Armenia Pursues Circular Economy Model

Why this is here: Alvina Pirumyan started her guesthouse with savings of just 2,700 US dollars and an inherited house, buying only bed linen and two frying pans for the business.

In Armenia, government institutions, NGOs, and businesses are collaborating to introduce a circular economy, shifting from a “use and throw away” model to one focused on extending product life and reuse. The country aims to reduce environmental harm, improve resource efficiency, and bolster its economy through this transition, aligning with EU green standards. Various EU-funded grant programs support these efforts, particularly among small and medium-sized enterprises which experts believe hold significant potential.

Alvina Pirumyan’s guesthouse in Vayots Dzor Province exemplifies this approach. She revitalized a family home, emphasizing resourcefulness and utilizing inherited items alongside locally grown produce to create a successful agritourism business. Independent consultant Yervand Mnoyan notes that while Armenia possesses untapped potential, limited awareness and institutional capacity remain challenges.

Currently, efforts concentrate on assessing opportunities and launching pilot programs, though broader public and entrepreneurial knowledge regarding circular economy principles still needs development. The EU4Green Recovery East program, implemented by UNIDO, supports resource efficiency and waste management through industrial waste mapping.