Azerbaijan's "green" initiatives backed by UN, Europe Analysis by Caliber.Az

Although the oil and gas sector's development remains a key focus of Azerbaijan's foreign economic agenda, the country is making every effort to participate in the global processes of the "big energy transition of 2030". In the coming years, it is planned to multiply generation in the republic's alternative energy sector, including in the Karabakh region, to develop offshore wind power and the production of "green" hydrogen, to implement energy efficiency projects in the municipal sector, as well as to achieve industry's decarbonisation. The republic's achievements and prospects on the climate track were discussed on November 2 in Baku at the forum "Green Transformation in Azerbaijan: Sustainable Development Goals".

The global energy crisis observed since last year has become even more acute against the background of the Ukraine war, and all this has radically reformatted the geography of energy supplies that has been established for decades. However, the process of replacing Russian pipeline gas through the construction of dozens of LNG terminals and liquefied gas decompression plants will take a lot of time, in particular, the implementation of such initiatives in the EU alone will take at least five years. In the current conditions, the countries of Europe and partly Asia are forced to accelerate the development of renewable energy sources (RES). According to the International Energy Agency (IEA), in the next 10 years, at least $440 billion will be invested annually in the renewable energy sector worldwide.

In this sense, being energy self-sufficient, Azerbaijan does not need urgent measures to reformat the national energy balance, nevertheless, in recent years the Azerbaijani government has been paying great attention to the development of the renewable energy segment and the transfer of industry and utilities to less energy-consuming and environmentally friendly "green" technologies.

This sphere is among the national priorities of Azerbaijan's socio-economic development, and in the next decade, it is planned to increase the share of "green" energy in the country from the current 17 per cent to 30 per cent of the total generating capacity of the country. Solving this task by 2030 will help Azerbaijan achieve its commitments under the Paris Climate Agreement (reducing greenhouse gas emissions by 40 per cent by 2030) and thereby integrate into numerous international projects of great economic importance for the country.

"Azerbaijan is committed to achieving the UN Sustainable Development Goals (SDGs) until 2030, including the UN international program on 'green' transformation adopted in 2015. This programme provides for the use of 'green' technologies, increasing the capacity of renewable energy sources, and today these tools are fundamental in the implementation of these initiatives in our country," Azerbaijani Deputy Prime Minister Ali Ahmadov said on the eve of the event on "Green transformation in Azerbaijan: Sustainable Development Goals". As Ahmadov noted, the "green" transition continues to be a priority for the country from the point of view of the national strategy, despite the fact that Azerbaijan is a leading hydrocarbons exporter. Moreover, the deputy prime minister noted that the republic will remain committed to the "green" transformation after 2030. He recalled that for some time the world agenda was occupied by such issues as the pandemic, and the war in Ukraine, and this diverted the attention of international forces from the task of the global energy transition. "However, today all countries, societies, and communities must understand that it is necessary to increase efforts to implement green initiatives to save the future world. I think that Azerbaijan will also contribute to these initiatives and will spare no effort for the proper implementation of the goals formulated by the UN," Ahmadov stressed.

Azerbaijan's position on this issue is unequivocal, and it can be confidently stated that over the past two or three years, the republic has managed to accelerate work on expanding the use of renewable energy. In particular, over 1,500 MW of generating capacity in the field of alternative energy is planned to be commissioned in the country in the next eight years, and the first steps in this direction have already been taken. At the beginning of this year, the construction of a 240 MW wind farm and a 230 MW Garadag solar power plant started: both projects are being implemented at the expense of private investments by the Saudi company ACWA Power and Masdar from the UAE, which attracted a total of $500 million to these undertakings. And soon BP will invest in the implementation of another renewable energy project – the construction of a 240 MW solar power plant in the Zangilan-Jabrayil zone. In general, the Karabakh region has been designated as a key platform for the development of alternative energy: according to preliminary calculations, over 10,000 MW of renewable energy can be generated here, and Azerbaijan's Energy Ministry, with the support of the Japanese company TEPSCO, has been working on the development of the Green Energy Zone concept in the Karabakh region since last year.

Plans for the development of about seven gigawatts of the wind potential of the Caspian Sea are no less promising, in connection with which specialists of the Energy Ministry and the International Finance Corporation (IFC) participate in the joint development of a roadmap in this segment. On the basis of relatively cheap offshore wind generation, it is planned to establish the production of "green" hydrogen by electrolysis of seawater and its further export to EU countries. The electricity from wind turbines can also be used in the work of the future desalination complex in the Azerbaijani sector of the Caspian Sea, the construction of which is planned to be implemented jointly with the Israeli I.D.E. Water Assets Ltd. Also, by 2024, a state program for low-carbon development and a National Plan for Electric Mobility will be prepared in the republic.

All these projects directly or indirectly lead to a reduction in the combustion of gas and fuel oil in the furnaces of power plants and the use of gasoline and diesel fuel in cars and thereby reducing the emission of combustion products into the atmosphere. Modernisation of the refinery serves the same purposes. Heydar Aliyev, the introduction of new technologies in polymer and other petrochemical enterprises of the Sumgayit industrial zone, as well as the implementation of initiatives on the energy efficiency of the municipal sector, for example, such as the EU Green Cities project, implemented with the financial support of the European Bank for Reconstruction and Development in Ganja.

It is obvious that Azerbaijan's efforts in these areas make the country first in the South Caucasus region in terms of fulfilling the tasks of the UN SDGs, and these successes are recorded by the leading European states and relevant international structures. "Azerbaijan is carrying out large-scale work in the fight against climate change, demonstrating regional leadership in striving to achieve the UN goals. The UK will fully support Azerbaijan in achieving the objectives of the SDGs in the field of an environmentally friendly transport, hydrogen and many other areas of development of the "green" economy and energy," British Ambassador to Azerbaijan Fergus Auld said, speaking at an international event dedicated to the issues of "green" transformation. The diplomat also expressed his approval of Azerbaijan's participation in last year's Climate Change Conference (COP26) in Glasgow, as well as the tremendous work done by the republic to combat climate change. To recall, a year ago at the COP26 conference, Azerbaijan took the initiative to create a zone of "net zero emissions" in the territories liberated from occupation, and this initiative received a great response from the UN and other international structures.

"Azerbaijan is on the right track in achieving the goals of the SDGs, having designated the goals of 'green' growth and a clean environment as one of the priorities of state policy. The country's plans to reduce hydrocarbon emissions and increase the use of renewable energy sources will contribute to achieving these goals," said Vladanka Andreeva, UN Resident Coordinator in Azerbaijan, who also took part in the Baku Climate Forum. According to her, the dialogue on "green" transformation in Azerbaijan is very important and timely, especially on the eve of the COP27 summit, which will be held on November 6, 2022, in Sharm el-Sheikh. The UN representative emphasised that following the results of the first dialogue on "green" transformation in Azerbaijan, the UN will prepare a brief report.