SAVi for the Green Economy Policy in Georgia

The SAVi assessment for Georgia had a dual purpose: (1) it contributed to a Green Economy Assessment supported by the EaP Green project and coordinated by UN Environment, and (2) it complemented that study with a project financing analysis of national green economy interventions. SAVi estimated the impact of green economy policies in the building, tourism and agriculture sectors. The use of SAVi has allowed for estimating direct, indirect and induced economic impacts (including the valuation of externalities) and for performing a project financial assessment at the societal level.

The assessment shows that under a conventional modelling approach the investment in the green economy generates an internal rate of return (IRR) of 4.21 per cent. When the indirect and induced impacts on the economy are taken into account, the IRR increases up to 71 per cent with a net present value (NPV) reaching almost GEL 17 billion (approximately USD 5.7 billion, at current exchange rates). Traditional financial indicators such as the IRR and NPV are not commonly used in policy level analysis. However, when considering policy interventions across the economy, they provide an interesting insight for policy-makers into the performance of the green economy strategy.

The full results of the SAVi assessment in Georgia will be available soon.