2024-10-03 11:52:57
Climate Finance Action Fund (CFAF) can play an important role in bridging existing gaps.
As Day.Az reported on Monday with reference to Trend, this was stated by the Minister of Economy of Azerbaijan Mikail Jabbarov at the opening Baku Climate Action Week (Baku Climate Action Week).
Jabbarov mentioned that COP29 will focus on providing financing mechanisms for the energy transition.
“We intend to involve all stakeholders in this process and achieve inclusive discussions. To do this, it is necessary to involve states, international organizations, financial institutions, large companies operating in the energy sector in the work of COP29, organize a discussion of incentives for attracting private investment in the process of applying low-carbon businesses -decisions,” he said.
Jabbarov noted that Azerbaijan has important initiatives in the energy transition process.
“One of the 14 key initiatives in the COP29 agenda is the creation of the Climate Finance Action Facility (CFAF). We believe that this fund can play an important role in closing existing climate finance gaps. The capital of the fund is expected to be financed primarily by countries fossil fuel producers, as well as oil, gas and coal companies, the fund’s main goal is to increase the contribution of countries with fossil fuel resources and companies operating in this sector to the green transition, as well as investing in the fight against change. climate in developing countries, as well as in small island states,” the minister emphasized.
According to him, Azerbaijan believes that countries rich in natural resources must take a leading role in the fight against climate change, and this initiative can significantly contribute to closing gaps in climate finance.
“To launch the fund, it is planned to attract capital in the amount of $1 billion and at least 10 donor countries will join the fund,” Jabbarov said.
The Minister of Economy said that the mining sector remains important, but as a result of large-scale socio-economic reforms, there have been major positive changes in the country’s socio-economic landscape.
“In the context of reduced production in the oil and gas sector, the positive dynamics of economic growth, including in the non-oil and gas sector, remained, and economic growth continued in the post-pandemic years. In this process, there is an expansion of budget expenditures and support for entrepreneurship, stimulation of investment and exports, development of the non-oil industry,” Jabbarov noted.
He called structural reforms an important factor for success.
“According to macroeconomic indicators in 2011-2023, the average annual rate of economic growth in the country was 1.5%, including 4.4% in the non-oil and gas sector. Over the last 8 months of this year, 7 percent economic growth was observed in the non-oil and gas sector,” – the minister added.