Armenian manifestations of the Kyoto treaty

In Nubarashen dump a program of using biogas is being carried out while production of electricity is still a question of time

YEREVAN, Armenia – Environmental protection is not only an ecological issue any more. Environmental changes taking place on a global-scale made Armenia  observe the issue from the viewpoint of state development and security. With this aim and logic our country joined the Kyoto treaty.

The Kyoto treaty entered force in 2002 and will remain in effect until 2012. Developed countries signed this treaty and committed themselves to reduce emission of  gases into atmosphere. At the same time, developing countries can introduce volunteer programs. Meanwhile, executive council of clean development mechanisms gives an opportunity to developed countries to reduce emissions in developing countries. Artyom Kharazyan, UN gas emission reduction expert stated: “Gas reduction is not a local problem any more. As a result of each reduction the planet will become cleaner and safer”.

         1300 clean projects have been developed and are being introduced in the throughout world. 17 projects have been developed in the South Caucasus region. “In this sense Armenia is one of the leading countries as 5 such programs are already being carried out,” said Artyom Kharazyan.           

The place where the project is being realized.

The first program which is already in the implementation stage is the project of using biogas and electric energy production in Nubarashen dump from hard domestic waste. After the Kyoto treaty took effect negotiations began between Armenia and the Japanese Shimidzu corporation. The negotiations and discussion of conditions lasted more than 5 years, the contract was concluded only in March 2009 and the implementation of the program began in October. “In Nubarashen dump methane emissions are taking place which leads to the climate change. 1 ton methane emissions are equal to 21 tons of CO2 gas emission. The Japanese company committed itself to reducing emissions and generating electric energy by burning gases. But today they engaged only in emissions reduction and electrical energy production is out of the program,” said Aram Gabrielyan, the head of the Environmental protection department of the Ministry of Ecology.

Small business reduces its profit in Georgia and the Government is going to decrease the taxes

TBILISI, Georgia – When Arshavir Asatryan, 48, opened his small sausage factory in Georgia’s capital Tbilisi he decided to name it “Forward Products”. But his business has not been moving forward for a year. Before last August’s war with Russia Before the war with Russia his monthly turnover was 30.000 GEL, now it is 10.000 GEL.

Before the August war the worldwide financial crisis hadn’t really affected the Georgian economy, but after the conflict it became clear that Georgia would not be able to avoid its affects.  The downturn has hit small business particularly hard, so the government is trying to help them by cutting taxes.

“If before the war people bought 3 sausages a week, they now buy only one,” said Mr. Asatryan sitting at a table counting his profit for the day. He is watching Georgian President Mikheil Saakashvili give a speech on TV. “I hope he will do something,” said Mr. Asatryan.

In December 2004 the government passed a new Tax Code reducing tax rates and the number of taxes from 21 to 7. At the same time it increased penalties for non-payment of taxes.

“Small business is competitive itself if there is a good environment for development. The government is going to reduce income tax to 15% in 2011 and 2012.  Till 2012 other types of taxes on personal profit will be non-existent and capital taxes will be abolished,” said Prime Minister Nika Gilauria at a meeting with students at the Georgian Institute of Public Affairs.  He added the development of small businesses is a priority for the government.

According to the new tax code profit tax is unchanged at 20%, income tax reduced from 20% to 12%, social tax from 31 % to 20% and VAT from 20% to 18%. Enterprises that have less than 100,000 GEL turnovers pay only income and profit tax.