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UNIDO: Introduction of Single Market for Green Products and PEF methodology in Georgia

Client

United Nations Industrial Development Organization (UNIDO)

Client overview:

The EU4Environment Program is an EU-funded regional program supporting Eastern Partnership countries in advancing sustainable development through greener policies and business practices. It is implemented by several international organizations, including OECD, UNIDO, UNEP, UNECE and the World Bank.

The initiative helps the partner countries preserve their natural capital and increase people’s environmental well-being by supporting environment-related action, demonstrating and unlocking opportunities for greener growth, and introducing mechanisms to better manage environmental risks and impacts. 

UNIDO’s contribution focuses on promoting sustainable manufacturing and production practices, including the implementation of PEF and LCA methodologies to strengthen the competitiveness of local industries and support their access to EU markets.

Challenge:

As the EU continues introducing environmental performance requirements, manufacturers from partner countries increasingly need reliable methods for measuring and improving the sustainability of their products.

In Georgia, awareness of PEF and LCA methodologies remain limited, while many companies lack the technical expertise and data required to assess their environmental impacts.

At the same time, businesses, particularly export-oriented companies, recognize that improving sustainability performance will become increasingly important for accessing EU markets and maintaining long-term competitiveness.

Our approach:

Civitta supported the implementation of the PEF pilot initiative in Georgia through a comprehensive program that combined policy development, stakeholder engagement, awareness raising, and practical implementation.

The project began with the assessment of Georgia’s readiness for the introduction of sustainable manufacturing and green products and PEF methodologies by mapping existing eco-labelling and product greening initiatives, analyzing regulatory and institutional frameworks, identifying key stakeholders, evaluating barriers and opportunities, and preparing a national Readiness Report and a draft roadmap for PEF adoption

To promote wider uptake, Civitta designed and implemented a communication and awareness campaign, developed promotional materials for businesses, experts and public institutions, engaged partner organizations, and organized a national awareness event for stakeholders. 

Building on this foundation, Civitta worked directly with five Georgian companies from the apparel, footwear and dairy sectors. The project combined technical capacity building with hands-on application of PEF and LCA methodologies.

Together with participating companies, the team analyzed products throughout their entire life cycle: from raw material sourcing and production to distribution and waste management. The goal was to identify opportunities for improvement. 

The project also covered training programs for experts and company representatives, facilitation of practical PEF assessments, documentation of lessons learned through case studies, and incorporation of stakeholder feedback into the final national roadmap.

Beyond the technical assessments, the initiative strengthened local expertise in environmental footprint methodologies, increased awareness of sustainable manufacturing practices, and helped Georgian companies understand how sustainability can contribute to improved competitiveness and export readiness. 

 

Results and impact:

The project successfully introduced internationally recognized PEF methodology among the selected Georgian manufacturers and demonstrated its practical value through real business applications.

Participating companies gained a comprehensive understanding of the environmental impacts associated with their products and identified opportunities to improve resource efficiency, reduce environmental impacts and optimize production processes.

The pilots also enhanced companies’ readiness to meet evolving EU sustainability expectations by providing credible environmental performance data and internationally recognized assessment methodologies. Companies reported improved transparency in environmental decision-making, stronger benchmarking capabilities, and greater confidence in positioning their products within increasingly sustainability-driven international markets.

Beyond the pilot companies, the initiative established important foundations for the wider adoption of PEF in Georgia. It strengthened national awareness of sustainable manufacturing practices and eco-labelling among businesses, public institutions, and industry stakeholders, strengthened local technical capacity through expert training and knowledge transfer, and fostered collaboration across the national PEF ecosystem.

The project also produced a national Readiness Report and Roadmap, providing practical recommendations for policy development, capacity building, awareness raising, and support mechanisms needed to facilitate the long-term introduction of PEF and strengthen the competitiveness of Georgian manufacturers in the EU market.

Testimonials:

Ecology is of paramount importance to our company, and we believe our participation in PEF piloting will contribute positively to overall Georgian ecological impact. People are facing numerous environmental challenges, and my company is compelled to contribute in any way possible. Our company is dedicated to creating a positive environmental impact.
Ms. Darejan Kanteladze, Santa LLC

Participating in this project allows us to address weaknesses and implement sustainable practices, reinforcing our dedication to excellence. Despite our initial lack of awareness regarding the PEF’s business importance, we now anticipate that obtaining the relevant certification will allow us to bring products of our cultural heritage to the EU market and gain a competitive advantage.
Ms. Ekaterine Dojurishvili, “Marta Bebo’s Dambalkhacho”

Key takeaways:

  1. PEF assessments provide companies with a practical framework for identifying environmental improvement opportunities across the entire product life cycle.
  2. Applying PEF and LCA methodologies can simultaneously improve operational efficiency and strengthen export competitiveness by preparing businesses for EU requirements.
  3. LCA enables evidence-based decision-making, helping companies prioritize investments that deliver both environmental and business benefits.
  4. Building local technical expertise, stakeholder collaboration, and institutional capacity is essential for scaling environmental footprint methodologies beyond pilot projects and supporting long-term adoption. 
  5. Pilot projects play a critical role in demonstrating the business value of sustainability and encouraging broader industry adoption of green manufacturing practices.
  6. National readiness requires an enabling ecosystem, including supportive policies, awareness raising, technical guidance, and coordinated action across public and private stakeholders.