COP29 will bring green politics to Azerbaijan's political agenda and increase awareness in this regard, Economist Rashad Hasanov said in his statement to Report.
According to the economist, if proper attention is paid to the issues discussed within the COP29 framework, all interested parties will benefit from this process:
"Also, if policies are developed to bring and apply positive experiences to the country in this framework in the future, then, of course, all interested parties, including the economy, local community and the state, will benefit positively from the process in the medium and long term. Potential benefits are especially high in terms of transformation of energy sources, formation of green economic policies, including circular economy, efficient use of resources and environmental protection."
The expert noted that greening, digitalization and transformation to an intensive economy is quite an expensive process:
"It would not be correct to limit the COP29 event to smaller targets as just a financial accessibility aspect. In fact, I don't think there are any limitations in this direction. The main point is to be interested in cooperation. For this, the state should prioritize the application of international standards in its activities, including transparency and accountability standards. As for the importance of international investment, of course, greening, digitalization and transformation to an intensive economy is quite an expensive process. Implementing this process through state funds is the most unsuccessful approach from an efficiency perspective. The financial strength of local investors is not adequate. Therefore, foreign investment is very important in a sincere policy."
Speaking about foreign investment, he emphasized its importance for the realization of the COP29 agenda and potential commitments:
"Thus, the restoration of the liberated territories and the transition to a non-resource economy require quite large finances. On the other hand, it is not correct to look at foreign finance only as funds. Foreign investment brings intangible advantages that cannot be measured in parallel, such as accountability, transparency, developed experience, and connection with foreign markets. Each of these has great benefits in terms of Azerbaijan's development."
According to Hasanov, the ecosystem in Azerbaijan is not yet in a position to support high technological development:
"No country in the world carries out technological transformation only with its own resources. Therefore, the level of dependence in this area is high. Azerbaijan does not yet have the capabilities to support high technological development due to the current ecosystem, and it seems impossible to achieve this in the near future. Currently, competition in this regard is moving to a completely new phase, especially the phase of maximum efficient application of artificial intelligence, which is not yet accessible for the local economy."
The economist says that the impact of transformation on the labor market and the training of highly qualified personnel is inevitable:
"In particular, the demand for highly qualified personnel will increase even more. Many professions will become obsolete, and new ones will emerge instead. At present, the level of human capital development in the country is far behind the relevant challenges. This can make the shortage of personnel one of the biggest obstacles in the early stages. However, I think with rational policies, it is possible to achieve a large-scale adaptation in the labor market in the long term."
The expert believes that entrepreneurial initiatives in green energy will develop in the next five years.
"Thanks to rapid technological development, the cost of green energy is rapidly decreasing. This, in turn, increases the attractiveness of participation in the process for both businesses and family farms. The organization of the production process can allow the entrepreneur to use existing assets, such as roofs, more efficiently. As a result, it creates wide opportunities for both internal consumption and sale of the energy it produces and generating income from it. I think that the next five years will be accompanied by the development of entrepreneurial initiatives in this regard. Of course, it is very important for the state to offer effective incentive policies and solutions in this area," he emphasized.