Azerbaijan could double gas exports to Europe as it prepares to host the next Climate Summit in 2024″>COP29 will bring to Azerbaijan:”/>
Source: Trend International Information Agency
Author: Lyaman Zeynalova
Hosting COP29 will open up significant economic opportunities for Azerbaijan and create favorable conditions for unlocking its rich potential in the field of green energy. This important event will act as a catalyst for economic growth, supporting the country’s transition to a green economy and highlighting Azerbaijan’s attractiveness to foreign investment. Moreover, hosting COP29 will allow us to establish close ties with international financial institutions to finance new projects as part of the green transition.
International financial institutions are actively supporting Azerbaijan in its preparations for COP29, offering technical assistance and cooperation for the successful implementation of activities related to the climate agenda. The Asian Infrastructure Investment Bank (AIIB) is committed to helping Azerbaijan implement its national agenda in line with the goals of COP29. Also, the International Monetary Fund (IMF) is ready to cooperate with the Azerbaijani government in preparation for COP29. “We have been cooperating with Azerbaijan since the country gained independence on all reforms carried out over the past 30 years. And as an institution, we are ready to cooperate with Azerbaijan in preparation for COP29 to ensure the success of this event. We conduct regular political consultations as well as provide technical assistance Azerbaijan,” said Jihad Azur, Director of the IMF’s Middle East and Central Asia Department, during the IMF Spring Meetings in Washington. The Asian Development Bank (ADB) has approved a package of technical assistance to Azerbaijan to prepare for COP29. “This assistance will help the country build capacity to conduct COP-related negotiations and organize the event itself. We will be happy to discuss any further areas of cooperation,” ADB Director General for Central and West Asia Evgeny Zhukov said at the bank’s annual meeting in Tbilisi.
Hosting COP29 will also contribute to the introduction of advanced technologies and the creation of new production capacities with the attraction of foreign investment, which will be an important impetus for economic development. COP conferences bring significant economic benefits to host countries, boosting revenue growth in sectors such as tourism, hospitality and sustainable development.
Experience from previous conferences such as COP15 Copenhagen (2009), COP26 Glasgow (2021) and COP27 Sharm el-Sheikh (2022) confirms this trend. COP15, despite difficult negotiations, brought huge attention to Copenhagen as an environmentally friendly and sustainable city, which contributed to the growth of tourism and increased investment in sustainable urban development projects. Denmark has established itself as a world leader in renewable energy and climate technology, which has subsequently attracted long-term investment in its green economy.
COP26, despite restrictions due to the COVID-19 pandemic, generated significant revenues from tourism and hospitality. Around 40,000 delegates arrived in Glasgow, increasing income for local businesses such as hotels, restaurants and transport businesses. The event also cemented the city’s reputation as a key player in the climate arena, further helping to attract investment to the region.
COP27 in Sharm El Sheikh played an important role in promoting Egypt as a global business tourism hub. The conference attracted not only tourists, but also investments in green energy projects, which helped Egypt strengthen its position in the field of clean energy and sustainable development. The event stimulated tourism and led to the creation of partnerships for energy projects.
South Australia’s bid to host COP31 in 2026 also confirms these economic prospects: the state is targeting $500 million in economic benefits, expecting the conference to attract more than 30,000 people, generating significant revenue for the local economy and opening up new opportunities for international collaboration in climate areas.
Azerbaijan will be able to expand its relations with leading countries in the field of green energy and global financial centers, since the successful implementation of the energy transition and the implementation of climate obligations is impossible without their support and capital. Considering the huge proven potential of Azerbaijan in the field of alternative energy sources, it is strategically important for official Baku to attract investments and open international financial channels.
Azerbaijan has significant untapped renewable energy potential, including solar, wind, hydro, biomass and geothermal energy. Although the country’s energy policy has long been focused on the development of large oil and gas resources, significant changes have occurred in recent years. At the beginning of 2020, large-scale contracts for the construction of wind and solar power plants were signed, and in May 2021, parliament approved a law on the use of renewable energy sources in electricity production. The adoption of this law opens up new opportunities for Azerbaijan in the development of green energy, creating a legal basis for the implementation of projects in this area. The law provides for the introduction of competitive tenders, mechanisms to support active consumers (semi-consumers), as well as the development of additional regulations. Auction rules are currently in place, and projects related to net metering and net billing are being actively developed. In addition, laws on the supply of electricity and gas are under consideration.
Solar energy is one of the most promising areas for development in the country. According to the Ministry of Energy, the technical potential of solar energy in Azerbaijan is estimated at 23 thousand MW. During the year, the number of hours of sunshine in Azerbaijan is 2400-3200 hours, which corresponds to international standards, with annual solar energy radiation ranging from 1500 to 2000 kWh/m². The most favorable conditions for the development of solar energy exist in the valleys of central rivers, as well as in the north and northwest of the country.
Wind energy is also a promising direction. According to the Ministry of Energy, the technical potential of wind energy is about 3000 MW, of which 800 MW is economically feasible capacity. Realization of this potential will allow producing up to 2.4 TWh of electricity and saving about 1 million tons of traditional fuel, which will reduce CO2 emissions. Research conducted by the Azerbaijan Energy Research Institute jointly with the Japanese company Tomen showed that the average annual wind speed in Absheron is 7.9-8.1 m/sec. In the country as a whole, the average wind speed reaches 6 m/sec, which confirms the significant potential for the development of wind energy.
Hydropower remains the largest source of renewable energy in Azerbaijan, but its potential has also not yet been fully exploited. According to the Ministry of Energy, the potential of small hydroelectric power plants is 520 MW, which will produce up to 3.2 TWh of electricity per year.
In addition to financial assistance, the country will be able to take advantage of technology transfers from developed countries that are leaders in the field of green energy. This technology transfer will not only help organize the repair and maintenance of high-tech equipment used in alternative energy, but will also lead to the launch of joint production with foreign companies.
COP29 will contribute to deepening cooperation with leading countries and centers in the field of green energy, which will pave the way for the creation of educational institutions and programs for training specialists in this field in Azerbaijan. This, in turn, will lead to improved qualifications of local personnel and will contribute to the creation of a professional base for the introduction and development of innovative technologies.
The implementation of the “green” agenda, financial support and technology transfer will lead to the emergence of local experts and the creation of new jobs, which will have a positive impact on the country’s economy. Promoting green energy will become a source of new opportunities for businesses of all sizes, helping to optimize costs and increase profitability in various sectors of the economy.