BAKU, Azerbaijan, May 22. The State Tax Service under the Ministry of Economy of Azerbaijan is working on two directions for the development of a green economy - promoting the implementation of 'green' technologies and collecting a carbon tax, the service's Deputy Head Ilkin Valiyev told Trend.
"Azerbaijan is an extractive industrial country. Many industries here emit greenhouse gases. We are clarifying all the details with extractive and processing firms in the country to comprehend the economic strain from the proposed new carbon tax. We are analyzing this tax idea and its potential impact on taxpayers," Valiyev said.
He believes incentive methods, which are being explained as part of the tax service's second direction, can reduce the negative effects of a carbon tax.
"We aim to stimulate the activities of companies that will perform 'green' technologies. Whether subsidies or other financial methods will be used is at issue now. This issue will be resolved in the coming months," the official stated.
He also said that the prospects of carbon quota trading in Azerbaijan are being assessed.
"We'll make decisions from an economic feasibility perspective," Valiyev emphasized.
To note, Azerbaijan earns monetary "green" certificates by selling its carbon quotas elsewhere.