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Georgia to Introduce Greenhouse Gas Emission Permits from 2026 – Who Will Be Affected?

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The Government of Georgia has proposed legislative changes to introduce new regulations on the emission of greenhouse gases, including CO₂. The draft law aims to amend the Law on Environmental Protection to establish a system for monitoring, reporting, and verification (MRV) of emissions.

The draft will be presented to the Parliament’s Environmental Protection and Natural Resources Committee by Zurab Ezugbaia, Deputy Minister of Environmental Protection and Agriculture. The initiative is spearheaded by the government.

According to the explanatory note, the amendments are linked to Georgia’s obligations under the EU Association Agreement and the Energy Community Treaty. The draft aligns with the European Union Emissions Trading System (ETS) principles and corresponding EU regulations.

Under the proposed legislation, certain sectors will be required to obtain authorization for greenhouse gas emissions. The rules will apply to energy, heavy industry, construction materials production, chemical industry, aviation, and other sectors. Operators will be required to submit verified annual reports on CO₂ and other greenhouse gas emissions.

The law foresees a transition period: MRV system requirements will come into full effect on January 1, 2026. Authorizations will be issued free of charge, but monitoring and reporting will impose additional administrative and financial obligations on companies.

The government expects the amendments to strengthen Georgia’s climate policy, enhance transparency in emission reduction, and align national legislation with EU standards.

To implement the new monitoring regime, the National Environmental Agency will hire five new employees, while the Environmental Supervision Department will recruit ten staff members. The anticipated budgetary impact is as follows:

  • 2025: National Environmental Agency – salaries 172,368 GEL, operational expenses 18,900 GEL; Environmental Supervision Department – salaries 275,160 GEL, operational expenses 27,000 GEL.
  • 2026 onwards: National Environmental Agency – annual salaries 172,368 GEL; Environmental Supervision Department – annual salaries 275,160 GEL.

Initially, salaries will be covered by the agency’s own revenues, with a gradual shift to state budget funding starting in 2025.

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