Georgia—Green Economy Program

Georgia faces a number of geopolitical challenges. To help counter malign influence, Georgia’s private sector needs to create inclusive, high-value jobs across the country, demonstrating the benefits of the Western economic model to citizens. As Georgia aspires to join the European Union (EU) and its firms seek to increase exports to the EU and other new markets, it will need to comply with increasingly stringent environmental and decarbonization regulations, such as the EU Green Deal framework.

Sustainability is also important for Georgian companies seeking to access capital, as investors globally are incorporating environmental, social, and governance elements into their decision-making process. Regulations such as the EU Taxonomy require investors to report on how their activities relate to climate change mitigation and adaptation, sustainable use of natural resources, and transition to a circular economy.

Despite having made many strides, compliance with international environmental standards and market requirements is low in Georgia, while many companies still focus on Russia and China, which have less strict requirements. While tourism spending has grown by 5 percent since 2019, the sheer volume of tourists and migrants from Russia has created pressure on the environment, and the sector is one of the largest producers of waste.

The USAID Green Economy Program, a follow-on to DAI’s successful Georgia Economic Security Program aims to improve the productivity and economic competitiveness of Georgian enterprises in the tourism, light manufacturing, digital, and solid waste management sectors while strengthening Georgia’s economic ecosystem to support further growth in these areas. The program helps enterprises increase sales, expand exports to Western markets, attract investment, and create high-value jobs. The USAID Green Economy Program works to reduce the environmental footprint of firms in the targeted sectors and catalyze a shift toward low-carbon, climate-resilient development, thereby helping Georgia meet the requirements of its EU Association Agreement.

Sample Activities

• Strengthen the competitiveness and capacity of individual firms.
• Support partnerships that catalyze high-value employment in economically disadvantaged areas—with a strong focus on tourism and digital industries.
• Strengthen the ability to meet international standards for export to Western markets.
• Support firms to become climate resilient and reduce environmental impact.
• Support the development of recycling enterprises and increase the capacity of solid waste management sector.
• Facilitate partnerships to address critical skill gaps in targeted sectors.