Azerbaijan, Asian Development Bank unite to green railways Decarbonization drive

Azerbaijan Railways (ADY) and the Asian Development Bank (ADB) have officially signed a memorandum of cooperation aimed at advancing decarbonization initiatives within the railway sector.

ADB will provide vital technical assistance to enhance Azerbaijan's railway systems, Caliber.Az reports via local media.

Rovshan Rustamov, Chairman of ADY and the signatory of the memorandum highlighted the importance of decarbonizing the transportation system, which contributes to 24% of global carbon dioxide emissions. He stressed that this goal requires a greater reliance on rail transport, in conjunction with renewable energy sources and alternative fuels.

Rustamov noted that rail transport generates considerably fewer carbon emissions compared to other modes of transport, making it a more environmentally sustainable option. “While a passenger train emits 14 grams of carbon per kilometre, other transport forms produce 10 to 20 times more emissions. Additionally, improving railway infrastructure helps alleviate transportation congestion, thereby reducing carbon dioxide emissions,” he stated.

James Leder, the ADB's Director of Transport, signed the memorandum on behalf of the Asian Development Bank.

Recently, the ADB approved a $131.5 million loan to enhance a vital railway line in Azerbaijan, with the goal of improving regional connectivity.

This funding will facilitate the rehabilitation of approximately 166 kilometres of the double-track Sumgayit–Yalama rail line, including essential civil structures and level crossings. This loan represents additional financing for the Railway Sector Development Program, which was first approved in 2017 to improve railway operations in Azerbaijan.

The project is in line with the Central Asia Regional Economic Cooperation (CAREC) Program's transport strategy, which aims to stimulate regional economic growth through enhanced rail and multimodal infrastructure, as well as the commercialization and reform of railway activities.

Furthermore, the ADB is supporting Azerbaijan’s Presidency of COP29 by providing capacity-building assistance in preparation for the significant United Nations climate summit scheduled to take place in Baku in November.

Since joining in 1999, ADB has committed over $5 billion in both sovereign and private sector assistance across various sectors, including transport, energy, healthcare, and agriculture. As the climate bank for Asia and the Pacific, ADB is dedicated to fostering a prosperous, inclusive, resilient, and sustainable region while striving to eliminate extreme poverty. Established in 1966, ADB has 68 members, 49 of which are from the region.

By Tamilla Hasanova