State support opens up new opportunities for green economy in Azerbaijan, ecology minister says

New opportunities for realizing the existing potential in the development of the green economy with the state support are opening up in Azerbaijan, the COP29 President-Designate, Minister of Ecology and Natural Resources Mukhtar Babayev said at the conference themed "The Role of Small and Medium Businesses in the Green Economy," organized by the Small and Medium Business Development Agency (SMBDA) with the support of the Ministry of Ecology and Natural Resources, according to Report.

Babayev emphasized the government's commitment to fostering a greener future.

"The steps taken by the state in the field of 'green energy' provide a long-term perspective for the private sector and investors, and give impetus to the development of new projects," Babayev stated.

He stressed the necessity of increasing the number of ecological projects in both the public and private sectors.

"Small and medium-sized businesses (SMEs) should be encouraged to create sustainable infrastructure and utilize ‘green technologies,’ contributing to both economic growth and ecological efficiency," the minister said.

“To overcome the financial difficulties faced by SMEs in this transition, it is crucial to expand their access to preferential financial resources. According to UN estimates, trillions of US dollars are required annually for the global transition to a low-carbon economy. It is necessary to facilitate SMEs' investment in ecological and sustainable projects through green loans, green bonds, and financial instruments related to Environmental, Social, and Governance," Babayev added.

The minister emphasized that the application of the green and sustainable development concept and social responsibility should form the fundamental principles of management in every company: "Banks and other financial institutions should also fulfill their corporate social responsibility mission. As in international practice, commercial banks should consider ecological and climate factors alongside economic factors when conducting their activities and granting loans."

"Furthermore, the budget labeling approach is applied in the process of forming the state budget in international practice. This tool enables ensuring the compliance of state expenditures with ecological goals and controlling the more efficient and sustainable use of resources. Considering ecological indicators when allocating financial resources has already become a necessity. In this regard, it is crucial for commercial banks to prioritize companies that apply environmental, social, and corporate governance principles and support ecologically sustainable projects," Babayev said.