Discussions are currently underway in Azerbaijan regarding the implementation of carbon pricing or an emissions trading system, Huseyn Huseynov, an official of the Azerbaijani Ministry of Economy, said during a seminar themed "Green Climate Finance and Carbon Pricing Policy,” Report informs.
Huseynov stated that the primary tool for reducing emissions is the adoption of appropriate legislation. “Two options are being considered: the introduction of a carbon tax or an emissions trading system.”
He added that in an emissions trading system, specific emission limits are set, and if polluters do not exceed these limits, they do not make additional payments. “If the limit is exceeded, payments are made, and the funds are directed towards reducing emissions. With a carbon tax, a tax is paid for each pollution regardless of the amount, and the collected funds are used in the decarbonization process.”
The official also pointed out that discussions are ongoing regarding the selection of one of these two tools, and the choice will depend on data-driven analysis.