Armenian government to assess financial costs of adapting economy to global climate change

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YEREVAN, May 23. /ARKA/. The government of Armenia will assess the financial costs of adapting the economy to global climate changes, Nature Protection Minister Erik Grigoryan told reporters today on the sidelines of the Regional Sustainable Finance forum, underway in the Armenian capital Yerevan.

The goal of the forum is to catalyze investments for sustainable infrastructure and development in the region, through innovative financing models. The forum is specifically designed for impact investors, commercial banks, microfinance institutions, SME-s and start-ups that have a business model incorporating environmental and social impact.

The minister said thanks to progress more “green” technologies are used, including solar power panels, which reduce dramatically the costs and emissions of harmful gases. The new technologies enable also efficient and economic use of water resources.

In this context, he said many problems can be solved if governments and private sector adhere to three basic principles when investing – economic productivity, social justice and environmental safety. He also stressed that the potential of solar energy is very large and beneficial from an environmental point of view.

“We asked a foundation to assess the amount of financial resources necessary for the adaptation of the Armenian economy to global climate change. Similar assessments have been made in Georgia and Kazakhstan identifying large resources.’ The minister said

“As a result of global climate change, the air temperature in Armenia has increased by 1.3 degrees, which means that all entrepreneurs must make changes in their business processes, including changes in irrigation, construction, energy, environment, management of forests and all this should be taken into account,” said Grigoryan.

UNDP Investment Advisor Vahagn Voskanyan, for his part, said this is a global issue and according to some calculations, $100 billion are needed to solve the problem in Europe alone, while total investments are estimated at $500 billion. For Armenia, there are no such calculations yet,” said Voskanyan.

The Regional Forum on Sustainable Finance is organized by the Dutch consulting company Greenpact in collaboration with UNDP and the impact venture accelerator UNDP ImpactAim.

More than 200 companies are participating in the gathering, including Finance in Motion, Green for Growth Fund, TCX, EBRD, Frankfurt School Finance Services, MFX, MF-rating and many others.

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