The mining sector is critical for most EaP countries. All countries except Moldova possess important mineral resources, including aluminium deposits, molybdenum, titanium, copper, iron, gold, lead and limestone.
Hydrocarbons are also regionally important - Azerbaijan’s oil and gas sector accounts for about one-third of the country’s GDP and nearly all exports. Ukraine and, to a lesser extent, Georgia have substantial coal production.
Forest coverage varies from about 45% of Georgia’s area to only about 7% in Azerbaijan and Moldova. On average, forest areas cover a lower share of EaP countries’ areas than in the OECD and EU, with predominantly deciduous types of trees.
Armenia and Georgia have the highest level of naturally regenerating forests (94% and 97%, respectively), exceeding the EU and OECD average, while Moldova and Ukraine remain under 50%.
Armenia and Azerbaijan are the most water-stressed countries among the EaP, with over 40% freshwater abstraction of total renewable resources, compared to the OECD average of 8%.
Azerbaijan and Moldova also witness extremely high intensities per person, with freshwater abstraction rates of 126% and 143%, respectively, compared to the OECD average of about 12%. Such excessive abstraction puts them at serious risk of exacerbating existing water stress, particularly at the subnational level.
Environment at a Glance in the EU Eastern Partnership Countries
3. Natural asset base
Key messages
Context and policy challenges
Though renewable and non-renewable natural resources are integral to any economy, the overall pressure on them remains high in EaP countries and requires close monitoring.
Despite the varying challenges faced by each country, sustainable resource management, environmental conservation and diversification of resource-dependent economies are common priorities. The EaP countries have made considerable progress over the past decade in improving water efficiency and modernising water management regulations. This includes updating water codes in Armenia and Georgia, preparing the national water strategy in Azerbaijan, and aligning it with the United Nations Water Framework Directive in Moldova and Ukraine. The EaP countries also continue strengthening transboundary cooperation around several river basins and the marine protection of the Black Sea.
Due to their rich biodiversity and unique landscapes, all EaP countries are important contributors to the Emerald Network, a pan-European network of protected areas established under the Bern Convention, aiming at protecting the countries’ biodiversity, conservation of forests, natural habitats, and species in line with the European conservation standards. The Caucauses Ecoregion, for example, is one of the World Wildlife Fund’s global priority areas due to its high degree of biodiversity. Key species include the Caucasian leopard, the goitered gazelle, and the red deer. Balancing the importance of the extractive sector with conservation and biodiversity goals is a key policy challenge for the EaP countries. The extractive sector, including mining and hydrocarbons, has long historical roots in EaP countries, but a legacy of pollution from the Soviet era remains to be addressed.
This group of indicators aims to reflect whether the natural asset base is being kept intact and within sustainable thresholds regarding quantity, quality, or value. The indicators presented help identify risks to future growth arising from a declining or degraded natural asset base. Progress can be monitored by tracking stocks of natural resources and other environmental assets along with flows of environmental services: renewable resources (freshwater, forest, and fish), non-renewable resources (minerals), and biodiversity and ecosystems (threatened species).
Main trends and recent developments
The natural asset base in the EaP countries is a critical component of their economies. Environmental reform efforts are ongoing, with all countries implementing or planning policy and regulatory changes. However, the EaP countries host a variety of geographic and climatic profiles with a wide range of natural resources and face various and specific challenges in managing their natural resources efficiently.
For instance, as a mountainous country, Armenia is rich in mineral resources such as copper, molybdenum and gold, the extraction of which plays a crucial role in its economy. It hosts the largest freshwater lake in the Caucasus – Lake Sevan. It has untapped potential in renewable energy like hydropower and solar energy, but it is also one of the most water-stressed countries among the EaP, with over 40% freshwater abstraction of total renewable resources.
Azerbaijan’s oil and gas sector accounts for about one-third of the country’s GDP and nearly all exports. Oil production accelerated after independence from the Soviet Union: in 2014, Azerbaijan was the 21st largest producer of oil in the world and the 32nd largest producer of indigenous gas. Azerbaijan became a strategic transit corridor once new production capacities and pipelines were operational in the early 2000s. The shift in energy use patterns driven by Russia’s war in Ukraine has also increased demand for Azerbaijan’s gas. Even though Azerbaijan’s exports are dominated by crude oil and natural gas, the country produces a range of minerals and metals, including aluminium, iron ore, bromine and iodine.
Agriculture also plays an important role. In Moldova and Ukraine, cropland comprises most countries’ respective areas, reflecting their agriculture-centric economies. Azerbaijan and Armenia also have significant crop cover, with only Georgia having less than the EU average, offset by more significant forest coverage.
Forest coverage varies from about 45% of Georgia’s area to only about 7% in Azerbaijan and Moldova. On average, forest areas cover a lower share of EaP countries’ areas than in the OECD and EU, with predominantly deciduous types of trees. Armenia and Georgia have the highest level of naturally regenerating forests (94% and 97%, respectively), exceeding the EU and OECD average, while Moldova and Ukraine remain under 50% barre.
The rapid increase in artificial land areas shows the region's ongoing development. Although the overall level of built-up areas varies widely across the five countries, with the OECD average in the middle of the range, the increase in built-up areas has been massive—between 2000 and 2020, a range of 50% to 125%, illustrating the catching up that the region is doing compared to the EU and the OECD member states, where change has been negligible.
Between 2000 and 2020, Moldova and Ukraine saw significant net increases in natural and semi-natural land cover. However, losses are occurring that can have significant impacts on ecosystems and natural habitats. Although some of the losses are compensated with new natural and semi-natural vegetated land elsewhere, this likely does not compensate for the deterioration and destruction of natural habitats and ecosystems, especially considering that natural habitats and ecosystems can take many years to recover from these pressures on biodiversity.
Georgia has significant hydropower potential due to its mountainous landscape, which contributes to its energy generation, and its fertile grounds provide wine and food production as notable exports. However, as these resources are unequally distributed, certain areas of the country are prone to the growing risks of flood and drought, which are heightened by the effects of climate change (see Chapter 4). Moldova has large rivers and abundant arable land, making the agriculture sector vital for its economy. On the other hand, it is also particularly exposed to water stress, including the risk of freshwater abstraction shortages.
Ukraine comprises one of the largest titanium and uranium reserves in Europe and the second-largest coal reserve in the continent. Divided into nine river basins, the country’s freshwater sources are mostly transboundary, but its largest and most important river basin, the Dnipro, covers approximately 65% of the country. Its fertile soil, supporting extensive grain production, is another important resource and contributor to the economy. However, despite being the largest territory in Europe, its renewable freshwater resources are only half as large as the European average, adding extra pressure on the water distribution in Ukraine’s southern and eastern regions. The Russian invasion of Ukraine has heavily impacted the country’s transboundary water sources and rivers, but due to data availability (2021), that is not reflected in this report.
Available indicators
Land cover
Net change of natural and semi-natural vegetated land
Built-up area per person
Gain of artificial surfaces since 2000
The intensity of use of natural freshwater resources (water stress)
Freshwater abstractions as percentage of internal resources
Freshwater abstractions as percentage of total renewable resources