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UK eager to back Azerbaijan in green energy exports to Europe - ambassador (Interview) (PHOTO)

Economy Interview 31 January 2023 13:06 (UTC +04:00)
UK eager to back Azerbaijan in green energy exports to Europe - ambassador (Interview) (PHOTO)
Maryana Ahmadova
Maryana Ahmadova
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BAKU, Azerbaijan, January 31. Turbo-charging bilateral trade and investment and creating the best environment for international business is one of my strategic priorities in cooperation with Azerbaijan, Fergus Auld, UK Ambassador to Azerbaijan, told Trend in an exclusive interview.

Assessing cooperation priorities

The annual UK-Azerbaijan Joint Intergovernmental Commission on trade and economic dialogue is 100 percent focused on supporting Azerbaijan's economic diversification.

In 2022, the following priority areas were identified: healthcare, ICT, and agriculture.

The UK will focus on cooperation in life sciences, clinical research, genomics, medicine development, and medical education and training within the field of primary healthcare. We are also exploring ways of delivering double-degree diplomas and partnerships with UK universities and nursing schools.

As for ICT sector, the UK is looking into cooperation in e-commerce, cyber security, smart cities, and smart villages, as well as to build on a fintech project between TheCityUK and the Central Bank of Azerbaijan delivered last year.

In agriculture, we aim to support the ongoing modernization of the sector, including agritech and the application of bio and nanotechnologies.

Development of infrastructure, creative industries, and digital construction is another area where there are potential cooperation opportunities that we need to explore widely. Over the past year, we've seen a number of new successful collaborations including a state-of-the-art British designed hoverbarge being built in Baku, UK master planners supporting the reconstruction process in Karabakh, and UK experts advising Azerbaijan to better improve waste management in hospitals.

Supporting bilateral trade and mutual investments

It is good to see that trade turnover between the UK and Azerbaijan has increased in the first half of 2022 compared to the first half of 2021. The main export commodities from the UK to Azerbaijan were capital and intermediate goods, such as power generators and industrial machinery, cars and jewellery. The main import commodities from Azerbaijan to the UK were crude oil and intermediate goods, such as mechanical power generators and specialized machinery.

The UK has established economic and customs working groups to create opportunities to discuss how Azerbaijan can improve its business environment. When UK companies' feedback is listened to and acted upon, it helps drive investor confidence. Regular public and private consultation and clear communication with businesses are important to improve the investment climate.

The UK has been the largest foreign investor in Azerbaijan for the last three decades, with over 400 UK companies on the ground. UK companies contribute to Azerbaijan's economy through job creation, investments in learning and development of local talent, education and community development. A significant number of Azerbaijani professionals hold competitive positions in UK companies and the skills of the highly-trained workforce are utilized to service international clients, which demonstrates the quality of learning and development and the competitiveness gained by Azerbaijani professionals.

Continuing progress made in legal and judicial reforms through their effective implementation is also critical for attracting foreign direct investment. We see that improving state-owned enterprises (SOEs) efficiency and performance is a key government priority. The establishment of Azerbaijan Investment Holding (AIH) provides an opportunity to accelerate reforms. Reform of SOEs can support private sector-led growth, enable the private sector to effectively compete in sectors dominated by SOEs, and open up new investment opportunities in Azerbaijan.

The UK will work closely with the Government of Azerbaijan, the British Chamber of Commerce and British companies to create opportunities to improve trade with Azerbaijan, as well as better business environment.

Bright prospects for energy cooperation

Azerbaijan is already making a significant contribution to Europe's energy security through its supply of natural gas via the Southern Gas Corridor. Exporting green energy will further strengthen Azerbaijan's role in Europe's energy market and offer an opportunity for the country to enter the European electricity market.

The UK welcomes all the actions taken by Azerbaijan in this direction, including the agreement signed with Georgia, Hungary and Romania to build an underwater cable under the Black Sea. In this regard, the UK’s role as a net maritime security provider in the Black Sea should help provide an enabling environment for this.

The UK is actively sharing the experience to help Azerbaijan develop a thriving clean energy sector, which will support Azerbaijan's plans to export green energy to Europe through the government-to-government energy transition working group and MoU on clean energy transition.

For example, last month an energy transition conference was hosted, with presence of leading UK companies with strong clean energy capabilities to exchange views with Azerbaijani side on the development of the country's clean energy sector.

We have also organized a series of experience-sharing webinars for the Ministry of Energy and other energy partners on offshore wind, hydrogen, contracts for difference, integrating renewables into grids and energy innovation zones. Ofgem, the UK's energy market regulator, has shared best practice with Azerbaijan's Energy Regulatory Agency on network regulation, energy reforms, unbundling and green tariffs.

Azerbaijan has enormous potential for renewable energy, with 27 GW of wind and solar power onshore and 157 GW of wind power in the Azerbaijani sector of the Caspian Sea. As a country with the second after China largest installed capacities of offshore wind in the world and the largest pipeline of projects in Europe, the UK stands ready to share our experience of developing the industry to help Azerbaijan tap that huge potential. The UK has already helped with funding fund Azerbaijan's offshore wind roadmap, which was launched jointly by the World Bank and IFC last year.

We also organized a visit for Energy Minister Shabazov to the world's largest grid-connected floating offshore wind farm in Kinradine, in the North Sea. I am pleased to see bp expanding into renewable energy in Azerbaijan and look forward to the finalization of the agreement on a 240 MW solar power plant in Jabrayil.

The UK is committed to achieving net zero emissions domestically by 2050. As part of this effort, we have enhanced our capabilities across a wide range of renewable energy technologies, I hope that the Government of Azerbaijan will make the best use of the decarbonization masterplan which bp helped develop for support of the green growth reform agenda.

Support for demining activities in the liberated territories

The UK for many years has been supporting IDP communities across Azerbaijan. Now, we want to be part of helping IDPs finally to return home. Demining is essential to enable this. The UK government was pleased to be one of the first international partners for the Azerbaijan National Agency for Mine Action (ANAMA) in their tireless demining efforts and continue to do so.

Currently, through UNDP, UK Government is financing the implementation of three different projects with ANAMA.

The primary objective of one of these interventions is to assist ANAMA’s Explosive Ordnance Risk Education (EORE) department to prepare for and support the national plan for "The Great Return". Given the huge scale of the demining challenge, which is going to take over a decade, we are also helping to support ANAMA and other parts of state structures to work effectively and efficiently together. And we want to see Azerbaijan’s unique experience shape a productive role as an international champion on landmine action.

In regards to supporting the ANAMA on its demining efforts, UK Government also has a new project with UNICEF.

The cooperation aims to provide evidence-based, high impact and life-saving emergency support for conflict-affected families, children and construction workers. The Action will focus on EORE aiming to reduce fatalities and injuries caused by Explosive Remnants of War.

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