Armenia is experiencing climate change impacts intensifying pressures on its ecosystems and rural communities. Forests, which cover only approximately 11 per cent of the country, are under severe pressure from unsustainable logging, overgrazing and weak management, which is leading to declining carbon sequestration, increased soil erosion and biodiversity loss. These environmental stresses contribute to the vulnerability of rural households that rely on natural resources for subsistence and income, leaving them increasingly exposed to climate and economic shocks.

The project aims to strengthen the resilience of Armenia’s forest ecosystems and rural economies by restoring degraded landscapes, diversifying livelihoods, and modernising forest management systems. Specifically, it will expand climate-resilient forest cover through reforestation, build non-timber forest product (NTFP) value chains and agroforestry systems to generate sustainable income, and introduce digital monitoring and investment platforms to improve governance and enable future carbon market access. Together, these interventions will reduce climate risks, increase forest carbon sequestration, and support more resilient and inclusive rural communities.

By introducing digital MRV and investment platforms, the project positions Armenia to access emerging forest carbon markets and attract diversified private sector investment to strengthen long-term financial sustainability.