Green Economy Analysis in Georgia

This report applies the Sustainable Asset Valuation (SAVi) methodology to evaluate the financial and macroeconomic viability of green economy (GE) investments in Georgia, specifically focusing on the building, agriculture, and tourism sectors. It demonstrates that while traditional financial analysis may show limited returns, a systemic approach accounting for externalities and GDP growth reveals significant positive returns for taxpayers.

• The application of the Sustainable Asset Valuation (SAVi) methodology to Georgia's green economy investments shows that factoring in externalities and additional GDP growth dramatically improves financial indicators. The sustainable internal rate of return (S-IRR) reaches 84% and the sustainable net present value (S-NPV) is approximately GEL 20.4 billion, compared to a base case with an IRR of around 4% and a negative NPV of GEL -489 million.
• Green economy (GE) investments in Georgia are projected to result in positive economic returns, increased job creation, and higher overall economic growth. While emissions in the building sector are expected to decrease, total emissions may increase due to the associated higher economic growth.
• The analysis identifies a significant potential for carbon emission reduction through GE interventions between 2020 and 2030, with the potential to abate 6.9 million tonnes of carbon dioxide emissions by 2040, averaging 343,830 tonnes per year over 21 years.
• The GE analysis utilized three specific SAVi modules to assess sectoral impacts: SAVi Irrigation for drip irrigation and sustainable land management in agriculture; SAVi Buildings for resource-efficient technologies; and SAVi Wastewater for centralized and decentralized sewage treatment in tourism.
• The report defines specific GE scenarios for 2030: 30% of new constructions being green buildings; 20% of farmland managed with sustainable practices (leading to a 10% yield increase and 20% premium price); and 50% of new hotels being green, with tourists paying a 20% premium and 50% of food sourced locally from sustainably managed land.
• Agriculture is the most critical sector for employment in Georgia, employing approximately 45% of the total workforce, though it is characterized by a high share of self-employed subsistence farmers and relatively low mechanization.

APA

Bassi, A. M., Perera, O., Wuennenberg, L., Pallaske, G., & Uzsoki, D. (2019). Green Economy Analysis in Georgia. International Institute for Sustainable Development. https://www.iisd.org/system/files/2020-09/savi-green-economy-georgia.pdf

Chicago

Bassi, Andrea M., Oshani Perera, Laurin Wuennenberg, Georg Pallaske, and David Uzsoki. Green Economy Analysis in Georgia. International Institute for Sustainable Development, 2019. https://www.iisd.org/system/files/2020-09/savi-green-economy-georgia.pdf.

Wikipedia

{{cite report |last1=Bassi |first1=Andrea M. |last2=Perera |first2=Oshani |last3=Wuennenberg |first3=Laurin |last4=Pallaske |first4=Georg |last5=Uzsoki |first5=David |title=Green Economy Analysis in Georgia |publisher=International Institute for Sustainable Development |date=January 2019 |url=https://www.iisd.org/system/files/2020-09/savi-green-economy-georgia.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bassi2019green, author = {Bassi, Andrea M. and Perera, Oshani and Wuennenberg, Laurin and Pallaske, Georg and Uzsoki, David}, title = {{Green Economy Analysis in Georgia}}, institution = {International Institute for Sustainable Development}, year = {2019}, month = jan, url = {https://www.iisd.org/system/files/2020-09/savi-green-economy-georgia.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }