Georgia is at a pivotal point in shaping sustainable transport policy. This roadmap guides policy makers in making transport cleaner, fairer and more efficient while building on Georgia’s strengths – its location, institutions, competitive wages, low-emissions electricity and natural resources. Key opportunities include assembling and producing electric vehicles; manufacturing cells and battery components for mobility and storage; strengthening regional freight links; and developing low-emissions fuels.

Road transport has become cleaner and more efficient, but progress needs to accelerate. Car ownership and freight activity have risen along with incomes, but this comes at a cost: Nearly all of Georgia’s transport fuel is imported, exposing the country to price and security risks. Air quality ranks 62nd of 134 countries, with pollution causing about 130 premature deaths per 100 000 people – almost triple the global average. Road fatalities totalled 442 in 2022, more than twice the rate in the European Union, while 230 deaths each year can be linked to road-related air pollution.

Public concern is mounting over the impact of a growing vehicle fleet. Civil society groups note that expanding roads in Tbilisi has worsened congestion and increased local air pollution. Awareness of these effects has shifted public opinion in favour of reducing car dependence and investing in public transport, walking and cycling networks, and people-focused street design.

Policy makers must act at the national and local levels, prioritising efficiency, electrification of road vehicles and greater use of alternative modes. Recommendations to cut emissions, boost efficiency and improve access to other transport options are grouped into short-term (through 2030), medium-term (by 2035), and long-term (2040s and beyond), focusing on clean vehicles and multimodal measures at local and national levels.

Georgia is well-positioned to reap the economic and environmental benefits of EVs. EVs are the most effective option for cutting road transport emissions, with rapid improvements in cost and performance driven by global battery innovation. Imports of affordable Chinese-made EVs are growing, but their high upfront costs remain a barrier. Given limited public budgets and household purchasing power, policies must prioritise the most economically viable use cases and ensure broad access to electrification. Sustaining momentum will require further differentiation of vehicle import duties, indexing fuel taxes to inflation, and mobilising low-cost international finance to support adoption.

The transition to electric mobility will be gradual, requiring a framework that balances fiscal sustainability, economic viability and social equity. The achievements of the past decade already provide a foundation for reform. Existing vehicle import duties should be modified to reflect differences in fuel efficiency and emissions, alongside stricter monitoring and enforcement of in-use vehicles. Circulation and fuel taxes should also be more closely aligned with national economic and environmental objectives, while targeted incentives for EVs and charging infrastructure will be essential to ensure Georgia benefits from the global shift to clean mobility.

Investments in diverse transport infrastructure can make Georgia’s cities more liveable and freight more efficient. Funding from institutions such as the World Bank, the Asian Development Bank (ADB), and the European Bank for Reconstruction and Development (EBRD) has been critical for upgrades to road infrastructure as well as the modernisation, extension and electrification of rail networks. It has also provided crucial financing for initiatives like Tbilisi’s Sustainable Urban Mobility Plan. In addition to financing and grants, international institutions – including the European Union, the United Nations Economic Commission for Europe (UNECE) and the ADB – have offered policy and technical assistance. This support has bolstered government capacity, improved road safety and advanced the liberalisation of Georgian Rail, the state-owned national railway, while ensuring its fiscal sustainability.

Over the past decade, Georgia has secured significant funding and technical support from European and other multilateral development banks while awarding several large projects to cost-competitive firms, mainly from China. Recent examples include the Rikoti Pass along the country’s East-West Highway (with funding from the ADB and the European Investment Bank), and the Kvesheti-Kobi Road along the North-South Highway (with funding from the ADB and the EBRD).

Sustaining progress will require Georgia to align investment with national priorities, integrate more closely with European markets and court Chinese clean-tech partners in areas such as EVs and batteries. In the medium-to-long term, Georgia must also shift away from concessional finance from international institutions and develop new sources of domestic capital from both the public and private sectors to support cleaner and more efficient transport.

The recommended policies would advance integration with the European Union while delivering economic and social benefits. Over the past decade, Georgia has been steadily aligning its laws and regulations with those of the European Union. In 2014, the country signed an Association Agreement with the bloc, followed by accession to the Energy Community in 2017. In 2022, Georgia formally applied for European Union membership. Approval is by no means guaranteed, however, so it is important that Georgia pursue EU integration in a pragmatic way. Immediate benefits include regaining access to EU funding for national and local authorities and securing continued international financing for key energy, infrastructure and sustainable mobility projects. Over the long term, Georgia is well placed to benefit from EU industrial and climate policies, and to leverage its location, resources and workforce to develop advanced clean energy technologies for the European market.

Transport reforms already aligned with EU standards have improved health, quality of life and economic efficiency. Further integration can unlock opportunities for Georgia under the European Union’s industrial, economic development and environmental policies, such as the Social Climate Fund, Green Deal, “Fit for 55” and RePowerEU, as well as mechanisms like the Emissions Trading System (ETS), the Carbon Border Adjustment Mechanism (CBAM) and the Renewable Energy Directive. Georgia’s low-emissions electricity mix, competitive wages and position as a corridor between Asia and Europe make it well suited to low-carbon industries. Securing financing for a deep-sea port at Anaklia remains a priority. The project would ease cargo handling bottlenecks and allow Georgia to capitalise on its position as a transit hub between Asia and Europe. At the same time, it is critical that Georgia retains majority ownership of this key infrastructure asset and that the port development creates local jobs and delivers economic benefits.

This roadmap urges Georgia to press ahead with EU-aligned reforms while leveraging its clean energy and labour advantages to develop clean technology industries for export to Europe. It should also seek strategic partnerships with global leaders in areas such as EVs and batteries to strengthen domestic industrial capacity.

Beyond the specific measures summarised in the table above, this report highlights seven policies that should be considered at the national level:

1. Build government capacity for the transition: The new Interdepartmental Commission for the Development of the Transport and Logistics Sector of Georgia, established in August 2023, provides a platform for cross-agency coordination. It should set up working groups on key technologies, such as an EV taskforce. The national statistics agency, Geostat, should strengthen data collection, validation and public access to better inform policy. Policy should emphasise the economic, equity and industrial benefits of sustainable transport, with efficiency and electrification driving progress beyond energy and climate goals.

2. Revamp regulations and fiscal policy to spur road electrification: Fuel and vehicle taxes should be gradually adjusted to reduce dependence on imported oil. Phased reforms to the electricity sector can help capture the grid benefits of EVs, starting with flexible charging and eventually enabling additional grid services.

3. Mobilise climate finance and build a sustainable and resilient tax base: Adopt policies to attract climate finance, including concessional and blended funding, and explore joint tenders for electric buses. Develop a long-term, sustainable taxation framework to fund transport infrastructure, including freight corridors, multimodal urban transport, highways and the redesign of city streets. Align taxes with industrial and technology transition goals, and craft policies that encourage private investment, complemented by public funds when needed.

4. Invest in skills and education: Georgia has no dedicated funding for climate and energy research and development. The 2024 National Energy and Climate Plan (NECP) initially aimed to increase investment and education reforms for clean technology, with a target budget of 1% of GDP for research, innovation and competition as well as EV infrastructure and training. Unfortunately, this goal – already insufficient for addressing Georgia’s energy and climate challenges – was removed from the final plan. Broader public education and support for independent, technically competent media are also needed to sustain long-term climate action and a just transition.

5. Create an expert task force on EVs: Rapid EV adoption is key to sustainable road transport, requiring strong grid and charging infrastructure. Coordination between the power and transport sectors is needed for grid connections, capacity upgrades, smart grids and strategic charging deployment. A multi-stakeholder task force – including ministries, regulators, utilities, industry, academia and civil society – should be established to oversee the transition.

6. Pursue clean technology partnerships: Georgia should use its renewable energy – especially hydropower – to expand biofuels manufacturing and attract clean technology, including EVs, green hydrogen derivatives and batteries. The country should leverage its access to the European market, explore ways to encourage Chinese investment and technology transfers, build local skills and ensure that government ministries and agencies engage with prospective partners in a coordinated manner.

Accelerate digitalisation in transport: Digitalisation can improve efficiency and safety, lower emissions and create jobs, but delays in adoption risk leaving the country behind more advanced peers. Mobility-as-a-Service (MaaS), which integrates shared transport modes, is one solution that could boost accessibility and facilitate sustainable travel. In freight, digital tools exist for optimising cargo flow and infrastructure use, which can lower both costs and emissions.