A photo of purple flowers in front of a blue lake.

    Core area “Climate and energy, just transition” Achieving water security, reducing climate risks

    Armenia is seeing periods of drought increase, with water getting scarcer and infrastructure suffering under extreme weather. The country's dependence on imported gas and weather-dependent energy sources such as hydropower is making its economy vulnerable, and air pollution is an additional burden on the population. That is why Germany is supporting measures to make Armenia's energy supply more sustainable and independent, improve water and wastewater systems and strengthen protected areas.

    People in Armenia are already feeling the effects of climate change in daily life. Periods of drought are more frequent, water resources are under great strain and infrastructure is vulnerable to extreme weather events. According to the World Bank, the country is facing high water stress. In parts of Ararat Valley, more groundwater is being withdrawn than nature can replenish. And as much as 70 per cent of the water in local grids is being lost due to leaky pipes. This water shortage is hitting agriculture and rural communities in particular. They depend on reliable water supply and suffer more under fluctuations in rainfall and increasing temperatures.

    In addition, Armenia's energy supply depends to a large degree on gas imports and weather-dependent sources – making the country economically vulnerable and creating a significant negative environmental impact. The World Bank stresses that the energy sector accounts for a disproportionate share of greenhouse gas emissions, with polluted air causing high health-related costs for the population. At the same time, the economy is vulnerable to climate risks such as extreme heat and intense rainfall, which pose a threat to roads, power grids and water systems alike. Unless the country does more to adapt to the changing conditions, the effects of climate change could markedly hinder national economic performance by 2060, driving up poverty levels.

    Goals for the sector

    The projects in this area are aimed at strengthening Armenia's resilience against climate risks. They support the transition to sustainable, climate-friendly energy systems, the expansion of renewable energies and efficient logistics structures, and the improvement of water and wastewater management. Conservation areas are also being connected up, biodiversity protected and local communities enabled to manage natural resources in a sustainable manner.

    Project examples

    • One project in this area is aimed at improving the political and legal framework for sustainable and resource-conserving water management. It assists authorities and legislators in their efforts to develop strategies that secure access to safe drinking water and reduce the burden on the environment in the long term. The project supports communities and authorities in developing action plans and investment programmes and introduces decentralised wastewater solutions and nature-based approaches. Additional measures involve training programmes in integrated water resource management for authorities and support for civil society engagement in the area of water and climate protection.

    • Another project is making it easier for communities to use renewable energies and implement energy efficiency measures by improving the policy environment, developing capacities and raising awareness of sustainable energy solutions among citizens.

    • The Caucasus Transmission Network Project is creating a cross-border flexible energy exchange scheme within the southern Caucasus. Linking the Armenian and Georgian grids by means of a high-voltage direct current back-to-back station improves security of supply, efficiency and the region's economic development.

    • The Caucasus Nature Fund is fostering protected areas in Armenia and Georgia, financing management plans and infrastructure and ensuring long-term biodiversity conservation. The project mainly targets people living around the protected areas who benefit from sustainable land use and nature conservation.
    • A project aimed at linking up national conservation areas in the southern Caucasus is developing eco corridors, which involves creating municipal protected areas that connect conservation areas with one another. Local communities benefit from participatory land use planning and are enabled to generate sustainable sources of income and reduce the loss of biodiversity and natural resources.

    As at: 26/05/2026