Climate and energy policies could increase pressure on vulnerable households in Armenia: IMF report

YEREVAN, September 5. /ARKA/. Climate change and energy transition policies could increase pressure on vulnerable households in Armenia, according to the International Monetary Fund's "Armenia: Climate Policy Diagnostic - July 2026" report, published on September 3, 2026.

The IMF characterizes Armenia's social protection system as relatively strong, noting its broad coverage of vulnerable households and ongoing reforms aimed at improving the targeting of assistance and the quality of service delivery through the Unified Social Service and Unified Social Registry.

However, the Fund assesses that the system is still insufficiently responsive to shocks and has limited capacity to rapidly expand support during crises.

The IMF also notes that existing utility bill support programs remain insufficiently targeted.

The IMF's priorities include increasing the adaptability of the social protection system, fully implementing the Unified Social Registry, creating rapid response mechanisms, and improving the analysis of the distributional impact of climate and energy reforms.

According to the IMF, such analysis is necessary to ensure targeted support.

It was previously reported that the IMF expects Armenia's economic growth to slow to 5.3% in 2026. In its climate policy recommendations, the IMF specifically emphasizes the need for targeted use of funds in the event of a potential carbon tax to protect the most vulnerable households.