BAKU, Azerbaijan, November 29. Azerbaijan will need to invest in the energy system $7.9 billion over 2022–2030 and $28.1 billion during 2022–2060 (discounted), in order to achieve net zero by 2060, Trend reports via the World Bank.
“In the transport sector, most of the incremental investment is in private mobility, particularly electric vehicles. Among the lowcarbon electricity generation technologies, most of the investment would have to go to wind offshore and solar. The incremental investment by 2060 is equivalent to about 2.1 percent of the cumulative discounted GDP. Achieving resilience in the water and agriculture sectors will also entail large investments. The total estimated cost of resilience investments until 2060 is US$16 billion (discounted), which is equivalent to about 2 percent of the cumulative discounted GDP,” says the WB in its latest report.
Reportedly, these projections encompass investments in the maintenance, development, and redevelopment of reservoirs, canals, as well as the implementation of other irrigation infrastructure, both on-farm and off-farm.
WB experts note that concurrently, substantial additional sector investments (US$2.9 billion) are anticipated for the allocation to storage infrastructure in the liberated territories. Mobilizing such a significant level of investment necessitates a comprehensive economywide policy agenda to attract private sector investments.
The financial institution notes that while various measures for both decarbonization and resilience will require support from public resources—beginning with strengthening the energy system to facilitate renewable energy penetration or the consolidation and maintenance of the existing hydraulic infrastructure—a considerable portion of funding (towards renewable energy investments and Climate-Smart Agriculture adoption) can and should be secured through commercial and private sector financing. Potential private investment volumes for decarbonization could account for as much as 70 percent of the total, while the private sector's share for resilience investments is expected to remain around 10 percent of the total.
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