Minister: Azerbaijan aims for 8 GW of green energy with foreign investments by late 2029

Azerbaijan is set to realise renewable energy projects with a combined capacity of over 8 gigawatts (GW) by the end of 2029, said Azerbaijan's Economy Minister Mikayil Jabbarov at the International Forum on Carbon Pricing.

Jabbarov stated that, by 2030, through foreign investments, projects in “green energy” both onshore and offshore will be implemented for domestic consumption, decarbonisation of the economy, and export purposes, Caliber.Az reports.

He highlighted that the goals outlined in the socio-economic development strategy for 2022-2026 include increasing the share of renewable energy sources and enhancing waste recycling capacities within the country’s electricity generation in the near to mid-term.

“Our priority is to develop renewable energy through foreign investments, transforming liberated territories from grey zones into ‘green energy’ zones, and establishing the Caspian Sea as a hub for the production and export of green energy,” Jabbarov added.

The minister also pointed out that Azerbaijan is actively developing its hydropower potential in Karabakh and Eastern Zangezur following their liberation from occupation.

Efforts are underway to implement the concepts of “smart city”, “smart village”, and “green energy zone” in these newly liberated areas, along with creating enterprises with foreign investments focused on greening and decarbonisation.

“Through COP29, we aim to better inform stakeholders about the implementation of projects based on the concept of ‘carbon neutrality’ in the Karabakh and East Zangezur economic regions,” Jabbarov emphasised.

The meeting also focused on Azerbaijan's plans to engage at least ten countries to finance its Climate Fund during COP29.

Jabbarov announced that one of the key initiatives of COP29 is the establishment of a Climate Financing Action Fund (CFAF). “To initiate the Fund, we plan to attract capital of $ 1 billion and the participation of at least ten donor countries,” he stated.

He noted that the fund's capital is expected to be primarily financed by fossil fuel-producing countries, as well as companies involved in oil, gas, and coal extraction.

“The Fund can play an important role in addressing existing gaps in climate financing. Its main objective is to increase the contribution of resource-rich countries and businesses in this sector to the green transition, as well as to invest in combating climate change in developing and small island countries,” Jabbarov emphasised.

By Khagan Isayev