Expert: Azerbaijan's economy might get greener and more sustainable after COP29

The 29th session of the Conference of the Parties (COP29) to the UN Framework Convention on Climate Change in Baku will lead to the transformation of Azerbaijan's economy into green, sustainable and alternative economic activities, Economist-expert Rashad Hasanov told Report.

According to Hasanov, Azerbaijan's transport system could completely change after COP29:

"Following COP29, business participation in renewable energy transition and water recycling, as well as agriculture, may increase. This will eliminate water-related problems and ensure more efficient water use, while preventing productivity decline caused by water shortages in the agricultural sector. Additionally, the country's transport system could change completely. The transition to environmentally friendly transport will itself lead to an increase in the wellbeing of the population. The environmental impact of all this means sustainable water supply, longevity, unpolluted areas, and clean air."

There should be a conceptual approach

The expert noted that Azerbaijan is among the countries significantly impacted by climate change.

"The effects of climate change are being felt by every country and community around the world. Azerbaijan is also among the countries seriously affected by climate change. Drought and the drying up of the Caspian Sea are serious threats to the country's future. Addressing this issue actively during COP29 can help raise public awareness and influence community behavior. However, solving this problem requires more than just campaigns during COP29; a comprehensive and conceptual approach is essential."

The economist also pointed out that upcoming discussions in Azerbaijan and the government's future measures will promote a more sensitive and responsible attitude towards the environment among locals.

Joint work is required from public associations, business, government, and media

"Today, the new energy transition, or in other words, the transition to green energy, manifests itself in all areas. The COP29 conference is important in terms of informing the local population about the future of humanity. This process is another to solve the problem we face regarding global climate change and temperature rise, people must be sensitive and responsible towards the environment and their surroundings, including the ecosystem they coexist with," the expert emphasized.

He added that an ecology and climate-friendly policy should be pursued to educate people:

"I think that continuous awareness campaigns should be carried out on topics that can promote ecology and climate-friendly policy, starting from the initial stages of education - from kindergarten, towards creating environmentally sensitive communities. At the same time, we will be able to achieve serious results through a long-term process that public associations, business, government, and media must conduct together."

The implementation of the circular economic model is possible with effective financial support

Hasanov stated that the impact of COP29 on Azerbaijan's ecological situation cannot be measured in the short term:

"The impact of COP29 on the ecological situation can be measured in the medium and long term. As I mentioned, conceptual policies must be implemented for this. After the event ends, this topic should not disappear from Azerbaijan's agenda. The state should also implement continuous policies to neutralize risks in advance. Of course, direct financial support from the state is very important here. Given the large expenses required in this field, state support is of great importance to achieve results."

According to the economist, there are expectations in the near future regarding the establishment of sustainable financial instruments' emission and their presentation to business:

"Currently, work is underway by the Central Bank to sign the taxonomy document. I hope these expectations will be realized in a short time, and it will be possible to implement projects that condition the sustainable transition of business by establishing an effective mechanism. Additionally, it is important for us to ensure the green transformation of micro-businesses. Because the efficient use of natural resources, establishment and protection of green zones, water recycling, transition to renewable energy, and implementation of the circular economic model can only be possible through effective financial support."

Sustainable policies will contribute to the future of Azerbaijan's economy

The expert further mentioned that considering the initiation of the reconstruction process in Azerbaijan’s liberated territories, COP29 may create serious opportunities for implementing new and modern approaches in urban development.

"COP29 does not yet have a direct impact on Azerbaijan's economy. The main issue is how this event will be incorporated into Azerbaijan's development policy in the future. Everything in this direction depends on how the decisions made and topics raised will be reflected in policy development. If sustainable policies are proposed, significant contributions to the future of Azerbaijan's economy are possible," Hasanov concluded.

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