BAKU, Azerbaijan, Oct.12
By Leman Zeynalova – Trend:
The International Finance Corporation (IFC) is working with Azerbaijan to create a roadmap for offshore wind energy development, Ivana Fernandes Duarte, IFC’s Regional Manager for the South Caucasus told Trend.
“Azerbaijan is committed to reduce greenhouse gas emissions by 35 percent by 2030. In alignment, one of IFC’s strategic priorities in Azerbaijan is to support the country’s energy transition in a sustainable manner and invest in renewable energy generation. Among the renewable energy resources which can be transformative in the medium and long run, offshore wind is particularly promising. According to an analysis from the World Bank’s Energy Sector Management Assistance Program (ESMAP), Azerbaijan has an estimated offshore wind potential of 157 gigawatts. This is a maximum technical capacity not all of which can be developed; however, it is significant when compared to the country’s total installed capacity of around 8 gigawatts,” she said.
Duarte noted that by unleashing this potential and transitioning away from oil and gas, the country can reduce both its greenhouse-gas emissions and vulnerability to volatile fuel prices.
“Exploring and developing offshore wind energy will also facilitate private sector participation across the power sector. This will help spur competition, strengthening Azerbaijan’s infrastructure and diversifying the economy. With this in mind, IFC is working with Azerbaijan’s Ministry of Energy to create a comprehensive roadmap for the development of the country’s offshore wind energy sector and turn Azerbaijan into a renewable energy powerhouse. IFC’s work is part of its joint initiative with the World Bank’s ESMAP to scale offshore wind energy in emerging markets,” noted the IFC regional manager.
She went on to add that climate change is one of the greatest development challenges and one of the organization’s priorities on global level.
“In June this year, the World Bank Group announced its new Climate Change Action Plan that aims to deliver record levels of climate finance to developing countries, reduce emissions, strengthen adaptation, and align financial flows with the goals of the Paris Agreement. Helping our clients tap into these opportunities and working with a host of partners to catalyze finance for climate action, is at the core of our business. In 2021, IFC delivered 32 percent in own-account climate finance and mobilized $3.7 billion for climate worldwide. This means that for every dollar of own account climate finance, we mobilized 93 cents from other investors,” Duarte concluded.
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