Azerbaijan has the potential to make a significant contribution to the development of a global smart and low-carbon railway ecosystem, Cindy Cisneros-Tiangco, Director, Emerging Areas, Energy Sector Office, Asian Development Bank (ADB), said at the presentation and workshop of the joint decarbonization project of Azerbaijan Railways CJSC, Report informs.
According to her, the global railway sector is entering a new era defined by electrification, digitalization, and profound changes in energy production and consumption.
"From Japan and China to Australia and Europe, global leaders are building smart, low-carbon railway ecosystems. Azerbaijan has a unique opportunity not only to join this process but also to participate in shaping its future," Tiangco emphasized.
She noted that ADB's technical assistance to Azerbaijan Railways is unique in that it combines innovations in both engineering and finance.
"In the engineering section, we will explore integrated solutions: renewable energy sources, battery storage, smart microgrids, regenerative braking, and even carbon sequestration. Their systematic implementation will reduce fossil fuel use, decrease dependence on grid electricity, lower the carbon footprint, and, in the long term, reduce Azerbaijan Railways' energy costs," she explained.
According to Tiangco, financial instruments are equally important, becoming a key driver of deep decarbonization. These include carbon monetization, green financing, public-private partnerships (PPPs) in renewable energy, strategic logistics partnerships for shifting freight from road to rail, and modern energy systems as ready-made investment solutions.
"Long-term electricity purchase and sale agreements will help attract private investment, and performance-based leasing mechanisms will make the implementation of advanced technologies more accessible. These instruments are not add-ons, but catalysts that accelerate Azerbaijan Railways' progress while maintaining a manageable fiscal burden," the ADB representative emphasized.
She also noted that modern technological solutions-from battery systems and microgrids to smart substations-only yield maximum impact when supported by strong institutional and managerial competencies.
"That's why this technical assistance places a special emphasis on developing the technical, operational, and managerial skills of the Azerbaijan Railways, which are necessary for the operation of a modern, low-carbon railway for decades to come. We view this program as an important stage of a long-term partnership," she added.