The capital of Armenia, Yerevan, has the worst air quality in the South Caucasus. This was stated Tuesday during the “The Future of Banking: Sustainable Innovation and Perspectives” banking forum—and by the United Nations (UN) Resident Coordinator in Armenia, Francoise Jacob.

According to Jacob, this affects Armenia’s appeal. Also, she pointed to the problem of active desertification of the country’s lands, as well as pollution of rivers due to agricultural, construction, and mining activities. Jacob estimates that Armenia spends only 0.6% of its GDP on environmental protection.

The UN official added, however, that Armenia is making progress on its peace agenda, and this opens up new opportunities. Jacob noted that this enables creating an appropriate environment for the development of a green economy, including within the framework of 17th meeting of the Conference of the Parties to the Convention on Biological Diversity (COP17) to be held in Armenia next year.

She emphasized the important role of banks in funding the sustainable development agenda. Jacob expressed confidence that Armenian banks can contribute to the development of a green economy, forest restoration, and some other domains.

The UN official stressed that in preparation for COP17, Armenia should demonstrate its commitment to protecting biodiversity. Francoise Jacob noted that the aforementioned forum calls for an increase in global funding for this sector by $200 billion․