BAKU, Azerbaijan, November 29. Increased private sector participation is critical to Azerbaijan's successful green energy transition, Ivana Fernandes Duarte, IFC’s Regional Manager for the South Caucasus said, Trend reports.
The remark was made during the World Bank Group's Azerbaijan Country Climate and Development Report presentation event held in Baku.
"Azerbaijan's Country Climate and Development Report (CCDR) outlines some of the key challenges and numerous opportunities for achieving green energy transition.One of the report's key findings is the emphasis on the private sector," said the IFC spokesperson.
Duarte emphasized the importance of using private finance to drive renewable energy development and energy efficiency.
"This can be done directly or through public private partnerships," she went on to say.
In addition, Duarte stated that the Central Bank of Azerbaijan has been proactive in encouraging sustainable finance and addressing climate change concerns through numerous programs.
"However, more private investment, particularly in renewable energy, is required to achieve the required scale. The country is making progress, but more efforts are needed to reduce the risks linked with climate change. Involvement of the private sector is critical in transitioning to a low-carbon future," she continued.
Meanwhile, the World Bank's Country Climate and Development Report for Azerbaijan was released today. The paper emphasizes decarbonization and resilience strategies that are consistent with the government's economic diversification goals by focusing on the energy system and end-use sectors such as transportation, building, and industry, as well as the water-agriculture nexus.