ADB: Decarbonization strategies to help public sector support Azerbaijan’s transition to sustainable economy

Adopting environmental, social, and governance standards and preparing decarbonization strategies and road maps can enable state-owned enterprises (SOEs) to advance Azerbaijan’s transition to a more sustainable and competitive economy, Report informs referring to the Asian Development Bank (ADB).

"SOEs play a significant role in Azerbaijan’s economy, particularly in the hydrocarbon sector. Large SOEs and the oil and gas industries have constrained private sector growth outside the hydrocarbon economy and the integration of private firms into global value chains. To address these challenges, it is essential to support SOE reforms that improve their governance, management, and corporatization and enable them to diversify, become competitive, and access finance without sovereign guarantees," the bank noted.

"To support private firms, enhancing the capacity of local financial institutions to provide innovative financial tools and project finance is important for improving access to finance, particularly for small and medium-sized enterprises. Also needed is support that creates ecosystems for innovation through collaboration among SOEs, startup firms, industry, and research institutes."