IFC ready to back Azerbaijan’s shift to low-carbon economy, says regional director

Regional Director for Europe at the International Finance Corporation (IFC) Ines Rocha has announced that the IFC is ready to support Azerbaijan in its transition to a low-carbon economy.

She highlighted that climate change is the greatest threat, particularly for developing economies, Caliber.Az reports citing the local media.

"Unfortunately, extreme weather events are likely to become more frequent. In Azerbaijan, floods already affect 100,000 people annually, while droughts and water shortages remain persistent threats. Azerbaijan's role as a host of COP29 underscores its strong commitment to the climate agenda. The country's updated Nationally Determined Contribution commits to reducing emissions by 40 per cent by 2050 compared to 1990 levels," Rocha said.

The IFC regional director believes that accelerated decarbonization will be crucial for maintaining competitiveness in the global economy and ensuring a sustainable future.

"According to the World Bank’s climate and development report on Azerbaijan, achieving this goal by 2060 will require $44 billion in investments, with a significant portion coming from commercial and private financing. The country will benefit from diversifying its economy to phase out fossil fuels, investing in climate resilience measures, and implementing necessary policy reforms to transition to a low-carbon economy. We at IFC are ready to support Azerbaijan in this issue," she added.