BAKU, Azerbaijan, April 9. Climate policies will help Azerbaijan prepare for the global energy transition, contribute to reducing emissions and strengthening adaptation to climate change, Trend reports via the IMF.
According to the fund's forecasts, although the Carbon Border Adjustment Mechanism (CBAM) is not expected to significantly impact current trade with the EU in the short term, diversification aimed at the metallurgy and chemical industries may suffer from this effect, and the oil and gas sectors may be affected in the medium term.
The fund's experts support the government's efforts to increase the share of renewable energy sources in installed capacity to 30 percent by 2030, as well as the State Oil Company's goals for carbon neutrality and the reduction of methane emissions.
At the same time, the necessity of eliminating both direct and indirect fossil fuel subsidies is emphasized again. This will create conditions for more efficient use of energy resources and also free up funds for investments in green technologies and more vulnerable segments of society.
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