COP29 Hosts to Cut Emissions with US$2bn Green Investment
Azerbaijan — the host country of this year’s annual COP conference — has pledged to slash its emissions by increasing its renewable energy share to nearly a third.
Energy Minister Parviz Shahbazov said this will come in the form of more than US$2bn in investments.
Following the United Nations’ (UN) commitment to environmental sustainability, Azerbaijan has declared 2024 ‘year of solidarity for a green world’, with the 29th UN Climate Change conference in its capital Baku.
Azerbaijan: A significant player in the global energy market
Historically, Azerbaijan has been — and continues to be — a major producer of oil and gas, a significant portion of which is important.
Despite its energy sector being characterised by a strong foundation in oil and gas, Azerbaijan is seeing a growing commitment to renewable energy. The country is actively investing in sustainable energy projects while continuing to leverage its substantial fossil fuel resources to maintain economic stability and fulfil international energy demands.
Azerbaijani President Ilham Aliyev said his country is committed to the green energy transition, but believes the world cannot wholly abandon fossil fuels in the near future.
“Azerbaijan, as I said, is in the active phase of green transition, but at the same time, no one can ignore the fact that without fossil fuel, the world cannot develop, at least in the foreseeable future,” he said.
In the same speech he said that hosting COP29 is an “honour” that demonstrated his country’s serious commitment to tackling climate change.
How is Azerbaijan becoming a greener energy producer and user?
One of the main ways Azerbaijan is improving its green credentials is through wind and solar projects.
In the eyes of the International Energy Agency (IEA), Azerbaijan’s renewable energy development potential is considerable thanks to its excellent solar and wind resources and significant biomass, geothermal and hydropower prospects.
The agency says Azerbaijan has significant untapped renewable energy potential thanks to the relatively sunny and windy nature of the country.
Part of its transition away from its significant oil and gas reliance, it has been transitioning in the past few years. Examples include how in early 2020, major contracts to build wind and solar power capacity were signed and its parliament approved a law on the use of renewable energy resources in electricity production in May 2021.
The country aims to realise close to 2GW of new renewable capacity by 2027, increasing the share of renewables in its installed capacity to a third through the likes of the development of wind farms in the Caspian Sea.
Along with this, the country is constructing an electric cable to Europe and the government modernising the grid, which allows for the offering of investment incentives and the implementation of energy efficiency programmes.
Although Azerbaijan’s commitment to moving to a greener energy landscape is worth congratulating, E3G Programme Lead Maria Pastukhova said: “What Azerbaijan is doing right now [with renewables] is not enough and quite alarming because this country is so dependent on oil and gas revenue.”
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