MILAN, Italy, May 4. Shifting to alternative energy sources will support Azerbaijan’s development goals, ADB Chief Economist and Director General, Economic Research and Development Impact Department Albert Park told Trend on the sidelines of the 58th Annual Meeting of ADB in Milan.
“We want to support countries to realize its own sustainable development objectives. Definitely shifting to renewable energy is important for energy security in the long term. And as the world shifts to carbon taxes, it's going to be harder and harder to rely on fossil fuels as the mainstay of an economy. So I think shifting to other energy sources is more sustainable and will support the country's development goals,” he said.
Talking about the impact of the U.S. tariff policy, Park said one thing that is beneficial to some of the oil exporting countries in the South Caucasus and Central Asia region is that that is an exception to the tariffs, even the ones that have been proposed.
“So that reduces somewhat the negative effects. But for everybody, it's really the uncertainty about the tariffs. And that makes it hard for making investments, or even to try to implement long-term responses to this. I think most people are just waiting. And even if there is an announcement about what the new policies are, I don't think it will eliminate the trade policy uncertainty, because people will still be worried that it might change again and again as it has been since the beginning of the U.S. administration.
So I think the uncertainty will be with us for some time, and I think that just makes responding quickly very difficult. And it means that adjustment will be more costly in the long term for all countries in the region, including Caucasus and Central Asia,” he added.