Azerbaijan promotes small enterprises' role in green economy, minister says

New avenues for advancing Azerbaijan's green economy are emerging, bolstered by government backing, according to Mukhtar Babayev, Minister of Ecology and Natural Resources and COP29 President-Designate.

Speaking at the conference “The Role of Small and Medium-Sized Businesses in the Green Economy”, in Baku, Babayev highlighted the government's commitment to fostering a sustainable future, Caliber.Az reports, citing local media.

He said the steps taken by the government in the field of green energy provide long-term prospects for the private sector and investors and give impetus to the development of new projects.

“There is a need to increase the number of environmental projects in both the public and private sectors. Small and medium-sized enterprises (SMEs) should be encouraged to build sustainable infrastructure and utilise green technologies. This will contribute to both economic growth and environmental efficiency,” the minister emphasised.

Babayev also noted that in order to overcome the financial difficulties faced by SMEs in this transition, it is important to increase their access to concessional finance. The UN estimates that trillions of US dollars are needed annually to transition to a low-carbon economy worldwide.

“It is necessary to facilitate SME investment in environmental and sustainable projects through green loans, green bonds, financial tools related to environmental, social and corporate governance,” Babayev said.