EBRD supports Azerbaijan’s green economy with major investments

The European Bank for Reconstruction and Development (EBRD) invested 196 million euros in eight projects in Azerbaijan in 2024.

Some 82 per cent of these investments were directed towards Azerbaijan's "green economy" focusing on various sectors such as energy, transportation, financial institutions, and small and medium-sized enterprises (SMEs), Caliber.Az reports via local media.

EBRD has become a key partner in Azerbaijan’s decarbonization efforts, financing solar power plants with a combined capacity of over 1.2 gigawatts and supporting renewable energy auctions.

The bank has also invested $42 million in expanding the fleet of the Azerbaijan Caspian Shipping Company and approved a $50 million limit to support the export and import activities of local companies. In partnership with the EU, the EBRD provided loans to AccessBank and Bank Respublika and renewed its risk-sharing mechanism with a 15 million-euro-fund.

The bank continues supporting local businesses through its consultancy programme. To date, the EBRD has invested more than 4 billion euros in 195 projects in Azerbaijan. The EBRD’s strategy in the country focuses on assisting Azerbaijan in diversifying its economy and developing the non-oil private sector. 

In Azerbaijan the EBRD focuses on: 

Helping diversify Azerbaijan’s economy by supporting the development of the private sector in non-oil sectors and strengthening governance of private and state-owned companies.  

Further expanding access to finance for local businesses by encouraging lending by banks and non-bank financial institutions as well as by helping develop local currency and capital markets.  

Supporting to the country’s green economy, including financing for renewable energy sources, increased energy efficiency and cleaner transport and sustainable infrastructure.

As well as being a country where the EBRD works, Azerbaijan is also an EBRD donor with a total contribution of 3.6 million euros, of which 50 per cent is for the Eastern Europe Energy Efficiency and Environment Partnership (E5P) Fund and the other 50 per cent are to the Azerbaijan – EBRD Cooperation Account.

By Naila Huseynova