Armenia forges resilient future: green value chains in action

YEREVAN (ILO News) - International Labour Organization (ILO) convened key actors - from planners to micro, small and medium enterprises (MSMEs) - for two workshops on 23 and 24 September 2025 to help transform Armenia's local economies amidst concurrent crises.

In its efforts to support over 100,000 refugees, Armenia faces a complex mix of humanitarian challenges, informality and climate risks. Addressing these issues requires a just transition—shifting to a green economy that creates formal jobs and leaves no one behind.

© ILO

© ILO

In her foreword, UN Resident Coordinator Françoise Jacob highlighted Armenia’s significant potential for advancing a just transition, noting that the current political framework for peace creates an enabling environment for progress. 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.

Cristina Martinez, ILO Senior Specialist on Enterprise Development and Green Jobs, noted: “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.”

High-potential sectors

The workshops spotlighted sectors with significant growth potential.

• In Yerevan, the construction sector, which accounts for 49 per cent of the Armenian total and has seen a 52 per cent increase since 2021, is being steered towards sustainable renovation. Waste sorting and recycling are also expanding, with the amount of sorted waste jumping from 368 tons in 2021 to 760 tons in 2024.
• In Ararat, which produces 31 per cent of Armenia's vegetables and 26 per cent of its fruits, grape production reached 82,000 tons (42 per cent of the national harvest) in 2023. The region’s horticulture and winemaking sectors are being upgraded with climate-resilient practices.

Tailored approaches for impact

© ILO

© ILO

The two workshops provided participants with practical tools to turn ideas into action.

1. The Foresight Workshop for Economic Planners on 23 September equipped officials with a Value Chain Analysis (VCA) framework, which 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 that public resources directly support inclusivity and green growth.
2. The MSME Empowerment Workshop on 24 September 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.

The workshops benefited from strong engagement by 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. Their active participation fostered effective social dialogue, ensuring that strategies are not only economically sound but also socially sustainable and conducive to stable and fair workplace relations.

The way forward

The next steps are clear: embed VCA in local strategies, unlock green finance for MSMEs and scale-up pilots that formalize work and integrate vulnerable groups.

The collective effort demonstrates Armenia’s commitment to advancing social justice and promoting decent work. By strengthening the very fabric of local economies, the country is moving toward a resilient future that is productive, sustainable and just for all.

The events were organized within the framework of the ILO RBSA-funded intervention “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.