Poverty and Environment in Armenia

1. Poverty and Environment in Armenia Bratislava 9-10 December

2. Content • Country overview -Armenia • Macroeconomic Indicators • Environmental Challenges • Finances • Decentralization in the management of natural resources • Ongoing activities -PEI • Environmental Concerns in non Environmental Sectors • New Treats • Challenges • Future steps

3. land locked country in the Southern Caucasus, with an area of nearly 30,000 km2 • population of about 3.2 million

4. Main Macroeconomic Indicators of RA

5. Level of Poverty /Extreme poverty

6. Distribution of Poverty in Armenia

7. Environmental Challenges 1. Sustainable Land Management • Lands are under degradation and different level of desertification - 82% 2. Atmosphere Protection Urban Air Quality • dust concentration in Yerevan exceeds the permissible limit by 2.7 times, sulphur dioxide by 2.6, nitrogen dioxide - 3.3.. etc • 75% of the air contamination from Transport sector In Yerevan 95% • Industrial hotspots – Alaverdy SO2 – Maximal Allowable Limit by 12 times 3. Sustainable Forestry • Depletion of forest resources - in 90’s cutting of 40,000 hc,. (11.2% /1990 against 8%/ 2007). • 70% of the natural forests of the country are depleted and over-mature.

8. Environmental Challenges 4. Waste Management • Out of 940 Communities – 475 dump sites 11 urban and 178 community waste dump sites operating illegally • Absence of sustainable waste management practice - no reuse, recycling and recovery • Hazardous waste management – not regulated 5. Energy Efficiency/Safety • No local fossil fuel resources • High energy intensity of municipal sector - wood fuel (33.7%) electricity (30.3%) 6. Disaster Risks • High to very high seismic hazard rating; An average of 15 earth tremors every month (earthquake in Yerevan could affect up to 1,200,000 people) • Frequent landslides, floods, droughts - landslides 2% of territory (125 settlements) and 1500 km off 8000 km of roads permanent landslides

9. FINANCE Resource Mobilization from Environmental Charges and Nature Use Fees

10. FINANCE • Law on Budgeting of RA - Budget expenditures for any given year to support environmental projects can not be less then the total of Environmental Charges and Nature Use Fees from the year coming before the year of planning. • Depending on scale of existing Environmental Problems the Communities receive assistance from the Central budget

11. Decentralization in the management of natural resources • National Forest Policy and Strategy of RA – September 30, 2004; • National Forest Program July 21, 2005; • Strategy for Sustainable Agriculture Development - 2006 • The National Program on Energy Saving and Renewable Energy – 2007 • National Water Program 2006 - Water Basin Management Authorities shall develop and implement Water Management Plans

12. Natural Resources Management and Poverty Reduction Project Funded: WB, SIDA, GEF 2002-2008 Budget: 16 million US Dollars Regions - Gegharkunik and Tavoush of RA, 100 communities Agricultural activities • Community pasture improvement (6300 hc) ; • Pasture yield increased by 10-15 % ; • Hay yield increased by 20-25 %; Livestock productivity increased. The population received additional income from the sale of honey (the project provided some households with free beehives for the production of honey).

13. Natural Resources Management and Poverty Reduction Project Construction/ installation activities • Construction of the watering points (103 units) • Renovation of the field tracks (777 km) • Installation of the gullies (420units) • Installation of the gabions (210 units) • Installation of the equipments for biogas production (22 units) Environmental activities • Tree planting in the community degraded territories (220 hc) • Fencing construction (74 km) • Community pasture bordering (32 km) • Small dams (7 units) • Gabions for reducing the water speed (44 units)

14. Environmental Components and integration processes National Environmental Action Plan – II, Sept. 08 • Cross sectoral cooperation– Agriculture, Health, Transport, Energy, Industry, Education, Science. • establishment of the Local Environmental Action Plans • piloted in Ararat and Kajaran cities.

15. Environmental Concerns in non Environmental Sectors • National Council for Sustainable Development First meeting - in June 2008 -Chaired by Prime Minister. PRSP I -2003 - 2007 PRSP II –Transfer to Sustainable Development program October 2008 • Ensure sustainable and rapid economic growth • Implementation of targeted social and income policies aimed vulnerable (including the poor) social groups;Targeted programs for the poor and marginalized communities • Modernize the country’s administration system

16. NEW TREATS • Economic • Impact of the Financial Crises on the poverty level unemployment from mining and Manufacturing sectors (total 112.2 thousand currently involved) may rich up to 10,000 and first time since 1999 poverty level will increase 1.2%! • Remittances in 2007 stands for 2 billion USD • Natural • Climate Change impact on the economic and social sectors • Climate Change impact on the Economy of Armenia Energy, Water, Agriculture and Forestry • Climate Change Impact on the Ararat and Shirak Region of Armenia Lusadzor community of Tavush region special consideration on possible impact on the Poor; Climate Change mainstreaming in UNDAF

17. Challenges • Not clear vision of the link of poverty and environment among decision makers (dominating short term economic benefit decision making) • Developed legislative framework but weak enforcement mechanisms • Separate consideration of poverty and environment related issues in major policy documents • No poverty-environment and environmental mainstreaming indicators

18. Future Steps New methodology for calculation of Environmental Impact Assessment with consideration of the Ecosystem Function Valuation – For evidence based decision making Development of methodology for consideration of Environmental loses in the National Income calculation.

19. THANK YOU FOR ATTENTION