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Nazrin Abdul

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As global awareness of climate change intensifies, the role of nations in combating this pressing issue has become increasingly critical. At the international conference on "Climate Changes and Just Transition: The Role and Activity of Trade Unions," held in Baku today, the deputy director of the Eastern Europe and Central Asia office of the International Labor Organization (ILO), Mikhail Pushkin, noted that there is a delay in the implementation of the Paris Agreement.

According to him, it is necessary to withstand climate changes: "No country can overcome the current problems alone."

Azerbaijani officials have repeatedly emphasized that the main focus of the COP, which will be held in the country this year, will be on climate finance. Increasing climate finance, providing financial support to developing countries, and ensuring more efficient use of resources will be among the main topics of discussion at COP29. Reaching an agreement on these issues can create important solutions for the world. It should not be forgotten that climate problems are a globally important issue, and solving such problems requires the unity of the countries of the world. In this sense, we can say that the whole world will unite in Azerbaijan in November of this year to address this global challenge.

One of the key initiatives on the COP29 agenda is the creation of the Climate Finance Action Fund

The Minister of Economy of Azerbaijan, Mikayil Jabbarov, recently stated at the international conference on carbon assessment, held in Baku and organized by the Intra-European Organization of Tax Administrations (IOTA) and the State Tax Service, that one of the main initiatives on the agenda of COP29 is the creation of the Action Fund for Climate Finance.

The Minister noted that this Fund could play an important role in addressing existing gaps in climate finance.

"The capital of the Fund is supposed to be provided mainly by countries producing fossil fuels, as well as by companies engaged in oil, gas, and coal production. The main goal of the Fund is to invest in climate action in developing countries, as well as in small island countries, and to increase the contributions of countries with fossil fuel resources and enterprises operating in this sector to the 'green transition,' " the Minister added.

It should be recalled that on July 19 of this year, Azerbaijan announced the creation of the Climate Finance Action Fund (IMFF) to invest in climate action in developing countries. The IMFF aims to be a catalyst fund for public-private partnerships to mobilize the private sector and reduce investment risks. Additionally, the Fund will have special technical capacity to provide concessional and grant-based support to rapidly overcome the consequences of natural disasters in developing countries in need of assistance.

The IMFF will guarantee contracts for the purchase of future products from small and medium producers operating in the field of renewable energy, as well as provide compensation for the initial capital loss for "green" industrial projects. The Fund will also prioritize the food and agriculture sector to protect the basic livelihoods of the population and achieve "net zero" emissions. The proceeds from these projects will be reinvested in the Fund.

The Fund will be launched after raising initial funds of USD 1 billion and securing the participation of 10 shareholder countries as donors.

It should be noted that 50 percent of the Fund's capital will be directed to climate projects in developing countries that require support in terms of mitigation, adaptation, and scientific research. These measures will promote the application of environmentally clean energy technologies, increase energy efficiency, strengthen the climate resilience of vulnerable populations, and create conditions for the development of advanced technologies.

The remaining funds will be allocated to the development by members of a new generation of Nationally Determined Contributions to achieve the 1.5°C target. Azerbaijan is determined to be an exemplary country in this field and is working on presenting a Nationally Determined Contribution document aligned with the 1.5°C goal.

Azerbaijan's strategic initiatives to meet the 1.5-degree climate target

The 1.5-degree target is one of the main objectives of the Paris Agreement. This target aims to limit the global temperature increase to 1.5 degrees Celsius compared to pre-industrial levels. Exceeding this threshold could lead to irreversible changes in climate systems, negatively affecting ecosystems, economies, and human health worldwide. According to reports from the Intergovernmental Panel on Climate Change (IPCC), surpassing the 1.5-degree mark may result in more frequent large-scale disasters.

One universal approach to achieving this goal involves the development of renewable energy sources.

Azerbaijan is undertaking large-scale measures to promote the use of renewable energy. The goal is to increase the share of "green energy" in electricity production in a country rich in hydrocarbon resources. Overall, Azerbaijan has significant potential for transitioning to green energy and utilizing alternative energy sources.

To this end, solar, wind, and hydropower projects are being implemented in Azerbaijan. The country's renewable energy potential is estimated at 27,000 MW, with 23,000 MW from solar energy and 3,000 MW from wind energy. Solar energy production can be organized across almost the entire territory of the country, while the capital city, Baku, and the Absheron and Khizi regions are particularly favorable for wind energy. By the end of 2027, it is planned to commission nine solar and wind power plants, with a total energy capacity of 2 gigawatts. Additionally, by 2030, ten more wind and solar power plants will be constructed, contributing up to 5 gigawatts of potential energy.

As part of its "green energy" strategy, Azerbaijan aims to increase the share of renewable energy in the energy sector to 30% by 2030. The country also possesses significant potential in offshore wind energy. These projects will enhance local energy supply and make a substantial contribution to the global fight against climate change.

Azerbaijan’s inclusion in the Coalition of Finance Ministers bolsters efforts against climate change

The Ministry of Finance of the Republic of Azerbaijan has been accepted as a full member of the Coalition of Finance Ministers for Climate Action.

The Coalition, which includes finance ministers from 92 countries, has institutional partnerships with 26 international organizations that play key technical and advisory roles in supporting finance ministers' efforts to develop and implement climate change policies.

It should be noted that in April 2024, Azerbaijan participated in the 11th meeting of the Coalition of Finance Ministers for Climate Action, where discussions focused on the financing needs required for implementing Azerbaijan's Nationally Determined Contributions (commitments made by countries to reduce greenhouse gases).

The Coalition is a group created to enhance the role of finance ministries in addressing climate change. Established in 2019, it aims to integrate climate considerations into fiscal policies, budget processes, and economic planning. The Coalition promotes cooperation among member countries to mobilize finance for climate action, encourage sustainable investment, and implement effective climate policies. It seeks to ensure that financial systems support the transition to low-carbon economies while addressing the impacts of climate change. Members share best practices, develop tools, and advocate for climate finance initiatives globally.

In conclusion, Azerbaijan's strategic initiatives reflect a robust commitment to addressing climate change and promoting a just transition to renewable energy. By focusing on enhancing climate finance, investing in sustainable energy projects, and collaborating within international frameworks, the country aims to meet the ambitious 1.5-degree target outlined in the Paris Agreement. As the global community gathers for COP29, Azerbaijan's efforts serve as a testament to the importance of unity and collective action in tackling one of the greatest challenges of our time. Through its leadership and innovation, Azerbaijan not only seeks to improve its own energy landscape but also to inspire global cooperation in the fight against climate change.

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Nazrin Abdul is AzerNews’ staff journalist, follow her on Twitter: Nazrin

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