Hosting COP29 to accelerate Azerbaijan's green economy transformation, says economist

Hosting the COP29 climate conference in Baku is poised to play a crucial role in Azerbaijan's transition to a greener economy, economist Rashad Hasanov said.

Hasanov emphasized that the event could catalyze significant changes, particularly in the country's transportation sector. He highlighted the expected increase in the use of renewable energy sources, as well as active involvement from businesses in water recycling and its rational use, Caliber.Az reports via local media.

These initiatives, he believes, will help address water supply challenges, enhance agricultural efficiency, and foster a shift towards environmentally-friendly transportation solutions. Hasanov further noted that such changes would improve the environmental situation, elevate living standards, and preserve Azerbaijan's pristine natural areas.

Azerbaijan, Hasanov pointed out, is among the countries most vulnerable to the impacts of climate change. Droughts and the receding Caspian Sea present serious risks to the nation's future. While discussions on these issues at COP29 will raise public awareness, Hasanov stressed that raising awareness alone is insufficient to tackle climate change. A comprehensive, conceptual approach is necessary, he argued.

The economist also suggested that the outcomes of COP29, combined with measures planned by the Azerbaijani government, could foster a more responsible attitude toward the environment among the local population. However, the true impact of these discussions and actions will likely be assessable only in the medium to long term.

Hasanov underscored the importance of continued government efforts to mitigate climate-related risks, noting that financial support is crucial to the success of such initiatives. Given the high costs involved, the economist believes that direct state involvement will be key to achieving environmental goals.

In the coming months, Hasanov expects the introduction of sustainable financial instruments for businesses, with the Central Bank actively working on the implementation of taxonomies that will support the development of effective mechanisms for sustainable projects.

"Moreover, it is essential to facilitate the green transformation of micro-businesses. Efficient use of natural resources, the creation and protection of green spaces, water reuse, the shift to renewable energy, and the adoption of the circular economy model are all achievable with effective financial support," the expert added.

In conclusion, Hasanov believes that the hosting of COP29, along with the government's ongoing measures, holds great potential for fostering a sustainable future for Azerbaijan, though its full impact will unfold over time.

By Vafa Guliyeva