BAKU, Azerbaijan, November 15. Three key challenges need to be addressed to successfully establish a regional framework for cross-border renewable energy trading and functional markets to accelerate the transition to zero emissions, the Vice President of the Asian Development Bank for South Central and West Asia Yingming Yang said during the Ministerial Dialogue on Promoting Renewable Energy Transition in Central Asia, Trend reports.
“First, many energy systems remain outdated and inefficient. Modernizing this infrastructure requires significant upfront investment, which can be a major barrier for some countries. To overcome this challenge, the region will need innovative financing mechanisms and international support. Second, harmonization of different national energy systems and technologies requires careful planning and regional cooperation to ensure system compatibility,” he said.
According to him, creating a common framework for energy markets is a complex task that requires the active involvement of all stakeholders.
“Many countries need support in the form of technical expertise and capacity building to participate effectively in this process. Third, dialogues on regional cooperation need to be backed by strong political support and awareness of the importance of the issue. The trilateral agreement signed by Azerbaijan, Uzbekistan, and Kazakhstan two days ago is a good example,” he added.
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