World Bank: Renewable energy key to combat $100 million annual climate damage in Caucasus

Climate change inflicts roughly $100 million in annual damage on the South Caucasus, impacting the region’s economies significantly, according to Rolande Price, the World Bank’s Regional Director for the South Caucasus.

She spoke during a COP29 event on climate finance for South Caucasus and Central Asia, Caliber.Az reports via local media.

“Decarbonisation in these countries faces several hurdles. For instance, renewable energy resources aren’t being fully harnessed, and traditional energy sources are still heavily relied upon for transportation and heating,” she explained.

Price noted that the World Bank aims to support economic diversification and sustainability, emphasizing the advantages of reducing air pollution. “This is in the best economic interest of these countries and essential for a healthier future,” she added.

She highlighted two key climate-related obstacles in the region: a shortage of skilled workers and inadequate access to climate finance. “Smaller municipalities, in particular, struggle to secure funding for climate initiatives. Simultaneously, there’s a lack of qualified experts to design these programs,” Price remarked.

To boost financial support for climate efforts, Price stressed the importance of grant allocation, especially for governments working with limited budgets.

Additionally, a recent United Nations Environment Programme (UNEP) report, released ahead of COP29, outlines the profound effects of climate change on the Caucasus region. The report reveals that glaciers in the area have receded by an average of 600 meters over the past century, leading to a loss of over 11 billion tonnes of freshwater since 2000. This glacial retreat has impacted river flow, with projections suggesting a 20% decline in river water volume by 2100.

The report also foresees a 3.6°C temperature increase across the region by the century’s end, posing significant threats to mountainous areas. This warming could heighten the risk of flooding from melting glaciers, requiring continuous monitoring. For example, in 2023, heavy rain combined with glacial melt triggered a devastating landslide in the Georgian village of Shovi, resulting in considerable destruction and loss of life.

The UNEP report urges the integration of climate change adaptation strategies into the Caucasus countries' legislative frameworks, with a focus on sustainable water management and urban planning improvements. It also recommends expanding protected natural areas and leveraging local knowledge and traditions to combat soil erosion.

The expansion of renewable energy sources is highlighted as a critical step in the report’s recommendations.

By Tamilla Hasanova