Doi.org/10.52340/eab.2026.18.02.03

Against the backdrop of intensifying climate change, environmental degradation, and growing economic vulnerability, the European Green Deal has emerged as one of the most comprehensive policy frameworks for transforming economic systems toward climate neutrality, sustainability, and resilience. Adopted by the European Union in 2019, it sets a long-term vision of achieving net-zero greenhouse gas emissions by 2050, while simultaneously fostering economic growth, technological innovation, and social cohesion. Although primarily designed for EU member states, the Green Deal’s scope and regulatory influence extend beyond the Union’s borders, significantly impacting partner countries such as Georgia, which is gradually aligning its economic and environmental policies with European standards through the Association Agreement and sectoral cooperation mechanisms.
This article explores the economic implications of the green transition in Georgia within the conceptual and policy framework of the European Green Deal. The study aims to assess how the adoption of green economy principles can influence Georgia’s long-term economic development, sectoral transformation, and integration into the European economic space. Particular attention is given to the structural characteristics of the Georgian economy, including its relatively high energy intensity, dependence on imported fossil fuels, limited industrial diversification, and institutional capacity constraints, which collectively shape the country’s transition pathway toward a low-carbon and sustainable economic model.
The research focuses on three key sectors that are central to the green transition agenda: energy, transport, and agriculture. In the energy sector, the article analyzes the role of renewable energy development, energy efficiency improvements, and energy system modernization in reducing greenhouse gas emissions and enhancing energy security. Georgia’s significant potential in hydropower, wind, and solar energy is examined alongside existing challenges related to infrastructure development, regulatory frameworks, and investment mobilization. The analysis highlights that energy sector decarbonization not only contributes to environmental objectives but also creates economic opportunities through reduced import dependence, increased competitiveness, and attraction of green investments.
In the transport sector, the study evaluates the economic and environmental impacts of transitioning from fossil fuel–based mobility to low-emission and electric transport systems. The article examines current trends in vehicle electrification, public transport modernization, and urban mobility reforms, emphasizing their potential contribution to emission reduction, air quality improvement, and urban sustainability. Case examples from pilot projects, including the introduction of electric buses and energy-efficient transport infrastructure, are used to illustrate the practical implications of green transition policies in Georgia’s urban context.
The agricultural sector is analyzed as a critical component of the green transition due to its economic importance and environmental footprint. The article discusses the adoption of environmentally sustainable agricultural practices, such as reduced use of agrochemicals, improved waste management, organic farming, and climate-resilient production methods. These measures are assessed in terms of their potential to enhance productivity, ensure compliance with EU environmental standards, and improve the competitiveness of Georgian agricultural products in international markets.
Methodologically, the study is based on a qualitative and analytical review of international and national policy documents, including European Commission strategies, UNDP–EU4Climate assessments, OECD reports, and Georgian green economy strategies. The research incorporates medium- and long-term projections for greenhouse gas emission reductions for the period 2030–2050, providing an assessment of Georgia’s readiness to move toward climate neutrality. The findings suggest that, under favorable policy and investment conditions, Georgia could achieve a substantial reduction in emissions by 2030 and gradually approach a climate-neutral economic model by mid-century.
Despite the significant opportunities associated with the green transition, the article identifies several structural and institutional challenges that may hinder its effective implementation. These include limited access to financial resources, underdeveloped green finance instruments, regulatory and institutional gaps, and a shortage of skilled labor in green technologies and sustainable practices. The study emphasizes that addressing these constraints requires coordinated policy action, strengthened public–private partnerships, targeted financial incentives, and increased investment in education and capacity building.
The article argues that the European Green Deal should be viewed not merely as an environmental obligation for Georgia, but as a strategic development opportunity. By integrating green transition principles into national economic policy, Georgia can foster innovation, stimulate sustainable investment, create new employment opportunities, and enhance its overall economic resilience. In the long term, alignment with the European Green Deal can support Georgia’s deeper integration into the European economic and regulatory space and position the country as a competitive and environmentally responsible economy in the wider regional context.

Keywords: Green transition, European Green Deal, Energy, Sustainable development, Environmental protection.
JEL Codes: Q54, Q58, F15, O13, Q16, Q42, Q43

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