(MENAFN- Trend News Agency)
BAKU, Azerbaijan, November 6. The Asian
Development bank (ADB) has prioritized climate action as a core
focus of its operations, enhancing its funding capacity and
mobilizing financial resources to support climate action and
Azerbaijan's efforts at COP29, said ADB Country Director in
Azerbaijan Sunniya Durrani-Jamal in an exclusive interview with
Trend .
Supporting Azerbaijan's COP29 Presidency and
strategic initiatives
Durrani-Jamal highlighted Azerbaijan's commitment to making
COP29 a significant event for global climate action, stating, "As
the climate bank for Asia and the Pacific region, ADB has been
proud to support the COP29 Presidency in both the negotiations
track and Action Agenda." She emphasized ADB's ongoing commitment
to providing comprehensive support to the COP Presidency through
technical assistance, which includes capacity building, advisory
services, and knowledge sharing on critical issues for COP29.
Since May 2024, ADB experts have been collaborating with the
Ministry of Ecology and Natural Resources (MENR) to prepare
Azerbaijan's first National Biennial Transparency Report (BTR)
required under the Paris Agreement, due by December 31, 2024. "ADB
experts organized a workshop and provided hands-on support to carry
out detailed data collection and validation of the Greenhouse Gas
(GHG) Inventory Report and National Inventory Document (NID),"
Durrani-Jamal explained.
The ADB has also closely supported the COP29 Presidency's
Article 6 negotiations team, conducting four workshops for MENR and
the Ministry of Foreign Affairs (MOFA) to help them navigate
international negotiations leading up to and during COP29, ensuring
full operationalization of Article 6 of the Paris Agreement.
In addition, ADB is working with the COP29 Presidency on various
Action Agenda initiatives across sectors, including just
transition, urban development, and human development areas such as
education, health, and green skills. Durrani-Jamal noted, "ADB has
worked closely with the COP29 Presidency on developing the Baku
Principles on Human Development for Climate Resilience".
During COP29, ADB plans to launch several initiatives aligned
with the Presidency's Action Agenda, including a Climate and
Education Playbook and a Climate & Health portal. Durrani-Jamal
stated, "Our ADB-led initiatives on just transition, NDC 3.0,
Article 6, Energy Transition Mechanism (ETM), Nature Solution
Finance Hub for Asia and the Pacific, Community Resilience
Partnership Program, and Climate and Health Initiative will be
showcased at COP29".
ADB's commitment extends to regional climate action through the
Central and West Asia Regional Economic Cooperation (CAREC)
Program, where Azerbaijan plays a pivotal role. The CAREC
Secretariat, hosted by ADB, has actively engaged with the COP29
Baku Initiative for Climate Finance, Investment, and Trade. The
CAREC Partnership, co-hosted by Azerbaijan's Ministry of Economy
and ADB, is set to occur on Finance Day, November 14.
ADB President Masatsugu Asakawa will attend key events at COP29.
As the current Chair of the MDB Climate Action Working Group, ADB
plans to issue a joint statement with other multilateral
development banks (MDBs) and announce its Climate Finance
commitments.
Durrani-Jamal added, "ADB's representation at the highest level
at COP29 affirms our commitment as Asia and the Pacific's climate
bank and reinforces our position as a well-established development
partner".
Further speaking, the country director noted that, since 1999,
when Azerbaijan joined ADB, the bank has committed more than $5
billion for environmentally sustainable and socially inclusive
projects in transport, energy, health care, and agriculture . "We
have provided this assistance primarily to the public sector but
are increasingly engaging with the private sector in
Azerbaijan".
"2024 is a very special year for us as it marks 25 years of
Azerbaijan-ADB partnership. ADB's President Masatsugu Asakawa
visited Azerbaijan this year in June. He reassured the government
of ADB's continuing support for reforms in the country to achieve
the strategic priorities outlined in Azerbaijan 2030, and in
meeting Azerbaijan's regional and international commitments. We
commend the government for prioritizing sustainable growth
including through the country's energy transition, investing in an
inclusive and equitable society with a focus on employment and
social protection, and spending on education and innovation to
create a competitive and skilled workforce," she added.
Expanding regional connectivity
ADB has invested more than $1.5 billion in transport projects in
Azerbaijan. Emphasizing Azerbaijan's position as a vital transit
hub, she stated: "We recognize the strategic importance of
Azerbaijan given its location at the crossroads of the East-West
and North-South transport corridors. In fact, Azerbaijan plays a
crucial role in connecting the People's Republic of China and the
economies of Central Asia and the Caucasus with Europe".
Many of the ADB-supported projects in Azerbaijan, Durrani-Jamal
explained, are "actually part of a broader regional connectivity
network". A key component of this network is the CAREC Corridor 2,
known as the Middle Corridor, which integrates road, rail, and sea
routes across the Caspian and Black Seas, facilitating
containerized transit traffic between Asia and Europe. "ADB is
ready to work with the government of Azerbaijan and other
neighboring countries to increase the operational efficiency of
regional transport corridors," she noted.
Durrani-Jamal pointed to ADB's solid experience in developing
complex multimodal transport infrastructure across Asia over the
past five decades. "We have solid credentials in developing complex
multi-modal transport infrastructure in Asia and the Pacific," she
said, citing a range of projects, including "bridges, railways,
urban metros, roads, airports, and ports".
"Our approach to regional infrastructure development has of
course evolved based on our experience," she continued, explaining
that ADB is now focusing on creating "integrated transport
networks, including regional networks, that use intelligent data
and tracking systems" to streamline customs clearance and improve
asset management.
Durrani-Jamal highlighted specific projects that demonstrate
ADB's commitment, such as the $131.5 million additional loan
approved in September 2024 for Azerbaijan's Railway Sector
Development Program. Alongside this, "the government and ADB have
also invested $47 million for the Azerbaijan Railways Digital
Transformation Project," she said, aimed at "improving operational
efficiencies and cross-border tracking of goods".
ADB looks to enhance cybersecurity and digital skills within
Azerbaijan Railways as well. "ADB is also planning to provide a
grant for technical assistance to enhance the cybersecurity of
railway operations while building digital skills of its
workforce".
"In addition to transport and energy infrastructure, Azerbaijan
is an active member and contributor to the CAREC working groups on
skills development and health. Azerbaijan also plays an essential
role in developing regional strategies and sharing best practices
to enhance capacity-building, workforce development, and health
outcomes across regional member countries. In the future, we expect
water security issues to become prominent topics of deliberation
among CAREC members," Durrani-Jamal added.
ADB's support for Azerbaijan's transition to green
power - spotlight on Boyukshor Lake Solar PV
The Government and people of Azerbaijan are to be commended for
hosting COP29 this year, the country director pointed out.
One of Azerbaijan's key initiatives is its commitment to add
1,870 MW of renewable energy to the grid for domestic consumption
by 2027. ADB has already invested $1.7 billion in various
successful energy projects in Azerbaijan, with plans to continue
supporting the government's shift from hydrocarbons to green energy
through analytical studies, policy advice, and financing.
"Our strategy to support Azerbaijan's green energy transition
includes investment in solar and wind power, the development of
green energy corridors, and the promotion of e-mobility, including
electric vehicles and alternative fuels such as green hydrogen,"
Durrani-Jamal explained. Additionally, ADB is focused on assisting
with the decarbonization of district heating systems.
A notable project is the co-financing of Masdar's 230MW Garadagh
solar power plant near Alat, which is set to become the largest
solar facility in the Caucasus. "The Garadagh Solar PV Plant is
expected to provide electricity to 110,000 homes and reduce CO2
emissions by 200,000 tons per year," Durrani-Jamal noted. This
project signifies a milestone in Azerbaijan's renewable energy
landscape, supported by long-term international financing from ADB,
totaling $21.4 million.
Looking ahead, ADB is gearing up to seek board approval for two
additional solar projects co-financed with the European Bank for
Reconstruction and Development (EBRD) in November.
In July 2024, ADB, in collaboration with the Ministry of Energy
and the Azerbaijan Renewable Energy Agency, inaugurated the
innovative 100 kW Floating Solar Photovoltaic (FPV) Pilot Project
on Boyukshor Lake, conveniently located near the Baku Olympic
Stadium, the main venue for COP29. Durrani-Jamal expressed optimism
about this initiative: "ADB is looking into alternative business
models with private sector participation for managing the FPV
facilities in the greater Baku area and other economic regions of
Azerbaijan."
Additionally, ADB is keen to support wind energy investments in
the country and plans to engage in discussions with both government
officials and private sector investors regarding this
potential.
On a regional level, Azerbaijan, Kazakhstan, and Uzbekistan
signed a Memorandum of Understanding on May 2, 2024, for a Caspian
Sea electricity transmission cable project. This initiative is part
of the "green energy corridors" concept, designed to transmit
renewable energy from the Caspian region via an undersea cable
running across the Black Sea to Europe.
To further enhance the domestic utilization of green energy, ADB
is offering its support to the Azerbaijani government in developing
green e-mobility infrastructure through the procurement of electric
buses. Durrani-Jamal emphasized, "We are also supporting the
decarbonization of the district heating system," underscoring ADB's
commitment to fostering a sustainable energy future in
Azerbaijan.
New Country Partnership Strategy - ADB's
vision
Moreover, currently, ADB is working on a new Country Partnership
Strategy (CPS) for Azerbaijan, which will guide its investments and
initiatives from 2025 to 2029.
The country director emphasized that the strategy will be
informed by comprehensive diagnostic work across several critical
areas, including green infrastructure financing, water resources
and food security, export diversification, and the development of
green skills.
Durrani-Jamal expressed her vision for improving ADB's
operational approach, stating, "I hope to be able to improve our
operational approach and clearly communicate the value we offer to
our clients". She noted that ADB aims to move away from standalone
sector projects, instead fostering dialogue among government
entities to collaboratively develop multi-sector solutions. She
elaborated, "Of course, the projects could be delivered by separate
ministries, but the results will be delivered through
collaboration".
Highlighting the importance of efficient resource use, she
pointed out the necessity of ensuring sufficient water availability
for expanding agricultural production amidst anticipated water
scarcity. "A case in point is improving efficiency in water use and
energy use," Durrani-Jamal said.
Another focal point of the strategy is transitioning
Azerbaijan's economy from a hydrocarbon-based model to one that is
centered on manufacturing, logistics, and eventually,
knowledge-based industries. Durrani-Jamal acknowledged the
government's efforts to incentivize investments in techno parks and
promote digital skills development, especially for girls and in
regions beyond Baku. "The government is actively providing
incentives to encourage investments in techno parks and encouraging
digital skills development including for girls and in regions
outside Baku to ensure equity," she noted.
To attract both domestic and international investment,
Durrani-Jamal underscored the necessity of continuous improvements
in governance and transparency. "Several steps are being taken in
this direction from the establishment of ASAN service centers for
citizens to improving governance and transparency among state-owned
enterprises and financial institutions," she explained. Addressing
challenges such as fostering the growth of small businesses,
creating a robust middle class, and implementing policies that
support affordable housing will require persistent efforts. "These
are tough challenges that will need to be addressed steadily," she
added.
ADB also provides technical assistance to Azerbaijan on
"Improving Governance and Public Sector Efficiency", through
technical advice on public financial management, corporate
governance, and private sector development.
"Under PFM we have included technical advice on sovereign green
bonds, climate budget tagging, transition to green public financial
management and climate finance for MSMEs, etc. We are helping
MSMEs' successfully transition towards a sustainable, inclusive,
low-carbon business growth model, by developing a climate change
roadmap and action plan. The action plans are designed to: i)
enhance convergence, harmonization, and integration of climate
policies among MSMEs; ii) strengthen capacities of public and
private stakeholders and decision-makers to integrate climate
mitigation and adaptation measures in MSMEs investment and
operations; iii) improve MSMEs' access to resources including
technology, climate finance, and climate advisory services," she
said.
The bank is also exploring potential avenues for collaboration
with Azerbaijani banks. "Depending on the progress of these
discussions, ADB aims to provide substantial support to local
banks, thereby enhancing their capacity to contribute to the
country's green economic development".
Durrani-Jamal concluded with optimism about ADB's role in
Azerbaijan's development, stating, "We have a talented team at ADB,
and I am confident that with their support and the support of our
partners, ADB will continue to make significant contributions to
the development of Azerbaijan and the region".
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