September 2023 - September 2024

Partner:

UNDP

Armenia

Environment Group

implementation of Debt for Climate swap in Armenia:

Environment Group provided specialised consulting services for the implementation of Debt for Climate Swap in Armenia. EG’s own Erik Grigoryan, a key figure and authorized representative in Armenia’s Debt for Climate swap has used the innovative financial initiative aims to reduce Armenia’s external debt by redirecting debt services towards high-priority national climate projects.

What we delivered:

• Environment Group conducted a comprehensive review of Armenia’s bilateral debt profile to identify eligible creditors and potential swap volumes

• Our experts designed a strategic framework and developed the operational mechanism for channeling diverted debt payments into climate-mitigation and adaptation projects, such as reforestation and water security.

• Facilitated dialogues between the UNDP, the Ministry of Finance, and the Ministry of Environment to ensure alignment with national fiscal and climate goals

• Evaluated the legal and economic risks associated with the swap to ensure a sustainable and transparent transition from debt to climate investment.