(MENAFN- AzerNews) By Asim Aliyev
The transition to a low-carbon economy and
sustainability-related investments and policy reforms are in
Azerbaijan's economic interests.
According to Azernews , this was stated in the
Climate and Development Report (CCDR) published by the World Bank
Group for Azerbaijan.
The document states that rapid climate action can help
Azerbaijan minimise the risks associated with the global transition
to a low-carbon economy and protect the living standards of the
The report indicates that the country's economy is largely
dependent on the oil and gas sector, which accounts for 1/3 of the
gross domestic product (GDP) and 90% of exports. As oil reserves
dwindle and are expected to last another 25 years, comprehensive
and effective decarbonization efforts will help diversify the
economy and promote new growth drivers such as green hydrogen and
agriculture. increase due to extreme weather events. "At the same
time, the country's natural resources are being damaged due to soil
degradation, desertification, and overgrazing, which has a negative
impact on agriculture. At the same time, oil and gas production
also affects soil degradation and water pollution.
“Regardless of the pace of global decarbonization efforts,
accelerating investments in decarbonization is in Azerbaijan's
interests. These efforts are also consistent with national economic
diversification goals. CCDR provides a practical path for the
country to move from setting goals to implementing measures that
can protect Azerbaijan's economy and people from the negative
impacts of climate change,” said Roland Price, World Bank Country
Director for the South Caucasus. .
The document states that, although Azerbaijan has signed the
Paris Agreement on climate change, it has not yet made any
commitments to bring the country's emissions to net zero. However,
the country plans to reduce greenhouse gas emissions by 35% from
1990 levels by 2030," he said. and by 2050-and set national targets
to reduce carbon dioxide emissions by 40% by 2018. Including energy
and water,“sectors critical to the transition to a green economy
are dominated by state-owned enterprises, accounting for half of
the country's workforce. Economic diversification and a more
dynamic private sector are needed to define and implement a clear
course for decarbonized economic development.
The decarbonization and sustainability measures outlined in the
report will require a major investment of about US$44 billion, or
about 3.2% of GDP, by 2060, when the global economy is expected to
move to“net zero” emissions. A significant portion of these costs
must be covered by commercial and private sector funding.
To ensure the transition to a low-carbon economy, Azerbaijan
will be comfortable pivoting its economy away from fossil fuels and
leveraging private capital and know-how, but time is an important
factor in this. Taking advantage of the opportunities highlighted
in this report will help the country build a future-proof economy
and protect its population from climate change,” said Ivana
Fernandez Duarte, Regional Manager for the South Caucasus at the
International Finance Corporation (IFC).
As part of the government's 2022–2026 socio-economic development
strategy, a gradual but sustainable shift away from fossil fuel
subsidies, especially if accompanied by targeted social protection
measures to protect the poorest, will drive the transition. be one
of the main factors in achieving success.
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