IFC reveals climate financing volume for Azerbaijan

The International Finance Corporation (IFC) plans to direct $60 million towards climate financing in Azerbaijan through financial intermediaries by 2029, the World Bank told Report.

The World Bank Group will support the development of a climate-resilient and clean urban ecosystem through the multiphase Green and Resilient Cities Program with engagement on.

The program includes the development of green and sustainable urban infrastructure, improvement of public spaces including cleaning of areas contaminated with oil products, as well as construction of residential areas and public buildings resistant to natural disasters and climate change.

Additionally, modernization of water supply and sewerage systems, implementation of solutions for clean, accessible and smart city mobility are planned.

In particular, the World Bank will support the development of competitive and sustainable agriculture, including irrigation. In particular, the implementation of climate-resistant agro-technologies, adaptation measures, and incentives for efficient use of water resources is planned.

IFC will seek opportunities to finance climate projects in the private sector, including supporting farmers, agribusiness, and energy-efficient housing construction through public-private partnership mechanisms. Special attention will be paid to reducing greenhouse gas emissions through improved public transport.

The World Bank is also exploring opportunities for analytical and investment support in water security and adaptation, including advisory assistance to the Azerbaijan State Water Resources Agency (ASWRA) on implementing the national water strategy. Additionally, measures to attract private financing for public-private partnership projects in water supply and wastewater treatment are being considered.

Furthermore, the Multilateral Investment Guarantee Agency (MIGA) plans to use the World Bank's Guarantee platform tools to support climate change adaptation initiatives.

Another direction of the World Bank's activity will be related to improving the environmentally sustainable management of the Caspian Sea basin, as well as analyzing additional analytical and investment support opportunities.

The achieved results will be evaluated based on indicators such as improved accessibility of sustainable housing and public buildings, development of green and sustainable urban infrastructure, increased efficiency of water supply and sanitation systems, as well as increased productivity and expansion of agricultural areas with modernized irrigation and drainage systems.