კონფერენცია

∘ Solomon Pavliashvili ∘ Mikheil Tokmazishvili ∘
GREEN FINANCING IN GEORGIA

Abstract

The term "green finance" refers to the connection between environmental and financial decisions and is based on economic, social, environmental, and other values. The vulnerability of sectors to the environment influences financial sector lending to these industries. The risks of the latter are defined by many industry characteristics, such as vulnerability and environmental impact dimensions.

The study compares five sectors - energy, agriculture, construction, industry, and transport and communication - and examines the share of loans given in each sector in terms of total assets and output. Climate impacts are anticipated to indirectly affect lending decisions by financial institutions in Georgia, and climate impacts are not assigned a substantial role in commercial bank activities, except in agriculture. Agricultural sectors are the most vulnerable to climate risks and contribute significantly to climate change.

Keywords: sustainable development, green finance, agriculture, climate impact, loans, risks.

Ivane Javakhishvili Tbilisi State University Paata Gugushvili Institute of Economics International Scientific C O N F E R E N C E S "ECONOMY – XXI CENTURY"

E ISSN 2587 - 4691	∘ Solomon Pavliashvili ∘ Mikheil Tokmazishvili ∘ GREEN FINANCING IN GEORGIA Abstract The term "green finance" refers to the connection between environmental and financial decisions and is based on economic, social, environmental, and other values. The vulnerability of sectors to the environment influences financial sector lending to these industries. The risks of the latter are defined by many industry characteristics, such as vulnerability and environmental impact dimensions. The study compares five sectors - energy, agriculture, construction, industry, and transport and communication - and examines the share of loans given in each sector in terms of total assets and output. Climate impacts are anticipated to indirectly affect lending decisions by financial institutions in Georgia, and climate impacts are not assigned a substantial role in commercial bank activities, except in agriculture. Agricultural sectors are the most vulnerable to climate risks and contribute significantly to climate change. *Keywords:* sustainable development, green finance, agriculture, climate impact, loans, risks.