Green Business 2021

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By GELA MEGENEISHVILI

W

ith CSR being embedded deep within corporate culture, RMG has been successfully pursuing environmental projects for quite some time.

Restoring biodiversity, protecting the environment and fighting against pollution are but some of the few deeds that the company has accomplished. To find out more, The FINANCIAL reached out to Sandro Devidze - the Deputy Environmental Director of RMG. Q. What does Environmental Sustainability mean to RMG’s business?

A. Environmental sustainability for RMG means conducting business responsibly.

Continued on p. 4

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The Ministry of Environmental Protection and Agriculture Taking Steps to Promote a Green Economy in Georgia

T

he Ministry of Environmental Protection and Agriculture has plans to promote a green economy in the country. We have received several regulations in the current year, which apply to waste management, air pollution and the protection of other environmental issues.

The Ministry of Environ-

mental Protection and Agriculture plays an important role in shaping the green economy. Projects implemented at the executive level assist the business sector in promoting environmental activities; public-private partnership is the most important in this regard.

In an interview with The FINANCIAL, Levan Davitashvili, Minister

of Environmental Protection and Agriculture, spoke about the achievements and challenges in terms of the green economy in our country. In addition, he noted the future plans that are on the agenda of the Ministry to promote the development of green business in Georgia.

Q. What is the impact of Georgian business (emissions) on the envi-

ronment?

A. Naturally, any business has an impact on the environment. Both in Georgia and in the world there is no economic activity that does not have an impact on the environment. The biggest impact factors in Georgia are the transport, construction and industrial sectors.

Continued on p. 2

Toyota Reduced More Than 100 Million Tonnes of CO2 Emissions through its Green Strategy

H

elping to reduce the environmental impacts of our products and operations is a priority for Toyota. Green technology has been the focus of our innovation for decades. When we launched the Prius, the

first mass-produced hybrid car, we reduced CO2 emissions by over 100 million tonnes. We believe there is no single approach to creating the ultimate eco-car.

Toyota is one of the largest auto companies in the world, leading the market with its products and innovative ap-

proaches. It operates successfully in the Caucasus region and is constantly focused on delivering quality products to customers. Toyota cares about integrating environmental issues into the business; in this regard it has carried out significant activities.

In an interview with

The FINANCIAL, Koji Matsuno, President of Toyota Caucasus, talks about the importance of green business development in Georgia and Toyota Caucasus’s achievements in this regard.

Continued on p. 6

Parliament of Georgia Approves Law on Environmental Liability - Big Step for the Promotion of Green Business in Georgia

T

he most important and rising point in the 4-year plan approved by our committee is to promote a green economy. I can proudly say that just a few months ago, the Parliament approved the Law on Environmental Liability, which is a very big step forward for the formation of environmental law in Georgia.”

The effective functioning of the public sector plays an important role in the development of green business. This means taking important steps, first at the legislative level and then in terms of enforcement.

Continued on p. 11

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Investors buy property in Georgia aiming for capital increase, new survey The FINANCIAL

S

ince 2020, global travel restrictions have proven to be the primary factor impeding cross-border real estate transactions among Russian-speaking investors, according to Tranio’s latest annual survey. Despite the development of remote investment tools, physical presence remains a non-negotiable for the majority of Russian-speaking investors, a fact that rings especially true as these investors seek new properties to add to their portfolios. Our 2021 survey – the ninth such poll we have conducted in as many years – elicited responses from 414 real estate professionals across 35 countries in Europe, Asia and America, that are popular among Russian-speaking investors. Respondents include both Russian and non-Russian speaking real estate agents, brokers, developers and consultants.

Key takeaways from the report:

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The key driver for Russianspeaking property buyers abroad is to become a resident of a foreign country.

Half of respondents from Georgia said the key investors’ driver was “Protection from political and economic risks back home”. While rare in other countries, this factor proved to be a second-place driver for Germany (43%) and the USA (33%).

38% of respondents in Georgia believe that investors buy property in Georgia aiming for capital increase.

The average transaction budget for Russian-speaking buyers in Georgia was €300k.

Overall, the average transaction budget in 2020 across all countries doubled to €620k since 2019.

The activity of Russian-speaking investors in Georgia declined less significantly to that seen among other foreign buyers in other countries in 2020.

International travel restrictions were the top reason for transactions having fallen through in 2020, according to 66% of respondents. This fell into the top two causes for such transaction failures in all countries we considered, having received especially high response rates in Georgia (100%), Slovenia (83%), Croatia (80%), Greece (76%), Spain and France (75% each).

Issues with obtaining a bank loan were not noted at all in the countries targeted for capital increase (the UK, Hungary, Georgia).

Demand for housing abroad among investors from Russia and the CIS fell by more than 20%.

Investors from CIS have lowered expectations of yields from core rental business to 5% p.a. (compared to 6.7% in 2018).

Since 2020, global travel restrictions have proven to be the primary factor impeding cross-border real estate transactions among Russian-speaking investors.

This finding represents a marked shift in trends we had observed in previous years. In 2021,

two-thirds of the respondents (66%) said that border closures were the top impediment to the international real estate investments. In previous years, excessively high yield expectations had been the largest impediment among our demographic, as indicated by 44% of respondents in 2019 and 56% in 2018. In 2021, excessively high yield expectations were specified as the secondplace deterrent, named as an impediment by 27% of respondents – far fewer than the number who pointed to travel restrictions.

The opportunity to acquire foreign residency proved to be the key driver encouraging Russianspeaking investors to scoop up properties abroad, according to our latest poll. Toward this end, these investors have exhibited a preference for purchasing residential properties, followed by hotels, retail properties and land plots. The average transaction budget among our respondents was €620,000 – a figure that has doubled since our 2019 survey – although particular budgets vary from €180,000 to €3,000,000 by country. On average, Russianspeaking investors expect a net ROI of about 5% per annum from their core rental business.

Key drivers: residency, capital preservation, and capital increase Nearly half of our respondents (48%) said their clients from Russia and the CIS countries were primarily interested in the acquisition of residency or citizenship when purchasing income properties in 2020. None of the other drivers on the list was chosen by more than one-third of the respondents.

Surprisingly, many respondents cited residency as a driver even in the countries where residency is not an immediate option in connection with the investments.

Residency is a more obvious driver for investments in countries with residency- or citizenship-byinvestment programs (i.e. Greece, Spain, Portugal); but this was also a key motivator in countries offering golden visas for investment in assets other than real estate (specified by 71% respondents in Bulgaria and 36% of respondents in Italy), or even in countries that do

not offer residency by investment (named by 67% of respondents in Slovenia and 50% in France).

George Kachmazov, Managing Partner at Tranio, believes these conclusions reflect a long-game approach to property investments. “These findings can be interpreted as identifying not only the investors that immediately acquire their golden visas, but also those that purchase properties as part of their wider investment activities ultimately targeting naturalisation in a foreign country. To illustrate, many wealthy Russians plan to spend their retirement years on the Côte d’Azur or other luxury locations in France, so they are now building up their business and personal presence there to facilitate acquisition of residency in the future,” Kachmazov said.

The acquisition of residency or citizenship is a key driver for international real estate investors in this demographic.

Portugal and Malta attract investors by residency, while Finland and the USA – by capital preservation Buyers targeting the most popular countries choose one or two of the three key drivers: acquisition of residency, capital preservation, or capital increase.

“The predominance of one driver – such as golden visas – in a particular country does not imply that such a country would be an inappropriate choice for other types of investments,” Kachmazov said. “There are quality projects geared toward capital preservation as well as capital increase in all the 64 countries where we work.”

Half of respondents from Georgia said the key investors’ driver was “Protection from political and economic risks back home”. While rare in other countries, this factor proved to be a second-place driver for Germany (43%) and the USA (33%).

Investment portfolio diversification was important for Russian-speaking investors in Slovenia (33%), Latvia (29%), Austria (22%), and the Czech Republic (22%).

The driver “Ease of international travel” did not factor among

3

HEADLINE NEWS & ANALYSIS

HEADLINE NEWS & ANALYSIS

the top three drivers for any of the countries but received notable scores for investors in France and Montenegro (chosen by 25% respondents for each of these countries) and Greece (19%).

The UK is the only country surveyed where Russian-speaking investors were more active in 2020 than they had been previously In 2020, Russian-speaking investors abroad were sluggish compared to previous years, but were no less active than investors from other countries, according to 42% of respondents. However, another 31% of respondents said that activity had declined much more.

The survey findings produced tentative estimates of rates of increase or decrease in activity by Russian-speaking investors as compared with general international dynamics: Their activity declined by 1520% compared with the other foreign investors in countries for which the predominant driver was residency. Major declines were seen in Italy and Spain (by about 30% each), Austria (by 40%) and Bulgaria (by over 50%).

The activity of Russian-speaking investors declined at a similar rate to that seen among other foreign buyers in countries targeted mostly for capital preservation.

In countries that tend to attract investors driven by the goal of increasing capital, investment activities fell by 10-15% as compared to other foreign investors.

The decline in Turkey was only about half as pronounced as that seen among others, and the UK is the only country named by the respondents where Russian-speaking investors showed more activity in 2020 than before.

The UK is the only country named by the respondents where Russian-speaking investors were more active in 2020 than before.

In comments accompanying their responses, respondents suggested that much of the decline in activity in 2020 was attributable to investors with low budgets, whereas high-budget investors Continued on p. 16

green business

FINCHANNEL.COM | 9 August, 2021

The Ministry of Environmental Protection and Agriculture Taking Steps to Promote a Green Economy in Georgia

T

he Ministry of Environmental Protection and Agriculture has plans to promote a green economy in the country. We have received several regulations in the current year, which apply to waste management, air pollution and the protection of other environmental issues.

The Ministry of Environmental Protection and Agriculture plays an important role in shaping the green economy. Projects implemented at the executive level assist the business sector in promoting environmental activities; public-private partnership is the most important in this regard.

In an interview with The FINANCIAL, Levan Davitashvili, Minister of Environmental Protection and Agriculture, spoke about the achievements and challenges in terms of the green economy in our country. In addition, he noted the future plans that are on the agenda of the Ministry to promote the development of green business in Georgia.

Q. What is the impact of Georgian business (emissions) on the environment?

A. Naturally, any business has an impact on the environment. Both in Georgia and in the world there is no economic activity that does not have an impact on the environment. The biggest impact factors in Georgia are the transport, construction and industrial sectors. But of course, from the point of view of the environment itself, climate change also affects the environment and it is very important to take care that businesses are responsible, are greener, and have less of an impact on the environment.

Q. Can you provide the number of deaths per year associated with pollution in Georgia?

A. Unfortunately, statistics on the number of deaths due to environmental pollution are not produced in Georgia, although there are some studies by the World Health Organization, on which the country relies, but in the future these statistics need to be improved for more accurate information. We are working with the Ministry of Health to do this, but it is also very important to monitor pollution in general, which affects human health, and in this regard the country is doing a lot for better, more comprehensive information, and at the same time to make it available to the public.

Q. Which businesses have the worst impact on the environment?

A. The businesses that have a rela-

LEVAN DAVITASHVILI, Minister of Environmental Protection and Agriculture

tively greater impact on the environment are primarily the construction and industrial sectors, at the same time in the industrial sector we can distinguish the metallurgical sector, mainly steel and ore processing. The transport sector also has a significant impact, as mentioned above, as one of the main polluters. Accordingly, our policy is to make the activities of these businesses more accountable in order to reduce the impact on the environment.

Q. What is the Ministry of Environmental Protection and Agriculture of Georgia doing to promote green business?

A. Promoting green business is certainly very important; it is also part of the sustainable development plan that every country has for 2030.

This is one of the responsibilities of Georgia in the Association Agreement with Europe. Therefore, we are in constant communication with business to implement green principles in the country, but this is not limited to talking; we are also working with the UN Economic Commission, the European Commission, on a specific strategy to encourage different directions of green economy in the country: the principle of circularity; organic agriculture, etc.; and using renewable energy to make our environment and economic development greener.

Q. What have been your main achievements in green business development in the period of 2019/2021?

A. 2019-2021 has been important for the development of the green economy and green businesses in particular. Georgia is working intensively with the Green Climate Fund, which provides funding for various green initiatives in the country.

Through the Green Climate Fund, we have launched a new project in the public sector that allows us to prevent and monitor natural disas-

ters. We have also started to develop specific economic sectors, including sustainable forestry. This is a new, important project funded by the Green Climate Fund. We have also made progress in our relationship with the Green Climate Fund in the sense that one of the private, commercial banks, TBC, has already managed to obtain accreditation as an implementing partner.

The Energy Development Fund, which is part of the Ministry of Economy, also managed to be a direct implementing partner. Apart from the international organizations that are already represented in the country and help the country to use the resources of the Green Climate Fund, if Georgian actors were to be more directly involved in all this, I am sure we would be able to have more financial access in this regard. The introduction of sustainable public procurement principles in cooperation with Europe, which took place with the Procurement Agency, can also be considered an achievement of the period of 2019-2021. This is a very important part of promoting green business in public procurement. This is one of the tools that will give green business even more motivation in the future. We have also reached an agreement to create specific monetary mechanisms to encourage green business decisions.

In particular, we want to introduce a state system regarding carbon emissions, in which our Swiss partners will help us; there is already an agreement on that. An agreement was also reached with the National Bank to issue green bonds specifically. Hence much was done in the country in 2019-2021 to encourage green business initiatives in the country; to create specific monetary instruments. In the following period, I think we have created a good basis for making all this large-scale.

Q. How would you evaluate

the overall ‘green business’ situation in Georgia?

A. I think that the urgency of green business in the country has been recognised; the responsibilities of businesses have started to be made public. This is very important and is probably the result of the constant communication that the Ministry has with the private sector. However, it can still be said that green business in Georgia is at an early stage.

There is a lot to be done to make our enterprises more environmentally responsible and use technologies that have less of a negative impact on the environment, reduce emissions, use renewable energy sources and so on. I believe that steps have been taken, certain regulations have been defined at the policy level, and there is a certain legal framework and basis for business to develop in this direction, although all this will probably take time with significant cooperation between the private and public sectors.

Q. What are the main challenges you see in terms of green business development in Georgia?

A. I think that there are two important challenges for businesses to develop green areas in Georgia: first of all access to finance. In general it is not only an obstacle for the development of green business, but also one of the challenges in all sectors of the economy is insufficient financial resources. By this I mean the general capital shortage in the country because virtually every business initiative in our country is mainly financed by bank credit resources. The capital market is still in its infancy.

Here, state, grant or other types of co-financing are of great importance, which encourage this or that direction. This way we will have to work with donors in the development of green business in order to provide more financial resources to the busi-

ness and introduce new technologies that will be more sustainable.

The second part is also no less important, it is the general lack of competence and lack of knowledge.

We are working intensively on this.

We have the Environmental Information and Education Center, which is the main communications agency in talking to the private sector. We also have problems with perception, because business is not fully aware of green priorities, but at the same time there is already a lack of competence in the case of perception to implement all this. Three of these important challenges should probably be singled out: these are access to finance; there is the problem of perception and awareness in general; and then competencies and qualifications.

Q. When companies try to become sustainable, what is the hardest part for them?

How are you supporting them?

A. In order for business development to be more sustainable and greener, they need access to new technologies. This as I mentioned is largely related to the investment opportunities of the business, which are often limited. We can still say that more sustainable and newer technologies around the world are more expensive than outdated technologies. Perhaps with technological progress this situation will change, but today we understand that an important role here is played by the state in general and also the international community to motivate businesses to use new, more sustainable approaches in running their businesses and therefore compensation must be provided.

Among them, we mentioned that the monetary mechanisms that are necessary to introduce this will help Continued on p. 13

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HEADLINE NEWS & ANALYSIS 9 August, 2021 | FINCHANNEL.COM

24 Million+ spent by RMG to protect the environment

By GELA MEGENEISHVILI

W

ith CSR being embedded deep within corporate culture, RMG has been successfully pursuing environmental projects for quite some time. Restoring biodiversity, protecting the environment and fighting against pollution are but some of the few deeds that the company has accomplished. To find out more, The FINANCIAL reached out to Sandro Devidze - the Deputy Environmental Director of RMG.

Q. What does Environmental Sustainability mean to RMG’s business?

A. Environmental sustainability for RMG means conducting business responsibly, with minimal impact on the environment, and planning activities with a longterm vision that considers the interests of both present and future generations.

Our goal is to ensure a safe and healthy environment for our 3,300 employees, contractors and locals, and we firmly believe an appropriate way to carry out work with minimal impact on the environment can always be found.

The company highly promotes local entrepreneurship in the region, especially the financing and development of winemaking in Bolnisi; we care about the education of the youth, their career advancements, and preservation of cultural heritage in the region. Recently, the company has started to develop industrial tourism, which enables those interested to witness the company’s activities, technologies and find career opportunities.

This is our vision for sustainable development; while from an environmental standpoint, the company is carrying out works on an unprecedented scale.

Q. How would you evaluate the environmental situation in the region where you operate?

A. RMG has been operating in Georgia since 2012, in Kvemo Kartli - Bolnisi and Dmanisi Municipalities. The company inherited the 40 years of history from an old enterprise, a rather heavy legacy to carry. The equipment was outdated, there was a lack of infrastructure to reduce or eliminate environmental impact and the lack of occupational safety standards and equipment was just a small list of problems that could harm the environment before RMG started operations.

SANDRO DEVIDZE, Deputy Environmental Director of RMG

That was the reason why the management decided to modernize the enterprise and elaborate an environmental policy document and action plan with the involvement of international experts. In 2017, we received the company’s Environmental, Occupational Safety and Health Policy document, which was signed by the RMG Group Directory, recognizing it as an inviolable commitment. he policy document clearly defines the company’s environmental and sustainable goals, and to achieve them the company has adopted a separate environmental action plan, which included up to 100 environmental measures.

These measures were coordinated with the Ministry of Environment and Agriculture, the Parliamentary Sectoral Committee, the civil sector and other regulatory bodies. In 2018, the company launched an action plan for the three most important components of the environment - water, air and soil. Since then our environmental surveys have confirmed a significant improvement in the state of the environment.

In particular, the statistics show significant reduction (while, in some cases, complete elimination) of river pollution, minimization of emissions into the air with modern dust control systems, and soil reclamation works, in which the scale

of soil restoration and improvement is increasing every year.

These results of hard work bring pride, hope and motivation to our team, as we believe that with a great deal of effort, the environmental problems accumulated over past decades can be eliminated for good.

Q. Could you specify what the objectives and targets of your sustainability efforts are, and what progress has been made in meeting your goals?

A. RMG’s management aims to minimize environmental impact in the region and to introduce international environmental standards to our enterprise, towards which

we have made significant progress over the last 3 years with 95 out of 97 environmental measures being implemented.

An audit report in compliance with international standards confirms that GEL 24,099,841 was spent by RMG on environmental measures implemented in 20182020, and the number has increased significantly since then.

All of these environmental measures were carried out by international environmental companies in compliance with the international standards which were exactly aligned with the company’s goal.

Among the works performed, it is necessary to mention the measures taken to prevent the pollution of the Kazretula and the Mashavera Rivers. Later this year the installation of modern wastewater treatment facilities will be completed, a project which is being carried out by a PortugueseGerman joint venture.

After the treatment plant is put into operation, the contaminated water will be purified, following European standards, and it will then be safe to discharge into surface water bodies. This will be the first-ever modern chemical treatment plant in our country used for mining activities.

Another project worth mentioning is the reclamation work done by the company for the restoration of damaged soil. In addition to restoration work on quarries and dumps, the company has implemented several forest maintenance projects. 30,000 units of black pine and elder pine seedlings have been planted over 11 hectares, and at this stage, an additional 13 ha of forest restoration activities are underway in Tetritskaro and Bolnisi.

As for the ambient air, the depreciated air-sealing system has been completely replaced with a new, modern, filter-type airsealing system that protects the environment from pollutant emissions. Water purification systems were installed at the ore transfer and loading points, which minimized the spread of dust particles.

To reduce the spread of dust on the roads and inland quarries, RMG purchased 10 units of special vehicles. At the expense of the company, the road infrastructure of state and local importance was improved, which also reduced emissions.

We are striving to gain knowledge and experience from our foreign colleagues and are constantly measuring our results so as to make plans accordingly.

Q. Does RMG have other green plans it intends to carry out over the next few years?

A. The implementation of environmental projects has taken on an irreversible character; it is an ongoing process aimed at annually improving the local environment, air, water, soil and biodiversity.

In addition, the company has initiated a significant investment and the enterprise is being completely re-equipped following modern standards, which increases efficiency, and causes minimal impact on the environment. This process will be completed within the next 2-3 years and will have a positive impact on the economic and ecological situation of the country and the region.

HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 9 August, 2021

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Toyota Reduced More Than 100 Million Tonnes of CO2 Emissions through its Green Strategy

HEADLINE NEWS & ANALYSIS FINCHANNEL.COM | 9 August, 2021

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green business

H

elping to reduce the environmental impacts of our products and operations is a priority for Toyota. Green technology has been the focus of our innovation for decades. When we launched the Prius, the first mass-produced hybrid car, we reduced CO2 emissions by over 100 million tonnes. We believe there is no single approach to creating the ultimate eco-car.

Toyota is one of the largest auto companies in the world, leading the market with its products and innovative approaches. It operates successfully in the Caucasus region and is constantly focused on delivering quality products to customers. Toyota cares about integrating environmental issues into the business; in this regard it has carried out significant activities.

In an interview with The FINANCIAL, Koji Matsuno, President of Toyota Caucasus, talks about the importance of green business development in Georgia and Toyota Caucasus’s achievements in this regard.

Q. Can you describe Toyota Caucasus’s green initiative and practise?

A. First of all thank you very much for showing interest in Toyota and its environmental goals. We believe it is of the utmost importance for all industries to unite to fight the aftermath of disasters taking place throughout the world, which are mainly caused by humans being careless. Considering this, environmental issues have become one of the top priorities for Toyota Motor Corporation. “Respect for the Planet” is our basic philosophy, and based on it in 2015 we formulated the Environmental Challenge 2050.

Q. In what ways are you incorporating social and environmental practices into your business?

A. In 2015, all United Nations Member States adopted the 2030 Agenda for Sustainable Development. This provides a shared blueprint to deliver peace and prosperity for humanity and the planet both now and into the future.

At its heart, are the 17 Sustainable Development Goals (or SDGs), which represent a universal commitment by all countries and stakeholders to act in a collaborative way and to take urgent action. These goals balance the economic, social and environmental aspects of sustainable development and recognize that to end poverty, hunger, and to fight inequality. This focus on sustainable development however, is not new to Toyota. The establishment of a longterm vision and the consideration of all stakeholders (that’s our employees, customers, partners in the value chain and the community) have been included in our principles and values since the company was first established.

A commitment to sustainable development is therefore embedded in our DNA and is visible in every aspect of our business operations and strategy, where the Environment is the top priority area of social contribution activities for Toyota.

Environmental education and sup-

KOJI MATSUNO, President of Toyota Caucasus

port for environmental programmes is one of our major goals. Toyota Caucasus will continue to position maintenance of environmental infrastructure as one of its core values and continue contribution to the preservation of it.

Q. As one of the main auto services companies in Georgia, how would you evaluate the technical condition of cars in Georgia? What are the main problems?

A. Indeed, we monitor the auto park in Georgia and the main issue is actually its age: only 8% of UIO is below 10 years and almost 50% of total cars on the roads are more than 20 years old. Considering all economic and social circumstances in the country though, we do understand the reason behind this. However, on the other hand we all realize that the aged cars imported into the country cause quite a few issues from a safety and ecology point of view. As far as we know though there are some movements from the authorities intended to change this tendency (by applying some incentives, considering new regulations, etc) which of course will influence the overall situation in a positive way.

Q. What is Toyota Caucasus’ strategy in terms of offering eco-friendly cars to local customers?

A. At Toyota our global stance is to offer our customers the right product at the right time as we believe this approach is most efficient in achieving our ultimate goal and contributing to green society. Starting from the first Hybrid introduced in 1997, Toyota is working hard on developing new technologies in different powertrains and today a wide range of electrified technology such as fully hybrid electric vehicles, plug-in, battery electric vehicles and fuel cell electric vehicles are already in our global line-up. However, we

are carefully studying what product is most relevant to the local market and its infrastructure and are considering offering our customers all available technologies gradually. At the moment we are working on offering a full range of HEV vehicles available in our line up and introducing plug-in and electric as a next step. In Georgia we succeeded already in having the widest HEV choice: Corolla HEV; Prius; Camry HEV; C-HR HEV; RAV4 HEV; Highlander HEV. In the near future we will also introduce the Yaris Cross HEV which will be our first HEV vehicle in the B-SUV segment. We do believe switching to HEV technologies is the first but very essential step for eco sustainability in the region.

Q. What are your main achievements in green business development in 2019/2021?

A. 2020 has affected all of us because of Covid. But 2020 is also potentially the starting point of an environmental revolution. Global warming - with the continuous rise of registered temperatures - 2020 holding the sad record of being the warmest year ever registered, climate disasters - like the Australian bushfires last January and the Covid-19 pandemic, have been largely seen by the community as a potential rehearsal toward a much bigger crisis if no actions are taken towards climate change.

At Toyota, we had already declared our long-term ambition towards the environment back in 2015. The Toyota Environmental Challenge has 6 clearly defined ambitions towards a future which is fully respecting the environment. Our everyday efforts are and will be addressed to sustain the direction and do more every day towards reducing human negative impact.

Q. How do the environmental challenges fit into Toyota’s long-term philosophy?

A. In light of mounting global environmental issues, Toyota announced the Toyota Environmental Challenge 2050 in October 2015.

Based on the six challenges, we are taking measures with the aim of achieving zero CO2 emissions and a net positive environmental impact, and will contribute to the realization of a sustainable society emphasizing the importance of “Respect for the Planet” under Toyota Global Vision announced in 2011.

Q. How does Toyota Caucasus engage its employees to think and act upon sustainability?

A. Each Toyota representation in the region has a designated Environmental Manager. Environmental managers make sure to keep in line all environmental requirements either legislative or internal. For the 6th year already Toyota Caucasus maintains ISO 140001 certification. Toyota systematically conducts training of its staff to keep them updated on the environmental requirements, keep track of the waste and its proper utilization including in Retailer Network, where all types of hazardous wastes are properly handled by respective companies.

Q. What do you think you can do in the short and medium term to add to the field of green business?

A. Sustainability is at the centre of everything we do. We focus on creating ever better cars that let people live cleaner, safer, less stressful and more connected lives. We strive to develop future mobility solutions that connect people, vehicles and the city in order to substantially reduce congestion and pollution. We want to operate a business that is profitable, sustainable and a great place to work.

Q. What are the main projects that you have implemented in this direction?

A. Helping to reduce the environmental impacts of our products and operations is a priority for Toyota.

Green technology has been the focus of our innovation for decades.

When we launched the Prius, the first mass-produced hybrid car, we reduced CO2 emissions by over 100 million tonnes. We believe there is no single approach to creating the ultimate eco-car.

That is why, alongside hybrid electric vehicles, we develop plug-in hybrid electric vehicles, battery electric vehicles, and fuel cell electric vehicles powered by hydrogen. We focus on zero impact on the environment, at every stage of a vehicle’s lifecycle.

We innovatively manage vehicles at the end of their life, ensuring that almost all their materials are reduced, reused, recycled and recovered.

Dive into our environmental story and discover what we have done, what we are doing and what we plan to do to achieve harmony between people, products and the planet.

Q. How would you evaluate the overall ‘green business’ situation in Georgia?

A. Georgia recently introduced Extended Producer Responsibility (EPR) in the national Waste Management Code. Under EPR, producers take over the responsibility for preventing, collecting, separating and treating used products (waste) for their eventual recovery. This is an environmental policy approach which reduces the negative impact on the environment.

Toyota Caucasus welcomes the initiative and believes that the regulation will support our intention of implementing environmental activities and introducing effective mechanisms to reduce adverse environmental effects.

Advertiser: Toyota Caucasus. Contact FINANCIAL Ad Dep at marketing@finchannel.com

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9 August, 2021 | FINCHANNEL.COM

Wine Subsidies in Georgia

Irakli Gharibashvili Prime Minister of Georgia

STATEMENT:

Zurab MAISASHVILI

TAKE A LOOK AT THE COUNTRIES OF THE REGION AND TRENDS IN EUROPE, THERE ARE NOT MANY PLACES WITH SUCH A GROWTH

VERDICT:

FACTCHECK CONCLUDES THAT IRAKLI GHARIBASHVILI’S STATEMENT IS HALF TRUE. ZURAB MAISASHVILI FactCheck

RESUME:

According to the World Bank’s data, countries from Eastern Europe, Middle East, Central Asia, Balkan Peninsula and Caucasus, in total 23 countries, comprise Georgia’s region.

Based on data of the first six months of 2021, Georgia ranks fourth in the region in terms of its economic growth rate and only Romania, Hungary and Montenegro have better figures. However, the base effect caused by the last year’s economic downturn is not the same for every country. It is easier for those countries which experienced sharper economic decline last year to achieve high economic growth as compared to other countries, whose economy shrank insignificantly or even increased.

Of note is that in case of Georgia, high economic growth is stipulated by the base effect, since stringent restrictions resulted in 6.1% decline in the economy in 2020. Of 23 countries, only six had worse economic growth figures as compared to Georgia – Montenegro (-15.2%), Croatia (-8.0%), Kosovo (-6.9%), Kyrgyzstan (-8.6%), Moldova (-7.0%) and Armenia (-7.6%). Romania and Hungary which have higher economic growth rates this year as compared to Georgia, had their economies contracted last year by 3.9% and 5%, respectively. Of additional note is that economies of Tajikistan, Turkey and Uzbekistan who currently have 7.1%, 5.5% and 5.3% growth rates, had their economies grow by 4.5%, 1.8%, and 1.7% respectively in 2020, instead of a contraction. Serbia’s current

economic growth is 6.9% and its economy decreased by only 1% in 2020.

Given the aforementioned factors, the Prime Minister’s statement is partially accurate but significant details which are necessary to have a comprehensive understanding, are missing. Therefore, FactCheck concludes that Irakli Gharibashvili’s statement is HALF TRUE. FactCheck does not agree to the Prime Minister’ opinion that the current economic growth is an outcome of the government’s right steps. However, discussing this issue goes beyond the scope of this article and therefore, this part of the statement has not been taken into account whilst making the verdict.

ANALYSIS

On 2 August 2021, at the session of the Government of Georgia, the Georgian Prime Minister, Irakli Gharibashvili, stated: “Take a look at the neighbour countries and generally, at the trends of the region. There are not many places with such a growth.

Our country does indeed have an unprecedented growth. Economic growth and economic recovery in the country is happening at a rapid pace. I would like to remember our people that as a result of right steps that we have made, there is a rapid economic recovery in the country.”

FactCheck decided to verify accuracy of the statement. According to the World Bank’s data, countries from Eastern Europe, Middle East, Central Asia, Balkan Peninsula and Caucasus, in total 23 nations, comprise Georgia’s region.

According to the Graph 1, Georgia is ranked 4th in terms of its economic growth rate (8%) among

23 countries and is outperformed by Romania, Hungary and Montenegro only.

However, the base effect caused by the last year’s economic downturn is not the same for every country.

It is easier for those countries which experienced sharper economic decline last year to achieve high economic growth as compared to other countries, whose economy shrank insignificantly or even increased.

Of note is that in case of Georgia, high economic growth is stipulated by the base effect, since stringent restrictions resulted in 6.1% decline in the economy in 2020.Of 23 countries, only six had worse economic growth figures in 2020 as compared to Georgia – Montenegro (-15.2%), Croatia (-8.0%), Kosovo (-6.9%), Kyrgyzstan (-8.6%), Moldova (-7.0%) and Armenia (-7.6%). Romania and Hungary which have higher economic growth rates this year as compared to Georgia, had their economies contracted last year by 3.9% and 5%, respectively. Of additional note is that economies of Tajikistan, Turkey and Uzbekistan which currently have 7.1%, 5.5% and 5.3% growth rates, had their economies grow by 4.5%, 1.8%, and 1.7% respectively in 2020, instead of a contraction. Serbia’s current economic growth is 6.9% and its economy decreased by only 1% in 2020.

Georgia’s example can be used to better illustrate all these. In order to offset 6.1% economic decline in 2021, Georgia’s economy need to have 7.5-8% economic growth rate in 2021.

Therefore, 8% economic growth currently is sufficient only to redress 2020 economic downturn, provided this growth rate is kept by the end of the year.

Graph 1: Countries of Georgia’s Region in terms of GDP Growth (First Six Months of 2021)

G

eorgia has started subsidising grape prices since 2008 when Russia imposed a trade ban on Georgian wine. Since the Russian Federation was at that times the main export market for the Georgian wine, trade ban inflicted huge social and economic damage to the Georgian wine industry. In order to alleviate these damages, it was needed to subsidise grape prices to ensure less damage and keep grape farming profitable. In 2008-2012, grape subsidy programme was miniscule. In particular, it cost GEL 0.15 for the Georgian budget to subsidise one kilogram of Rkatsiteli grape, GEL 0.25 for one

kilogram of Saperavi grape and GEL 1 for one kilogram of Mujuretuli/ Aleksandrouli grape. In those years, GEL 6-7 million was allocated from the budget for vintage.

The situation has changed since 2013 when after changing the government, GEL 1 subsidy allocated for Mujuretuli/ Alseksandrouli remained the same, although subsidies for Rkatsiteli and Saperavi grapes increased to GEL 0.4 and 0.35, respectively. Total budget allocations increased fivefold and reached GEL 32 million in 2013.

The subsidy structure was altered drastically in 2017, implying the government ceased subsidising grape prices, although allocated money to stateowned companies to purchase excess grape at the market. State-owned

companies, Harvest Management Company LLC and JSC Sakura purchased grape left unsold at the market and produced wine material and spirit which would be sold at auction at wholesale prices.

In 2008-2017, in total GEL 165.8 million was allocated from the budget for grape price subsidies.

In 2018-2019, the government did not subsidise grape prices, although allocated GEL 10 million to state-owned Akura enterprise both years which was in fact an indirect subsidy of vintage.

In 2020, given the coronavirus pandemic, the Government of Georgia again decided to subsidise grape prices. GEL 40 million was allocated from the state budget to this end.

Graph 1: Budget Allocations for Vintage Subsidies in 2008-2021 (Gel Million)

Source: National Wine Agency of Georgia

Naturally, when budget allocations are increased massively, it is important to measure the efficiency of such subsidies and how fairly this money is spent.

Since 2017, when the subsidy mechanism was altered, the government started to produce wine material or spirit from the grape it purchases and to sell them at auctions at wholesale prices. To better illustrate all these, it is important to take a look at auction of 18 May 2021 where 72 auctions were held to sell wine and spirit. Given the fact that wines are sold not at wholesale prices but cheaper than unit cost, raises some questions. For

instance, market price for Aleksandrouli/Mujuretuli grape in 2019-2020 was GEL 7 whilst the government was selling one litre of wine produced from that grape for GEL 12.43 and Khvanchkara wine, produced from the same grape varieties albeit with a different technology, was sold for GEL 13.75.

Given the fact that two kilograms of grape are needed to produce one litre of wine, the auction prices are lower as compared to unit cost.

Of additional interest is that despite 72 auctions, only a small part of wine was actually sold.

Furthermore, prices were very low and wines

were divided into smaller parts which should have sparked greater interest, although this did not happen. In addition, there are many question marks vis-à-vis the quality of the wine, since it is unknown how the quality is evaluated and what are the procedures the wine undergoes to be in line with the standards.

In sum, given the aforementioned facts, wine subsidies are inefficient.

Despite vast sums of money, spent over the years, if we take a look at the results of 18 May 2021 auctions, the situation is deplorable in terms of efficiency.

Table 1: Wines Offered at 18 May 2021 Auction

Khvanchkara Aleksandrouli Tsolikauri Ojaleshi Usakhelauri Source: World Bank

Source: Business Media

Litres 196,220 553,400 470,090 128,780 43,400

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Total Price 2,698,025 6,878,762 2,688,915 813,890 756,896

Price Per One Litre 13.75 12.43 5.72 6.32 17.44

green business

FINCHANNEL.COM | 9 August, 2021

Does plastic Where does your ice cream come from? have a future in packaging? I The FINANCIAL

n 2020, the EU produced over 2.9 billion litres of ice cream, representing a 9% decline from the previous year.

Over the same period, EU Member States exported 232 million kilograms of ice cream to non-EU countries, worth a total of €752 million. In addition, imports of ice cream from countries outside the EU amounted to 79 million kilograms, worth a total of €182 million. While the quantity of extra-EU ice cream imports declined (-4%) compared with

2019, the exports increased by 5%.

Germany was the EU’s main producer of ice cream

Among the EU Member States, Germany was the main producer of ice cream in 2020, producing 642 million litres of ice cream. Germany was followed by France (2019 data: 516 million litres) and Italy (509 million litres).

As well as being the largest ice cream producer in 2020, Germany produced on average the cheapest ice cream at €1.3 per litre. France reported the highest price at €2.2 per

litre of ice cream (2019 data), closely followed by Italy with the average price of €2.0 per litre of ice cream.

Top ice cream exporter: France France exported 59 million kilograms of ice cream in 2020, accounting for 25% of extra-EU ice cream exports. This made it the largest ice cream exporter out of all EU Member States, ahead of the Netherlands (which exported 38 million kilograms of ice cream, or 16% of total extra-EU exports), Germany (29 million kilograms, or 13%), Italy (20 million kilograms, or 9%) and Belgium (16 million kilograms, or 7%).

Happy International Beer Day!

T

he idea of only using sustainable packaging – eliminating waste, low carbon footprint, recyclable or compostable seems easy enough, yet the reality for many businesses is more complex and dependent on the industry they work in

Images on social media of sea creatures wrapped in plastic has had a huge impact on the public perception of plastic packaging in recent years. Between four million and 12 million metric tons of plastic enters the oceans each year, threatening marine life and polluting our food.

A lot of plastic is produced from fossil fuels. These contribute to climate change, which is now a central concern for governments, businesses, and consumers alike.

For some, plastic waste has become a shorthand for the way we mistreat our environment and the need for sustainable packaging has never been clearer.

Yet plastic packaging is ubiquitous because it is useful, not to say crucial in many applications.

The plastic choice Packaging protects products while they are being transported and stored; it is a promotional tool; it lengthens the life of products with excellent barrier properties and cuts down on waste, as well as helping to transport fragile products such as medicines and medical products - which has never been more important than during the Covid-19 pandemic.

“So, how do you decide what is more important in the climate crisis?” asks Thomas Kahl, EcoSolutions project manager at packaging and paper company Mondi.

“Reducing food waste, making precious medicines available to people in remote places, or indeed removing the use of plastic packaging?”

Just to add to the confusion, it is not always clear what type of packaging is most sustainable. It depends where the raw materials come from and how they are sourced, what the packaging is used for, how recyclable it is and a host of other variables. As replacements, paper, glass and metals all have their uses for different products, but each also have different environmental impacts.

Reducing waste Mondi believes that paper should always be the first option as a replacement to plastic - it is lightweight compared to other alternative materials like glass or metal, renewable, easily recyclable, and compostable. Responsibly managed forests also provide a host of environmental benefits, including capturing carbon. “Some 80 per cent of our business is fibrebased so we consider sustainability across the entire value chain, from how we manage our forests, to producing pulp, paper, plastic films to developing and manufacturing industrial and consumer packaging,” Kahl says.

“When it comes to paper, the high recycling rates, 72 per cent for paper in Europe, make it an effective way to manage waste and ensure circularity,” he continues.

“End-consumers perceive the material as kinder to the environment, and know how to dispose of paper correctly, making it possible to manage and collect far more material than other alternatives.

This has increased demand and the appeal of paper packaging on shelves.”

But it is also clear that sometimes only plastic will do, with its distinct advantages and functionality. That includes packaging to keep coronavirus tests sterile and to keep food fresh. Some of these products can be replaced by fibre alternatives - food trays, for example - or rigid plastic can be replaced by a flexible alternative, which can save up to 70 per cent of the material needed.

It is essential that the plastic we do consume is produced, used and disposed of as sustainably as possible. Mondi has made its own ambitious commitment to focus on 100 per cent of its products to be reusable, recyclable or compostable by 2025 and understands that part of the solution lies in a broader systemic change.

A number of initiatives including CEFLEX, the Sustainable Packaging Coalition and the New Plastics Economy Global Commitment, are helping to define better options for businesses across the board, he notes.

“To make the best sustainable packaging choices, you need to take a holistic approach that considers the entire value chain,” Kahl says. “We focus on being sustainable by design, thinking not just about materials but taking a broad approach of sustainable systems and circular economies.”

This article is sponsored by Mondi.

The FINANCIAL

L

ast year, almost 32 billion litres of beer containing alcohol were produced in the EU, according to Eurostat’s latest production statistics released last month.

In addition, in 2020, the EU Member States produced 1.4 billion litres of beer which contained less than 0.5% alcohol or had no alcohol content at all.

Compared with 2019, EU’s production of beer containing alcohol decreased by 8%, while the production of non-alcholic beer remained stable.

In 2020, the EU’s total beer production was equivalent to around 74 litres per inhabitant.

Germany: top beer producer Among the EU Member States, Germany was the top producer in 2020 with 7.5 billion litres (24% of the total EU production). In other words, about one in every four beers containing alcohol produced in the EU originated from Germany.

Germany was followed by Poland with 3.8 bn litres produced (12% of total EU production), Spain (3.3 bn litres produced, or 10%), the Netherlands (2.5 bn litres, or 8%), France (2.1 bn litres, or 7%), Czechia (1.8 bn litres, or 6%) and Romania (1.7 bn litres, or 5%).

Comparing with 2019, Slovakia recorded the largest increase in the production of beer containing alcohol (+25%), followed by far by Greece, Lithuania and France (all +3%).

In contrast, the beer production in Italy almost halved in 2020 (-46% compared with 2019), while large decreases were also observed in Croatia (-29%), Spain (-14%), Hungary (-13%) and Austria (-11%).

The Netherlands: top exporter The Netherlands exported 1.9 bn litres of beer containing alcohol in 2020, accounting for 21% of total (intra- and extra-EU) EU beer exports. This made it the largest beer exporter among EU Member States, ahead of Belgium (1.7 bn litres; 19%) and Germany (1.5 bn litres; 17%), followed by France and Czechia (both

0.5 bn litres; 6%) as well as Ireland and Poland (both 0.4 bn litres; 5%).

The main destinations for beer exports to non-EU countries were the United States (895 million litres; 22% of total extra-EU beer exports) and the United Kingdom (881 million litres; 21%).

France: top importer With 0.8 bn litres, France was the largest importer of beer containing alcohol in 2020 and represented 16% of EU total (intra- and extraEU) imports. Germany imported 0.7 bn litres (13%), closely followed by Italy (0.6 bn litres; 12%), the Netherlands (0.6 bn litres; 11%) and Spain (0.5 bn litres; 10%).

Imports of beers containing alcohol from countries outside the EU are marginal compared to imports within the EU. When importing from non-EU countries, Member States favoured British beer (268 million litres; 51% of all extra-EU imports of beer in 2020, taking into account that in 2020 the United Kingdom was still in the internal market) and Mexican beer (95 million litres; 18% respectively).

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Parliament of Georgia Approves Law on Environmental Liability - Big Step for the Promotion of Green Business in Georgia

T

he most important and rising point in the 4-year plan approved by our committee is to promote a green economy. I can proudly say that just a few months ago, the Parliament approved the Law on Environmental Liability, which is a very big step forward for the formation of environmental law in Georgia.”

The effective functioning of the public sector plays an important role in the development of green business. This means taking important steps, first at the legislative level and then in terms of enforcement, to promote environmental protection, human health, ecological development, as well as green commitments to the business sector on a large scale. Both the executive and the legislature are taking important steps in this regard.

In an interview with The FINANCIAL, Maia Bitadze, Chairperson of the Environmental Protection and Natural Resources Committee, spoke about the important projects, achievements and challenges that the Committee is implementing and facing in terms of the introduction and development of green business and a green economy.

Advertiser: Biltmore Tbilisi Hotel. Contact FINANCIAL Ad Dep at marketing@finchannel.com

Q. What is the impact of Georgian business (emissions) on the environment?

A. Business in general, including the activities of any human being, has an impact on the environment, and it is an integral part of our lives, otherwise development is impossible. The key is for a business to understand how to control its operations to achieve maximum economic efficiency and to minimize damage to the environment and human health.

Fortunately, in the 21st century, the role of green technologies and the best available techniques is well understood, which is the best way to minimize your impact on the environment at a lower cost. So any industry, any activity, will it be urban planning, or chemical production, energy, agriculture, naturally everything that affects the environment, can minimize the impact on the environment and human health with those modern technologies.

Q. Which businesses have the worst impact on the environment?

A. It is very difficult to distinguish which business has the most negative impact on the environment - none. Naturally, business is an integral part of the development of the economy and humanity, and business development must be promoted in every way. But the environment is damaged by business entities, whose actions, despite the regulations are unscrupulous, such as businesses that do not replace filters and pollute the air, or generate a lot of inert waste during subsoil extraction, or businesses that illegally damage trees during construction. To conclude, business sector must develop, but this development should take place within the framework established by the law.

Q. What is the Committee on Environment and Natural Resources doing to promote green business?

A. The most important and rising point in the 4-year plan approved by our committee is to promote a green economy.

This is a new field of economics all over the world and especially for Georgia, and it is still difficult to perceive and understand what we are talking about when we

MAIA BITADZE, Chairperson of the Environmental Protection and Natural Resources Committee

talk about a green economy or so-called circular economy, however if we look closely at waste recycling, , it is necessary to realize that waste is not just household waste, it is inert waste, green waste. Today, waste-free production is taking place in the world, and this is what is being introduced in Georgia now, and it is good that the legislative framework has already been developed. But facilitative mechanisms are still in place to encourage our citizens to express willingness to separate at source, so that businesses can then easily recycle it. Some incentive mechanisms should be established, to recycle tree waste, for example in rural or urban areas.

Special programmes should be created to encourage businesses to replace technologies and install modern filters.

This is a very large system that has already been introduced in the developed world and it is very good that Georgia is already realizing this, including the business sector ;To sum up, modern , environmental technologies are on the one hand necessary to take care of our health and on the other hand we realize that with recycling they lead do creation of new applicable resources in nature in the form of waste that are inert, both household and green waste.

Q. What have been your main achievements in terms of green business development from 2019 to 2021?

A. The years of 2019-2021, and those immediately preceding, were the period when we were creating the legislation.

I would like to single out several laws in terms of legislation, especially laws which, on the one hand, in terms of the Association Agreement, form the basis for the development of a green economy and, on the other hand, lead to the creation of an environmental economy in the country. In this regard, the Waste Management Code, the New Environmental Impact Assessment Code, is crucial. Also, a very significant law that has just come into

force is the Law on Environmental Liability, which forms the cornerstone for the green economy to have the legal basis on which enforcement mechanisms should be based.

However, there are still legal acts to be adopted, which we are already working on with the executive branch. This is a harmonization of the Big Accident Directive into legislation, as well as legislation related to emissions and the final approximation of fuel and diesel norms to EU legislation, which is definitely worth noting. Above mentioned processes are in progress but still needs to be completed.

Q. Can you evaluate the overall ‘green business’ situation in Georgia?

A. We will be able to better assess the general state of green business in Georgia in 10 years, because we are now going through the process that the whole developed world started in the 70s and 90s. So it is too early to talk about the state of a business that is now in its infancy stage.

It is gratifying that in terms of waste recycling, as well as in green waste recycling, there are already several companies that process waste, but they still have a shortage of the product/waste itself, so it is necessary to establish a waste collection system, which as a result will enable businesses to easily recycle applicable waste. On the other hand, the situation has a lot improved in terms of green business that uses modern technologies, , but anyway there is still a lot to do thus I am glad that the issue that implies to the business’s role in the environmental and ecological balance is coming more and more to the foreground.

Q. What are the main challenges you see in terms of green business development in Georgia?

A. The main challenges are primarily related to awareness, because while there are many people who have been in this field for years and are well-informed, there is second side of people who are

not fully aware of the consequences associated with the development of green business. However advancement in our behaviour and perception for years is notable, as it is changing both in terms of the public and business sector . For example, I would recall when the planting project was first incorporated into Tbilisi legislation and construction norms. At the initial stage, it was very painful for businesses to understand why we are obliged, for example, to include a park or square during the construction process. But as the time passed they also realized, that landscaped yard leads to better sales in terms of the real estate and the same can be said for other areas. The issue of introducing green technologies is becoming more and more important in the field of subsoil use as well, so we will fully evaluate that in a few years.

Q. When companies try to become sustainable, what is the hardest part for them? How do you support them in this?

A. State involvement is very important.

On the one hand, the legal framework needs to be developed and on the other hand, I strongly believe that sanctions and fines are not the solution that will lead to an outcome such as change of behaviour, once the legislation is drafted. The most important thing that our committee has written in the plan (and about which talks have already started loudly) are the incentive mechanisms, the same software funding or software incentives. Incentive mechanisms should be introduced by the state in order to encourage businesses.

Businesses should be encouraged by the state and motivated to replace technologies. Especially, construction industry representatives should be persuaded to use green, energy efficient technologies in the construction process. , As for the waste recycling, we have already discussed issues related to product creation and a lot of things that the state can do, which of course will ultimately have a

natural knock-on effect on the environment, air, water and our health.

Q. What role does public-private partnership play in the development of green business?

A. Public-private partnership is crucial for green business development. When we talk about public-private partnership, it does not have to be a special-law partnership. Even within the framework of certain memoranda, it is possible to achieve a certain result in order for the business to be interested in green technologies, as well asin the innovations that the state offers in terms of the development of different directions of a green economy.

I can give a very simple example, today we see scooters in Tbilisi, which are for private entities. Scooters could not be used, for example, if Tbilisi did not have the appropriate infrastructure for this particular mode of transportation. This is also a form of public-private partnership.

However, certainly there are opportunities on a larger scale to facilitate cooperation between the state and the business sector, but for smooth partnership , many incentive mechanisms need to be developed and appropriate infrastructure needs to be created in all cities Q. What kinds of fines or limitations have been imposed on companies that have been found to be having a negative impact on the environment?

A. The effectiveness of Georgian legislation in terms of environmental sanctions can be considered in two ways: whether it creates a deterrent basis or how much it makes businesses think that they should not commit a breach. But the most important thing is that under our law, sanctions are not only monetary, but also criminal, including imprisonment when you commit a crime in the environmental field. It was a refinement, and I can proudly say that just a few months ago, the Parliament approved the Law on Environmental Liability in the third reading, which is a very big step forward for the formation of environmental law in Georgia.

According to the law, from next year, businesses will be required to accumulate certain amounts in advance, and in case of damage to the environment, these funds will be used to recycle the same soil or eliminate other problems caused by their activities, this is a variety of modern-style sanctions around the world. There is such a principle - the polluter pays to the environment, which is quite an effective mean. So our legislation is improving in terms of the environment, and the Association Agreement is one of the means of enforcing this.

Q. Do you think that the existing law is effective in terms of protecting Georgia from environmental offenders?

A. The committee is not an executive body. The committee has several mechanisms of parliamentary control: thematic investigations; monitoring and overseeing the implementation of legislation. We have very interesting projects planned and we already have partner donor organizations, such as the European Union or other international institutions, and we have very interesting topics planned both in terms of legislation and thematic research. The first thematic study we are starting to work on is inert waste management as well as monitoring the implementation of the commitments that the Thematic Research Framework for Climate Change obliges us to do. This will have a huge impact on the business sector and we also plan to make legal changes that will make it easier for us to bring green environmental issues into the governance of each city.

We want to implement a standard in every city where sustainable urban development, environmental protection, planning and maintenance of green urban areas , sustainable urban transport system and environmental issues are in the foreground and play vital role in the development of each city.

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9 August, 2021 | FINCHANNEL.COM

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FINCHANNEL.COM | 9 August, 2021

The Ministry of Environmental Protection and Agriculture Taking Steps to Promote a Green Economy in Georgia Continued from p. 3

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businesses to become greener. Also, the regulations that we have already adopted or should adopt in the framework of the association with Europe stipulate that their activities should be generally more sustainable, less wastegenerating, more focused on renewable resources. Consequently, waste management, recycling, and technologies in general need to be more sustainable and of course we will need investments and financial resources to achieve all of this.

Q. What role does public-private partnership play in the development of green business?

A. I think it is important for the public and private sectors to work together to get the results we all want. For the development of businesses it is necessary to stand by the state and vice versa. In order for the state policy to be implemented and for us to achieve the indicators that are set in the various plans and declared, to achieve the indicators, it is necessary for the business to consistently follow and fulfil the state policy.

Consequently, public-private partnerships are very important. A concrete example I can give you is that the state together with the company Nitrogen, which is the largest chemical enterprise in the country, and which accounts for a large part of nitrogen emissions - 5% of the total greenhouse gases in the country, has managed to reduce this as a result of private-public cooperation.

In particular, Georgia has received a grant from the German Government, which serves to prevent and eliminate these types of emissions. By installing new technologies we can reduce these emissions. Of course, the readiness of the company to co-finance and make relevant investments was of great importance here. The grant assistance is half a million Euros, however, a total of more than one million Euros will be implemented in the project and we will have a significant reduction in all our contributions related to greenhouse gases as a result of a successful private-public partnership.

Q. What kind of fines or limitations have been imposed on companies found to be having a negative impact on the environment?

A. Appropriate sanctioning policies are very important to get better results in terms of environmental impact. There should be sanctions and fines that will have a deterrent effect. We often faced a problem when the legislation was not adequate. Although we fined companies, we could not get results because companies often chose to pay fines that were not commensurate with their performance.

Consequently, we have actively started working on a new package of legislation in 2020, in which we have worked closely with civil society, the population and also Parliament, and adopted new sanctions on air pollution, which is a very big and very important decision. In case of the recurrence of large fines, the Department of Environmental Supervision has the

right to take a tougher step against such polluting enterprises, in particular to suspend their activities, which of course already has a deterrent effect. I am sure that within 1 year it will give us a significant result in the elimination of the same air pollution.

Q. Do you think that existing law is effective in terms of protecting Georgia from environmental offenders?

A. In March of this year, Parliament adopted a new law on environmental responsibility. This is a completely new European approach to the implementation of environmental responsibility in general. It is fully in line with the requirements of the European directive. The Ministry has done important work on this and I think that one of the biggest and most visible achievements is the adoption of this new legislation.

Although with the passing of the legislation we have a fairly large agenda of enactment and the need to increase capacity in the Department of Environmental Oversight, with the recruitment of numerous new, competent staff.

All this will be done in order to implement the principles introduced by this legislation.

It is the unified position of the Government that we have priorities in this direction and therefore budget funding is provided for this in the coming years. This implies that the polluter pays. According to the principle, environmental responsibility is managed in the country. In particular, there will be financial guarantees and responsibilities to eliminate these problems if there are facts of pollution and significant impact on the environment.

Our constant monitoring will allow us to determine exactly which enterprise is responsible for this or that pollution. All sources of emissions will be constantly monitored electronically in the enterprises, which will in fact be transmitted live to the Department of Environmental Supervision. Accordingly, the identification of the violator is already guaranteed and further steps are defined on how to eliminate this violation and pollution in general.

Q. What does the Ministry of Environmental Protection and Agriculture in Georgia do in order to improve the environment and reduce pollution? What are the main projects that you have implemented in this direction?

A. In order to maintain a clean environment in our country, the main tool of the Ministry of Environment and Agriculture is the Environmental Assessment Code, which establishes completely new principles in the country and sets requirements for businesses in relation to the environment. The new Code of Environmental Assessment is developed in accordance with European directives, which provides for the involvement of the general population in environmental decisionmaking; the participation of experts and civil society. It is a transparent process consisting of screening, copying and decision-making stages, as it is in Europe. Therefore, when launching any new activity, it is very important to have

a full environmental impact assessment; to hold public hearings, assess all critical aspects - the impact on water, nature, air, biodiversity, etc.

And of course to mitigate the measures and only then make a decision. That is, to give the right of activity to this or that business operator. This is the main tool headed by the Ministry. However, we have mentioned that in addition to this there are other legislative decisions that complement and impose certain responsibilities on existing operators.

A number of legislative initiatives are in the plan. These are key policy areas to ensure that pollution is avoided in the country. Also as for the atmospheric air, in large agglomerations, in urban settlements we already have automatic stations everywhere that constantly monitor air pollution and this information is also public and the population can see it online. That is, monitoring is one of the most important priorities along with policy refinement.

Q. Does the Ministry of Environmental Protection and Agriculture in Georgia have other green plans it intends to carry out over the next few years?

A The Ministry of Environmental Protection and Agriculture has plans to promote a green economy in the country.

We have received several regulations in the current year, which apply to waste management. Georgia has a waste management code based on European approaches. In order to implement this code it is very important to introduce the principles in practice that provide waste prevention and recycling. Consequently, enhanced obligations for manufacturers were determined for several sectors; 7 directions for the main pollutant actors, such as the use of residual oils, residual tires, electrical equipment, barriers, packaging materials, etc.

According to the main pollutant sector, specific manufacturers have been identified. They should ensure that they will remove their waste from nature. Specific indicators have been defined for the following years about what to achieve. This is very important for the encouragement of a green economy. Residuals should be presented as a new row and this is a very important element of a circular economy. The Ministry intends to enact these standards and establish such organizations that ensure the monitoring and achieving of these indicators, as well as the creation of a circular economy in the entire country, financially supported by the Swedish Government. We have invited the best leading experts who have worked on a circular economy in the world. The country will be one of the first of those who will have a plan for a circular economy. This is very complex and the main principle is that we use our country’s natural resources optimally. We will avoid excess generation of waste and use raw materials already formed. This relates to various industries including processing and agriculture. I think that these initiatives should be implemented in the next few years to speed up the economy’s green principles in the country.

276 200 under 15s got a first residence permit for family reasons in 2019

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he FINANCIAL – In 2019, 276 200 children (non-EU citizens) aged under 15 years were issued with a first residence permit for family reasons in the EU. This is a ratio of 504 per 100 000 of the EU child population aged less than 15.

Among those children, 60% were aged less than five.

The Member States issuing the highest numbers of these permits were Germany (61 500, or 22% of the total number of first residence permits issued in the EU for family reasons to children aged less than 15), followed by Spain (55 300, or 20%), Italy (41 300, or 15%) and Sweden (24 400, or 9%).

In relative terms, the ratio per 100 000 children aged less than 15 years was more than twice the EU average in Sweden (1 339), Luxembourg (1 322) and Slovenia (1 257), while it was 50% higher in three other Member States: Belgium (897), Portugal (863) and Spain (798).

Map of Europe showing first residence permits issued for family reasons to children aged less than 15, number of permits per EU and EFTA country, 2019 data As regards the country of citizenship of children aged less than 15 years granted a first residence permit for family reasons in the EU, 35% of children had citizenship of an Asian country, 25% African,

23% European (non-EU), 9% South and Central American and 3% North American.

Morocco (12% of the total number of first residence permit issued in the EU for family reasons to children under 15 years) was the main country of citizenship in 2019, followed

by Syria (7%) and India (6%).

When looking at the bilateral flows between Member States and third countries in 2019, the top 3 flows of children aged less than 15 years coming for family reasons was observed between Morocco and Spain (24 800 children), then Syria and Germany (12 700) and finally Brazil and Portugal (6 900).

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Remote learning affected high schoolers’ social, emotional health

By MICHELE W. BERGER

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he FINANCIAL – Research from Angela Duckworth and colleagues found that teenagers who attended school virtually fared worse than classmates who went in person, results that held even when accounting for variables like gender, race, and socioeconomic status.

There is a thriving gap,” says Duckworth, the Rosa Lee and Egbert Chang Professor and one of Character Lab’s founders. “On every measure tested we saw a difference favoring kids who were in-person versus learning at home and therefore, alone. We’re inferring from this that, all things being equal, teenagers would really prefer to be with each other and with adults like their teachers, not home with Mom and Dad.” According to University of Pennsylvania, collecting these data began long before the pandemic, through the Character Lab Research Network. Three times a year, participants complete a Student Thriving Index, which asks them to rate facets of their wellbeing, including how well they think they fit in, whether there’s a trustworthy adult at school, how happy or sad they feel, and how interesting they find their classes.

“It’s a way of taking the pulse on

how students are feeling,” Duckworth says. “As researchers, we’ve realized there’s only one way to truly know how teenagers are doing, and that’s to ask them.”

Student participants had completed a survey in February 2020, which the researchers used as a pre-pandemic baseline. The following survey took place in Octo-

ber; at that time 4,202 students were attending school remotely and 2,374 students were going in person. Because Duckworth and colleagues hadn’t randomly assigned participants into these groups, they made sure to control for whatever variables they could.

See also Living Near Woodlands is Good for Young People’s Mental

Health For 10th, 11th, and 12th graders, the findings were clear: Those on Zoom school struggled more than their peers taking classes in person. But for 9th graders, the divide between groups was much smaller. The researchers had a few guesses why.

“Maybe 9th graders had never

experienced high school before, so their pandemic fall semester wasn’t as influenced,” Duckworth says. “But I think a different explanation, and one that makes sense to us as developmental psychologists, is that the older you are the more you want to be independent.

You want to separate from your parents. The period of adolescence is when you transition from being a dependent child to an independent adult.”

During the pandemic, researchers have paid a great deal of attention to young children, and rightly so, Duckworth says. But to her, this work shows the importance of closely watching what’s happening to teenagers, too. Their social and emotional needs should be part of the calculus when school districts determine and implement remoteschooling policies for the upcoming year, she says.

Like much about the pandemic, it’s hard to say whether acute blips like this will become long-term challenges for teenagers. Duckworth expects most young people will bounce back. “It would be consistent with what we know about adolescent development,” she says. “The most common response to adversity is resilience. It’s the rule, not the exception.” She and colleagues will continue collecting data to test that hypothesis and many others.

One in twelve adults in the EU consumes alcohol every day Largest gender gaps for daily consumption in Portugal and Spain

The FINANCIAL

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n 2019, 8.4% of the EU adult population consumed alcohol daily, 28.8% weekly, 22.8% monthly and 26.2% never consumed or hadn’t consumed any in the last 12 months.

Daily consumption of alcohol was found to increase with age. The lowest share of those who consumed alcohol the most frequently (i.e. every day) was recorded among those aged 15 to 24 (1.0%) while the highest share in people of 75 or over (16.0%).

However, the latter age group also accounted for the highest share that never consumed alcohol or had not consumed any in the past 12 months (40.3%).

Weekly alcohol consumption was fairly stable across all age groups between 25 and 64, the highest share being found among people aged 45 to 54 (33.5%).

Monthly and less than once a month consumption slightly decreased with age. People aged between 25 and 34 recorded the highest share that consumed alcohol monthly (28.5%).

Daily and weekly consumption of alcohol were more common for men than for women (respectively 13.0% of men vs. 4.1% of women and 36.4% of men vs. 21.7% of women).

In all EU Member States, men consumed alcohol more frequently than women. The largest gender gaps were found in Portugal (33.4% vs. 9.7%) and Spain (20.2% vs.

6.1%) for daily consumption and in Romania (32.2% vs. 6.6%) and Slovakia (30.6% vs. 8.8%) for weekly consumption. However, proportions of monthly intake were fairly equal between sexes.

In all the European countries, women accounted for a significantly higher share of individuals that never consumed alcohol or had not consumed any in the last 12 months. The largest gender gap was found in Cyprus (12.8% men vs. 44.2% women), Bulgaria (16.2% vs. 42.0%) and Italy (21.5% vs.

46.7%).

Heavy drinking episodes at least once a month higher in Denmark, Romania and Luxembourg

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Daily alcohol intake was the most frequent in Portugal, with a fifth (20.7%) of the population consuming alcohol every day, followed by Spain (13.0%) and Italy (12.1%).

In contrast, the lowest share was

around 1.0% in Latvia and Lithuania.

In the Netherlands, almost half of the population (47.3%) consumed alcohol on a weekly basis, closely fol-

lowed by Luxembourg (43.1%) and Belgium (40.8%).

Monthly consumption in the EU was the highest in Lithuania with 31.3%, Latvia (31.1%) and Cyprus (30.4%).

Among the EU Member States, Croatia reported the highest share of the population (38.3%) who never consumed alcohol or had not consumed any in the last 12 months.

Heavy episodic drinking is defined as ingesting the equivalent of more than 60g of pure ethanol on a single occasion. Among the EU Member States, between 4% (Cyprus and Italy) and 38% (Denmark) of adults reported taking part in heavy drinking episodes at least once a month. Among these, the majority did so every month, while a smaller proportion (between 3 to 19 times smaller) engaged in the behaviour at least once a week.

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New climate models needed to highlight necessity of post economic growth strategies to tackle climate change The FINANCIAL

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ew climate models which challenge the assumption that wealthy countries can continue to pursue economic growth, while mitigating the impact of climate change, must be developed urgently to help inform realistic public and policy debate, say academics writing in the journal Nature Energy.

The academics call for scientists who develop climate models to explore post-growth approaches which are designed to keep economies stable without growth, while improving people’s lives.

They point out that existing models, which are based on continued economic growth, gamble on dramatic and potentially unfeasible technological change to meet the Paris Agreement goals of keeping global warming below 1.5°C or 2°C. Economic growth is projected to drive a significant increase in energy demand over the coming decades, making climate mitigation more difficult. If high-income countries continue to grow at their usual rates, they will need to decarbonize their economic outputs by more than 12 per cent a year, which will be a significant challenge.

The authors raise concerns that assumptions about negative emis-

sions technologies are “speculative and risky”. For example, scaling up bioenergy with carbon capture and storage (BECCS) would require massive amounts of agricultural land and water to grow crops for biofuels.

Direct air carbon capture and storage (DACCS) may avoid some of these problems, but could use up to 50 per cent of the world’s current electricity generation to achieve the

carbon removal rates assumed in existing scenarios, making it difficult to decarbonize the global energy supply.

Dr Jason Hickel, lead author of the paper and Visiting Senior Fellow at the International Inequalities Institute at the London School of Economics and Political Science (LSE), said: “Scientists have raised substantial questions about the risks of

negative emissions technologies and the feasibility sufficiently decoupling economic growth from rising emissions. Put bluntly, these approaches may not be adequate to address the crisis we face.

“We’re gambling the future of humanity and the rest of life on earth because of the assumption that GDP must continue to grow in rich countries.”

The paper’s authors argue that economic growth is not necessary for social progress in already wealthy countries. Instead, human needs and well-being can be provided for by reducing inequality, ensuring living wages, shortening the work week to main full employment and guaranteeing universal access to public healthcare, education, transportation, energy, water and affordable housing.

Dr Jason Hickel said: “The policies we propose would actually improve the lives of the vast majority of people.

“If we share the yields of our economy more fairly, we can ensure good lives for all without plundering the planet for more.”

The authors highlight possible policy interventions across transport, industry, the building sector and in cities that would make it possible to achieve rapid decarbonization without relying so heavily on negative emissions technologies and productivity improvements.

These include shifting from private cars to public and non-motorised transportation, extending product lifespans by mandating warranties and regulating against planned obsolescence, shifting people to healthier plant-based diets and urban planning which would enable most people to access urban centres within 15 minutes.

Investors buy property in Georgia aiming for capital increase, new survey Continued from p. 2

continued to channel their funds much as they had previously. The respondents observed highly pent-up demand in some countries (e.g. Germany) and expect the market to rebound powerfully as borders reopen.

Demand for housing fell by more than 20% 44% of respondents believe that demand for residential properties among Russian-speaking buyers fell by more than 20% in 2020, compared with 2019. This is characteristic for most of the countries, with a few notable exceptions: Demand in Austria, Czech Republic, Greece and Montenegro fell less harshly by 10-20%.

On the contrary, demand for residential housing increased by about 2.5% in the UK and by 4% in the USA. Demand for residential properties among Russian-speaking buyers fell precipitously.

Demand in countries primarily targeted for residency fell most markedly by 21% on average. By comparison, countries that typically attract investors motivated by capital preservation or increase only saw activity fall by some 15%.

This decrease in demand for residential real estate abroad is corroborated by Tranio sales statistics: Tranio closed 30% fewer deals in the residential segment in 2020 as compared with 2019.

The average investment budget in 2020 doubled

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The average transaction budget among Russian-speaking investors in 2020 was €620,000, more than twice as much as that of 2019 (€300,000). Some 73% of respondents specified a budget of up to €1,000,000.

The budget is especially high in countries for which the key driver is capital preservation, in which case average transaction amounts reach €830,000. In countries where investors are focused on capital increases, the situation is the opposite: the average budget was as low as 300,000 euros.

The average budget in the countries chosen for the purposes of residency is €520,000.

Austria stands out clearly against the general backdrop with an average budget of €3,000,000, and Bulgaria and Thailand turned out to be the cheapest countries with budgets of €180,000 and €200,000, respectively.

Investors reduced their yield expectations for core rental businesses to 5% per annum – down from 6.7% In 2020, Russian-speaking investors expected an average net ROI of 5% in core rental projects, whereas the average expected net ROI was 6.7% just two years ago (based on Tranio 2018 survey findings).

Generally, investors did not expect a net ROI of less than 4% in any of the countries surveyed. Investors’ appetites were most modest in Portugal, where the standard expectation was 4.25%, as well as in the UK and France (4.5% in each). Expected ROIs remained highest at 5.5% and up in Hungary, Cyprus, Latvia, Slovenia, the USA, Thailand, Croatia, and Montenegro.

In 2020, Russianspeaking investors expected an average net ROI of 5% in core rental projects.

It is fair to assume that investors expect higher yields in countries delivering capital increases, but the survey findings speak to the opposite: the expected net ROI is 4.74% in countries sought out for capital increase compared with 4.88% in the countries sought out for capital preservation, and 4.95% in countries targeted for residency. As Kachmazov explains, “The investors serious about pursuing capital increase are usually more experienced; as such, their expectations are comparatively moderate and accurate.”

Hotels, land plots, and retail properties proved to be the most popular types of commercial property.

Survey respondents believe that in 2020, apart from residential properties Russian-speaking buyers invested abroad primarily in hotels, retail properties (shops, supermar-

kets, shopping centres, etc.), and developable land.

Other types of income property with less than 5% response rate comprise warehouses, industrial real estate, hospitals and senior care facilities, gas stations and car parks.

In 2020, Russian-speaking buyers invested abroad primarily in such commercial property types as hotels, retail, and developable land plots..

It might seem strange that hotels have proven popular amid the radical travel reduction, yet Kachmazov explains, “Hotels have become more affordable amid the lockdowns, and that might be the point. Russian investors are taking advantage of the situation to invest in such assets.”

The respondents commented that the buyers were especially interested in tenant-occupied properties, preferably with guaranteed long-term lease contracts.

Russian-speaking investors have become more active in selling properties they previously acquired in the countries with favourable conditions for capital increase During the market crisis, Russianspeaking investors did not sell more actively the foreign properties they had previously acquired, according to 80% of respondents. However, resales in the countries for which the key driver is capital increase rose by 122% compared with 2019.

Investors expect significantly belowmarket prices Respondents to Tranio’s previous surveys noted that Russian-speaking investors often failed to find or select suitable properties. More than half – 55% – of respondents named property selection as the most difficult step when purchasing properties in 2017, and the same search and selection issues were the main reasons for transactions having fallen through in 2018 and 2019, according to 26% and 29% respondents respectively.

Tranio asked respondents to clarify in the 2021 survey what particular difficulties were encountered when looking for and selecting the property. According to the majority of respondents (55%), the key reason for failure was that investors

expected significantly below-market prices for their properties. This is the most common answer for almost all countries.

Price issues proved to be relatively uncommon in countries where investors are driven by capital preservation than elsewhere (50% of respondents specified this issue, on average). A lack of clear understanding of what investors wanted was less topical for countries sought out for capital preservation or capital increase, and remarkably, no respondents chose the phenomenon of being spoilt for choice as a problem in such locations.

Investors fail to find or select appropriate properties primarily because they expect significantly below-market prices.

On the contrary, expectations far from the market realities (other than the price) are more common in countries targeted for capital preservation or capital increase (28% of respondents) and less common in countries targeted for residency (21%).

International travel restrictions were a key cause of transaction failures, but they were not the only factor International travel restrictions were the top reason for transactions having fallen through in 2020, according to 66% of respondents. This fell into the top two causes for such transaction failures in all countries we considered, having received especially high response rates in Georgia (100%), Slovenia (83%), Croatia (80%), Greece (76%), Spain and France (75% each). It bears noting that border closures proved to be an issue for real estate professionals in countries where investors were primarily driven to obtain residency or citizenship through their investments.

Financial control and banking compliance, rather than travel turned out to be the top issue in some countries, such as Latvia (67% of respondents), Austria (57%), Cyprus (50%), and Portugal (36%). It is noteworthy that most of the respondents in all of these countries also

mentioned excessive yield expectations.

Generally, inflated yield expectations are the most common problem for countries where investors target capital preservation or capital increase. It is the top issue in the UK (75%) and the Czech Republic (57%).

Border closures have proven especially problematic for real estate professionals in countries where investors expect to obtain residency or citizenship.

The reason that investors were hesitant and dragged out transactions was especially marked in Slovenia (33% of respondents), Germany (32%), and Italy (22%). The fact that the buyers were not prepared to follow established transaction procedures proved the top one reason for transaction failures in Malta (67%) and the second leading reason in the USA (25%). The answer “Their purchasing power declined due to the pandemic” was especially pertinent for Bulgaria (57%) and Montenegro (38%).

Issues with obtaining a bank loan had a high response rate in countries people targeted for capital preservation (e.g. 21% of respondents in Germany) and were not noted at all in the countries targeted for capital increase (the UK, Hungary, Georgia).

The survey findings unveil a paradoxical trend: the lower the average transaction budget is in a particular country, the more topical the reason “Their purchasing power declined.”

To illustrate, this reason was noted by maximum respondents in Bulgaria (57%) where the average budget is the lowest (€180,000). On the contrary, in Austria which is in the opposite pricing category (with an average budget of €3,000,000), no respondent selected that reason.

A paradoxical trend: the cheaper a particular country is, the more topical the reason that purchasing power of buyers declined is in it.

During the history of Tranio annual surveys (since 2012), we have observed the same typical issues encountered by Russian-speaking investors. However, two struggles have been and remain major during all these years: Russian-speaking investors expect significantly belowmarket prices and net ROI materially above the real yield.

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Full-dose blood thinners not a cure for critically ill COVID-19 patients The FINANCIAL

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hese results make for a compelling example of how important it is to stratify patients with different disease severity in clinical trials. What might help one subgroup of patients might be of no benefit, or even harmful, in another, said NHLBI Director Gary H. Gibbons, M.D. Researchers have observed that in some people who died from COVID-19, blood clots had formed throughout their bodies, even in their smallest blood vessels. Antithrombotics, which include blood thinners or anticoagulants, help prevent clot formation in certain diseases. Doctors did not know which antithrombotic drug, what dose, and at what point during the course of COVID-19, antithrombotics might be effective. To answer these urgent questions, three international partners came together and harmonized their trial protocols to study the effects of using a full, or therapeutic dose, of the blood thinner heparin versus a low, or prophylactic dose, of heparin in moderately and critically ill patients hospitalized with COVID-19.

Researchers defined moderately ill patients as those hospitalized for COVID-19 without the requirement of organ support, and critically ill patients as those hospitalized for COVID-19 requiring intensive care level of support, including respiratory and/or cardiovascular organ support. In April 2020, hospitalized COVID-19 patients received either a low

or full dose of heparin for up to 14 days after enrollment. By December 2020, interim results indicated that full-dose anticoagulation did not reduce the need for organ support and may even cause harm in critically ill patients. However, one month later, interim results indicated that full doses of heparin likely benefited moderately ill patients.

“The formal conclusions from these studies suggest that initiating therapeutic anticoagulation is beneficial for moderately ill patients and once patients develop severe COVID-19, it may be too late for anticoagulation with heparin to alter the consequences of this disease,” said Judith Hochman, M.D., senior associate dean for Clinical Sciences at New York University, a correspond-

ing author of the moderately ill study and study chair of the NIH-funded portion of the combined platform trials, Accelerating COVID-19 Therapeutic Interventions and Vaccines-4 (ACTIV-4a) Antithrombotics Inpatient trial. “The medication evaluated in these trials is familiar to doctors around the world and is widely accessible, making the findings highly applicable to moderately ill COVID-19 patients.”

The final analysis of trial data included 1,098 critically ill and 2,219 moderately ill patients. For both moderately and critically ill patients, researchers looked at how long they were free of organ support up to 21 days after enrollment. Among moderately ill patients, researchers found that the likelihood of full-dose

heparin to reduce the need for organ support compared to those who received low-dose heparin was 99%.

A small number of patients experienced major bleeding, though this happened infrequently. For critically ill patients, full-dose heparin also decreased the number of major thrombotic events, but it did not reduce the need for organ support or increase their chances of leaving the hospital early after receiving treatment.

The participating partners in the multicenter trials include: Randomized, Embedded, Multi-factorial Adaptive Platform Trial for Community-Acquired Pneumonia (REMAP-CAP(link is external)) Therapeutic Anticoagulation; Antithrombotic Therapy to Ameliorate

Complications of COVID-19 (ATTACC); and ACTIV-4a Antithrombotics Inpatient A Multicenter, Adaptive, Randomized Controlled Platform Trial of the Safety and Efficacy of Antithrombotic Strategies in Hospitalized Adults with COVID-19.

In the United States, ACTIV-4a Antithrombotics Inpatient is being led by a collaborative effort with several universities, including the University of Pittsburgh, a trial coordinating center, and New York University, the study chairs’ office and a coordinating center. ACTIV-4a Antithrombotics Inpatient is also conducting another study to test the effects of adding an anti-platelet agent to anticoagulation.

“More work needs to be done to continue to improve outcomes in patients with COVID-19,” said Matthew D. Neal, M.D., the Roberta G. Simmons Associate Professor of Surgery at the University of Pittsburgh, co-senior author of the severely ill study, co-first author of the moderately ill study, and co-chair of ACTIV-4a Antithrombotics Inpatient.

“Given what we know about the type of blood clots in patients with COVID-19, testing anti-platelet agents is a particularly exciting approach.”

The collaborative trials are supported by multiple international funding organizations, including the Canadian Institutes of Health Research, the National Institute for Health Research (U.K.), the National Health and Medical Research Council (Australia), the National Institutes of Health (U.S.), and the PREPARE and RECOVER consortia (EU).

Those on ideological right favor fewer COVID-19 restrictions in most advanced economies The FINANCIAL

been fewer restrictions than Americans ages 65 and older (19% and 30%, respectively).

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n many countries around the world, government attempts to impose coronavirus-related restrictions on public activity have encountered resistance and mass protest movements aimed at lockdowns.

With the fast-spreading delta variant threatening a new wave of infections among the unvaccinated and slow, unequal vaccine rollouts globally, governments may yet again be forced to consider implementing restrictions on public activity.

Majorities in most of the 17 advanced economies Pew Research Center surveyed in spring 2021 say the restrictions that had been imposed over the course of the pandemic were about right or that there should have been more restrictions.

But significant minorities say there should have been fewer restrictions, suggesting they may be resistant to renewed lockdowns and social distancing requirements.

In most countries surveyed, those on the ideological right are particularly likely to say there should have been fewer restrictions on public activity over the course of the coronavirus outbreak. In keeping with previous findings, ideological divides between the left and right are largest in the United States with 52% of conservatives and 7% of liberals saying there should have been fewer restrictions. (The U.S. portion of the survey was conducted earlier than others, in early February.) Rightleaning people are significantly more likely to say restrictions went too far in nine other nations surveyed.

The only country where these ideological patterns are reversed is

Age gaps in the U.S. are much smaller when partisanship is taken in to account

Greece – the public that also reports the highest proportion saying there should have been fewer restrictions.

A majority (55%) of left-leaning Greeks say there should have been fewer restrictions, while only about a third (34%) of right-leaning Greeks hold that view.

European right-wing populist party supporters favor fewer restrictions This may be, in part, due to opinions among supporters of Greece’s left-leaning populist party Syriza, who are significantly more likely than Syriza detractors to say there should have been fewer restrictions (55% compared with 39%, respectively). Syriza leader Alexis Tsipras has accused the center-right government of using the pandemic as a pre-

text to restrict democratic rights and freedoms.

On the other hand, support for right-wing populist parties in most European countries is associated with more hostile views toward pandemic restrictions. In the Netherlands, those with favorable views of the right-wing populist parties Forum for Democracy (FvD) and Party for Freedom (PVV) are more likely to think restrictions went too far. The pattern among right-wing populist supporters to favor fewer restrictions is also particularly prominent among Alternative for Germany (AfD) supporters in Germany, Lega supporters in Italy and Vox supporters in Spain.

Significant age differences in some countries on the amount of restrictions needed

In some countries surveyed, younger adults are more likely to favor fewer coronavirus restrictions than are older adults. The age gap is largest in Greece, where 58% of 18- to 29-year-olds say there should have been fewer restrictions, compared with a quarter of those 65 and older – a difference of 33 percentage points. Significant differences also appear in Belgium, France, Canada, the Netherlands, Spain and Singapore.

Younger people in the U. S. and South Korea are less likely to say there should have been fewer restrictions on public activity over the course of the coronavirus outbreak.

For example, 8% of younger South Koreans say there should have been fewer restrictions, compared with 20% of older South Koreans. Americans ages 18 to 29 are about 11 points less likely to say there should have

In the U. S., this may be, in part, due to dynamics in party identification and age differences. Younger Americans are more likely to lean Democratic than older Americans and there are large partisan differences on the question: 51% of Republicans and Republican-leaning independents say there should have been fewer restrictions, compared with just 6% of Democrats and Democratic leaners. In the U.S., age gaps are much smaller when partisanship is taken into account. Among Republicans, those ages 50 and older are about as likely as those ages 18 to 49 to say there should have been fewer restrictions. Younger Democrats are more likely than older Democrats to say there should have been fewer restrictions, in line with patterns in other advanced economies. Still, Democrats as a whole overwhelmingly say there should have been more restrictions on public activity (81%).

Views of the economy are also tied to views about restrictions in about half of the publics surveyed. For example, 51% of Greeks who say the current economic situation is bad also say there should have been fewer restrictions, compared with a fifth of Greeks who think the economic situation is good.

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