We are delighted to share about our contribution to a landmark initiative in Armenia’s climate action agenda.
As Armenia advances its transition toward a low-emission and climate-resilient economy, fiscal policy instruments are increasingly recognized as critical enablers of climate action.
Within the UNDP’s “Climate Promise Armenia – From Pledge to Impact” project ADWISE Consulting implemented the assignment “Development of Fiscal Policy to Mitigate Climate Change in Armenia,” supporting the design of a Carbon Tax as part of Armenia’s efforts to translate its Nationally Determined Contribution (NDC) targets into concrete, economy-wide policy instruments.
To this end, ADWISE Consulting conducted a comprehensive feasibility assessment of carbon taxation in the Armenian context, grounded in an in-depth analysis of the country’s economic structure, emissions profile, energy system, and existing fiscal and legal frameworks
A core component of the work was an extensive diagnostic review of Armenia’s greenhouse gas emissions, sectoral energy use, and carbon intensity, combined with an assessment of current excise and tax instruments and their alignment with climate objectives. This analysis was complemented by international benchmarking of carbon pricing mechanisms, drawing lessons from relevant country experiences to identify design options appropriate for Armenia’s institutional capacity and economic structure.
Building on a thorough review of the country’s economic and climate context, and thorough economic scenario modelling the project delivered detailed implementation pathways and recommendations aimed at balancing environmental effectiveness with social equity, ensuring that climate ambition is aligned with economic realities.
The project delivered a comprehensive analytical foundation and a practical policy toolkit to support Armenia’s consideration of carbon taxation. By combining international best practices with country-specific analysis, stakeholder engagement, and rigorous economic modeling, the assignment contributes to evidence-based decision-making and strengthens Armenia’s readiness to deploy fiscal instruments in support of its climate commitments.
🔗 Read the full report here: https://nature-ic.am/en/publications/establishing-a-carbon-tax-in-armenia:-national-context-and-conceptual-approach
