UK-Azerbaijan partnership: Exploring clean energy, economic opportunities Ahead of COP29

Azerbaijan and Great Britain have been successfully cooperating in various sectors for many years. Modern trends and the gradual abandonment of carbon fuel by many countries open new prospects for Azerbaijan and Great Britain, especially in the field of clean energy, where Great Britain has extensive experience. In the run-up to the COP29 climate conference, the partnership between Azerbaijan and Great Britain is reaching a new level.

Both countries see significant potential for strengthening ties in such promising areas as clean technologies, decarbonization, and offshore wind energy development.

In an interview with local media, the Trade Commissioner for Eastern Europe and Central Asia and British Consul General in Istanbul, Kenan Poleo, shared his vision of the state and prospects of trade and economic relations between the two countries, noted key achievements and current projects in energy and education, addressed sustainability issues, and emphasized the potential for joint innovative projects in agriculture. Caliber.Az reprints the interview.

-How do you assess the current state of trade and economic relations between the United Kingdom and Azerbaijan? What key achievements can be highlighted in recent years?

-Azerbaijan has been a close and valued trading partner of the UK for the three decades since its independence, and there remains great potential for extensive collaboration across a variety of sectors. Our bilateral relationship is strong, with trade volume currently exceeding £1.4 billion a year.

A brilliant example of our growing relationship is the recent partnership to provide cleaner transport solutions to the people of Baku. The Azerbaijani government has purchased 252 iconic electric taxis from the British electric vehicle company LEVC in the last five years, including 150 in 2024 ahead of hosting COP 29 in November. The UK is keen to expand the trading relationship with deals like this.

-How many British companies are currently operating in Azerbaijan, and in which sectors are they involved? Are there any upcoming events planned by your office in Baku or the regions to promote British businesses in Azerbaijan?

-Over 450 UK businesses operate in Azerbaijan, with about 50 in the clean energy sector. Other active sectors include oil and gas, infrastructure, financial services, education, and retail. My team recently brought UK companies to Azerbaijan to attend Baku Build to showcase UK expertise in architecture and sustainable construction, which was a great success.

COP29 will bring with it huge opportunities to promote British businesses in Azerbaijan. My team in Baku will host a climate finance event with TheCityUK at COP, alongside various other climate-focussed events. The UK is well-placed to work with local Azerbaijani businesses in non-oil sectors, especially in renewable energy, infrastructure, education, and health.

-Could you provide more details on how the UK plans to cooperate with Azerbaijan in the field of clean technologies to stimulate economic growth in the lead-up to COP29?

-Over recent months, the UK has been working closely with Azerbaijan to support the delivery of COP29 and to lay the groundwork for a lasting COP legacy. Activities include designing renewable energy projects to increase air quality and rehabilitating oil-contaminated soils to establish clean building standards. Progress has already been made at a higher level, with the UK and Azerbaijan signing a Memorandum of Understanding to share best practices in clean energy, energy efficiency, and low-carbon technologies.

UK businesses play a crucial enabling role in supporting businesses of every size and in every location on their journey towards net zero. There is a lot of support available for businesses wishing to do trade, and I would encourage all of those who are interested to reach out.

-How much British investment has been made in Azerbaijan's economy, and what portion of it is directed toward the oil sector?

-We are proud to be largest foreign investor in Azerbaijan and this provides a solid foundation to build on as we both pursue clean energy objectives. In 2022, the inward stock of foreign direct investment (FDI) from the UK in Azerbaijan was £2 million.

Green technologies and sustainable development are actively evolving in the UK. What opportunities do you see for joint projects with Azerbaijan in these areas?

I see huge opportunities for joint projects in this space. To take just one area, UK companies offer valuable expertise and sustainable solutions in the water sector, presenting significant opportunities for Azerbaijan as it continues to focus on environmentally conscious infrastructure development.

UK company Concrete Canvas (CC) produces an innovative concrete solution that is 65% more environmentally friendly than traditional concrete, aligning with global standards. They provide sustainable concrete solutions for irrigation and water management in Azerbaijan. This collaboration showcases the UK's ability to deliver cutting-edge, clean technologies tailored to Azerbaijan's needs. Additionally, UK Export Finance, the UK’s export credit agency, has an untapped £5 billion credit limit for Azerbaijan, offering great opportunities for UK and Azerbaijani businesses.

-What specific projects in sustainable energy and green technologies does the UK plan to offer Azerbaijan to promote innovative and environmentally friendly industries?

Digital Construction, Modern Methods of Construction (MMC), and Green Buildings are key areas where the UK offers strong expertise and is keen on partnering with Azerbaijan. A consortium of British companies is working with Azerbaijan to implement Building Information Modelling (BIM), supporting sustainable building efforts.

Both BIM and MMC present significant opportunities for the construction sector by increasing energy efficiency, reducing waste, and contributing to Azerbaijan’s environmental and sustainability goals.

UK consultancy firms are also active in this area. For instance, UK company Advisian is developing a “Low Carbon Hydrogen Economy” study for Azerbaijan.

Overall, Clean Finance, Offshore Wind, Consulting and Engineering are among main potential areas in sustainable energy and clean technologies.

-What opportunities do you see for expanding cooperation between our countries in sectors beyond energy?

-At COP29, Azerbaijan will set out what we hope will be ambitious clean energy and climate finance ambitions where the UK can be a strong partner, particularly in decarbonisation, offshore wind, and climate finance.

Beyond energy, education and agriculture are promising collaboration sectors.

UK universities are already collaborating with Azerbaijani institutions. Professional qualification programs like ACCA are gaining traction, supporting the development of management talent in Azerbaijan.

We are also facilitating collaboration in agriculture, particularly with acquiring export health certificates for live cattle breeding and embryo. My team in Baku is getting ready to take innovative Azerbaijani agri-tech companies to the UK's Premier Agricultural Machinery and Technology Show held in January 2025 to expand our partnership in this area.

-Are British companies showing interest in participating in the construction and restoration efforts across Azerbaijan?

-Yes, UK companies are well-positioned, and already involved in supporting construction projects.

The UK’s environmental assessment method, used in the Baku White City project, demonstrates the UK's ability to help maximize energy efficiency and meet Azerbaijan’s decarbonisation and net-zero goals, especially with COP29 approaching.

My team in Baku are the experts to help you partner with UK businesses. We offer free, confidential advice and market information to businesses, giving companies the insight and helping existing businesses to expand and grow. We are also here to connect you with the very best UK suppliers for their needs, for COP and beyond.