Smes Essential For Azerbaijan's Green Economy Shift

(MENAFN- AzerNews) Nazrin Abdul Read more

In recent years, Azerbaijan has progressively adopted the principles of the green economy. This year, the nation has officially designated it as the "Year of Solidarity for the Green World." Additionally, Baku will host the COP29 conference in November. The agenda for this year includes the expansion of renewable and clean energy capacities and the development of "green energy" infrastructure.

Small and medium-sized enterprises (SMEs) play a crucial role in these initiatives. The Small and Medium Business Development Agency (SMB), operating under the Ministry of Economy, is dedicated to enhancing the contribution of SMEs to Azerbaijan's green economy. The agency supports the growth of alternative energy within the framework of national priorities extending to 2030.

To underscore ongoing efforts in this area, a conference titled "The Role of Small and Medium Business in the Green Economy" was held on September 9 in Baku. Supported by the Ministries of Economy and Ecology and Natural Resources, and organized by the SMB, the event highlighted the sector's importance.

Minister of Economy Mikayil Jabbarov emphasized the growing significance of SMEs in Azerbaijan's socio-economic development. He noted that SMEs contribute significantly to GDP, job creation, and the economic revitalization of previously liberated areas. "In this new era, SMEs must actively participate in the development of the green economy, which has become an essential trend," Jabbarov stated.

He further explained that SMEs, which constitute over 99% of businesses in Azerbaijan, are pivotal for green growth. Many SMEs operate in high-emission sectors such as construction, transportation, and energy. Thus, their adoption of energy-efficient technologies and practices is vital for enhancing competitiveness. "Global experience shows that SMEs are often at the forefront of clean technologies and innovative business models. Their agility allows them to quickly adapt to new trends and incorporate innovations, making them integral to the green economy," Jabbarov added.

The minister also underscored the importance of energy efficiency, achieved through energy-saving technologies and renewable energy sources. He emphasized the need for ongoing human resource development and personnel training to implement these innovations effectively. Additionally, effective waste management, including recycling and using eco-friendly materials, is crucial. Developing environmentally friendly products and services, along with adhering to social responsibility and integrating environmental considerations into business practices, are essential for modern entrepreneurs.

"Green businesses" are crucial for sustainable production and resource optimization. Jabbarov pointed out that green projects contribute to both economic and environmental sustainability. "A favorable regulatory environment for green business is being established, with various support mechanisms already in place," he said.

Recent tax policies reflect this shift, including tax incentives for environmental protection, restrictions on the import of older vehicles, and support for electric and hybrid cars. The government is also exploring ecological taxes and carbon pricing to further reduce emissions and support green technologies.

Industrial parks like the Balakhani Industrial Park, which specializes in waste recycling, exemplify efforts to support the green economy. These parks aim to enhance high-tech industrial production, develop the non-oil sector, boost employment, and improve environmental conditions in Baku and its surrounding areas.

The Entrepreneurship Development Fund supports "green projects" with preferential loans for initiatives in recycling, alternative energy, and electric vehicle infrastructure. Additionally, the SMB provides grants, startup certificates, market research, training, and access to exhibitions.

Jabbarov encouraged SMEs to actively engage with the opportunities offered by innovative initiatives and state support. "Green energy projects are vital for regional and global economic, ecological, and energy security," he affirmed.

KOBIA actively promotes companies engaged in green energy and recycling by facilitating their participation in both local and international exhibitions. The agency provides comprehensive support throughout the business lifecycle, including assistance with establishment, growth, tax and customs benefits, infrastructure support, and subsidies. The Small and Medium Business Development Agency (SMB) is dedicated to advancing state policies, enhancing operational efficiency, and offering institutional support to nurture the development of both new and existing SMEs.

MENAFN09092024000195011045ID1108651956