Summary 

The development of green business in the Caucasus region has become one of the key priorities in today’s economic and ecological discourse. It is directly linked to mitigating climate change, introducing environmentally friendly technologies, and achieving the objectives of sustainable development. Green business models not only create new economic opportunities but also serve as an essential mechanism for integration with global environmental standards. In this regard, the concept of a green economy reshapes traditional business paradigms and provides new opportunities for sustainable and competitive growth.

In the South Caucasus, advancing green business is both a challenge and an opportunity, driven by the global climate crisis and the need for economic transformation. Green technology enterprises boost growth, ensure environmental compliance, and support progress toward sustainable development goals.

Over the past two decades, Georgia, Armenia, and Azerbaijan have implemented a range of initiatives, including the expansion of renewable energy, the promotion of eco-tourism, the advancement of organic agriculture, and the establishment of waste management systems. These initiatives have been significantly supported by international organizations (UNDP, OECD, the European Union) alongside increased public and private investment. As a result, they have contributed to strengthening energy security, reducing carbon emissions, and empowering local communities economically.

According to theories of business competitiveness (Porter, Krugman, Stiglitz), success in the era of globalization depends not only on price efficiency and production capacity but also on the adaptation of innovative technologies, the sustainable use of resources, and compliance with environmental standards. In this context, green technologies are viewed as a critical lever for enhancing business competitiveness and reinforcing economic security.

This article examines the main directions of green business development in the Caucasus region—energy, transport, agriculture, tourism, and industry. Special attention is given to the social and economic outcomes of adopting green business models, including job creation, the strengthening of human capital, the dissemination of an innovation-oriented culture, and opportunities for integration into global markets.

International cooperation and investment are crucial for green transformation. Frameworks such as the European Green Deal and the Paris Climate Agreement help regional businesses remain competitive. ESG compliance and international certification provide companies with advantages for global market expansion and attracting capital. For South Caucasus countries, integrating green business into global standards strengthens economic security, fosters innovation, and supports long-term competitiveness. Georgia’s example shows that state policy, international support, and business readiness can drive sustainable regional development.

Keywords: Green business, sustainable development, green technologies, competitiveness, investments, eco-tourism, renewable energy