To achieve maximum effect in decarbonization, Azerbaijan should introduce respective strategies at the stages of planning and construction, Report informs, citing Boston Consulting Group (BCG).
BCG notes that Azerbaijan is undertaking numerous mega-projects in energy, residential construction, and other sectors, incorporating decarbonization strategies along the way.
"These projects are set to support both its economic development and decarbonization goals. However, to maximize the impact of these decarbonization efforts, it is essential to integrate these strategies during the planning and construction phases. Projects developed from scratch offer particularly advantageous opportunities in this context."
BCG Managing Director and Partner Vladimir Rogov notes two key aspects in this regard: Firstly, Azerbaijan has committed to reducing greenhouse gas emissions by 40% by 2050, aligning with global climate goals. Secondly, failing to adopt decarbonization practices now could result in a significant carbon footprint, leading to substantial penalties in the future.
At the same time, BCG considers that emerging green technologies will become more cost competitive in the nearest years, which will further reduce spending.
According to BCG’s research on decarbonizing mega projects, several key strategies can be implemented to achieve significant results in this area.
First is the early Integration of Green Technologies: BCG’s research shows that about 48% of a project’s lifecycle emissions can be mitigated at minimal additional cost by incorporating established emissions abatement technologies and design principles from the start. This makes early adoption both economical and effective.
Second is the Adoption of Emerging Green Technologies: An additional 22% of emissions can be addressed with emerging green technologies, like advanced carbon capture and storage, expected to become 20-30% more cost-competitive in the next five to seven years. Planning for these innovations allows to leverage future cost reductions and further decrease emissions.
Third is the Lifecycle Emissions Management: Comprehensive lifecycle emissions management can achieve a 30-40% reduction in total emissions across a project’s lifespan, ensuring that all stages—from design to decommissioning - contribute to minimizing environmental impact.
Fourth is the Regulatory and Market Alignment: As European partners and customers increasingly demand decarbonization, projects that meet these standards are more likely to succeed in the market. Early adoption of green practices ensures compliance with future regulations and improves market access.
BCG notes that given the scale of the planned projects across Azerbaijan, integrating sustainability strategies early on will be most advantageous.