy, transport, water, agriculture, and disaster risk management.
Armenia's heavy reliance on imported natural gas accounts for 63% of its energy supply. Transitioning to renewable sources like solar power is seen as a way to reduce costs and emissions while improving energy security. Adaptation investments are necessary due to existing water stress and vulnerability to climate impacts.
"Decarbonizing Armenia’s economy will initially require investment but will ultimately boost GDP," the report notes. It predicts that reduced air pollution could add 1.5% annually to GDP by 2060 through sustainable growth driven by clean air and increased productivity.
The report also highlights opportunities in green growth through targeted investments in green technologies. Recommendations include promoting green growth via structural reforms, mobilizing private capital for climate projects, introducing carbon pricing, scaling up renewable energy generation, increasing water storage efficiency, boosting agricultural productivity with climate-smart practices, strengthening infrastructure resilience, and implementing land restoration programs.