Georgia Transport and Climate Profile 2026

Outline

GEORGIA

TRANSPORT AND CLIMATE PROFILE

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Background

Georgia, as an upper-middle-income nation in Central and West Asia, faces a crucial challenge in its transport sector for decarbonization and resilience efforts. In 2024, this sector emitted 4.1 million tonnes of greenhouse gases, making up about 21% of the country's total emissions. The sector is heavily reliant on road transport, which accounts for all transport-related emissions, highlighting a strong dependence on motorized road travel. Emissions from transport rose rapidly by 9.3% annually before the Paris Agreement; since 2015, this growth has slowed to 1.2% per year, indicating relative decoupling between sector growth and carbon output. The emissions intensity per GDP has improved significantly, dropping from 80.7 gCO2e/USD in 2015 to 39.2 in 2024, yet it still exceeds the Asia-Pacific average of 29.0 gCO2e/USD.

Energy dynamics remain heavily skewed toward fossil fuels, with oil products constituting 88% of sectoral energy consumption in 2023. While electricity use in the rail sector was nearly universal in 2010, it has since declined to 90% by 2023. Georgia benefits from a relatively low grid emission factor of 143 gCO2 per kWh, which provides a strategic advantage for future transport electrification. Beyond operational energy, the material footprint of transport infrastructure—averaging 7.4 million tonnes of material annually for expansion and maintenance—contributes an additional 342 thousand tonnes of CO2-equivalent in embodied emissions. Furthermore, fossil fuel subsidies for petroleum continue to distort the market, incurring external societal costs dominated by traffic congestion (61%) and road crashes (37%).

The transport network faces escalating systemic risks from natural hazards. Since 2000, Georgia has experienced 24 recorded disasters, primarily flooding (67%) and storms (17%), affecting 1.2 million people and causing over $1.1 billion in damages. The country faces estimated potential average annual losses of $15.9 million to transport infrastructure, with roads bearing 80% of this risk. Under a 4.5-degree increase scenario, more than 17% of road and rail assets would be exposed to extreme precipitation. Despite these risks, Georgia ranks 138th in National Road Vulnerability, and currently, only 25% of sectoral policy measures incorporate explicit climate adaptation or resilience components.

Georgia's strategic response is anchored in its Updated Nationally Determined Contribution (NDC) and its Long-Term Low Emission Development Strategy (LTS). Under the NDC, the government aims to unconditionally reduce sectoral GHG emissions by 15% below reference levels by 2030. The LTS sets an even more ambitious trajectory, targeting carbon neutrality by 2050. Priority policy interventions are focused on a multi-modal approach, including biofuels, public transport improvements, rail infrastructure expansion, and the adoption of Intelligent Transport Systems (ITS). While motorization is high—514 vehicles per thousand population—the nascent EV market (representing 4% of total road vehicle imports) and a score of 53 on the UNEP E-mobility Readiness Index suggest that financial and policy instruments require further strengthening to accelerate the transition to electric mobility.

Policies focused on "Avoid" strategies prioritize reducing transport demand through better urban planning and logistical efficiency. According to Georgia's 2030 Climate Change Strategy, the government could implement measures to reduce private vehicle traffic in central districts and developing Sustainable Urban Mobility Plans (SUMP), such as the one recently adopted for Batumi and the ongoing development for Tbilisi. These efforts could be complemented by the Social-economic Development Strategy of Georgia 2020, which facilitates the development of logistical centers and cargo terminals to streamline freight movement and reduce empty hauls. Furthermore, the 2023-2030 National Strategy of Transport and Logistics of Georgia emphasizes the introduction of Smart Transport Systems (ITS) and modern information technologies to optimize travel times and ease urban congestion.

Shift strategies focus on transitioning passengers and freight from carbon-intensive road transport to more sustainable modes like rail, public transit, and active mobility. Georgia's 2030 Climate Change Strategy targets a modal shift, aiming for 35% of urban trips to be made via public transport and 45% via non-motorized modes by 2030. Key initiatives include modernizing the Tbilisi Metro, expanding cable car lines, and implementing dedicated bus lanes, as outlined in the Draft National Sustainable Energy Action Plan of Georgia. For freight, the Regional Development Program 2018-2021 prioritizes investments in the Baku-Tbilisi-Kars railway link and intermodal infrastructure, while the 2023-2030 National Strategy of Transport and Logistics seeks to attract private sector investment in rail freight to reduce road infrastructure wear and carbon intensity.

The "Improve" pillar focuses on enhancing the technical efficiency of the vehicle fleet and advancing the decarbonization of energy sources. As part of Georgia's 2030 Climate Change Strategy, a key initiative is the rollout of emission standards for imported vehicles, such as Euro 4/5, along with mandatory periodic roadworthiness tests, aligning with the EU-Georgia Association Agreement. To boost electrification, the government offers tax incentives for electric vehicles (EVs) and is expanding charging infrastructure in cities like Tbilisi and Batumi, as outlined in Georgia's Action Plan to Reduce CO2 Emissions in Aviation and the Third Biennial Update Report. Moreover, the Fourth National Communication emphasizes efforts to promote domestic biodiesel production and increase the renewable energy share in transport fuels to 10% by 2030.