Azerbaijan, UAE Forge Stronger Ties With Focus On Green Energy And Trade

(MENAFN- AzerNews) Akbar Novruz Read more

Despite having different ethnic and cultural backgrounds, Azerbaijan and the UAE relations continue to flourish even more as the burgeoning partnership between the both countries is reflected in a shared commitment to economic diversification, green energy development, and robust diplomatic ties. A series of recent high-level engagements and agreements showcase a dynamic bilateral relationship rooted in mutual trust and a forward-looking vision.

Strengthening Economic Ties

Azerbaijani Economy Minister Mikayil Jabbarov has highlighted ongoing negotiations for a Comprehensive Economic Partnership Agreement (CEPA) with the UAE.“The signing of this agreement will be a significant step in developing our economic and trade relations, deepening cooperation, particularly through trade liberalization, increasing investment flows, and expanding access to goods and services markets,” Jabbarov stated during an event celebrating UAE National Day.

The minister also pointed to key outcomes from UAE President Sheikh Mohamed bin Zayed Al Nahyan's visit to Azerbaijan in January 2024, including the signing of a Memorandum of Understanding on Strategic Partnership. These agreements set the stage for deeper economic integration and enhanced collaboration in strategic sectors such as energy and technology.

Masdar's Role in Azerbaijan's Green Transition

A pivotal aspect of Azerbaijan-UAE cooperation is their shared commitment to renewable energy, with Masdar-a global leader in clean energy and a UAE-based company-playing a central role. Masdar has been actively involved in Azerbaijan's green energy projects, including large-scale solar and wind energy initiatives.

One of the flagship projects is the Garadagh Solar Plant, a 230 MW facility developed by Masdar. Operational since 2023, it is expected to generate approximately 500 million kWh of electricity annually, reducing greenhouse gas emissions by 200,000 tons. President Ilham Aliyev, lauding Masdar's contributions, stated, “The significant steps we have taken in the energy sector, particularly in the field of green energy, are gratifying.”

Additionally, Masdar is advancing offshore wind projects in Azerbaijan. A framework agreement was signed in 2022 to explore up to 10 GW of renewable energy potential. This initiative complements Azerbaijan's broader strategy to reduce reliance on fossil fuels and establish itself as a green energy hub in the region.

Joint Climate Diplomacy

Azerbaijan's COP29 Presidency and the UAE's COP28 Presidency have established a collaborative platform to tackle climate change. This partnership is not only symbolic but also strategic, as both nations aim to align their agendas on renewable energy and sustainability.

The energy partnership between Azerbaijan and the UAE has gained momentum, with a focus on sustainability and innovation. During a meeting between Jabbarov and UAE Minister of Industry and Advanced Technology Sultan Ahmed Al Jaber, both parties emphasized shared goals in renewable energy. They reviewed collaborative projects involving the State Oil Company of Azerbaijan Republic (SOCAR) and leading Emirati firms such as ADNOC and Masdar. These projects are pivotal to Azerbaijan's ambition to become a regional leader in environmental sustainability.

President Ilham Aliyev echoed these sentiments in a congratulatory letter to the UAE on its National Day, underscoring the progress made in renewable energy. "The significant steps we have taken in the energy sector, particularly in the field of green energy, are gratifying," Aliyev remarked, singling out Masdar's effective role in Azerbaijan's green transition.

This collaboration extends to climate diplomacy, with Azerbaijan's COP29 Presidency and the UAE's COP28 Presidency working in tandem to advance global climate action. Aliyev noted, “I commend the successful collaboration established between Azerbaijan's COP29 Presidency and the UAE's COP28 Presidency.”

Broader Diplomatic and Strategic Alignment

The partnership between Azerbaijan and the UAE extends beyond economics and energy. Active political dialogue forms the backbone of their relationship, as President Aliyev remarked in a recent letter: "The Azerbaijan-UAE interstate relations, founded on brotherhood, mutual respect, trust, and support, are currently experiencing dynamic and comprehensive development."

This burgeoning alliance stands as a testament to how nations can combine resources, expertise, and vision to tackle global issues while ensuring mutual growth. With ongoing projects and new agreements on the horizon, Azerbaijan and the UAE are well-positioned to set a global example of sustainable and inclusive development.

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