Chapter 5 | PROJECTS CONTRIBUTING TO THE OPEC FUND’S CLIMATE FINANCE
Figure 5: Key National Adaptation Policies, Plans and Agreements
severely impact rural livelihoods. It is predicted that the climate change impacts in Armenia will be more severe than the global average as the shrinking Caucasus glaciers intensify pressure on the country’s water management in- frastructure. This will increase the risk of floods and land- slides, particularly in rural areas where infrastructure and resilience are weakest, necessitating robust disaster risk reduction strategies. 23
Policy/Strategy/Plan
Status
Disaster Risk Management National Strategy and Action Plan
Enacted
Nationally Determined Contribution (NDC) to Paris Climate Agreement
Submitted
Technology Needs Assessment Report
Completed
National Communications to the UNFCCC Four Submitted
Purpose of the Loan
National Platform for Disaster Risk Reduction Enacted
This operation in Armenia includes a US$100 million loan by the World Bank Group and a ¤50 million loan provided by the OPEC Fund. The loans will assuage the immediate economic stress post-2020 at the outset and provide the necessary financial cushion to implement critical climate resilience and mitigation measures without diverting re- sources from essential services. Secondly, the operation will support a series of reforms aimed at improving climate resilience, environmental management and energy efficiency. Thirdly, the loan will enhance long-term sustainability by reducing GHG emis- sions and promoting the transition to a greener economy. The loan will support the modernization of critical climate-resilient infrastructure, bolster social protection programs and drive economic reforms that are essen- tial for sustainable development. Moreover, the loan will help Armenia build a resilient economy capable of with- standing future shocks, whether they stem from climate change, economic volatility or geopolitical tensions. The reforms are aligned with the national and international climate goals presented in the table that follows.
National Adaptation Plan (NAP) to Advance Medium and Long-Term Adaptation Planning in Armenia
In development phase
National Forest Policy and Strategy
Enacted
Wildfire Action Management Plan
Enacted
EU-Armenia Comprehensive and Extended Partnership Agreement (CEPA) (2017)
Adopted
EU-Armenia CEPA Roadmap
Adopted
Green City – Yerevan Action Plan
Enacted
Source: Government of Armenia, World Bank, Climate Watch Data
Armenia’s NDCs outline ambitious targets, including a 40 percent reduction in GHG emissions by 2030 compared to 1990 levels. Achieving these targets will require a compre- hensive approach that integrates climate considerations into all aspects of national planning and development. The loan’s focus on energy efficiency in buildings, renewable energy and climate-resilient infrastructure is directly aligned with these targets. By fostering a low-carbon, resilient economy Armenia is not only meeting its international commitments but also setting a course for sustainable development that can withstand the test of time.
20 IMF Country Profile: https://www.imf.org/en/Countries/ARM 21 University of Notre Dame (2024). Notre Dame Global Adaptation Initiative. URL: https://gain.nd.edu/our-work/country-index 22 European Commission (2024). INFORM Index for Risk Management. Armenia. URL: https://drmkc.jrc.ec.europa.eu/inform-index 23 Climate Change Knowledge Portal: https://climateknowledgeportal.worldbank.org/country/armenia
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