Child Project: Transition Towards Electric Mobility in Armenia

Project General Information


Climate change

Climate Change

In Armenia, the energy sector accounts for around 70.3% of the country’s total emissions, of which 25% is from transport. In 2013, the transport sector consumed 522 ktoe and was the second largest consum-er after the residential sector (IEC,2017). Armenia’s transport C02 emissions are expected to increase by 160% by 2020, as a result of its aging fleet and inefficient urban transport systems (ADB, 2011). A large share of vehicles in Armenia use compressed natural gas (CNG) instead of gasoline and diesel. Armenia imports all its oil and gas (largely from Russia), with gas accounting for 63% of Armenia’s primary energy (IEC, 2017).

Armenia’s high dependence on fossil fuels in the transport sector has a significant impact on the levels of air pollution and hence public health in its’ cities. To mitigate the effects of growing pollutants and greenhouse gas emissions (GHG), Armenia has set itself the objective of promoting the efficient use of energy. The government has set an ambitious goal in its Intended Nationally Determined Contribution (INDC, 2015) to achieve ecosystem neutral GHG emissions by 2050 (2.07 tons/per capita annual, 633 million tCO2e at an aggregate level by 2050). Energy (including renewable energy and energy efficiency) and transport (including development of electrical transport) are among the main sectors included in the mitigation contribution.

Further, in its 2014-2025 Development Strategy, Armenia articulates the need to reform its countries energy sector, by replacing old power plants and diversifying its energy supply by investing in renewa-bles. The current generation capacity is unable to meet forecasted electricity demand and the state-owned power companies are in financial distress, in part due to increases in the import of gas prices (World Bank, 2014). Armenia is developing a tariff policy to create favorable conditions for developing renewable energies and attracting investment.

The National Energy Efficiency Action Plan (NEEAP) of 2011 defined several measures aimed at reducing energy consumption in the transport sector:

• Development of legislative background on fuel efficiency and emission norms

• Dissemination of information on technologies and energy saving

• Continuous replacement of minibuses by larger passenger buses and route optimization

• Expansion and modernization of electrified public transport

Electric vehicles have the potential to reduce energy use, mitigate GHG and air pollutant emissions, re-duce cost (i.e. due to reduced fuel imports) and create opportunities to increase the local content of vehicle manufacturing. As the economy is recovering after the financial crisis, the major cities, notably Yerevan, which has become one of the most densely populated cities in the region and is witnessing in-creasing motorization rates, have started to embrace electric mobility.



Medium-sized Project(MSP)




GEF Trust Fund

Stage Grant to UNEP Grant to other IA Co-Financing UNEP Fee Other IA Fee
$ 592,202.00 $ 0.00 $ 5,875,000.00 $ 53,298.00 $ 0.00
$ 50,000.00 $ 0.00 $ 0.00 $ 4,500.00 $ 0.00



Executing Agency Category

Partner Category

Name Category Period


Fiscal Year Project activities and objectives met

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