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The Third National Communication to
UNFCCC:
“The Armenian government adopted
Protocol Decree No. 16, dated 25 April 2013 “On
approval of the concept of the establishment of
innovative financial – economical mechanisms
in the field of environment”. On this basis, the
government adopted Protocol Decree No. 47, dated
14 November 2013, “On approval of the concept
of the establishment of innovative financial
and economical mechanisms in the field
of environment”.
These documents show the Armenian government’s
commitment to developing proposals on
establishing a civic revolving investment fund. The
fund is aimed at establishing the relevant financial
mechanism for climate change mitigation (GHG
emissions reduction and sinks development) and
adaptation (combating climate change impact)
measures. Fund resources should be created
through companies’ environmental fees (those
using natural resources and having an impact on
the environment)”
(MoNP 2015).
It is also worth noting that the more detailed
and focused governmental policy documents
are, the more likely it is that they include plans
for sustained budget financing and therefore, the
greater the chance that they will achieve tangible
post-implementation results and outputs (see
Azerbaijan case above).
Finally, property and/or agricultural insurance
mechanisms can also be seen as a financial tool for
mitigation of climate change risks. While property
insurance is not yet widely available in the South
Caucasus countries, agricultural insurance,
especially public-private, is a suitable protection
mechanism for farmers. For example, Georgia
has recently established a public-private agro-
insurance mechanism which is quite affordable
for even small-scale farmers. In 2015, mechanism
demonstrated its effectiveness when it offered
protection from financial losses arising from a
series of extreme weather events.
Financial mechanisms to support economic
and social development of mountain and high
mountain regions are also foreseen by different
governmental programmes in the three countries.
However, those programmes do not explicitly refer
to any climate related actions as such.
Armenia
CASE STUDY