On June 17, 2021, German Sparkassenstiftung Southern Caucasus and Ukraine (DSIK) held an online presentation of the Results on Climate Risk Pattern Analysis in Georgia. The event served to create an overview of DSIK’s efforts to improve the resilience of farmers and entrepreneurs in rural areas to climate change shocks and exchange the perspectives with interested parties.
Various stakeholders attended the event – representatives of international organizations, local state instructions, non-governmental and financial sector were present during the 2-hour session.
Ms. Lidija Christmann, Head of Development Cooperation at the Embassy of the Federal Republic of Germany in Georgia made a welcoming speech, underlining close partnership between German Sparkassenstiftung and German Development Cooperation in Southern Caucasus since 2002. It was mentioned that German government is active in supporting the climate relevant activities in Georgia and the topics is high on political agenda of Germany.
Followed by the representative of the Ministry of Environmental Protection and Agriculture of Georgia Ms. Maia Tskhvaradze. significance of climate change issues was once again emphasized during the event. As it was mentioned, Georgia is quite vulnerable to the climate change and the country is working hard to reduce its negative consequences. Georgia has updated Nationally Determined Contributions and for its implementation has developed Climate Change Strategy and Action Plan. On behalf of the Ministry Ms. Tskhvaradze has greeted the new initiative in the sector and stressed importance of the Analysis results.
Ms. Nino Zambakhidze, Chairwoman of Georgian Farmers’ Association has also greeted the participants and spoke about needs of Georgian farmers and micro and small enterprises. Ms. Zambakhidze mentioned that farming has become increasingly risky as farmers become more business-oriented; therefore, educating farmers is important, as access to education and finance remain to be the key challenges in agriculture.
Opening remarks by the stakeholders were succeeded by the presentations from the hosts of the event. Mr. Branko Wehnert, Regional Director Southern Caucasus and Ukraine has presented the new project of German Sparkassenstiftung, with the aim to improve access to and use of financial services in rural areas for entrepreneurs and individuals and thus their resilience to exogenous shocks such as the effects of climate change and the COVID-19 pandemic. For this objective DSIK plans to work with the demand side as well as with supply side with relevant measure for risk management and capacity building.
Presentation of the Results on Climate Risk Pattern Analysis in Georgia was held by the representative of Climate Risk Services on behalf of the German Sparkassenstiftung. Mr. Gerhard Mulder has presented climate change results for Georgia, followed by the topics of risk patterns for agriculture and mitigation actions. Climate risk and opportunity management tool was presented by the colleague Ms. Stephanie Gnissios, who spoke about improved climate resilience for the MSEs and the ability to contribute to systemic local solutions.
In the concluding part of the presentation recommendation and next steps concerning the climate risk adaptation and mitigation measures were introduced, describing Environmental, Social and Governance (ESG) factors, financial fostering of sustainable developments and long-term perspective of financial system’s role in education, economic, social, and environmental issues. Moreover, concrete recommendations for the following crops – wheat, maize, potato, viticulture and hazelnut are described in the final report of the Climate Risk Services.
Presentations were followed by the remarks from the participants and a short discussion session, stressing the importance of stakeholder involvement, including the financial sector representatives.
The German Federal Ministry for Economic Cooperation and Development (BMZ) has commissioned German Sparkassenstiftung for International Cooperation (German Sparkassenstiftung) with the implementation of the orientation phase of the project “Promotion of rural finance for sustainable MSE development in the South Caucasus and Ukraine”. The project commenced on March 1st, 2021 and lasts in its current project phase until December 31st, 2022. Additional project phases are expected to follow.
The overall objective of the project is to strengthen the economic participation of the target group through improved access to and use of financial services in rural areas. In this way, the project contributes to the sustainable improvement of living conditions and the reduction of rural flight.