Azerbaijan is preparing a draft law on carbon tax application,the President of COP29 and the country's Minister of Ecology andNatural Resources, Mukhtar Babayev, said at the“Raising Ambition,Enabling Action: COP29 Sustainable Business Forum” event on May 17, Azernews reports.

He made the remark while speaking about the preparation of anumber of draft laws to meet new climate challenges.

"In developed countries, a carbon emission tax is applied. Ourcountry is preparing a draft law on this issue, which is in itsfinal stage," emphasized Babayev.

He mentioned that the EU will introduce this tax on productsfrom carbon-intensive industries, and this should be taken intoaccount by Azerbaijani exporters of certain types of products.

"We are open to receiving proposals from the private sectorregarding the alignment of business practices and Azerbaijani lawswith the global climate agenda. We will work with deputies for theprompt review and approval of the necessary laws," notedBabayev.

According to him, Azerbaijan's fulfillment of its climatecommitments (reducing greenhouse gas emissions by 40 percent) andincreasing the share of renewable energy in the energy balance to33 percent will bring long-term benefits to the country.

He stressed that decisions at various levels in Azerbaijandemonstrate adherence to the green agenda.

"For example, the import of electric vehicles is exempt fromduties and taxes. This was done as part of the development of theelectromobility process in the country. Other steps will also betaken. An important task is the creation of green economy zones andgreen energy in Azerbaijan," said the minister.

Babayev also mentioned the intensification of work onestablishing the export of green energy from the Caspian Sea to theEU.

"We are negotiating at all levels, and business has an importantrole in this process ahead of COP29," added Babayev.

Azerbaijan's commercial banks should envisage 'green' loans intheir portfolios and follow climate policy, President of COP29 andMinister of Ecology and Natural Resources of Azerbaijan MukhtarBabayev noted.

“The banks must implement a well-thought-out climate policy andintroduce a climate component and responsibility measures intotheir portfolios. This is aimed at the long term,” the ministerexplained.

According to him, to finance green projects, special types ofloans and mechanisms are needed, and banks should work in thisdirection.

“The banks should offer 'green' loans to those projects that areaimed at protecting the environment. They should adoptinternational practice. Regulators represented by the governmentand the Central Bank are ready to facilitate this,” Babayevemphasized.

To note, this November, Azerbaijan will host COP29. Thisdecision was made at the COP28 plenary meeting held in Dubai onDecember 11 last year. Baku will become the center of the world andwill receive about 70–80,000 foreign guests.

The United Nations Framework Convention on Climate Change is anagreement signed at the Earth Summit in Rio de Janeiro in June 1992to prevent dangerous human interference with the climate system - the Conference of the Parties - is the highest legislativebody overseeing the implementation of the Framework Convention onClimate Change. There are 198 countries that are parties to theConvention. Unless the parties agree otherwise, the COP is heldannually. The first COP event took place in March 1995 in Berlin,and its secretariat is located in Bonn.

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