Forging Armenia's Resilient Future: Green Value Chains in Action

Last week in Yerevan, International Labour Organization (ILO) convened key actors - from planners to Micro, Small, and Medium Enterprises (MSMEs) - for two workshops to transform Armenia's local economies amidst concurrent crises.
After the 2023 Nagorno-Karabakh events, Armenia welcomed over 100,000 refugees. This humanitarian challenge, combined with informality and climate risks, demands a Just Transition - shifting to a green economy that creates formal jobs and leaves no one behind.

In foreword UN Resident Coordinator Françoise Jacob highlighted that Armenia holds significant potential for advancing a Just Transition, and that the current political framework for peace creates an enabling environment to move forward. She emphasized that this ILO initiative provides not only practical tools for promoting decent work, but also a pathway to ensure that economic transformation is inclusive, sustainable, and socially just.

As noted in the opening remarks by Dr Cristina Martinez, ILO’s Senior Specialist Enterprise Development and Green Jobs: 

“The challenges of informality, skills gaps, and climate risks like water stress are real. The path forward is a Just Transition—one that reduces environmental impact while creating formal green jobs and opening pathways for refugees, women, and informal workers”.

Backed by data, the workshops spotlighted sectors with significant growth potential:

• In Yerevan: The construction sector (49% of the Armenian total, output ↑52% since 2021) is being steered towards sustainable renovation. Meanwhile, waste sorting & recycling is a growing employer, with sorted waste jumping from 368 tons (2021) to 760 tons (2024).
• In Ararat: This agricultural powerhouse produces 31% of Armenia's vegetables and 26% of its fruits. With 82,000 tons of grapes (42% of the national harvest) in 2023, we're upgrading horticulture and winemaking with climate-resilient practices.

Tailored Approaches for Impact:

1. The Foresight Workshop for Economic Planners (Sept 23) equipped officials with a Value Chain Analysis (VCA) framework. This tool helps planners move beyond traditional infrastructure-focused investments to identify "soft bottlenecks" in skills, market linkages, and standards. By using VCA, they can now prioritize sectors based on job creation potential per dollar invested, ensuring public resources directly support inclusivity and green growth.
2. The MSME Empowerment Workshop (Sept 24) provided entrepreneurs with practical tools for resilience. During discussions participants delved into financial management for seasonal cash flows, strategies for adopting green technologies (from precision viticulture to smart waste sorting), and the business case for inclusive workforce policies that integrate refugees and women.

A key takeaway was the power of social dialogue. The active participation of the Republican Union of Employers of Armenia (RUEA), the Confederation of Trade Unions of Armenia (CTUA), the Ministry of Labour and Social Affairs, and the Ministry of Territorial Administration and Infrastructure, ensured that strategies are not only economically sound but also socially sustainable, fostering stable and fair workplace relations.

The way forward is clear: embed Value Chains Analysis into local strategies, unlock green finance for MSMEs, and scale-up pilots that formalize work and integrate vulnerable groups.

This work is a testament to our collective commitment to advancing social justice and promoting decent work. By strengthening the very fabric of local economies, we are driving formal employment forging a resilient future that is productive, sustainable, and just for all.

The events were organised within the framework of the ILO RBSA-funded intervention on “Building the capacity of constituents to pre-empt informalisation of work and promote transition to formality in the context of a refugee crisis” in Armenia.”

More information:
Project: Building the capacity of constituents to pre-empt the informalisation of work and promote the transition to formality in the context of a refugee crisis
Dr Cristina Martinez
Senior Specialist Enterprise Development and Green Jobs
International Labour Organization