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.