Green Economy Analysis in Georgia

The report evaluates green economy (GE) investments in Georgia, focusing on buildings, agriculture, and tourism. Using the SAVi methodology, it demonstrates that while traditional financial analysis suggests these investments may not be profitable, incorporating environmental, social, and economic externalities reveals a high sustainable internal rate of return (S-IRR) of 84% and a sustainable net present value (S-NPV) of approximately GEL 20.4 billion.

• Green economy investments in Georgia are projected to yield positive economic returns, stimulate higher economic growth, and create jobs. While emissions in the building sector would decrease, overall emissions are expected to rise due to increased economic growth.
• A financial assessment using the SAVi methodology shows that GE investments are justified when externalities and additional GDP growth are included. The sustainable internal rate of return (S-IRR) reaches 84% and the sustainable net present value (S-NPV) is approximately GEL 20.4 billion.
• Traditional financial analysis that ignores externalities and additional GDP growth indicates that GE investments in Georgia are not self-covering, with an internal rate of return (IRR) of around 4% and a negative net present value (NPV) of GEL -489 million.
• The analysis identifies specific green economy targets for 2030: 30% of new constructions should be green buildings, 20% of farmland should be managed with sustainable practices, and 50% of newly constructed hotels should be green.
• Implementation of green economy interventions between 2020 and 2030 has the potential to reduce carbon dioxide emissions by 6.9 million tonnes by 2040, averaging approximately 343,830 tonnes per year over 21 years.

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} }