BAKU, Azerbaijan, March 4. The total investment needed by the Europe and Central Asia (ECA) region between 2023 and 2060 to achieve the Net Zero (zero greenhouse gas emissions) goal is $4.7 trillion (3.9 percent of regional GDP), the WB's Net Zero Energy by 2060: Charting the Path of Europe and Central Asia Toward a Secure and Sustainable Energy Future noted,Trend reports.
Based on the World Bank's assessment of the situation in 23 European and Central Asian nations, including Azerbaijan, renewable energy sources (RES) are already viable in the majority of these countries and will become more profitable over the next ten years. The World Bank's Net Zero Energy by 2060 scenario predicts that solar power generation in the ECA region will increase fivefold by 2030. Wind energy generation might double. Bioenergy use will double by 2050. Azerbaijan intends to use renewable energy sources for 33% of its total energy capacity by 2027.
On May 1, 2024, the Board of the European Bank for Reconstruction and Development (EBRD) will approve a $30 million loan to Azerbaijan to support the country's objectives to promote renewable energy sources (RES). The funding will be used to acquire autotransformer equipment for reinforcement work at four operational substations in Azerbaijan, where renewable energy will be stored. The borrower will be Azerbaijan's Ministry of Finance, and the project will be implemented by Azerenerji, the country's largest electrical power generator. The initiative aims to facilitate the establishment of a "low carbon pathway" in Azerbaijan's energy sector.
The EBRD is currently working on green financing initiatives in Azerbaijan. "Discussions are underway with Azerbaijani banks to partner on projects that align with our core strategic themes, such as encouraging international trade and green and inclusive finance. As part of these initiatives, we are aggressively seeking to increase the number of our partner banks by 2024 and beyond," according to an EBRD source.
The United Nations Development Programme (UNDP) is hosting a series of workshops with Azerbaijani representatives to analyze the impact of climate change fiscal risks on public and private investment decisions.
The President of the State Oil Company of Azerbaijan (SOCAR), Rovshan Najaf, and bp's Executive Vice President for Strategy and Sustainable Development, Giulia Chierchia, met to discuss cutting greenhouse gas emissions and other environmental challenges. According to SOCAR, the parties discussed SOCAR's environmental activities, specifically the achievement of the set targets for medium and long-term emission reductions (greenhouse gas and other emissions), zero flaring in the production process, zero methane emissions, and 'Net Zero' for carbon dioxide by 2050.
Azerbaijan discussed opportunities for cooperation with German companies in the fields of solar and wind energy projects, bioenergy, green hydrogen, energy efficiency, and production of green technologies, said the Ministry of Energy of Azerbaijan, following the meeting between Energy Minister Parviz Shahbazov and a delegation of German company representatives led by Director of the German Eastern Business Association Michael Harms.
Azerbaijan could invest in Croatia's renewable energy projects, a source at the Croatian Ministry of Economy and Sustainable Development said. "We need to share our experience and explore possible future cooperation between our companies. We also see the potential for Azerbaijan to become an investor in some Croatian RES projects," the source said.
The Trans Adriatic Pipeline (TAP) aspires to be an important contributor to the objectives of the European Green Deal and the Paris Agreement by potentially supplying the EU with low-carbon and renewable gases in the future, said Luca Schieppati, TAP managing director.
The energy sector and transportation account for the majority of carbon dioxide air emissions in Azerbaijan; however, aggressive initiatives are being taken to balance emissions by switching to renewable energy sources, said Deputy Head of the Development of Renewable Energy Sources Areas Department at the Azerbaijan Renewable Energy Agency Sahib Khalilov during the Caspian Energy MeetUp event on 'Green World Solidarity Year,' organized by the Caspian Energy Club.
Azerbaijan and Saudi Arabia's ACWA Power have agreed to boost the implementation of the wind power plant project, Minister of Energy of Azerbaijan Parviz Shahbazov said. "We agreed to accelerate the realization of the 240 MW Khizi-Absheron WPP with the delegation led by Mohammad Abunayyan, the Chairman of the Board of Directors of ACWA Power. This project will be the first major contribution of Azerbaijan and Saudi Arabia to the energy transition," he said.
Azerbaijani Minister of Economy Mikayil Jabbarov and President of the State Oil Company of Azerbaijan (SOCAR) Rovshan Najaf held a meeting with the Minister of Energy and Infrastructure of the UAE, Suhail Mohamed Al Mazrouei. The meeting stressed that Azerbaijan is the main initiator and participant in a series of projects for the production and export of renewable energy in the region and that successful collaboration in the field of green energy with Masdar Company is particularly significant for ensuring energy security.
Azerbaijan actively presents its green energy projects in the world, and the upcoming COP29 format of cooperation will allow it to develop them further, the country's Energy Minister Parviz Shahbazov said at a press conference in Baku on March 1. He recalled that the state strategy of Azerbaijan's socio-economic development, named "green economy," is among the most important priorities, and the country has succeeded in this issue. "The President of Azerbaijan Ilham Aliyev declared Karabakh, East Zangezur, and Nakhchivan as green energy zones. The government has prepared a relevant concept, according to which, for example, enterprises producing different products and households will be provided with green energy. It is envisaged to apply the latest green technologies, such as solar panels and electric cars, in green energy zones. These regions have great potential for solar and wind energy, and the government's ambitious plans along with foreign partners will help realize this potential," the minister said. He also highlighted the upcoming application of green technologies at the Sangachal oil and gas terminal, which facilitates the process of decarbonization at this strategic site.
Nobel Energy, part of NEQSOL Holding, plans to complete the first phase of construction of a solar power plant (SPP) in Jabrayil district by 2027, a company representative said after signing a memorandum of understanding with the Azerbaijani Energy Ministry in Baku on March 1. According to him, by this time, a generation of 50 MW will be created, which will allow for the production of about 90 million kWh of electricity. The second stage for the same capacity and electricity generation can be realized by 2029.
Also, within the framework of the 2nd Green Energy Advisory Council Ministerial Meeting on March 1 in Baku, the Ministry of Energy of Azerbaijan and Spanish Elecnor signed a memorandum of understanding on cooperation on renewable energy projects in Azerbaijan. It covers cooperation in the implementation of a 70 MW wind power plant project in Garadagh district. It will also include cooperation on the development of wind and solar energy projects, including the collection and analysis of wind speed measurement data, as well as energy storage and green hydrogen production systems.
Abu Dhabi National Energy Company (TAQA) will explore the possibility of providing support to Azerbaijan in the operation of new solar and wind power plants, said Azerbaijan's Energy Ministry.
Turkish Deputy Minister of Energy and Natural Resources Nevzat Satiroglu said during the 10th Southern Gas Corridor Advisory Council Ministerial Meeting and the 2nd Green Energy Advisory Council Ministerial Meeting on March 1 in Baku that "joint efforts are crucial for the region's green energy future."
The serious consequences of climate change in the modern world require the coordination of economic development and environmental protection issues, and in this context, the spotlight shifts to green energy production and consumption, according to the Chairman of the Economic Policy, Industry, and Entrepreneurship Committee of the Azerbaijani Parliament, Tahir Mirkishili. According to him, international cooperation in overcoming emerging threats is already a crucial necessity. He noted that the presidential decree declaring 2024 the 'Green World Solidarity Year' aims to strengthen international solidarity in the global fight against climate change. "In this regard, work is currently underway to develop an action plan. It can be confidently stated that Azerbaijan will contribute to the global fight against climate change," the MP said.
"There are ample opportunities to develop solar and hydropower generation in the areas liberated from Armenian occupation," said Rovshan Abbasov, a water resources specialist and head of the Department of Geography and Environment at Khazar University. He noted that relevant work is being done in this direction. "A preliminary environmental assessment has also been carried out. In addition, some work has been done to develop hydropower on the Hakari River and its tributaries. Several hydropower plants have been put into operation," Abbasov said.
Azerbaijan adheres to all international conventions and agreements on environmental protection and will honorably host COP29 in November 2024, advisor to the Minister of Ecology and Natural Resources, Rustam Hasanov, said at the Caspian Energy "Meet-up" event. According to him, Azerbaijan joined the convention on reducing gas flaring in 1995, the Kyoto Protocol on Climate in 1997, and the UN Paris Climate Agreement in 2015, after which the world holds regulatory sessions of the parties' framework convention on climate (COP). "During COP28 in Dubai, Azerbaijan committed to reducing methane emissions, reaching zero emissions by 2050, reaffirmed commitments on other greenhouse gases, and during COP29 in Baku, it will support the efforts of all countries in the world on climate finance," Hasanov noted.
The utilization of green hydrogen as a fuel for marine engines is practical in Azerbaijan, said General Director of the Azerbaijan Maritime Engineering and Construction LLC (AMEC) Rashad Shakarov during the Caspian Energy MeetUp conference on the 'Green World Solidarity Year' topic. According to him, a pilot initiative in this field is presently underway, with negotiations with one of the shipping companies ongoing.
Minister of Ecology and Natural Resources of Azerbaijan, President of the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29), Mukhtar Babayev, spoke at the 6th session of the UN Environment Assembly (UNEA-6) in Nairobi.
Italy wants to cooperate with Azerbaijan within COP29, Italian Minister of Environment and Energy Security Gilberto Pichetto Fratin said at the 10th Southern Gas Corridor Advisory Council Ministerial Meeting and the 2nd Green Energy Advisory Council Ministerial Meeting in Baku. “Moreover, given our chairmanship of the G7, we want to cooperate with Azerbaijan within the framework of the COP29 chairmanship in this direction,” the minister added.
Azerbaijan, as a host for COP29, has a fantastic opportunity to build on the momentum from COP28, said US Ambassador to Azerbaijan Mark Libby during the 10th Southern Gas Corridor Advisory Council Ministerial Meeting and the 2nd Green Energy Advisory Council Ministerial Meeting held in Baku.
The US is ready to partner with Azerbaijan in the field of renewable energy. Kimberly D. Harrington, Deputy Assistant Secretary for the Bureau of Energy Resources of the US State Department, said this in an exclusive interview with Trend. She noted that the US sees huge potential in the field of solar and wind energy in Azerbaijan.
She added that Azerbaijan, as the COP29 host, has a tremendous opportunity to help the world keep tackling methane emissions. "It's 80 percent more potent than CO2. Its impacts on climate change are really significant. The good thing about methane, though, is that it doesn't last in the atmosphere as long as CO2. So if we can lower methane emissions, we really have a chance to try to keep the 1.5-degree Celsius goal alive. Of course, methane doesn't just come from the oil and gas sector. Reducing methane emissions in the oil and gas sector and decarbonizing to the greatest extent in the oil and gas sector is something that I think Azerbaijan can show tremendous leadership on. And this goes to show how energy security and decarbonization can go hand in hand," she said.
According to her, given that the UAE recently hosted COP28 and Azerbaijan is about to host COP29, it is possible to cooperate within the framework of the Partnership for Accelerating Clean Energy. This format was established in 2022, and its goal is to stimulate $100 billion worth of investment in green energy and support clean energy projects around the world by 2035. Harrington believes that trilateral cooperation between the US, Azerbaijan, and the UAE in the field of renewable energy is promising.
The potential damage from methane amidst global warming when measuring the impact over 20 years is 80 times greater than the damage from an equivalent volume of carbon dioxide (CO2), a member of the Environmental Protection First Coalition and the COP29 Organizing Committee, Parvana Valiyeva, told Trend. According to a recent IPCC report, methane accounts for about 18 percent of all greenhouse gas emissions in the global energy sector, the expert further explained. Methane is also produced in landfills, agriculture, and natural processes such as decomposition, and achieving the goals of the Global Methane Pledge (GMP), such as reducing anthropogenic methane emissions by 30 percent by 2030, is crucial to maintaining the 1.5°C temperature threshold.
Valiyeva recalled that during COP28, parties to the Global Methane Pledge (GMP) initiative pledged to achieve a methane emission reduction target of at least 30 percent below 2020 levels by 2030. COP28 was marked by a number of innovations:
1. Over $1 billion in financing was mobilized to reduce methane emissions.
2. Alongside decisive measures regarding waste, food, and agriculture, countries with major methane emissions from oil and gas must undertake new national commitments and make changes to legislation.
3. Development of transformative information tools, including the full launch of the Methane Emissions Notification and Response System, as well as new data for the methane reduction campaign.
4. New members and expanded leadership. Canada, the Federated States of Micronesia, Germany, Japan, and Nigeria joined the US and the European Union as supporters of the Global Methane Pledge. Turkmenistan, Kazakhstan, Kenya, Romania, and Angola also joined the commitment, bringing the total number of participating countries to 155.
5.49 oil and gas extraction companies agreed to reduce methane emissions by 2030.
The fastest way to reduce global warming in the short term is to cut methane emissions," added Valiyeva.
The Deputy Minister of Ecology and Natural Resources of the country, Rauf Hajiyev, highlighted the measures that will have a positive impact in terms of environmental protection and air quality. He added that substantial initiatives have been implemented in recent years within Azerbaijan's transport sector to incorporate 'green' approaches. "Since 2019, incentives for electric and hybrid cars have been in effect. Starting January 1, 2020, the import and sale of electric-powered vehicles are exempt from VAT. Since the implementation of these exemptions, there has been a rapid increase in the importation of these cars, with the imports of electric cars in 2020 being 19 times more than in 2001. The import of passenger cars older than ten years is limited by a Cabinet of Ministers resolution of March 29, 2020. The law on production and household trash was amended to include a new chapter to help with the process of decommissioning obsolete and unusable cars. On January 27, 2024, President Ilham Aliyev of the Republic of Azerbaijan issued an official decree establishing the Vehicle Recycling Fund, and laws for its construction and use were later passed," the deputy minister said.
Numerous initiatives are on the way this year to encourage the growth of the Azerbaijani electric car market, said Deputy Director of the Development Department of the Azerbaijan Renewable Energy Agency (AREA) under the Ministry of Energy Sahib Khalilov during the Caspian Energy MeetUp conference titled 'Green World Solidarity Year'. "Increasing the number of electric charging stations is critical to the broad adoption of electric vehicles. Azerishiq OJSC will handle this situation. Furthermore, decreasing customs charges on the import of electric automobiles is important, which will favorably contribute to the expansion of the electric vehicle market in Azerbaijan," he said.
Azerbaijan and the International Chamber of Commerce (ICC) agreed to cooperate in preparation for the 29th session of the Conference of the Parties to the UN Framework Convention on Climate Change (COP29), to be held in Baku in November.
On March 1, a Memorandum of Understanding was signed between the Azerbaijan Renewable Energy Agency (AREA) under the Ministry of Energy of Azerbaijan and WindEurope on cooperation in the field of wind energy. The paper addresses wind energy projects, the exchange of information and best practices in the development of electricity supply interconnectors, and collaboration on the Caspian Sea-Black Sea-Europe green energy corridor.
The European Commission (EC) may accelerate granting the Azerbaijan-Georgia-Romania-Hungary Green Energy Corridor (Black Sea Energy) project the status of a project of mutual interest, Azerbaijani Energy Minister Parviz Shahbazov wrote. "At a meeting with EU Energy Commissioner Kadri Simson, we agreed to speed up the process of granting the project of a green energy corridor through the Black Sea the status of the project of mutual interest (PMI)," the publication notes.
The Black Sea submarine cable line (Azerbaijan-EU Green Corridor) provides prospects to assure the delivery of sustainable energy to Europe, said Romanian Energy Minister Sebastian Burduja during the 10th Southern Gas Corridor Advisory Council Ministerial Meeting and the 2nd Green Energy Advisory Council Ministerial Meeting on March 1 in Baku.
Serbia is closely monitoring the Azerbaijan-EU green corridor initiative, a source in the Ministry of Mining and Energy of Serbia told Trend. "Serbia is closely watching all initiatives that can help improve market interaction and energy security in the region, such as the agreement signed last year by Azerbaijan, Georgia, Romania, and Hungary to supply green energy to the EU through a new submarine cable under the Black Sea," said the ministry.
Bulgaria could play an important role in the Azerbaijan-EU green energy corridor through its developed electricity transmission system, a source at the Bulgarian Ministry of Energy told Trend. “Certainly, Bulgaria was one of the first countries to express open support for the project. In a letter dated April 3, 2023, the Ministry of Energy supported the Strategic Partnership Agreement on Green Energy Development and Transmission between the governments of the Republic of Azerbaijan, Georgia, Romania, and Hungary,” said the source.