Armenia: Climate Facts and Policy

ARMENIA

CLIMATE FACTS AND POLICY 9.8 MILLION tCO2e 3.2 TONNES PER CAPITA

POLICIES AND PROCESSES Policy framework

Development strategy for 2014-2025 Second national environmental action programme

Energy sector developments

Concept for ensuring energy security Renewable energy roadmap National programme for energy savings and renewable energy and action plan Law on energy savings and renewable energy

2030 targets and INDC

Mitigation Base year: 1990 633 million tCOâ‚‚e emissions during 2015-2050 (5.4 tonnes per capita per year) Interim review of the mitigation progress and reduction targets in 2030 Forest cover increase up to 20 per cent of the territory Adaptation priorities Natural ecosystems, health, water, agriculture, energy, human settlements and infrastructure, and tourism

GHG inventory of all sectors and gases

3.0

3,500 US $

MILLION POPULATION

76%

PER CAPITA GDP

First biennial update report to UNFCCC National GHG inventory report to UNFCCC Third national communication to UNFCCC

OF TOTAL ENERGY CONSUMPTION FROM FOSSIL FUELS

Sources: 2012 national GHG inventory report (2015); First biennial update report (2016); demographic, energy and economic data from the World Development Indicators of the World Bank: http://data.worldbank.org/indicator

CLIMATE ACTIONS GHG emissions

70 per cent GHG emissions reduction in 2010 compared to 1990 26 per cent GHG emissions increase in 2010 compared to 2000

2013 Concept for ensuring energy security

50 per cent reduction in energy intensity of GDP since 2000

Small hydropower plant development programme since 2010 Favourable tariffs, financing schemes Small hydro plants currently account for 13 per cent of total power generation

CLIMATE FINANCE National incentives for renewables and energy efficiency

Favourable tariff policy for renewables, and lending for renewable energy and energy efficiency

EBRD

Private sector investment facility for renewable energy and energy efficiency

WB

Renewable Energy and Energy Saving Fund Exploration of potential geothermal sites

Netherlands Development Finance Company (FMO), International Finance Corporation (IFC), KfW Development Bank Small hydropower and wind plants

OeEB Development Bank of Austria Renewable energy and energy efficiency

Tashir Tashir

Childir Childir

Alaverdi Alaverdi

Kars Kars

Artik Artik

KasKaaksak

Vagharshapat Vagharshapat Metsamor Masis Metsamor Masis

Armavir Armavir

T T

U U

R R

K K

E E

A Z E R B A I J A N A Z E R B A I J A N

Gavar Gavar

Lake Sevan Lake Sevan

Yerevan Yerevan

A R A R Artashat

Y Y

Ganja Ganja

Ashagi Agchakand Ashagi Agchakand

M M

E E

N N

Martuni Martuni

I I

Artashat Vedi Vedi Ararat Ararat

Igdir Igdir

Agri Agri

gh gh ste ste v v

Sevan Sevan Hrazdan Hrazdan Charentsavan Charentsavan Abovyan Abovyan

A A

Vardenis Vardenis

Yeghegnadzor Yeghegnadzor

Arpa Arpa

Karavachar Kalbajar Karavachar Kalbajar

Berddzor Lachin Berddzor Lachin

CO2 emissions from thermal power plants, CO fromyear: thermal power plants, 2 emissions million tonnesChaldiran per million tonnesChaldiran per year: more than 0.5 more thanMuradiye 0.5 Muradiye

Lake Van Lake Van

0.1 — 0.5 0.1 — 0.5 0.01 — 0.1 0.01 — 0.1

Sisian Sisian

Siah Chashmeh

Thermal power plantSiah Chashmeh Thermal power plant (coal/oil/gas) (coal/oil/gas) Nuclear power plant Nuclear power plant

Goris Goris

Nakhchivan Renewable energy installations Nakhchivan Renewable energy installations Wind park (less than 50 MW) Nakhchivan Wind park (less than 50 MW) Nakhchivan Hydropower plant Aras Hydropower plant Reservoir Aras

Qareh Zia odOilDin / gas Qareh Zia odOilDin / gasK K

Forests (high CO2 absorption potential) Forests (high CO2 absorption potential)

Policies and institutions The Ministry of Nature Protection is the executive authority for environmental protection and climate change. It chairs the Inter-agency Coordinating Council on Implementation of Requirements and Provisions of the UNFCCC established in 2012. The Climate Change Information Center established in 1997 supports the Ministry on climate change information.

Armenia has identified the following priority areas of action for limiting GHG emissions: increased renewable energy production, modernization of thermal power plants, improved energy efficiency, expansion of electrical transport, decreased methane emissions from solid municipal waste and wastewater, and forest restoration and afforestation.

The Second national environmental action programme covers climate change as both a separate issue and as a cross-cutting issue. The Armenia development strategy 2014-2025 aims to introduce energy-efficient and resource-saving technologies and measures, and seeks to reduce transport emissions in the capital city Yerevan by developing electric public transport and other low-emission transportation alternatives.

Angeghtun Qubadli Angeghtun Qubadli

Kapan Kapan

Reservoir

Pipelines Pipelines

otu otu r r

Fossil fuel energy installations and carbon emissions Fossil fuel energy installations and carbon emissions

Maku Maku

Karabakh Karabakh

ri ri HakHaaka

Energy and emissions

NagornoNagorno-

Stepanakert Khankendi Stepanakert Khankendi

AZERBAIJAN AZERBAIJAN

Dogubeyazit Dogubeyazit

Tartar Tartar

Jermuk Jermuk

Sharur Sharur

Energy and emissions Energy and emissions

Mingachevir Reservoir Mingachevir Reservoir

Shamkir Shamkir

Chambarak Chambarak

n zda Hrazdan a r H

Ashtarak Ashtarak

Aras Aras

Ijevan Ijevan

Dilijan Dilijan

Aparan Aparan

AkhAukrhiaunrian

Kagizman Kagizman

A A

Vanadzor Vanadzor

Shamkir Reservoir Shamkir Reservoir

Tovuz Tovuz

Lori 1 Lori 1

Spitak Spitak

Akhurian Res. Akhurian Res.

Qazax Qazax

ed Debed b e D

Stepanavan Stepanavan Gyumri Gyumri

Kura Kura

Ayrum Ayrum

AlazAalaza ni ni

G E O R G I A G E O R G I A

Ninotsminda Ninotsminda

Qax Qax

Dedoplis Tskaro Dedoplis Tskaro

Iori Iori

Bolnisi Bolnisi

Akhalkalaki Akhalkalaki

Rustavi Rustavi

Marneuli Marneuli

Julfa Julfa

Ordubad Ordubad

IRAN IRAN

Meghri Meghri

0 0

25 km 25 km

Map produced by ZOÏ Environment Network, November 2016 Map produced by ZOÏ Environment Network, November 2016

The Law on energy savings and renewable energy (2004) promotes strengthening of Armenia’s energy independence. These goals are operationalized in the subsequent Renewable energy programme (2007) and Action plan (2010). Small hydropower production – advantageous in the mountainous setting of Armenia – has increased since the establishment of an SHP development programme in 2010.

The Concept for ensuring energy security assesses the export potential of Armenia’s energy system, and aims to create an attractive investment environment for renewable, alternative and nuclear energy.

Climate actions Similar to many other countries with economies in transition, Armenia saw its GHG emissions decline after the collapse of the Soviet Union in the 1990s. Emissions in 2010 were 70 per cent lower than in 1990. The Armenia INDC sets an emission limit of 633 million tonnes of CO₂-equivalent during 2015-2050 or an average of 5.4 tonnes per capita, and aims for a 20 per cent forest cover for the country by 2050.

Rustavi Rustavi Marneuli Marneuli

GG EE OO RR GG II AA

K Kuurraa

Ayrum Ayrum Tashir Tashir

Childir Childir

Alaverdi Alaverdi

AlAalzaaza nini

Ninotsminda Ninotsminda

Qazax Qazax

ed Deebbed D

Kars Kars

Armavir Armavir

TT

UU

RR

Charentsavan

Metsamor Metsamor

Lake Lake Sevan Sevan

Yerevan Yerevan

AA

Masis Masis

Artashat Artashat

EE

Gavar Gavar

Abovyan Abovyan

Vagharshapat Vagharshapat

KK

Ganja Ganja Chambarak Chambarak Ashagi Ashagi Agchakand Agchakand

n Hrazdan zdan Hrazdan Hrraazda H Charentsavan

Igdir Igdir

Agri Agri

AA ZZ EE RR BB AA II JJ AA NN

Sevan Sevan

KaKsaaskak

Aras Aras

RR

M M

EE

NN

Martuni Martuni

II

Tartar Tartar

Vardenis Vardenis Karavachar Karavachar Kalbajar Kalbajar

AA

Yeghegnadzor Yeghegnadzor

Arrppaa A

Stepanakert Stepanakert Khankendi Khankendi Berddzor Berddzor Lachin Lachin

Sharur Sharur

Angeghtun Angeghtun Qubadli Qubadli

NN aa kk hh cc hh ii vv aa nn

change

AA ZZ EE RR BB AA II JJ AA NN

Kapan Kapan

Nakhchivan Nakhchivan Aras Aras Reservoir Reservoir

Biodiversity loss Biodiversity loss Siah Siah Chashmeh Chashmeh Changes in fish Changes in fish population population

Hail Hail storms storms Forest Forest fires fires

Forest Forest pests, pests, invasive invasive species species Qareh Qareh Zia Zia od od Din Din Desertification, erosion and soil degradation Desertification, erosion and soil degradation

Flood risk risk Flood

Dry conditions conditions Dry

Julfa Julfa Ordubad Ordubad

otuotu rr

Severe Severe drought drought impacts impacts Early frosts Muradiye Early frosts Muradiye

Lake Lake Van Van

Goris Goris

ri ri HaHkaaka

Sisian Sisian

Maku Maku

Chaldiran Chaldiran

KK aa rr aa bb aa kk hh

Jermuk Jermuk

Dogubeyazit Dogubeyazit

Impacts climate change Impacts of of of climate change Impacts climate

NN aa gg oo rr nn oo --

Vedi Vedi Ararat Ararat

YY

Mingachevir Mingachevir Reservoir Reservoir

Shamkir Shamkir

Dilijan Dilijan

Aparan Aparan

Ashtarak Ashtarak

Ijevan Ijevan

A A

Vanadzor Vanadzor

AkAhkuhruiarinan

Kagizman Kagizman

ghgh steste vv

Spitak Spitak

Artik Artik

Akhurian Akhurian Res. Res.

Shamkir Shamkir Reservoir Reservoir

Tovuz Tovuz

Stepanavan Stepanavan

Gyumri Gyumri

Qax Qax

Dedoplis Dedoplis Tskaro Tskaro

IorIoi ri

Bolnisi Bolnisi

Akhalkalaki Akhalkalaki

K K

II

RR

AA

NN

Meghri Meghri

00

25 25 km km

Map produced by ZOÏ Environment Network, November 2016 Map produced by ZOÏ Environment Network, November 2016

Armenia scorecard Country’s share of global emissions Country’s emissions per capita General climate action ambition Mitigation commitment: Emissions reduction Decoupling from population growth Decoupling from economic growth Renewable energy prospects Adaptation action

National climate policy actors Policy leadership: Inter-agency Coordinating Council on Implementation of Requirements and Provisions of ­UNFCCC UNFCCC focal point: Ministry of Nature Protection GHG inventory: Project based, UNDP Climate Change Programme unit

Million tonnes 25

Greenhouse gas emissions and projections for Armenia

20 INDC average*

15

10

0

-5

Projections 1990

Energy

1995 Industrial processes

2000 Agriculture

2002 Waste

2004

2006

2008

2010

2012

Land use, land use change and forestry

2015

Conditional

Projections are based on Armenia's 3rd National Communication and INDC * Total aggregate Armenia contribution under INDC equals 633 million tCO2e for the period of 2015-2050

Although Armenia’s energy intensity is still high due to its high rate of energy losses and obsolete energy infrastructure, the energy intensity of GDP has declined by 50 per cent since 2000, partly due to Armenia’s improved energy sector policies. Imported natural gas has a strong role in energy supply. Armenia is the only country in South Caucasus to produce nuclear energy (31 per cent of energy supply in 2014). The share of renewable energy in electricity production is on the increase and it provides approximately one third of the country’s needs in electricity.

The National programme for energy savings and renewable energy and Action plan identify specific activities in residential buildings, services, manufacturing, transport, and water sectors. The Renewable energy roadmap (2011) aims for a 16 per cent share of renewables in total energy generation in the long term.

Armenia is planning to apply an ecosystem approach for adapting to climate change. The country has identified natural ecosystems, health, water, agriculture, energy, human settlements and infrastructure, and tourism as priority sectors for adaptation.

These form the basis for Armenia’s adaptation strategy and national adaptation plan, which are still to be developed.

Climate finance Armenia has established a revolving investment fund for climate change mitigation and adaptation. Environmental fees from companies using natural resources and having an impact on the environment maintain the fund. The country also applies a tariff policy to promote and attract investment to renewable energy. Preferential tariffs are set for power generated by small hydropower plants, wind turbines and biogas units as well as small-scale cogeneration units.

The Renewable Energy and Energy Savings Fund – financed by the World Bank and GEF – implements loan and grant programmes. It promotes market development and the use of clean, efficient and affordable heating technologies, and supports energy efficiency upgrades in public buildings. The fund has renovated central-heating systems in schools and has provided loans to small hydropower plants.

2020 2025 2030 Unconditional

© Zoï Environment Network (2017)

5

An important milestone for Armenia was joining the Eastern Europe Energy Efficiency and Environment Partnership (E5P) agreement, which enables the country to access grant funds of €20 million. The funds are targeted for priority municipal energy efficiency and environmental projects, such as the rehabilitation of water and wastewater systems, solid waste management, street lighting and the insulation of public buildings. The first grant for energy efficient street lightning was signed in 2015.

International financial institutions – including EBRD, FMO, IFC, KfW, the World Bank and the Development Bank of Austria – have financed the establishment of lending organizations that provide credits for sustainable energy development to private businesses and entrepreneurs in Armenia.

Within the EU ClimaEast project Armenia implemented a project on sustainable forest and pasture management for climate change mitigation and adaptation.

Sources of information for the scorecard National strategies and information materials: Renewable Resources and Energy Efficiency Fund, Eastern Europe Energy Efficiency and Environment Partnership, Climate Change Information Center; Third national communication (2015); First biennial update report under the UNFCCC (2016); INDC (2015) EU ClimaEast project Analytical materials and expertise of Zoï Environment Network, as well as Armenian organizations and experts This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of the authors and can in no way be taken to reflect the views of the European Union.

The designations employed and the presentation do not imply the expression of any opinion whatsoever concerning the legal status of any country, territory, city or region or of its authorities, or concerning delimitation of its frontiers or boundaries.