Empowering Sustainable Development: Armenia’s Quest for Green E-Mobility

Alla Hakhnazaryan and Anzhela Abrahamyan of PwC Legal discuss Armenia’s position on sustainability at a critical time of climate crisis.

Published on 15 January 2024
Alla Hakhnazaryan
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Anzhela Abrahamyan
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Overview of Armenia’s approach to sustainable development

Armenia has positioned itself at the forefront of sustainable development, articulating a robust commitment to the UN’s 17 Sustainable Development Goals (SDGs). Although introduction of ESG (environmental, social, and governance) requirements is essential to sustainable development, Armenia still lacks a standardised framework to tackle ESG-related matters, and has not introduced mandatory ESG reporting, to state the least. However, committed to achieving SDGs by 2030, Armenia has strategically integrated sustainable practices into its policy framework, showcasing a holistic approach to economic growth, social progress, and environmental protection.

Noteworthy initiatives include the implementation of climate change screening requirements for public investment projects, the approval of the 2022–2030 National Program on Energy Saving and Renewable Energy, amendments to legislation addressing air pollution for enhanced monitoring of GHG emissions, and the adoption of various policies and legislative changes to align with the SDGs.

“...Armenia aims to achieve a 40% reduction in GHG emissions by 2030 compared to 1990 levels.”

In the realm of issues that the government is presently working to manage and regulate within its commitment to SDGs, particular emphasis is, inter alia, placed on matters concerning waste management and questions surrounding GHG emissions.

A notable illustration of these ongoing efforts is found in the proposed amendments to the law “On Waste” dated 7 January 2005. The amendments underscore Armenia’s commitment to introduce the extended producer responsibility (EPR) scheme and to improve waste management practices.

Armenia has also pledged to reduce its GHG emissions, aligning with the objectives of the Paris Agreement under the UN Framework Convention on Climate Change (ratified in 2017). Pursuant to its nationally determined contribution for 2021–2030, Armenia aims to achieve a 40% reduction in GHG emissions by 2030 compared to 1990 levels. Regarding GHG emissions, transport’s share is essential and constitutes 32%, and hence transition to green transportation is at the centre of the actions taken by the Armenian government.

The move towards green transportation

Several research results indicate a recent increase of road transport emissions which is caused by prevalence of outdated and inefficient vehicle technologies, and a growing volume of traffic. On its way to building a climate-resilient and green economy, Armenia has identified nine main domains, and the transition to smart and green multi-model transportation is at the forefront.

Based on the studies showing that electric vehicles (EVs) could play a pivotal role in reducing transport-related emissions in the country, the Armenian government, in its Action Plan of 2021–2026, has already articulated the need to develop a strategic framework for the encouragement of electric vehicles around the country, where the issues related to infrastructure development are crucial.

“...batteries will soon become a waste issue, posing a challenge for waste management...”

E-mobility market development has already started, mostly relying on the investments of private individuals and businesses. Research and interviews with stakeholders have revealed the current state of regulations and identified the following deficiencies in the existing framework.

  • There are no regulations for installing and operating recharging infrastructure, and no technical and quality requirements set for recharging operators.
  • The existing rules of installation of recharging stations on public land are not clear or there are no dedicated special regulations thereto.
  • There are a number of imported older EV models that are halfway or nearing the end of their operational lives. Consequently, their batteries will soon become a waste issue, posing a challenge for waste management, which is not developed in Armenia to the necessary extent.
  • There are no kinds of purchase incentives offered for any target groups or types of vehicles (except for “zero rate customs duty” available for the import of battery-electric vehicles until January 2026). As for local incentives, free parking is available at the parking lots of Parking City Service CJSC in Yerevan.

Recommendations and conclusion

Based on international best practice and experience, we consider that, to promote e-mobility development, several questions and obstacles in legislation should be considered and regulated, particularly the following.

  • Legal regulations should be adopted stipulating the necessary permits and licences for the installation and operation of recharging stations.
  • Legal regulations should be adopted to define technical requirements that the publicly accessible recharging stations shall meet, in order to receive permits for installation and maintenance, as well as safety requirements to track their operations.
  • A variety of local incentives shall be made available for EV users to ease the daily use of their vehicles, including free parking, and green licence plates for differentiation.
  • EV battery collection and management shall be addressed to prepare for the gradually increasing waste EV batteries, an inevitable consequence of the e-mobility market taking off.

In summary, Armenia is proactively shaping a legislative framework to address sustainable development concerns, placing significant emphasis on the promotion and oversight of green transportation to align with global obligations for reducing GHG emissions. The next important step of ESG compulsory reporting is under discussion and expected to also enter the Armenian regulatory framework.

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