Assessment of Incentive Mechanisms for Double Water Use in Armenia

Client: United Nations Development Programme

Environment Group studied and identified the economic privileges and incentives of double (secondary) water use by water users, exploring the possibilities of introduction and practical application of such incentives in Armenia.

This strategic assignment successfully met the objective of the Republic of Armenia Government in establishing justified regulations for water reuse under Article 25.1 of the RA Water Code. By bridging national environmental policy with real-life application, the analysis provides a comprehensive framework to actively encourage the sustainable reuse of wastewater and drainage water across the country. 

To support the introduction of this national framework, Environment Group conducted deep technical research and identified the most promising sectors for water reuse across the Armenian economy. Our team identified and presented a structured set of financial incentives – including potential environmental tax reductions and the targeted implementation of secondary water networks – specifically designed to incentivize water users to adopt circular water practices.

To turn these findings into an actionable legal mechanism, Environment Group drafted a comprehensive package of regulations and core definitions that clarified the explicit rights and obligations of secondary water users under the national water architecture. Furthermore, our experts provided the Armenian government with a strategic roadmap to seamlessly integrate secondary water use into the country’s broader national climate change and sustainable natural resource management policies. Ultimately, this blueprint transforms a critical conservation challenge into a clear opportunity for long-term climate resilience and water security.