Armenia ranks among the lowest in Europe in terms of air quality according to a recent World Bank Group report.

The Armenia Country Climate and Development Report, which examines the interrelationship between climate change and country development, notes that Armenia’s economy is highly energy-intensive and reliant on fossil fuels, contributing to acute environmental problems, including air pollution. 

Major findings of the report:

• The annual costs of the damage of pollution to the health of Armenia’s citizens are estimated to be as high as 10.6% of GDP.  
• The impact of climate change on the water and agriculture sectors alone could shrink Armenia’s economy by up to 3% by 2060 and increase poverty by as much as 2.7 percentage points by 2030.
• Armenia also faces a high level of water stress, with over-extraction in areas like the Ararat Valley and Lake Sevan threatening both agriculture and drinking supplies.
• Investments to reduce the impacts of climate damage would, in contrast, expand the economy by 0.5-1% per year.
• Armenia is highly dependent on natural gas imports. Natural gas represents 63% of the country’s total energy supply, one of the largest shares in the world. 
• Targeted investments of about $8 billion up to 2060, complemented by policy reforms, can help Armenia enhance energy security through clean, domestic energy; boost agriculture productivity, improve food security, and strengthen resilience against climate change.