BAKU, Azerbaijan, August 6. The transition to green economy is expected to create new sectoral growth opportunities in Azerbaijan, the World Bank (WB) said, Trend reports via the Bank’s Systematic Country Diagnostic (SCD).
According to the report, the introduction of climate resilience policies in sectors such as renewable energy, the “blue economy”, water management and tourism would reduce the risks of shifting to low-carbon technologies and pave the way for diversification.
“Azerbaijan is also recognized as a country vulnerable to climate change, affecting sectors such as agriculture and water. The government will need to consider a wide range of viable and sustainable alternatives that support both the climate and sustainable development and that would reduce the impact on the poor and vulnerable. Identifying national climate targets based on evidence and translating them into an investment plan that is low-carbon and climate-resilient will be the crucial first step in the transition to green growth,” the SCD said.
As the report noted, the investments in unused resources, such as the “blue economy”, could also increase Azerbaijan’s resilience during the transition to green technologies by expanding opportunities in the labor market.
“There is great potential in investment in low-carbon hydrogen as means to decarbonize hard-to-abate sectors (such as the industrial and transport sectors) and enhance innovation in renewable energy by producing green hydrogen and its derivates, such as green ammonia for fertilizers that can help decarbonize agriculture value chains. As the transition to a low-carbon economy presents sizable investment opportunities, the financial sector has an important role to play by ensuring that financial sector policies are in alignment with incentives for climate and environmental goals as well as monitoring and assessing the climate-related risks associated with investment decisions,” the WB added.
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