Since October 2025, Avenue Consulting Group has been implementing the Carbon Tax Impact Assessment for Armenia under a project financed by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented through GIZ. The assignment supports the Government of Armenia in assessing the feasibility and implications of introducing a carbon tax as part of the country’s climate policy and low-carbon transition agenda.

The project analyses the potential economic, environmental, and social impacts of carbon taxation, including effects on key economic sectors, households, competitiveness, and greenhouse gas emissions. It also reviews Armenia’s institutional and policy readiness, examines international best practices in carbon pricing, and evaluates options for revenue use and mitigation of distributional impacts.

By providing evidence-based analysis and practical policy recommendations, the project contributes to informed decision-making on carbon pricing instruments in Armenia, supporting the country’s commitments under the Paris Agreement and strengthening the foundation for an effective, socially balanced, and economically sound climate policy framework.