The FINANCIAL — Gathering manure from local villages and developing compost from it, to be used as valuable fertiliser in agriculture, the landfill business and Clean Development Mechanism (CDM) – are a short list of profitable businesses which so far remain underdeveloped in Georgia, a country with a high rate of unemployment.
“We should try to increase the business community’s interest in environmental issues, in line with achieving the country’s development,” Khatuna Gogaladze, Minister of Environment Protection of Georgia, told The FINANCIAL.
The effects of environmental degradation on the economy are massive. Because its air and water is polluted, China is losing between 8 and 15 percent of its gross domestic product. And that doesn’t include related health costs. Gogaladze said that responsibility for environmentally friendly behaviour is not adequately acknowledged by the private sector, although she remains optimistic that companies will soon realise its effects and benefits.
In her interview with The FINANCIAL, the Minister underlined the alarming impact global warming is having on our environment and the measures needed for adapting to this.
Q. Georgia is characterized by a large number of eco-migrants. Which regions are the most affected by this and how are you combating it?
A. Georgia belongs to one of the most difficult regions in terms of spreading natural geological and hydro-meteorological processes and the damage caused by them. Extreme appearance of the processes is then followed by the displacement of local populations. The regions of Adjara, Racha-Lechkhumi-Kvemo Svaneti, Samegrelo-Zemo Svaneti and Mtskheta-Mtianeti are the most affected in this regard. Over 60,000 families have relocated from the above-mentioned regions during the past 50 years. Government structures are responsible for checking the houses in certain zones and making the decision if necessary to relocate the inhabitants to more sustainable territories.
The National Environmental Agency of the Ministry of Environment carries out an annual monitoring survey, which is compiled on the basis of a newsletter. It is then sent to relevant government agencies. In addition, in a force majeure situation, problems are quickly assessed and appropriate recommendations for preventive measures are issued.
Q. What is the budget of the Ministry of Environment Protection of Georgia for 2013?
A. The amount that has been allocated for our Ministry from the government budget is GEL 21,240. Non-budget income is approximately GEL 15 million. Moreover, several millions are allocated within various grants. We are currently cooperating with international and donor organizations to attract additional funding.
Q. What are your main priorities regarding environment protection?
A. We have problems in various directions. Environment protection became a minor industry during the previous administration. Accordingly underlying concrete priorities is difficult. Implementing a forest management system via long-term licenses is far from the standards established in Europe. Our main objective is to introduce a European model, considering the existing realities and national interests.
There is an urgent need to improve the legislation base. This process has already begun. In the past few months we have presented a legislative package with about 50 legal acts. Still a number of changes needed. Creating an effective environmental surveillance system is also very important.
The institutional strengthening of the Ministry is among the most important tasks to be carried out. In this respect we are reorganizing the Ministry in order to extend our functions. The Ministry will start functioning with updated and enhanced functions in the nearest future.
Q. How do you plan to control ecological problems?
A. A unified system of state control service will start operating from 15 May, 2013. The Environmental Supervision Department, with 330 staff members, will include representatives of seven territorial authorities and the Black Sea Convention protection service.
The territorial offices of the Environmental Supervision Service will mostly work in three directions: a) Inspecting enterprises on their fulfilling obligations regarding effects on the environment; b) Checking the terms and conditions of licenses to use natural resources; and
c) Preventing the illegal use of natural resources.
Our main goal is to prevent as much as possible avoid negative impacts on the environment, through preventive measures.
Q. Many new and existing city parks and squares have been opened and renovated in Georgia recently, however, there is still a lack of green spaces in Tbilisi. What is the number of trees that you plan to plant this year?
A. Green cover needs constant upkeep and care. It is impossible to define a specific number of trees or other plants after which new vegetation will not need to be planted.
In order to teach the next generation about the importance of planting trees, the Ministry of Environment initiated the campaign “Plant Your Future”. As a result of this campaign 22,000 trees have been planted throughout the country. The project involved governmental and non-governmental organizations, schools and universities, private companies and citizens. It is very important that every citizen should realise his/her role in their respective town, village, school, or own yard’s planting processes. Our citizens should appreciate and protect the environment the same as they would their own property.
Q. Why is Georgian business not more actively involved in environmental protection?
A. Environmental protection is a part of corporate social responsibility. Social responsibility is an area of ethical rather than legislative or other regulations.
We are all well aware that increasing profit is the main interest of the private sector. Accordingly, businesses should be made to see the benefits from voluntary engagement in environmental activities. Such benefits do indeed exist for both direct (e.g. use of energy efficient equipment) and indirect (e.g. growth of prestige, competitiveness of their products) forms. This requires the enhancement of businesses’ awareness of the fact that the so-called ‘green approach’ can be profitable for them in the long run.
There are many possibilities for the incidence of environmentally-beneficial activities in the private sector, for example, setting up a manure-processing facility in rural areas. By gathering manure from nearby villages one can extract methane and make compost from it. This is valuable fertiliser for agriculture due to the large amount of nitrogen it contains. On the other hand, methane can be used as fuel for the operation of an enterprise, or for sale. In Japan, there are manure-processing plants, where the capturing – supplying processes are working perfectly from smallholders to factories.
Landfills are another example of profitable business. They allow for the extraction of methane from municipal waste (the methane can be used as fuel), at the same time, paper, glass and even plastic bags can be recycled from the waste. The waste business is a very profitable business in developed countries.
There are many similar examples, so we should try to increase the business community’s interest in environmental issues at the same time as achieving the country’s development.
Q. Climate change is becoming an alarming problem globally. What risks is Georgia facing in this regard?
A. Due to Georgia’s widely varied nature and landscapes, the effect of climate change is evident in many ways. Floods and droughts have become more common and intense in recent decades.
Land degradation has increased in semiarid (semi-dry) areas due to rises in temperature. The threat of desertification has emerged. Significant changes are expected in the distribution of water resources as a result of melting glaciers. The temperature increase may cause problems for agriculture. Climate change affects human health as well. High temperatures lasting for long periods of time, so called ‘heat waves’ are especially dangerous to people with cardiovascular diseases.
The most vulnerable areas of Georgia include the Black Sea coastal zone. A rise in sea-level is increasing flooding which is in turn endangering infrastructure. We are already witnessing the erosion of riverbanks. Avalanches, landslides and mudflows will become worse in mountainous areas as a result of pouring rain.
Q. The German Chancellor Angela Merkel’s words on the environmental and financial crises were based on the same thing. To what extent do you agree with her?
A. The unscrupulous use of cash resources and ignoring demands for financial transparency have been named the main causes of the financial crisis. Not uncommonly, similar problems can be found in companies’ activities in regard to ignoring environmental standards. In order to obtain more profit from investment environmental risk is often not completely evaluated or is not taken into consideration at all. The environmental damage caused by a company might be a serious blow to the company itself, as well as the country’s economy.
The link between environmental and financial risks and the connections between them have been evaluated in the U.S. most objectively. As a result the U.S. has been the least affected during all the financial problems. The Government not only tightened control of business. In 2009 the National Association of Insurance Commissioners obliged companies to account for risks of climate change. Additional liabilities have been amalgamated in to insurance packages. Today, the U.S. is considered a leader in the development and implementation of this strategy.
I think that a healthy ecosystem, wise use of natural resources and sustainable development are some of the most necessary conditions for long-term economic prosperity.
Q. What are your main goals that you plan to accomplish while holding the position of Minister?
A. Developing a strong environmental sector and ensuring human’s constitutional rights to live in a healthy environment.
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