Georgia takes big strides towards an energy-efficient future

After six years of work, Georgia now has state-of-the-art energy efficiency laws that will contribute to its green economy transition, reports the European Bank for Reconstruction and Development (EBRD). The laws will enable the country to make energy savings of up to 14% by 2025, helping it meet its international obligations in combating climate change, increasing its energy security and strengthening its energy links with the European Union, says the Bank.

Adoption of two new pieces of legislation – the Law on Energy Efficiency and the Law on Energy Performance of Buildings, passed in May 2020 – are expected to also help improve energy performance standards for new constructions and building retrofits in line with EU standards.

The potential for improving energy efficiency in Georgia is huge, according to the EBRD. Fossil fuels are the main source of greenhouse gas emissions in the country and account for up to 75% of primary energy supply.

‘The adoption of the new energy efficiency laws is a landmark achievement for Georgia, which until now had practically no energy efficiency regulations in place and very limited investment in energy performance,’ says Vesselina Haralampieva, Senior Counsel in the Legal Transition Programme, who led the EBRD’s work on the energy efficiency law.

The EBRD claims that having these laws in place creates a policy environment in which it is easier to invest. Indeed, the EBRD is already preparing its first project in the sector. It is expected to invest €40mn this year in providing 250 public buildings in Georgia with an energy-efficient retrofit. The adoption of the energy efficiency legislation was a requirement for the deal.